South Korea has decided to provide US$ 700 million Economic Development Cooperation Fund ( EDCF) loan to Bangladesh between 2021 and 2025.
The two governments have been discussing this plan since last year and, upon the completion of necessary domestic procedures, will sign a Framework Agreement which contains detailed conditions and the list of potential projects to be considered.
This decision was shared by Korean Ambassador to Bangladesh Lee Jang-keun with Fatima Yasmin, Secretary of Economic Relations Division of the Ministry of Finance, at the ODA projects review meeting between the Embassy and ERD held virtually on Tuesday.
At the meeting, the Korean Embassy and ERD reviewed a number of other ongoing and new development assistance projects between the two governments, including those under implementation through KOICA.
Bangladesh is a priority development partner of South Korea and the second largest recipient of Korea’s EDCF loan, according to Korean Embassy in Dhaka.
South Korea has provided US$ 1.24 billion USD EDCF loan and 172 million in grants through KOICA since 1991 in various sectors, including public administration, vocational training and education, transport, ICTbased communication, public administration, water management, and public health.
At the meeting, the Embassy also introduced Knowledge Sharing Program(KSP), a platform for development cooperation, aiming to share knowledge with development partner countries and develop a solid foundation for the expansion of economic and political cooperation.
The Embassy recommended the ERD to consider ways to improve the efficiency of development cooperation, including the facilitation of customs clearance and tax exemption on grant equipment and items in accordance with the Framework Agreement for grant aid between the two governments.
The meeting was also attended by ERD officials, Korea EXIM Bank Bangladesh Office, KOICA Bangladesh Office, and KSP manager of Korea Development Institute.