Deputy Minister of Economy and Finance Bang Gi-seon Signs MOU on Subway Project with Bangladesh

On the 4th, Bang Ki-seon, Deputy Minister of Economy and Finance, met with Sharifa Khan, Deputy Finance Secretary of Bangladesh, at the ADB Annual Meeting

Bang Ki-seon, First Vice Minister of Strategy and Finance, held a bilateral meeting with the Deputy Finance Minister of Bangladesh on the 4th and signed a Memorandum of Understanding (MOU) for the Dhaka Metro project.

On the same day, Vice Minister Bang met with Sharifa Khan, Deputy Finance Minister of Bangladesh, at the Asian Development Bank (ADB) Annual Meeting held in Songdo, Incheon, and signed a Framework Arrangement (F/A) for the Economic Development Cooperation Fund (EDCF) and a Memorandum of Understanding (MOU) on cooperation for the construction of Dhaka Metro (MRT) Line 4 in Bangladesh.

The Economic Development Cooperation Fund is a fund lent by the Korean government to developing countries on a long-term and low-interest basis to support their economic and industrial development. The Framework Arrangement (F/A) is an intergovernmental agreement that sets the period, limit, and conditions of such loan support in advance.

With the signing of this Framework Arrangement, the loan support limit of the Economic Development Cooperation Fund (EDCF) to the Bangladeshi government will increase to USD 3 billion (approximately KRW 3.975 trillion) for the period 2023?2027. This is more than four times the existing amount (USD 700 million, approximately KRW 927.5 billion, 2021?2025) and reflects the successful track record of EDCF projects in Bangladesh. Deputy Prime Minister Chu forecasted that once the ongoing USD 4 billion Framework Arrangement for the EDCF is signed, it will contribute to expanding economic cooperation between the two countries.

Additionally, both sides signed a Memorandum of Understanding (MOU) expressing Korea’s intention to participate in the construction project of Metro Line 4 in Dhaka, the capital of Bangladesh. The project is planned to be promoted through blended finance utilizing the Economic Development Cooperation Fund (EDCF) and the Economic Development Promotion Fund (EDPF). The EDPF is a financial support tool whereby the Export-Import Bank of Korea raises funds from the market and provides loans to developing country governments at interest rates lower than market rates. The EDCF-supported portion grants bidding eligibility to Korean companies.

The Ministry of Strategy and Finance stated, "The signing of the Memorandum of Understanding (MOU) signifies Korea’s preemption of this project and confirmation of orders for our companies. In addition to the direct export effects, it is expected to have indirect export promotion effects by being utilized as a performance record of participating companies in future projects, thereby contributing to winning follow-up projects."

This content was produced with the assistance of AI translation services.