DHAKA/ AGARTALA, June 30 (TIWN/IANS): Bangladesh on Tuesday signed an agreement with China to build a tunnel under the Karnaphuli river in Chittagong, a media report said on Tuesday.

The Bridges and Road Transport Ministry inked the deal with China Communications Construction Company (CCCC) in Beijing, ministry spokesperson Abu Naser, who is in China, told bdnews24.com.

Bridges Division Secretary Khandker Anwarul Islam signed the agreement, he said.

A memorandum of understanding (MoU) was signed between Bangladesh and China for the tunnel during Prime Minister Sheikh Hasina’s Beijing visit in June 2014.

The 3.5-km tunnel will cost 90 billion Bangladeshi taka (about $1 billion).

The tunnel would be connected to the proposed Asian Highway and to Chittagong-Cox's Bazar Highway.

The project is expected to be completed by December 2018.