Japan will provide $1.8 billion or nearly Tk 15,326 crore to Bangladesh under its 39th official development assistance (ODA) loan package to help implement six large projects including the Jamuna Rail Bridge.
The projects also include Matarbari port development project, Dhaka Mass Rapid Transit Development Project (Line 5), Dhaka Mass Rapid Transit Development Project (Line 6), Matarbari Ultra-supercritical Coal-fired Power Project, Matarbari Ultra-supercritical Coal-fired Power Project and the Health Services Strengthening Project.Japanese Ambassador in Dhaka Hiroyasu Izumi and Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam signed the exchange of notes for the loan package.
The loan agreements were signed by the ERD Secretary and Takatoshi Nishikata, chief representative of Japan International Cooperation Agency (JICA) Bangladesh office.
Of the total amount, Japan will provide around Tk 203 crore for Matarbari Port Development Project; Tk 2,846 crore for Jamuna Railway Bridge Construction Project; Tk 562 crore for Dhaka Mass Rapid Transit Development Project (Line 5); Tk 6,063 crore for Dhaka Mass Rapid Transit Development Project; Tk 5,148 crore for Matarbari Ultra-supercritical Coal-fired Power Project; and Tk 501 crore for the Health Services Strengthening Project.
The Japanese loan carries a one percent interest rate per annum for construction, 0.9 percent for health services project and 0.01 percent for engineering services. The front-end fee is 0.2 percent. The repayment period is 30 years including a grace period of 10 years.
The objective of the Matarbari Port Development Project is to construct a new commercial port at Matarbari in Cox’s Bazar. JICA will provide 75 percent of the total project cost, according to ERD officials.
The objective of the Jamuna Railway Bridge Construction project is to construct a dedicated railway bridge over the River Jamuna in parallel with the existing Bangabandhu Bridge.Approved by ECNEC on December 6, 2016, the project will be implemented by December 2022. Of the total project cost of Tk 9,734.07 crore, JICA will provide Taka 7,724.33 crore or 79 percent of the total project cost. The objective of the Dhaka Mass Rapid Transit Development Project (Line 5) is to reduce the traffic congestion and air pollution in the capital by constructing some 20- kilometre mass rapid transit system under MRT Line 5 covering Hemayetpur-Aminbazar-Gabtoli-Mirpur 1-Mirpur 10-Kochukhet-Cantonment-Banani-Gulshan 2-Notun Bazar-Vatara by 2030.