Japan will provide US $575 million to improve food safety inspection capacity in major cities including Dhaka by developing infrastructure that will enable the inspections based on sufficient scientific evidence.

An agreement to this effect was signed in Dhaka on Tuesday Ambassador of Japan to Bangladesh SAIDA Shinichi and Secretary of the Economic Relations Division Md. Shahriar Kader Siddiky.

They signed the Exchange of Notes for the second batch of the 45th Official Development Assistance (ODA) Yen Loan of Japan to Bangladesh, said a press release of the Embassy of Japan.

Based on this agreement between the two counties, ICHIGUCHI Tomohide, Chief Representative of JICA Bangladesh Office and Shariar Siddiky also signed a relevant Loan Agreement.

The agreement includes two significant projects.

One is the Food Safety Testing Capacity Development Project, supported by a 28,699 million yen loan.

The project aims to improve food safety inspection capacity in major cities including Dhaka by developing infrastructure that will enable the inspections based on sufficient scientific evidence.

This will contribute to the promotion of the food processing industry, industrial diversification, and prevention of diseases caused by unsafe food.

The other is the Matarbari Ultra Super Critical Coal Fired Power Project (VIII), with a 57,120 million yen loan, to construct a high-efficiency ultra-supercritical pressure coal-fired power plant to meet the rapidly growing demand for electricity in Bangladesh.

The project will contribute to the overall economic revitalization of Bangladesh by expanding supply capacity and diversifying energy sources in the country.

Speaking on the occasion, Ambassador SAIDA Shinichi emphasised the importance of this signing for these projects as a demonstration of Japan’s commitment to continuing existing projects and launching new initiatives to support Bangladesh’s future economic development.

He noted that this Exchange of Notes reflects Japan’s steadfast partnership with Bangladesh to chart a pathway towards stable development and reaffirms Japan’s unwavering dedication to collaborating closely with the interim government to address its development needs.

The 45th Exchange of Notes covers the following projects: (Food Safety Testing Capacity Development Project (loan amount: 28,699 million yen);

Interest Rate of the loan is 1.85 % per annum. The part concerning payments to consultants: 0.55% per annum. Repayment Period is 20 years after the grace period of ten 10 years.

The Matarbari Ultra Super Critical Coal Fired Power Project (VIII) (loan amount: 57,120 million yen)  and the interest Rate is 1.95 % per annum (The part concerning payments to consultants: 0.55% per annum)

And the repayment Period is 20 years after the grace period of 10 years.