The Government of Japan will provide 165.32 billion Japanese yen ($1.27 billion) funds to Bangladesh under its 43rd ODA Loan Package to help implement infrastructure projects.
The two governments signed "Exchange of Notes" and "Loan Agreements" for the funds meant for three projects at a function at the Economic Relations Division (ERD) on Wednesday.
The money will be utilised for the second tranche of Matarbari Port Development Project, Chattogram-Cox's Bazar Highway Improvement Project and Project for the Construction of Dual Gauge Double Line Between Joydebpur-Ishwardi Section (Engineering Service).
ERD Secretary Sharifa Khan signed the “Exchange of Notes” and the “Loan Agreements” on behalf of the government of Bangladesh.
Ambassador of Japan in Bangladesh IWAMA Kiminori signed the “Exchange of Notes” and Japan International Cooperation Agency (JICA) Chief Representative in Dhaka ICHIGUCHI Tomohide signed the “Loan Agreements” on behalf of the government of Japan.
Rate of interest of this loan will be 1.20 percent for construction, 0.01 percent for consultancy services, Front End Fee (at a time) 0.2 percent, and repayment period will be 30 years which includes 10 years grace period.
The projects which are going to be implemented by these financial agreements include Matarbari Port Development Project (II).
The objective of the project is to construct a new commercial port at Matarbari area in Chattogram Division. JICA provides loan assistance in different tranches.
Earlier, JICA provided 2.66 billion yen ($20 million) for engineering services and 38,866 million yen ($299 million) in the first tranche.
The total loan amount for this second tranche is 105.36 billion yen ($ 811 million).
Chittagong Port Authority under the Ministry of Shipping and Roads and Highways Department under Road Transport and Highways Division are implementing the project. Project implementation period is from January 2020 to December 2026.
Chattogram-Cox's Bazar Highway Improvement Project (I)
Main scope of the project is to construct flyover and outer roads at major congested sections of Chattogram and Cox's Bazar highway. JICA provides loan assistance in different tranches.
Earlier, JICA provided 1.9 billion yen ($14.68 million) for engineering services.
The total loan amount for this first tranche is 55.73 billion yen ($429 million). The Roads and Highways Department under the Road Transport and Highways Division will implement the project. Project implementation period will be 2023-2028.
Another project is the Construction of Dual Gauge Double Line Between Joydebpur-Ishwardi Section (Engineering Service). The objective is to enhance railway capacity by double tracking of the existing rail between Joydebpur-Ishwardi, thereby contributing to improve the connectivity.
The total loan amount for this engineering service project is 4.23 billion yen ($32.56 million).
Bangladesh Railway under the Ministry of Railways will implement the project during the 2023-2025 period.
Japan has continued to provide support for the economic development of Bangladesh since its independence. Japan is the single largest bilateral development partner providing financial support for the socio-economic development of Bangladesh.
The ODA commitment has exceeded $28.84 billion and disbursements to $19.73 billion.
Japanese loans and grants are being utilised in a wide range of areas including power, roads, bridges, telecommunication, agriculture, health, education, water supply and sanitation, rural development, environment, human resource development etc.
The Japanese assistance contributed significantly in overall development of the country, said the people concerned.
