Japan has signed a $257 million loan deal with Bangladesh to advance infrastructure projects.
Japanese Ambassador to Bangladesh IWAMA Kiminori, and Economic Relations Division Secretary Md Shahriar Kader Siddiky signed the exchange of notes for the 45th Official Development Assistance (ODA) Yen Loan Package to Bangladesh on Monday (25 November).
The first installment of the loan package amounts to ¥39,902 crore (approximately $257 million).
Following the Exchange of Notes, ICHIGUCHI Tomohide, Chief Representative of JICA Bangladesh Office, and Siddiky formalised the agreement by signing the corresponding loan contracts.
This assistance encompasses two pivotal initiatives. The Chattogram Sewerage System Development Project (Engineering Service) has been allocated a ¥1,696 crore loan to address urban sanitation challenges, improve public health, and enhance environmental conditions in Chattogram.
The Jamuna Railway Bridge Construction Project (III), granted ¥38,206 crore, aims to boost transportation connectivity across the nation, fostering economic growth and regional integration. This marks the final phase of Japan's financial support for the Jamuna Railway Bridge, a transformative infrastructure endeavour.
Ambassador IWAMA Kiminori underscored the significance of this agreement as a testament to Japan's enduring partnership with Bangladesh, particularly during its current political transition under the interim government, inaugurated on 8 August 2024.
He reaffirmed Japan’s dedication to continuing existing projects and initiating new ones to bolster Bangladesh's sustainable development.
The agreement entails the following project details:
Chattogram Sewerage System Development Project (Engineering Service)
Loan Amount: ¥1,696 crore
Interest Rate: 0.2% per annum for consultancy payments
Repayment Period: 20 years, with a 10-year grace period
Jamuna Railway Bridge Construction Project (III)
Loan Amount: ¥38,206 crore
Interest Rate: 1.70% per annum (0.4% per annum for consultancy payments)
Repayment Period: 20 years, with a 10-year grace period
This marks the first Exchange of Notes signed between Japan and Bangladesh's interim government and highlights Japan's steadfast commitment to fostering long-term economic development and addressing Bangladesh's pressing infrastructure needs.
