Japan will provide the highest amount of nearly US$1.50 billion soft loans to Bangladesh's six projects in energy, infrastructure and disaster management sectors as it confirmed the credit Wednesday.
The Economic Relations Division (ERD) and Japan signed the 37th Official Development Assistance (ODA) deal worth $1.50 billion (173.54 billion Japanese Yen) in Dhaka Wednesday.
ERD Additional Secretary Kazi Shofiqul Azam and Japan International Cooperation Agency (JICA) Chief Representative in Bangladesh Mikio Hataeda signed the loan agreement on behalf of their respective sides.
State Minister for Finance and Planning MA Mannan, Japanese Ambassador in Bangladesh Masato Watanabe and high officials of the project implementing government bodies were present at the loan deal-signing function.
In December 2015, the JICA signed the 36th ODA package where it confirmed to provide $1.2 billion concessional loan for six projects in Bangladesh.
Under the newly confirmed 37th ODA package, the government would start construction of Jamuna Railway Bridge, Metro Rail in Dhaka, Matarbari coal-fired power plant, improve cross-border road network, ensure energy efficiency and conservation promotion financing, and enhance disaster risk management.
The JICA will provide US$24 million (JPY 2.464 billion) for Jamuna Railway Bridge Construction project (engineering works), $279 million (JPY 28.698 billion) for Cross-border Network Improvement project, $736 million (JPY 75.57 billion) for Dhaka Mass Rapid Transit Development project, $368 million (JPY37.82 billion) for Matarbari Ultra Super Critical Coal-fired Power project, $116 million (JPY11.988 billion) and $165 million (JPY16.966 billion) for Disaster Risk Management project.
On June 16 in 2013, the government signed $1.18 billion 35th ODA loan package to implement five development projects. Japan is the largest bilateral donor in Bangladesh.
The rate of interest for the Japanese ODA loan package is 0.01 per cent per annum which is payable in 40 years, including 10 years' grace period.
Japanese Ambassador in Bangladesh Mr Watanabe said currently 240 Japanese companies are working in Bangladesh.
source: the financial express
