Japan to provide 165,989m Yen to Bangladesh for 3 projects

Japan will provide some 165,989 million Yen or approximately Taka 11,409.57 crore to Bangladesh for three projects.

Out of the total amount, Japan will provide 1,65,861 million Yen or approximately Taka 11,400 crore for two investment projects while another 128 million Yen or approximately Taka 9.57 crore as grant against a grant project.

In this regard, "Exchange of Notes" and "Loan Agreements" for two development projects under the 43rd ODA loan package (1st batch) and "Grant Agreement" for one project were signed today between the governments of Bangladesh and Japan, said a press release.

Outgoing Economic Relations Division (ERD) Secretary Fatima Yasmin signed all the agreements on behalf of Bangladesh while Japanese Ambassador to Dhaka Ito

Naoki signed the "Exchange of Notes" while Yuho Hayakawa, Chief Representative, JICA Bangladesh Office, Dhaka signed the "Loan Agreements" and "Grant Agreement" on behalf of Japan.

The signing ceremony was held virtually.

Out of the total amount, Japan will provide 1,65,861 million Yen (equivalent to Taka 11,400 crore or $1.4 billion) for the 2nd tranche of Dhaka Mass Rapid Transit Development Project (MRT Line 5, Northern Route) and Southern Chattogram Regional Development Project.

The rate of interest of this loan will be 0.70 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 with a grace period of 10 years.

Besides, Japan will provide 128 million Yen or around Taka 9.57 crore as grant against the project for Improvement of Meteorological Radar System in Dhaka and Rangpur.

Japan is the single largest bilateral development partner providing financial support for the socio-economic development of Bangladesh. Till May 2022, the ODA commitment has exceeded to $27.432 billion and disbursements to $17.96 billion, the release said.