Bangladesh signs deal for $3.2b loan from Japan
August 13th, 2020 at 2:01 am
Bangladesh signs deal for $3.2b loan from Japan

Staff Correspondent ;

Dhaka – Bangladesh will get the largest 3.2 billion Official Development Assistance from Japan as the two countries have signed Exchange of Notes for Japan’s support, an official announcement said on Wednesday.

Japanese Ambassador to Bangladesh ITO Naoki and Bangladesh’s Economic Relations Division Secretary Fatima Yasmin signed the notes of the Japan’s 41th ODA scheme to Bangladesh.

This year’s loan package comprises assistance of seven projects amounting to JPY 338.247 billion (approx. USD 3.2 billion), the largest ever loan package since its inception in 1974, according to a press statement.

HAYAKAWA Yuho, Chief Representative of JICA Bangladesh and Fatima Yasmin signed a relevant loan agreement in Dhaka under the scheme.

Japan has been the single largest bilateral donor for Bangladesh since 2012, and the total amount of its aid as JPY Loan has reached USD 22 billion based on commitment.

The following projects will be covered under the latest agreement:  Jamuna Railway Bridge Construction Project (II) (loan amount: 89.016 billion JPY), Hazrat Shahjalal International Airport Expansion Project (II) (loan amount: 80 billion JPY), Dhaka Mass Rapid Transit Development Project (IV) (loan amount: 72.194 billion yen), Dhaka Mass Rapid Transit Development Project (Line 5 Northern Route) (I) (loan amount: 55.696 billion JPY), Chattogram-Cox’s Bazar Highway Improvement Project (E/S) (loan amount: 1.906 billion JPY), Food Value Chain Improvement Project (loan amount: 11.218 billion JPY), Urban Development and City Governance Project (loan amount: 28.217 billion yen).

The Interest Rate is 0.65 percent per annum (The part concerning payments to consultants: 0.01% per annum) while the repayment period is twenty years after the grace period of ten years.

Japan has provided approx. USD 13 million as the emergency support to tackle COVID-19 in Bangladesh through international organizations, as well as provided PPE to hospitals through JICA.

Additionally, on 16th July Japan and Bangladesh signed the Exchange of Notes on Japanese Grant aid “Economic and Social Development Programme”(approx. USD 10 million) for the medical equipment including CT Scanner, X-ray Machine. These aids focused on the medical and health sectors currently combating the novel coronavirus, according to a press release.