Japan has agreed to provide Bangladesh with a loan of $248.8 million (approximately Tk 2,974 crore at Tk 119.50 per dollar) under the first batch of its 45th Official Development Assistance loan package.
The funding will support the Jamuna Railway Bridge Construction Project and the Chittagong Sewerage System Development Project.
The exchange note and loan agreement were signed on Monday (November 25) at the NEC-2 meeting room of the Economic Relations Department (ERD).
Md Shahriar Quader Siddiqui, ERD Secretary, signed the agreements on behalf of the Bangladesh government. Japanese Ambassador to Bangladesh Iwama Kiminori signed the exchange note, and JICA Bangladesh Chief Representative Iguchi Tomohidi signed the loan agreement for Japan.
The Jamuna Railway Bridge Construction Project is estimated to cost Tk 16,780 crore, with JICA providing a loan of Tk 12,149 crore. The project, funded in phases by the Japanese government, spans from July 2016 to December 2025. The loan terms include an interest rate of 1.70% for construction, 0.40% for consultancy, and a one-time fee of 0.20%. The repayment period is 30 years, including a 10-year grace period. Additionally, China will contribute $237 million during the third phase of the project.
The Chittagong Sewerage System Development Project has an estimated cost of Tk 5,152.56 crore, with JICA contributing Tk 4,144 crore. Scheduled for implementation between January 2025 and November 2032, this project aims to establish an efficient sewage disposal system in Chittagong, enhancing public health and conserving aquatic ecosystems. The project includes facilities such as sewage treatment plants, pumping stations, and pipelines. JICA has committed $130 million for engineering services, with a 0.20% interest rate, a one-time fee of 0.20%, and a repayment period of 30 years, including a 10-year grace period.
Japan is Bangladesh's largest bilateral development partner, providing significant assistance across various sectors since independence. To date, Japan has pledged $32.37 billion in loans and grants for projects in infrastructure, energy, agriculture, education, health, rural development, and more, aligning with Bangladesh's development priorities.
These new agreements further cement the partnership between the two nations and demonstrate Japan's commitment to supporting Bangladesh's socio-economic growth.