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Dhaka Sunday,  Apr 14, 2024

Japan Signs Loan Agreement With Bangladesh

Matarbarhi Coal Fired Power Plant

EB Report

Japan has signed an agreement with Dhaka on releasing the largest ever soft loan for six mega projects which include power, road communications and disaster management.

Japan says this 37th Japanese Yen Loan Package signed on Wednesday is expected to provide “fresh momentum” for Bangladesh towards becoming a middle income country.

JICA Chief Representative in Bangladesh Mikio Hataeda and Additional Secretary for Economic Relations Division Kazi Shofiqul Azam signed the agreement amounting to 173.538 billion Japanese yen, which is $1.5 billion or Tk11,600.

Before the signing at the ERD, Japanese Ambassador in Dhaka Masato Watanabe signed the exchange of notes for the agreement with the Additional Secretary. State Minister for Finance MA Mannan witnessed those signing.

Ambassador Watanabe said this was the largest ever Japanese loan made available to Bangladesh.

The interest rate is only 0.01 percent with a repayment period of 40 years, including a grace period of 10 years.

The funds will be utilised on the Dhaka Mass Rapid Transit project, Jamuna Rail Bridge, Cross-Border Road Network, Matarbarhi Coal Fired Power Plant, Energy Efficiency and Conservation Promotion Financing, and Disaster Risk Management Enhancement project.

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