Japan to lend $2.66b to support 3 projects

Japan will provide $2.66 billion for two development projects and another Covid-19 crisis response project under the exchange of notes and loan agreements.

Economic Relations Division (ERD) Secretary Fatima Yasmin and Japanese Ambassador to Bangladesh ITO Naoki signed the loan agreement in Dhaka, said ERD in a statement on Monday.

Finance Minister AHM Mustafa Kamal virtually joined the loan agreement signing ceremony.

The two development projects are Matarbari Ultra Super Critical Coal-Fired Power Plant and Dhaka Mass Rapid Transit Development Project (Line 1). And another project is COVID-19 Crisis Response Emergency Support Loan Phase 2.

Matarbari Ultra Super Critical Coal-Fired Power Project

This project is being implemented to meet growing electricity demand and to improve stable power supply by installing 1200 MW (600MWx2 units) Ultra Super Critical Coal-Fired Power Plant at Matarbari Area of Maheskhali Upazila under Cox’s Bazar district, according to the statement.

Power transmission line, access road, township development, the channel for Matarbari Port works is also going on under this project. The total cost of the project is Tk 35984.46 crore, which includes Tk 4926.66 crore from the government, Tk 28939.03 crore from JICA and Tk 2118.77 crore from Coal Power Generation Company Bangladesh Limited. The project will be implemented from July 2014 to June 2023. Up to October 2021, the physical progress of the project is 49 per cent and financial progress is 51 per cent.

Dhaka Mass Rapid Transit Development Project (Line 1)

As many as 31.241 km long MRT Line-1 has two routes: Airport Route (Airport to Kamlapur) and (b) Purbachal Route (Notun Bazar to Pitalganj). The 19.872 Kilometres long underground Airport Route will have 12 Stations.

This portion will be the first underground rail route of the country. The Notun Bazar Station will have an inter-connection with the MRT Line-5.

The 11.369 kilometer-long Purbachal Route of MRT Line-1 will have 9 stations. The detailed study, survey, and basic design have been completed for both routes. Now detailed design is going on.

The total cost of the project has been estimated at Tk 52,561.43 crore. Of the cost, the government will provide Tk 13,111.11 crore and JICA Tk 39,450.32 crore.

The implementation period is September 2019 to December 2026. JICA is providing assistance in different phases to implement the project.

Covid-19 Crisis Response Emergency Support Loan Phase 2

The objectives of the programme are to realise a resilient health system through concessional financing by supporting the smooth implementation of the policies to strengthen COVID-19 response capacity in the health sector, to enhance economic and physical access to health services towards the achievement of Universal Health Coverage and to improve health finance thereby contributing to promoting the economic stabilization and development efforts of the country.

Bangladesh is going to get such budget support of $365 million. Finance Division is the executing agency for budget support and the Ministry of Health and Family Welfare will implement policy actions under the loan.

Earlier Japan has provided $320 million as budgetary support in 2020 to support Bangladesh’s countercyclical expenditure plan to combat the impact of the Covid-19 pandemic.