Japan to provide $1.27b for 3 projects

Japan will provide 1,65,319 million Japanese yen, or approximately $1.27 billion, for implementing three key projects in Bangladesh.

Out of the total amount, 105,362 million Japanese yen or $811 million will be provided for the 2nd tranche of Matarbari Port Development Project (II), 55,729 million Japanese yen or $429 million for the 1st tranche of Chattogram-Cox’s Bazar Highway Improvement Project (I), and 4228 million Japanese yen or $32.56 million for the Project for Construction of dual gauge double line between Joydebpur-Ishwardi section.

In this regard, “Exchange of Notes” and “Loan Agreements” for the three projects were signed between Bangladesh and Japan at the NEC-2 conference room in the capital’s Sher-e-Bangla Nagar area on Wednesday, read a press release.

Economic Relations Division (ERD) Secretary Sharifa Khan signed the “Exchange of Notes” and “Loan Agreements” for Bangladesh. Ambassador of Japan to Bangladesh IWAMA Kiminori signed the “Exchange of Notes,” while JICA Bangladesh Office Chief Representative ICHIGUCHI Tomohide signed the “Loan Agreements”.

The rate of interest of this loan will be 1.20 per cent for construction, 0.01 per cent for consultancy service, and Front End Fee (at a time) 0.2 per cent. The repayment period will be 30 years, which includes 10 years of grace period.

Since independence, the Japanese ODA commitments to Bangladesh have exceeded $28.84 billion while the disbursement to $19.73 billion.