Bangladesh and the Japan International Cooperation Agency (JICA) on Tuesday signed a loan agreement worth ¥50 billion (approximately Tk 3,800 crore) to support reforms aimed at strengthening the country’s economic resilience and ensuring a stable energy supply.
The agreement for the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply” was signed in Dhaka by Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky and JICA Bangladesh Chief Representative Takahashi Junko, according to an official release.
An exchange of notes was also signed between Siddiky and Japanese Ambassador to Bangladesh Saida Shinichi on behalf of the two governments.
The funding will be provided as a development policy loan to support ongoing reforms in the energy sector and broader economic management at a time when Bangladesh is navigating mounting global and regional uncertainties.
The programme marks the first Official Development Assistance (ODA) loan under Japan’s Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), an initiative designed to address energy supply vulnerabilities and supply chain disruptions across the region.
Structured around two key pillars, the programme will focus on strengthening energy resilience and improving economic governance.
Under the energy component, the loan will support policy measures aimed at diversifying energy sources, enhancing efficiency and improving long-term power grid planning. Officials expect these measures to help stabilise energy supply through more efficient generation, stronger transmission systems and increased energy conservation efforts.
The second pillar focuses on reforms in economic management and governance and will be co-financed by the Asian Development Bank (ADB).
Officials said the initiative is expected to support macroeconomic stability, strengthen the resilience of the energy sector and improve the overall structure of the economy.
The assistance comes as Bangladesh continues to implement reform measures to sustain economic growth and manage external pressures amid an increasingly uncertain global environment.
The timely conclusion of the agreement before the end of the fiscal year highlights the depth of Bangladesh-Japan development cooperation and reaffirms JICA’s continued support for the country’s long-term development priorities.
Officials also expressed hope that the initiative would further strengthen bilateral ties while contributing to Bangladesh’s transition towards a more resilient and sustainable economy.