Bangladesh and Japan have signed the ‘Exchange of Notes’ and ‘Loan Agreements’ for two major initiatives under the 45th Japanese Official Development Assistance (ODA) Loan Package (1st Batch).
These include the Jamuna Railway Bridge Construction Project (3rd Tranche) and the Chattogram Sewerage System Development Project (Engineering Service).
The agreements were signed by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), Ministry of Finance, on behalf of Bangladesh. His Excellency IWAMA Kiminori, Japan’s Ambassador to Bangladesh, and ICHIGUCHI Tomohide, Chief Representative of JICA Bangladesh, represented Japan at the signing ceremony held at the NEC-2 Conference Room of the ERD in Dhaka.
Jamuna Railway Bridge Construction Project (3rd Tranche)
The Jamuna Railway Bridge Construction Project has a total estimated cost of Tk 16,780.96 crore (approximately US$1.3 billion), with the Government of Bangladesh contributing Tk 4,631.76 crore and JICA providing Tk 12,149.20 crore. Under the third tranche of funding, Japan will contribute 38,206 million Japanese Yen (approximately $237.68 million).
The loan terms include an interest rate of 1.70% for construction and 0.40% for consultancy services, with a repayment period of 30 years, including a 10-year grace period.
Chattogram Sewerage System Development Project (Engineering Service)
The Chattogram Sewerage System Development Project is designed to upgrade Chattogram City’s sewerage infrastructure, aiming to improve sanitary conditions and safeguard the aquatic environment. The project’s total cost is Tk 5,152.56 crore (approximately $2.7 billion), with JICA contributing Tk 4,144.28 crore.
For the engineering services, Japan will provide a loan of 1,696 million Japanese Yen (approximately $11.2 million). The loan carries a minimal interest rate of 0.20% and a repayment period of 30 years, including a 10-year grace period.
Japan’s Ongoing Support
Japan continues to be Bangladesh’s largest bilateral development partner, with a cumulative ODA commitment of $32.37 billion to date. Japanese financial and technical assistance has been instrumental in advancing infrastructure, education, health, water supply, and rural development in Bangladesh.
These new agreements underscore the strong bilateral relationship and Japan’s commitment to supporting Bangladesh’s sustainable socio-economic progress.
