Japan’s 36th ODA Loan Signed Today Largest ever package to help Bangladesh become a middle income country
Dhaka: 13 December 2015
On December 13, 2015, H.E. Mr. Masato Watanabe, Ambassador of Japan to Bangladesh and Mr. Mohammad Mejbahuddin, Senior Secretary, Economic Relations Division, Ministry of Finance, each representing their respective governments, have signed Exchange of Notes on the 36th Official Development Assistance (ODA) Loan Package of Japan to Bangladesh. This loan package comprises of assistance in 6 major projects amounting to JPY 133.265 billion (approximately BDT 8,660 crore or USD 1.11 billion), the largest ever loan package since its inception in 1974. Based on this agreement between the two counties, Mr. Mikio Hataeda, Chief Representative of JICA Bangladesh Office and Mr. Mohammad Mejbahuddin signed a relevant loan agreement.
The Exchange of Notes covers the following projects:
(1) Foreign Direct Investment Promotion Project (JPY 15.825 billion),
(2) Dhaka-Chittagong Main Power Grid Strengthening Project (JPY 43.769 billion),
(3) Western Bangladesh Bridge Improvement Project (JPY 29.340 billion),
(4) Maternal, Neonatal and Child Health (MNCH) and Health System Improvement Project (JPY 17.520 billion),
(5) Upazila Governance and Development Project (JPY 12.086 billion), and
(6) Urban Building Safety Project (JPY 14.725 billion).
For all these projects, interest rates are 0.01% and repayment periods are 40 years with 10 years of grace periods.
On the occasion of the Honourable Prime Minister Sheikh Hasina’s visit to Japan in May 2014, Prime Minister Shinzo Abe committed himself to providing up to JPY 600 billion (approximately BDT 40,000 crore) of additional assistance to Bangladesh in the next 4 to 5 years for the socio-economic development of Bangladesh. It is in this context that today, following the 35th Yen loan package of JPY 120 billion (approximately BDT 8,000 crore or USD 1 billion), the 36th loan package was formally agreed upon, embodying the Japan-Bangladesh Comprehensive Partnership.
The package is in perfect alignment with the “BIG-B” - the Bay of Bengal Industrial Growth Belt Initiative - which aims at improving transport network and stable power supply, while promoting urban and private sector development. It also addresses social vulnerability and enhances resilience of society in both urban and rural areas. The 36th loan package is expected to become our joint step forward under the comprehensive partnership, with a view to channeling Bangladesh into a high road leading it to the status of a middle-income country.
Summary of Each Project(pdf)