| Japanese (日本語) | Sitemap 
Top Page > News > Press Release

Press Release

16 January 2009




Japanese Prime Minister telephoned Ms. Sheikh Hasina, Expressed His Congratulations for the New Government and Pledged Yen Loan Assistance Package of 40 Billion Yen (approx. 440 Million USD) for Electricity and Bridges Projects


Japanese Prime Minister Mr. Taro Aso held telephone talks with Prime Minister Ms. Sheikh Hasina on January 16th (Fri). The following is an overview of the talks.


At the outset of the conversation, Ms. Hasina expressed her deep appreciation for the dispatch of election observers to the national election December last year.


Prime Minister Aso replied that he received the report of Japanese election observer team that the national election was conducted in a free and fair manner. He continued to express his belief that the success of the national election proves that democratic governance is all the more deeply rooted in Bangladesh and that the national election was most appropriate for the new beginning of Bangladesh democracy.


Prime Minister Aso said that Japan and Bangladesh have enjoyed cordial relationship for long time and expressed his heartfelt gratitude for the cooperation in various international arenas. He said that the Government of Japan has decided to provide the Yen Loan Package of 40 billion Yen (approx. 440 million USD) for the construction of power plant project, the power distribution project and the bridge improvement project for the purpose of supporting the Bangladesh Government, which was elected through democratic process.


Prime Minister Hasina said that she is grateful for the assistance from Japan which has always been a good friend of Bangladesh since its liberation time and she requested for continued support for the development of Bangladesh. The telephone talks were concluded with the warmest atmosphere. 








Pledge on Japan’s 30th Loan Package


16th January 2009, Japanese Prime Minister, Taro Aso, pledged the 30th Japanese Yen Loan Package to Bangladesh during the telephone talks with Honorable Prime Minister of Bangladesh, Sheikh Hasina. The Package amounts to 39,749 million yen (Taka 52,468 million equivalent, or USD 439 million equivalent), comprising the following three Projects:

(1)    New Haripur Power Plant (360 MW) Development Project (Part II),

22,210 million Yen (Taka 29,317 mill or USD 245 mill. equivalent)


(2)    Central Zone Power Distribution Project,

      9,715 million YenTaka 12,824 mill or USD 107 mill. equivalent


(3)    Eastern Bangladesh Bridge Improvement Project.

      7,824 Million Yen (Taka 10,328 mill or USD 86 mill. equivalent)


This New Loan Package reflects Japan’s strong intention to support the long term development of Bangladesh, and priority policy of the newly elected government for poverty reduction, economic growth, and improvement of quality of life of the people.  Japan is one of most active development partners assisting development of power and transportation sectors of Bangladesh.


The conditions of the loans are the most generous.  The interest rate is 0.01% per annum and the repayment period is 40 years inclusive of 10-year grace period for the three loans, in accordance with “Minimal Interest Rate Initiative (MIRAI).” on Japan’s ODA loans.


Over the last few years, the Japanese government has been sharply increasing the level of its loan assistance to Bangladesh.  Recent Japan’s loans are as follows: 42,902 million yen (USD 473 million)(in 2007), 24,906 million yen (USD 275 million)(in 2006) and 11,345 million yen (USD 125 million)(in 2005).


The accumulated total commitment of Japan’s Loan to Bangladesh since 1973 is approximately 671 billion Japanese yen (Taka 886 billion equivalent, or USD 7.4 billion equivalent) for 80 projects including three projects under new package.


Highlights of the Projects

(Japan’s 30th Loan Package)


 New Haripur Power Plant Development Project (II)

-     Objective and Outline: In order to increase power supply capacity under recent serious power shortage thereby improving industrial competitiveness and people’s living conditions, the project will construct 360 MW gas combined cycle thermal power plant near Dhaka, as well as provide technical assistance to build operational capacity of the executing agency for the plant. This project is the second phase of “New Haripur Power Plant Development Project” under 29th Japanese Yen Loan Package to Bangladesh.

-     Loan Amount: 22,210 million Yen (Taka 29,317 mil. or USD 245 mil. equivalent)

(Total Loan Amount of Part I and II: 39,977 million Yen )

-     Executing Agency: Electricity Generation Company of Bangladesh (EGCB)


 Central Zone Power Distribution Project

-     Objective and Outline: With the objective to improve the quality of the power distribution in the Greater Mymensingh and Sylhet Zones thereby contributing economic growth, regional development and improvement of living standard, the project will develop/rehabilitate power distribution facilities, as well as strengthen the institutional capacity of North East Zone Power Distribution Company (NEZPDC).

-     Loan Amount: 9,715 million Yen (Taka 12,824 mil. or USD 107 mil. equivalent)

-     Executing Agency: Initially, Bangladesh Power Development Board (BPDB), then North East Zone Power Distribution Company (NEZPDC) will be in charge after it is established.


 Eastern Bangladesh Bridge Improvement Project

-     Objective and Outline: In order to promote reliable and efficient transportation thereby contributing to revitalize local economy and reducing economic and social disparities among regions, this project will replace, rehabilitate and construct small and medium sized bridges in Eastern Bangladesh, as well as improve the bridge maintenance capacity of the executing agency.

-     Loan Amount: 7,824 million Yen (Taka 10,328 mil. or USD 86 mil. equivalent)

-     Executing Agency: Roads and Highways Department (RHD) 


<Recent Japanese ODA to Power Sector Projects in Bangladesh>


 Power Plant

§      Sylhet Combined Cycle Power Plant Project (Loan: Yen 14,113 million)

§      Haripur Gas Turbine Power Plant Expansion Project (Loan: Yen 15,100 million)

§      New Haripur Power Plant Development Project (Loan: Yen 17,767 million)

§      Kaptai Hydro Power Plant Maintenance and Overhaul (JDCF: Taka 2,000 million)

§      Rehabilitation of Ashuganj Power Plant (DRGA: 7,380 million Yen)

§      Development Study for Beramara Power Plant (2007-2009)

 Transmission, Distribution and Rural Electrification

§      Power Distribution and Efficiency Enhancement Project (Loan: Yen 4,376 million)

§      Grid Substations and Assosiated Transmission Lines Development Project (Loan:  Yen 4,542 million)

§      Area Coverage Rural Electrification Project (Phase IV-C) (Loan: Yen 5,442 million)

§      Rural Electrification Project (Phase V-B) (Loan: Yen 1,450 million)

 T/A for Capacity Development

§      TA Project “Strengthening Management and Performance Standards in Power Sector of Bangladesh through Promotion of TQM (Total Quality Management)” (2006-2009)

§      Advisor for Power Sector in Power Division (since 2004)


<Selected Japanese ODA to Transport Sector (Bridge only) in Bangladesh>


 Bridge Construction

§      Jamuna Multipurpose Bridge Construction Project(Loan: Yen 21,562 million)

§      Paksey Bridge Construction Project (Loan: Yen 18.066 million )

§      Rupsha Bridge Construction Project(Loan: 8,300 million)

§      Construction of the Meghna Bridge(Grant: Yen 7,975 million)

§      Construction of the Meghna Gumti Bridge (Grant: Yen 8,203 million)

§      Feasibility study on Padma Bridge Construction Project (Technical Cooperation: 2003)

 Bridge Rehabilitation and Maintenance

§      Portable Steel Bridges on Rural Roads(Grant: Yen 4,435 million)

§      Reconstruction of Small and Medium Bridges on Dhaka-Chittagong Highway (Grant: 2,837 million)

§      Expert for Road/Bridge Maintenance in RHD (since 2004)






What’s New Archives 
Press Release
Copyright© Embassy of Japan in Bangladesh, Plot No. 5 & 7, Dutabash Road, Baridhara, Dhaka-1212.  Tel: +88-02-8810087