Japan’s “42nd ODA ”and “Emergency Budget Support for COVID-19 Crisis Response Loan (Phase 2)” Signed Today.

2021/11/22
 The 42nd package (USD 2.21 Billion) and Budget Support (351 Million) to help Bangladesh
become a middle income country and to conquer the COVID-19 pandemic

 

    On 22 November , 2021, H.E. Mr. ITO Naoki, Ambassador of Japan to Bangladesh and Ms. Fatima Yasmin, Secretary, Economic Relations Division, Ministry of Finance signed Exchange of Notes of the 42nd Official Development Assistance　（ODA） and the COVID-19 Crisis Response Emergency Support Loan (Phase 2) ODA of Japan to Bangladesh. The Hon'ble Minister, Ministry of Finance, Mr. AHM Mustafa Kamal, FCA, a member of the Parliament also participated in the ceremony through video conferencing system.
This year’s 42nd loan package comprises assistance of 2 projects amounting to JPY 252.279 billion (approximately USD 2.21 billion).
In addition to that, the COVID-19 Crisis Response Emergency Support Loan, which was first granted to Bangladesh last year,  has been extended again this year as Phase 2 (JPY 40 billion (approximately USD 351 million) with very favorable terms (0.55% interest rate)
Based on this agreement between the two counties, Mr. HAYAKAWA Yuho, Chief Representative of JICA Bangladesh Office and Ms. Fatima Yasmin signed a relevant loan agreement.
Japan has been the single largest bilateral donor for Bangladesh since 2012, and the total amount of its aid as Yen Loan has reached USD 24.21 billion (commitment base).
 
    In H.E. Mr. Ito in his speech said Japan will continue to cooperate with Bangladesh for quality infrastructure development, and stand by its effort against the COVID-19 pandemic. Mr. Ito also said Japanese government revised the travel warning of Dhaka area to level 1 on November 10th, and it is expected that the number of visitors from Japan will increase and the business partnership will be further promoted. With the 50th anniversary of the establishment of diplomatic relations coming up next year, further human exchange will be accelerated.
 
  • The 42nd Exchange of Notes covers the following projects:
  • Dhaka Mass Rapid Transit Development Project (Line 1) (II) (loan amount: 115.027 billion yen)
  • Matarbari Ultra Super Critical Coal-Fired Power Project (VI) (loan amount: 137.252 billion yen)
  • Interest Rate: 0.6 % per annum (The part concerning payments to consultants: 0.01% per annum)
  • Repayment period: Twenty years after the grace period of ten years
  • The COVID-19 Crisis Response Emergency Support Loan (Phase 2)
    • Interest Rate: 0.55 % per annum
    • Repayment period: Twenty years after the grace period of ten years
 
For detail, please see the appendix.
 

Appendix

Summary of each project

Summary of each project
 

  1. COVID-19 Crisis Response Emergency Support Loan Phase 2
    1. Objective and Summary
      The objectives of the program are to realize resilient health system through concessional financing by supporting smooth implementation of policies to strengthen COVID-19 response capacity in health sector, to enhance economic and physical access to health services towards the achievement of the Universal Health Coverage, and to improve health finance, thereby contributing to the promotion of the economic stabilization and development efforts of the country. This program will contribute to the achievement of SDGs Goals 1, 3 and 5 among others.
       
    2. Executing Agency
Finance Division, Ministry of Finance
Address: Building # 7, Bangladesh Secretariat, Abdul Goni Road, Dhaka-1000, Bangladesh
Phone: + 880-2-9512201, Fax: + 880-2-9576003
 
  1. Planned Implementation Schedule
  1. Completion of program: February 2022 – when the loan is executed
  2. Issuing of letters of invitation for consulting services (including construction supervision): No hiring of consultants is planned for this program
  3. Tender announcement of initial procurement package for international competitive bidding on project construction: No work in conjunction with bidding is planned for this program
 
  1. Dhaka Mass Rapid Transit Development Project (Line 1) (II)
(a)  Objective and Summary
The objective of the project is to alleviate the traffic congestion and mitigate air pollution in Dhaka city and its adjacent areas by constructing a mass rapid transit system, thereby contributing to economic development and improving the urban environment. The project will contribute to the achievement of SDGs Goals 9, 11 and 13.
 
(b) Executing Agency
      Dhaka Mass Transit Company Limited
       Address: 71-72 Old Elephant Road, Eskaton Garden, Dhaka-1000, Bangladesh
       Phone: +880-2-55138099, FAX: +880-2-9358589
 
(c) Planned Implementation Schedule
1. Completion of project: August 2027 – when the facilities are put into service
2. Issuing of letters of invitation for consulting services (including construction supervision): September 2021
3. Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Soil Improvement and Land Development at Depot
Release date: June 2021
 
  1. Matarbari Ultra Super Critical Coal-Fired Power Project(VI)
  2. Objective and Summary
    The objective of the Project is to increase stable power supply and to diversify energy source in Bangladesh by constructing an ultra super critical coal-fired power plant in Matarbari area, thereby contributing to nationwide economic development. The project will contribute to the achievement of SDGs Goals 7 and 9.
     
  3. Executing Agency
    Coal Power Generation Company Bangladesh Limited
      Address: CPGCBL, Uniqne Heights Level 17, 117 Kazi Nazrul Islam Avenue, Eskaton Garden Road, Dhaka-1217, Bangladesh
      Phone: +880-2-9180788，FAX: +880-2-9348306
     
    Power Grid Company of Bangladesh Limited
           Address: IEB Bhaban 3rd Floor& 4th Floor, 8/A Ramna, Dhaka-1000, Bangladesh
           Phone: +880-2-9338529, FAX: +880-2-9348306
     
          Roads and Highways Department. Ministry of Road Transport and Bridges
           Address: Sarak Bhaban, Tejgaon Industrial Area, Dhaka-1208, Bangladesh
            Phone: +880-2-8879299 , FAX: +880-2-8879199
 
  1. Planned Implementation Schedule
  2. Completion of project: July 2024 – when the facilities are put into service
  3. Issuing of letters of invitation for consulting services (including detailed design work):Already hired
  4. Tender announcement of initial procurement package for international competitive bidding on project construction: Already contracted

 

Terms and Amounts of Loans
  Amount
(million yen)		 Annual interest rate (%) Repayment period (years) Grace period (years) Procurement
Project Consulting services
COVID-19 Crisis Response Emergency Support Loan Phase 2 40,000 0.55 - 30 10 General untied
Dhaka Mass Rapid Transit Development Project (Line 1)(II) 115,027 0.60 0.01 30 10 General untied
Matarbari Ultra Super Critical Coal-Fired Power Project(VI) 137,252 0.60 0.01 30 10 General untied

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