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2024/11/26

Japan’s 45th ODA Yen Loan (1st Batch) Signed Today

    

        On 25 November 2024, H.E. Mr. IWAMA Kiminori, Ambassador of Japan to Bangladesh and Mr. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division, Ministry of Finance signed the Exchange of Notes of the 45rh Official Development Assistance (ODA) Yen Loan of Japan to Bangladesh.

        The first installment of the 45th Japanese Yen Loan Package is 39.902 billion yen (approximately USD 257 million). Based on this agreement between the two counties, Mr. ICHIGUCHI Tomohide, Chief Representative of JICA Bangladesh Office and Mr. Shariar Siddiky signed a relevant Loan Agreement.

         The agreement includes two significant projects. One is the Chattogram Sewerage System Development Project (Engineering Service), supported by a 1,696 million yen loan and aims to improve sanitation infrastructure in Chattogram by addressing key urban challenges and enhancing public health and the environment. The other is the Jamuna Railway Bridge Construction Project (III), with a 38,206 million yen loan, focuses on improving transportation connectivity across Bangladesh, fostering economic growth and regional integration. This project marks the final phase of Japan’s financial assistance for the Jamuna Railway Bridge, completing the transformative initiative.

         Ambassador IWAMA Kiminori emphasized the importance of this signing ceremony as a demonstration of Japan’s commitment to continuing existing projects and launching new initiatives to support Bangladesh’s future economic development. He noted that this Exchange of Notes reflects Japan’s steadfast partnership with Bangladesh, especially in supporting the interim government’s efforts to chart a pathway towards stable development during a period of political transition, and reaffirms Japan’s unwavering dedication to collaborating closely with the new government to sustain the country’s progress and address its development needs. This agreement marks the first Exchange of Notes (E/N) signed between Japan and the interim government, inaugurated on August 8, 2024.
 
  • The 45rd  Exchange of Notes covers the following projects:
  1. Chattogram Sewerage System Development Project (Engineering Service) (loan amount: 1,696 million yen)
 
  • Interest Rate: The part concerning payments to consultants: 0.2% per annum
  • Repayment Period: twenty (20) years after the grace period of ten (10) years
  1. Jamuna Railway Bridge Construction Project (III) (loan amount: 38,206 million yen)
 
  • Interest Rate: 1.70 % per annum (The part concerning payments to consultants: 0.4% per annum)
  • Repayment Period: twenty (20) years after the grace period of ten (10) years