Japan to provide 1,65,319m Japanese Yen ($1.27b) to Bangladesh

Japan has committed to providing 165,319 million Japanese yen, equivalent to approximately $1.27 billion, to fund three major projects in Bangladesh.

Specifically, 105,362 million Japanese yen (or $811 million) will be allocated to the second tranche of the Matarbari Port Development Project, while 55,729 million Japanese yen (or $429 million) will be provided for the first tranche of the Chattogram-Cox’s Bazar Highway Improvement Project.

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Additionally, the Project for the Construction of a dual gauge double line between the Joydebpur-Ishwardi section will receive 4,228 million Japanese yen (or $32.56 million).

Today, at the NEC-2 conference room in the Sher-e-Bangla Nagar area of the capital, Bangladesh and Japan signed “Exchange of Notes” and “Loan Agreements” for the three projects, according to a press release. Sharifa Khan, Secretary of the Economic Relations Division (ERD), signed the agreements on behalf of Bangladesh, while IWAMA Kiminori, Ambassador of Japan to Bangladesh, signed the “Exchange of Notes”. ICHIGUCHI Tomohide, Chief Representative of JICA Bangladesh Office, signed the “Loan Agreements”.

This loan’s interest rate will be 1.20 percent for construction, 0.01 percent for consulting services, and 0.2 percent (per time) for the front end fee. The 30-year repayment period will include a 10-year grace period.

Since Bangladesh’s freedom, Japan has committed more than $28.84 billion in ODA, compared to $19.73 billion in actual disbursements.

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