Bangladesh, Japan sign $ 1.23bn agreement for development projects including metro rail

Tue Jun 28, 2022 10:54 PM Last update on: Tue Jun 28, 2022 11:04 PM
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Bangladesh and Japan have signed a loan and grant agreement worth $1.23 billion (165.861 billion yen) for projects including the northern route of Mass Rapid Transit (MRT) Line 5.

Japanese Ambassador to Bangladesh Ito Naoki and Economic Relations Division Secretary Fatima Yasmin signed the Exchange of Notes of the 43rd Official Development Assistance (ODA) Yen Loan and Grant Aid of Japan to Bangladesh.

The first batch of the 43rd round of yen loans includes two projects in the package. One is to develop roads, drainage and water supply facilities, agriculture-related facilities, and waste management facilities in the southern Chattogram area, according to a statement of the Japan embassy in Dhaka today.

The other is the northern route of MRT Line 5, which connects Dhaka’s MRT transportation network in an east-west direction, and will be developed to improve the functioning of the urban transportation network.

With the additional grant aid, the Japanese companies involved can proceed and complete the construction work hopefully by 2025.

“I am sure today’s signings have shown further willingness of the Japanese people to contribute to the fast and sustainable growth of Bangladesh,” said Ambassador ITO at the signing ceremony.

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 25.59 billion (commitment base).

The 43rd Exchange of Notes covers the projects — Southern Chattogram Regional Development Project (loan amount: 32,462 million yen); Dhaka Mass Rapid Transit Development Project (Line 5 Northern Route).

The grant aid signed is meant for the Project for Improvement of Meteorological Radar System in Dhaka and Rangpur (Grant Aid). This is the project to construct meteorological radar and related facilities in Joydebpur and Rangpur.