Investment main focus

Shinzo Abe

Japanese Prime Minister Shinzo Abe arrives here today on a brief but significant visit when he is expected to announce big investment proposals as well as financial and technical supports to help Bangladesh build up industrial base.

Dhaka is giving highest importance to investment issues, including Japan’s assistance in ensuring energy security and infrastructure development, said diplomatic sources.

Since Abe took over in December 2012 for the second time, Bangladesh-Japan ties have witnessed an upward swing.

When Prime Minister Sheikh Hasina visited Japan on May 25-28 this year, the two leaders affirmed their commitment to further strengthen bilateral cooperation and launched the “Japan-Bangladesh Comprehensive Partnership”

Hasina and Abe this time are set to announce to further elevate the Bangladesh-Japan ties to a “special global and strategic height” by advancing the comprehensive partnership.

“The visit will mark a defining moment in our relationship. It will be registered in history as one that significantly elevated the level of Bangladesh-Japan engagement across areas,” a senior foreign ministry official in Dhaka has said.

Japan’s Chief Cabinet Secretary Yoshihide Suga at a press conference in Tokyo has said Abe’s trip to Dhaka is aimed at advancing the “Japan-Bangladesh Comprehensive Partnership”.

Abe, who arrives here at 1:00pm today on a twenty-one-and-half an hour whirlwind official tour, will have a summit meeting with Hasina at 4:00pm today.

His entourage will include executives from top 50 companies in a variety of fields, such as trading, construction, energy, power generation, infrastructure development, IT, textile, RMG, pharmaceuticals and automobiles.

A visiting Japanese delegation during a dialogue with officials in Dhaka last month stressed improvement of investment environment in Bangladesh, including infrastructure development, stable energy supply, transparency, removing bureaucratic bottleneck, corruption and accelerated processing of permits, licences, etc to facilitate and promote Japanese investment in Bangladesh.

Japan also looks to seek support from Dhaka for Tokyo’s bid for a nonpermanent seat in the United Nations Security Council next year, sources say. Abe will discuss this with Hasina.

Bangladesh’s support is crucial for Japan as Dhaka has also expressed its interest in contesting the nonpermanent seat and been campaigning since 2002. But only one member state from the Asia-pacific region can win each election.

In 1978, Bangladesh was elected non-permanent member of UNSC defeating Japan.

Though Dhaka has not made any public commitment in response to Tokyo’s request to withdraw its candidacy in support of Japan, Hasina at a press meet during her visit in May hinted that Bangladesh would withdraw its candidacy before the council election in 2015, saying, “For a trusted friend, Bangladesh is ready to make any sacrifice.”

If Dhaka supports Tokyo, diplomatic sources said, Japan will come up with huge economic package and investment proposals, like assisting in a series of major infrastructure projects and a special economic zone for Japanese companies.

The Japanese proposals might include supports in linking Dhaka with Matarbari near the port city of Chittagong, some 40 billion yen for an industrial zone and another 15 billion yen to set up a special-purpose company for building an industrial park. Tokyo will help with infrastructure construction and corporate financing as well.

The Japanese PM is likely to make a positive announcement to support a range of specific projects in regard to construction of Ganges Barrage, multi-modal tunnel under river Jamuna, dedicated railway bridge over river Jamuna, multi-modal Dhaka Eastern Bypass, ecological restoration of four rivers around Dhaka, etc.

Abe will be the first head of government visiting Bangladesh since the one-sided January 5 election in which as many as 154 candidates from the ruling Awami League and its partners were elected unopposed amid boycotts by the opposition BNP-led alliance.