Six major projects get Japanese loan
The Japan International Cooperation Agency (Jica) has said it would provide 173.54 billion yen or Tk 12,819 crore to Bangladesh to help the country produce more electricity, enhance domestic and regional connectivity and fight disasters.
The development agency yesterday signed agreements with the government to provide the loans for six projects.
Kazi Shofiqul Azam, additional secretary of the Economic Relations Division (ERD), and Mikio Hataeda, chief representative of the Jica office in Bangladesh, signed the agreements on behalf of their respective sides.
The loan carries 0.01 percent interest rate and its repayment period is 40 years with a 10-year grace period.
The Dhaka Mass Rapid Transit (MRT) Project will get Tk 5,582 crore, and the Cross-Border Road Network Improvement Project (Bangladesh) Tk 2,120 crore.
Besides, the Matarbari Ultra Super Critical Coal-Fired Power Project will receive Tk 2,794 crore, the Energy Efficiency and Conservation Promotion Financing Project Tk 886 crore, the Disaster Risk Management Enhancement Project Tk 1,241 crore, and the Jamuna Railway Bridge Construction Project Tk 182 crore.
Jica in a statement said in recent years, Bangladesh has attracted increasing attention from overseas enterprises, including Japanese firms, due to competitive labour costs, an abundant workforce and a potential market size.
“However, compared with its rapid economic growth and urbanisation, the infrastructure in Bangladesh, including the transportation network and the power supply, is still at an early stage.
“As such, the formulation of a business environment has emerged as an urgent issue,” it said.
Jica said Bangladesh is also vulnerable to natural disasters such as cyclones and floods.
The statement said Jica would continue to support Bangladesh's effort for further economic growth and overcoming its social vulnerability.
The total cost of the Jamuna railway project is Tk 11,156 crore, of which Japan will provide Tk 8,836 crore in phases.
The project will build a railway bridge as part of the Trans-Asian Railway which connects India to respond to the expected increased demand for container transportation.
Yesterday's loan has been provided for the engineering services.
The Cross-Border Road Network Improvement Project entails a cost of Tk 2,473 crore, of which Tk 1,851 will come from Jica in phases. Under the project, 17 bridges and seven culverts will be built.
The project will develop economic corridors to interconnect major cities in the Asian region by replacing severely damaged existing bridges, providing national border facilities and constructing the Kalna bridge which currently is the only point where overland traffic between Dhaka and Kolkata is barred, said Jica.
Once completed, the 680-metre long four-lane Kalna bridge on the Madhumoti river in Narail will connect India's West Bengal with Meghalaya through the Bangladesh territory, thus helping both countries establish link with the Asian Highway.
The Dhaka MRT project involves a cost of Tk 21,985 crore with Tk 16,594 crore coming from Japan in phases. Under the project, the first urban railroad system in Bangladesh will be built which will provide an additional means of urban transportation for the people of Dhaka.
“This will reduce the demand of automobile and bus transportation and, in consequence, mitigate the chronic traffic congestion and air pollution in Dhaka,” said Jica, which has already provided Tk 800 crore to Bangladesh for the project for consultation services.
The Matarbari project will cost Tk 35,984 crore, of which Tk 28,939 crore will come from Tokyo in phases.
Under the project, a 1,200-megawatt coal-fired power plant will be built. The Japanese government has already provided Tk 3,172 crore.
The project will develop a highly efficient electric power source with low coal consumption to meet the rapidly increasing power demand while controlling the emission of greenhouse gases.
The total cost of the disaster risk management project is Tk 1,529 crore. Of the amount, Jica will provide Tk 1,256 crore in phases. The project aims to enhance comprehensive disaster risk management by recovering and rehabilitating infrastructures and providing equipment.
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