Japanese firms to invest $6.4b

Six infra projects will be implemented under the PPP model

Major Japanese large firms are to invest about $6.4 billion to implement six infrastructure projects in Bangladesh under the public-private partnership model.

The implementation timeline for the projects to be implemented by groups such as Kajima, Sojitz and Marubeni will be set at the fourth Bangladesh-Japan Joint PPP Platform meeting in Dhaka next month.

The feasibility study, the construction period and other issues will also be fixed at the meeting, said officials of the Prime Minister's Office and the planning ministry.

The government had submitted a list of 18 projects to the Japanese government in December 2017. But Shinzo Abe's administration picked the six projects from the list that it deemed suitable for investment through Japanese private investors.

The ministry of land, infrastructure, transport and tourism (MLIT) of Japan has selected a consortium of private investors for each project to be led by a major company. The consortium is known as the sub working group (SWG).

The Japanese companies, which have set up their offices in Dhaka to start the construction of the projects, will invest under the government-to-government system without participating in any bidding.

At the meeting, Dhaka will seek investment for four more projects, which include the Bhola-Barishal bridge and the deep water container terminal at the Payra port.


The proposed route of the MRT Line-2 is Gabtoli-Mohammadpur-Jigatola-Science Lab-New Market-Azimpur-Palashi-Shaheed Minar-Police Headquarters-Motijheel-Kamalapur-Demra-Chattogram Road covering around 40 kilometres.

The cabinet committee on economic affairs has already approved the project.

The metro rail is expected to go on commercial operation in 2030.

"Japan SWG will make best efforts to secure MLIT's fund from next fiscal year's budget starting from April 2020 for the basic study of the project," said an official of the PMO.

The lead company of the project is Marubeni Corporation. The other participating companies are: Oriental Consultants Global, Katahira & Engineers International, Sojitz and Sumitomo Mitsui Construction Corporation.


The approximate length of the proposed revised alignment is 130km, of which 46km is new alignment and 84km will follow existing alignment that needs to be improved.

The lead company is Marubeni Corporation. Other participating companies include IHI Corporation, Obayashi Corporation, Shimizu Corporation and Taisei Corporation.

The route of the Outer Ring Road will be Hemayetpur-Kalakandi-3rd Shitalakhya Bridge-Madanpur-Bhulta-Gazipur-Bypail-Hemayetpur.


Two multimodal hubs will be built at Kamalapur Railway Station and Dhaka Biman Bandar Railway Station each. The hubs will have road and rail connectivity as well as flyovers for facilitating easy movement of commuters.

The lead company of Kamalapur hub project is Kajima, while Sojitz will lead the group of companies that will implement the hub at the airport railway station. 


The government has decided to establish a full-fledged inland container depot near Dhirasram Railway station attached to the Dhaka eastern by-pass road with constant access to container handling and transportation.

This will ease the pressure on the Kamalapur ICD.

The capacity of Kamalapur ICD is not adequate to serve the increasing share of container handling diverted towards Bangladesh Railway, according to the PPP Office under the PMO.

Further expansion of Kamalapur ICD is difficult due to heavy built up of the surrounding area. Apart from capacity constraints, daytime prohibition on movement of commercial vehicles is also very difficult in Kamalapur ICD, according to the PPP Office.

The handling capacity of the proposed ICD is 354,000 twenty-foot equivalent units. The lead company is Sojitz.


The two-lane highway will be turned into a four-lane one under the project. The lead group is Marubeni. 


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