Dhaka to seek 4-5 years’ aid package

During the Japanese prime minister's Dhaka visit, Bangladesh may formally place a comprehensive development plan, including Japanese assistance for the next four to five years.

The Prime Minister's Office has directed the Economic Relations Division to prepare the plan, said officials at the finance and planning ministry. Japan could make commitments of around $6 billion for the next five years. The money would cover development plan for southern Chittagong and Cox's Bazar and the expansion of Matarbari deep sea port.

Japan has been the top contributor among bilateral development partners in last four-five years. The yearly average commitments made by Japan was close to the ones made by the World Bank and the Asian Development Bank.

According to statistics, for fiscal years from 2010 to 2013, Japan committed $755 million a year on average, which was $273 million in the previous four years.

Last year, Japan committed $1.18 billion and in the previous one $1.82 billion.

Between 1971 and last June, Japan gave Bangladesh $12.36 billion of which $8.14 billion had been disbursed.

The rate of interest on Japanese loans is 0.1 percent with repayment period of 40 years. The rate is the lowest Bangladesh pays on loans.

A large portion of the loan has been waived under debt cancellation fund.

According to the ERD report, 36 Japanese loans signed before June 1989 and amounting to $1.46 billion had been converted to debt cancellation fund, which would be utilised for budget support until 2018.