Jica has no concern about transparency in metro rail funding

The Japan International Cooperation Agency (Jica) yesterday said it has no concern about transparency in the funding of $2.1 billion it will provide for the $2.7-billion metro rail project.
Jica is keeping a 'friendly watch' on the government's efforts for the project, Takao Toda, Jica chief representative in Bangladesh, said at a press conference at the Planning Commission.
The Japanese lender will soon sign a loan agreement after some negotiations with the government of Bangladesh, said Toshiyuki Kuroyanagi, vice president of Jica.
Jica will continue its support to Bangladesh for its development projects, said Kuroyanagi.
Jica, the lone financier of the 20-kilometre metro rail from Motijheel to Uttara, is expected to provide 80 percent of the project cost as soft loan at a 0.01 percent interest rate.
“Japan has committed to give $898 million for three projects within the current fiscal year,” said Iqbal Mahmood, secretary to the Economic Relations Division.
Jica will give $133 million for Dhaka Mass Rapid Transit Development Project, popularly known as metro rail project, $527 million for Bheramara Combined Cycle Power Plant Development Project and $238 million for National Power Transmission Network Development Project.
“We have already finalised the route. If needed, we will talk with the communication ministry and other stakeholders,” he said.
The project recently gained momentum after a nearly three-year delay over change of route of the metro rail with the government deciding to appoint a consultant to prepare a detailed design of it.
The three-year delay has increased the project cost to $2.7 billion from $1.7 billion.