Japan to provide $1.27 billion to Bangladesh

Japan will provide approximately $1.27 billion (1,65,319 million Japanese yen) for implementing three key projects in Bangladesh.

Out of the total amount,  $811 million will be provided for the 2nd tranche of the Matarbari Port Development Project (II), $429 million for the 1st tranche of the Chattogram-Cox's Bazar Highway Improvement Project (I) and $32.56 million for the Project for Construction of dual gauge double line between Joydebpur-Ishwardi section.

In this regard, "Exchange of Notes" and "Loan Agreements" for the three projects were signed between Bangladesh and Japan at the NEC-2 conference room in the capital's Sher-e-Bangla Nagar area on Wednesday, said a press release.

Economic Relations Division (ERD) Secretary Sharifa Khan signed the "Exchange of Notes" and "Loan Agreements" for Bangladesh while Ambassador of Japan to Bangladesh IWAMA Kiminori signed the "Exchange of Notes" while Chief Representative, JICA Bangladesh Office, ICHIGUCHI Tomohide signed the "Loan Agreements".

The rate of interest of this loan will be 1.20% for construction, 0.01% for consultancy service and Front End Fee (at a time) 0.2%. The repayment period will be 30 years which includes 10 years of grace period.

Since independence, the Japanese ODA commitments to Bangladesh have exceeded to $28.84bn while the disbursement to $19.73bn.