Japan to provide $1.8b for six Bangladesh mega projects
News Type: Expo News
Japan will provide 200,371 million Japanese yen (approximately Tk 148,000 crore or $1.8 billion) for Bangladesh under its 39th Official Development Assistance (ODA) loan package for implementing six mega projects on infrastructures, power and port.
In this regard, the exchange of notes for these six projects was signed yesterday between Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and Japanese Ambassador to Dhaka Hiroyasu Izumi. The loan agreements were signed by the ERD Secretary and the chief representative of Japan International Cooperation Agency (JICA), Bangladesh Office in the capital yesterday.
Largest loan package includes Matarbari Port Development Project and Jamuna Railway Bridge Construction Project, Dhaka Mass Rapid Transit Development Project, Matarbari Ultra Super Critical Coal-Fired Power Project, and Health Services Strengthening Project, a press statement said.
The objective of Matarbari Port Development Project is to strengthen the port logistics capacity of Bangladesh by constructing a new commercial port at Matarbari area in Chittagong Division, thereby contributing to acceleration of logistics with neighboring countries.
Out of the overall amount, Japan will provide 2,655 million Japanese yen or approximately Tk 203 crore for Matarbari Port Development Project, 37,217 million Japanese yen or approximately Tk 2,846 crore for Jamuna Railway Bridge Construction Project, 7358 million Japanese yen or approximately Tk 562 crore for Dhaka Mass Rapid Transit Development Project (Line 5), 79,271 million Japanese yen or approximately Tk 6,063 crore for Dhaka Mass Rapid Transit Development Project (III), 67,311 million Japanese yen or approximately Tk 5,148 crore for Matarbari Ultra Super Critical Coal-Fired Power Project (IV), and 6,559 million Japanese yen or approximately Tk 501 crore for Health Services Strengthening Project.
The Japanese loan carries a per annum 1 per cent interest rate for construction, 0.9 per cent interest rate for health services and 0.01 per cent interest rate for engineering services. The front end fee is 0.2 per cent. The repayment period is 30 years including a grace period of 10 years.
It is the largest ever loan package since its inception in 1974. The loan package comprises assistance in six major projects amounting to Japanese yen 200. Japan has been the single largest bilateral donor for Bangladesh since 2012.
According to ERD officials, the objective of the Matarbari Port development Project is to construct a new commercial port at Matarbari area of Cox’s Bazar district. Out of the total cost of 3,511 million Japanese yen for this engineering services project, JICA will provide 2,655 million yen, which is 75 per cent of the total project cost.
The objective of the Jamuna Railway Bridge Construction project is to construct a dedicated railway bridge over the River Jamuna in parallel with the existing Bangabandhu Bridge. Approved by ECNEC on December 6, 2016, the project will be implemented by December 2022. Out of the total project cost of Tk 9,734.07 crore, JICA will provide Tk 7,724.33 crore which is also 79 per cent of the total project cost. JICA will provide ODA loans in phases. Previously, JICA had provided 2,464 million yen for engineering services. Under this package, an amount of 37,217 million yen will be provided.
The objective of the Dhaka Mass Rapid Transit Development Project (Line 5) is to address traffic congestion and air pollution in the capital by constructing some 20 kilometer mass rapid transit system in MRT Line 5 route Hemayetpur-Aminbazar-Gabtoli-Mirpur 1-Mirpur 10-Kochukhet-Cantonment-Banani-Gulshan 2-Notun Bazar-Vatara by 2030. The total cost of the engineering services project is 9,499 million Japanese yen of which JICA will provide 7,358 million Japanese yen, which is 77 per cent of the total project cost. Aminbazar to Notun Bazar portion will be underground.
The objective of the Health Services Strengthening Project is to establish a system for strengthening non-communicable diseases control and the access to health services by urban poor population in Dhaka through improving the quality of health services at primary and secondary level health facilities in all divisions.
Japan is the single largest bilateral development partner of Bangladesh. Since independence, Japan has been providing financial support in different sectors which contributed significantly in the socio-economic development of Bangladesh.
Read more: http://www.theindependentbd.com/post/154261
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