Japan International Cooperation Agency (Jica) will give Bangladesh a loan package of ¥133.3bn (equivalent to over Tk8,660 crore) for six big projects in power, transport, health, tackling earth-quake and good governance.
ERD Senior Secretary Mohammad Mejbahuddin and Japanese Ambassador to Bangladesh Masato Watanabe signed the exchange of notes while Mejbahuddin inked the loan agreements with Jica Chief Representative Mikio Hataeda at a ceremony at the ERD yesterday.
“This is the biggest loan in Yen Japan is giving to Bangladesh. It is part of the $6 billion assistance which was promised during Prime Minister Sheikh Hasina’s Tokyo visit,” said Ambassador Watanabe.
As per the agreement, the Japanese government will provide Tk1,029 crore for the Foreign Direct Investment Promotion Project and Tk2,844 crore for the Dhaka-Chittagong Main Power Grid Strengthening Project.
Bangladesh will also get Tk1,907 crore for the Western Bangladesh Bridge Improvement Project. The other project which will get Japanese loan of Tk138 crore is Maternal, Neonatal and Child Health and Health System Improvement Project.
Japan will also give Tk785 crore for the Urban Building Safety Project which will cover Dhaka, Chittagong, Gazipur and Narayanganj districts and Tk957 crore for the Upazila Governance and Development Project.
The annual interest rate of the loan is 0.01% with a 40-year repayment and a 10-year grace period.
