The Government of Bangladesh and the Japan International Cooperation Agency (JICA) have signed a loan agreement for the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply,” marking a step toward strengthening the country’s energy security and macroeconomic stability amid global and regional uncertainties.
The loan agreement was signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), Ministry of Finance, and Takahashi Junko, Chief Representative of the JICA Bangladesh Office. In the same ceremony, the Exchange of Notes (E/N) was signed by Siddiky and H.E. Saida Shinichi, Ambassador of Japan to Bangladesh, on behalf of their respective governments.
Under the agreement, JICA will provide a Development Policy Loan of JPY 50 billion (approximately Tk3,800 crore) to support policy reforms aimed at improving Bangladesh’s economic and energy resilience. The program is the first Official Development Assistance (ODA) loan under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), an initiative by the Government of Japan designed to address energy supply vulnerabilities and supply-chain disruptions in the region.
The program is built on two pillars: strengthening energy resilience and improving economic management and governance. Under the first pillar, it supports policy actions on energy diversification and efficiency, including sustainable high-efficiency power generation, improved grid planning, and energy conservation measures. The second pillar focuses on economic management and governance reforms, co-financed in collaboration with the Asian Development Bank (ADB).
Officials said the initiative is expected to help maintain macroeconomic stability, enhance energy sector resilience, and improve the country’s overall economic structure.
The agreement, concluded ahead of the fiscal year-end, underscores the strong Bangladesh–Japan partnership and JICA’s continued commitment to supporting Bangladesh’s long-term development priorities.
