Japan confirms $1.83b in aid under 39th ODA package

FE Online Report | Published: June 14, 2018 15:16:58 | Updated: June 19, 2018 10:57:30

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Japan confirmed US$ 1.83 billion (Tk 153.26 billion) in loan for Bangladesh as it signed a credit deal Thursday in Dhaka.

The concessional loan under the 39th Official Development Assistance (ODA) package will be utilised to bankroll six development projects in the country.

Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam and Chief Representtaive of the Japan International Cooperation Agency (JICA) in Bangladesh Mr Takatoshi Nishikata signed the loan agreement.

Besdies, the ERD secretary and Japanese Ambassador in Bangladesh Mr Hiroyasu Izumi signed an exchange of note Thursday at the same function.

Under the proposed 39th ODA package, Japan will provide some Yen 2.65 billion (Tk 2.03 billion) loan for the Matarbari port development project.

The Yen 79.27 billion (Tk 60.63 billion) will be for Dhaka MRT line-6 construction (phase-III) project, and Yen 7.36 billion (Tk 5.62 billion) for Dhaka MRT line-5 feasibility study project.

Besides, it will lend Yen 67.31 billion (Tk 51.48 billion) for the Matarbari ultra-super critical coal-fired power plant (phase-IV) project, Yen 37.22 billion (Tk 28.46 billion) for the Jamuna railway bridge project and Yen 6.56 billion (Tk 5.01 billion) for the health service strengthening project.

In March this year, a Japanese team pledged to channel the money, expressing willingness to confirm.

An ERD official said the aid will be useful for Bangladesh as it will be utilised for developing the new and ongoing projects, including the Matarbari power plant.

"All these projects are very important for the country to ensure smooth transportation and uninterrupted power supply," he added.

The government will have to repay the loan in 30 years with a 10-year grace period.

The JICA will charge 1.0 per cent interest rate for the construction related proejcts, 0.9 per cent for the health sector proejct and 0.01 per cent for the engineering services.

Besides, it will charge 0.20 per cent as the front end fee for the entire amount of loan.

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