Bangladesh and Japan today signed Exchange of Notes for the 41st and Japan’s largest ever Official Development Assistance (ODA) to Bangladesh amounting $3.2 billion.
ITO Naoki, Ambassador of Japan to Bangladesh and Fatima Yasmin, Secretary of the Economic Relations Division signed the Exchange of Notes of the 41st Official Development Assistance (ODA) of Japan to Bangladesh, said a press release.
This year’s loan package comprises assistance of seven projects amounting to JPY 338.247 billion (approx. USD 3.2 billion), the largest ever loan package since its inception in 1974.
Based on this agreement between the two counties, HAYAKAWA Yuho, Chief Representative of JICA Bangladesh and Fatima Yasmin signed a relevant loan agreement.
Japan has been the single largest bilateral donor for Bangladesh since 2012, and the total amount of its aid as JPY Loan has reached USD 22 billion (commitment base).
The 41st Exchange of Notes covers the following projects:
(1) Jamuna Railway Bridge Construction Project (II) (loan amount: 89.016 billion JPY)
(2) Hazrat Shahjalal International Airport Expansion Project (II) (loan amount: 80 billion JPY)
(3) Dhaka Mass Rapid Transit Development Project (IV) (loan amount: 72.194 billion yen)
(4) Dhaka Mass Rapid Transit Development Project (Line 5 Northern Route) (I) (loan amount: 55.696 billion JPY)
(5) Chattogram – Cox’s Bazar Highway Improvement Project (E/S) (loan amount: 1.906 billion JPY)
(6) Food Value Chain Improvement Project (loan amount: 11.218 billion JPY)
(7) Urban Development and City Governance Project (loan amount: 28.217 billion yen)
The release said the Interest Rate is 0.65 percent per annum (The part concerning payments to consultants: 0.01% per annum) while the repayment period is twenty years after the grace period of ten years.
Up to the present, the government of Japan has provided approx. USD 13 million as the emergency support to tackle COVID-19 in Bangladesh through international organizations, as well as provided PPE to hospitals through JICA.
Additionally, on 16th July Japan and Bangladesh signed the Exchange of Notes on Japanese Grant aid “Economic and Social Development Programme”(approx. USD 10 million) for the medical equipment including CT Scanner, X-ray Machine. These aids focused on the medical and health sectors currently combating the novel coronavirus.
On 5 August 2020, both countries signed Exchange of Notes of the COVID-19 Crisis Response Emergency Support Loan (approx. USD 331 million), which is the first budget support from Japan to Bangladesh.
The purpose of the financial assistance is to provide funding for additional financial expenditure by the Government of Bangladesh to implement the economic stimulus package.
Japan will continue to extend its support for the development of Bangladesh as the country is on its way to achieve the highest growth in Asia in this decade of the century.