Japan on Wednesday confirmed largest ever loan package of US$ 3.15 billion for Bangladesh to bankroll seven development projects in the country, officials said.
Under the 41st Official Development Assistance (ODA) package, the Japanese donor JICA would provide the loan to Bangladesh government.
Mr ITO Naoki, Ambassador of Japan to Bangladesh and Ms Fatima Yasmin, Secretary, Economic Relations Division (ERD) signed Exchange of Notes of the 41st ODA in Dhaka on Wednesday.
Japan Embassy in a statement said this year’s loan package comprises assistance of seven projects amounting to JPY338.247 billion (approximately $3.14 billion), the largest ever loan package since its inception in 1974.
Based on this agreement between the two counties, Mr HAYAKAWA Yuho, Chief Representative of JICA Bangladesh Office and Ms 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 Yen Loan has reached $22 billion (commitment base).
Under the 41st ODA package, the Japan will JPY89.016 billion for the Jamuna Railway Bridge Construction Project (II), JPY 80 billion for the Hazrat Shahjalal International Airport Expansion Project (II), JPY72.194 billion for Dhaka Mass Rapid Transit Development Project (IV), JPY55.696 billion for the Dhaka Mass Rapid Transit Development Project (Line 5 Northern Route) (I), JPY1.906 billion for the Chattogram – Cox’s Bazar Highway Improvement Project (E/S), JPY11.218 billion for the Food Value Chain Improvement Project and JPY 28.217 billion for Urban Development and City Governance Project.
Bangladesh will have to repay the loan at 0.65 per cent interest rate in 30 years where 10 years grace period will be available.