Japan provides $248.88m for Jamuna rail bridge, Ctg sewerage system
The countries signed an ‘Exchange of Notes’ and ‘Loan agreement’ in these regards today (25 November 2024), reads an Economic Relations Division (ERD) press statement
The government of Japan will provide an amount of 39,902 million Japanese Yen (approximately $248.88 million) to Bangladesh for Jamuna rail bridge construction and Chattogram sewerage system development.
To this end, the two governments signed an Exchange of Notes and Loan agreement at the Economic Relations Division (ERD), Sher-E-Bangla Nagar, Dhaka today (25 November).
The funding will support the two aforesaid projects under the 45th Japanese ODA loan Package (1st batch), according to an ERD press release.
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ERD secretary Md Shahriar Kader Siddiky, Japan Ambassador to Bangladesh IWAMA Kiminori, and JICA Dhaka office Chief Representative ICHIGUCHI Tomohide signed the agreements on behalf of respective sides.
Under the agreement, Japan will provide 38,206 million Japanese Yen (approximately $237.68 million or Tk2,946.73 crore) for the Jamuna Railway Bridge Construction Project under the third tranche of funding.
The project involves constructing a dedicated railway bridge over the Jamuna River to enhance connectivity and transportation infrastructure in Bangladesh.
Total cost of the ongoing project is Tk16,780.96 crore. Of these, the Bangladesh government will provide Tk4,631.76 crore while Jica TK12,149.20 crore. The implementation period is July 2016 - December 2025.
Japan has already provided 128,697 million Japanese Yen for this project. The loan for this project comes with favorable terms. The interest rate is 1.70% for construction work and 0.40% for consultancy services.
Additionally, there is a one-time front-end fee of 0.2%. The repayment period is spread over 30 years, including a 10-year grace period, the release added.
ERD said Japan will provide 1,696 million Japanese Yen (approximately $11.20 million or Tk130.80 crore) for the Chattogram Sewerage System Development Project (Engineering Service).
The project aims to promote an appropriate sewerage system in Chattogram city, by developing sewerage facilities such as sewage treatment plant, pumping station, and pipelines etc, thereby contributing to improve living and sanitary conditions and preserve aquatic environment.
The total cost of the project is Tk5,152.56 crore. Of these, the Government of Bangladesh will provide Tk581.57 crore while Jica Tk4,144.28 crore and Chattogram Wasa Tk39.00 crore. The implementation period is January 2025 - December 2032.
The loan comes with very favorable terms, including a low-interest rate of 0.20%. There is a one-time fee of 0.2%, and the repayment period is 30 years, with the first 10 years requiring no payments.
According to an ERD press release, Japan remains the largest bilateral development partner for Bangladesh, with ODA commitments totaling $32.37 billion since Bangladesh's independence.
