Japan Extends Economic Assistance: JICA Signs Two Loan Agreements with Bangladesh
On Tuesday, the Japan International Cooperation Agency (JICA) signed two loan agreements with the Government of Bangladesh at the NEC-2 conference room of the Economic Relations Division (ERD). Under these agreements, Japan will provide a total of 85,819 million Japanese yen (approximately BDT 6,700 crore) in Official Development Assistance (ODA) loans for two projects: the Food Safety Testing Capacity Development Project and the Matarbari Ultra Super Critical Coal-Fired Power Project (Eighth Tranche). The first project will receive 28,699 million yen, while the second project will be funded with 57,120 million yen.
The agreements were signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, and Ichiguchi Tomohide, Chief Representative of JICA’s Bangladesh Office. The signing ceremony was attended by the Japanese Ambassador to Bangladesh, Iwama Kiminori.
Strengthening Food Safety Testing Capacity
The Food Safety Testing Capacity Development Project aims to enhance food safety testing capabilities in Bangladesh through collaboration between JICA and the Bangladesh Food Safety Authority (BFSA). The project will involve the construction of a Food Safety Reference Laboratory building, testing rooms, a training center, and an office building in Dhaka, Chattogram, and Khulna divisions. By strengthening the food safety infrastructure, the initiative will contribute to the expansion and diversification of the food processing industry while preventing foodborne diseases.
For this project, the annual interest rate for construction work has been set at 1.85%, while the consultancy service fee is 0.55%. The loan repayment period is 30 years, including a 10-year grace period.
Advancing Energy Infrastructure through the Matarbari Power Project
The Matarbari Ultra Super Critical Coal-Fired Power Project (Eighth Tranche) aims to ensure a stable base-load power supply and diversify Bangladesh’s energy sources. The project includes the construction of a 1,200 MW ultra-supercritical coal-based power plant, a 400 kV transmission line, roads, and bridges. Additionally, Bangladesh’s first deep-sea port (with an 18.5-meter draft) will be developed under this project to strengthen the country’s energy and trade infrastructure.
Beyond energy generation, the project also focuses on socio-economic development by providing electricity facilities to local communities, building schools and hospitals, developing playgrounds, community roads, and creating employment and livelihood opportunities.
For the eighth tranche of this project, the annual interest rate is set at 1.95% for construction and equipment, while the consultancy service fee remains at 0.55%. The loan repayment period is 30 years, including a 10-year grace period. So far, JICA has financed a total of 712,430 million Japanese yen for this project up to the eighth tranche.
At the signing ceremony, Ichiguchi Tomohide, Chief Representative of JICA Bangladesh Office, remarked, "Today, we have agreed to implement two diverse projects. However, both projects share the common goal of supporting the people and government of Bangladesh in advancing toward a prosperous, inclusive, and sustainable future."
