Bangladesh, Jica ink ¥50b loan deal to strengthen energy, economic resilience

Bangladesh and the Japan International Cooperation Agency (Jica) today (9 June) signed a loan agreement worth ¥50 billion (around Tk3,800 crore) to strengthen the country's economic resilience and ensure a stable energy supply amid evolving global and regional challenges.

The loan agreement for the "Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply" was signed in the city by Md Shahriar Kader Siddiky, secretary of the Economic Relations Division (ERD), Ministry of Finance, and TAKAHASHI Junko, chief representative of JICA Bangladesh Office, said a press release.

During the same ceremony, an Exchange of Notes (E/N) was signed by Siddiky and Saida Shinichi, Ambassador of Japan to Bangladesh, on behalf of their respective governments.

Under the agreement, Jica will provide a Development Policy Loan to support Bangladesh in enhancing its economic and energy resilience.

The programme is the first Official Development Assistance (ODA) loan initiative under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), a Japanese initiative aimed at addressing energy supply vulnerabilities and supply-chain disruptions across the region.

The programme is structured around two key pillars – strengthening energy resilience and enhancing economic management and governance.

Under the energy resilience component, the programme will support policy measures aimed at diversifying energy sources and improving energy efficiency.

It is expected to contribute to a stable power and energy supply through the sustainability of high-efficiency power generation facilities, strengthened grid system planning and increased energy conservation efforts.

The second pillar focuses on economic management and governance reforms and will be co-financed in collaboration with the Asian Development Bank (ADB).

Officials said the initiative is expected to help maintain macroeconomic stability, strengthen the resilience of the energy sector and improve the country's overall economic structure.

The support comes as Bangladesh continues implementing reforms to ensure sustainable and inclusive growth amid growing uncertainties in the global economy.

The successful conclusion of the agreement before the end of the current fiscal year reflects the strong partnership between Bangladesh and Japan and reaffirms Jica's commitment to supporting Bangladesh's long-term development priorities.

The initiative is also expected to further strengthen bilateral friendship and cooperation while contributing to Bangladesh's journey towards resilient and sustainable economic growth.