Japan to give $158m in loans more for metro rail
This loan has been taken to introduce the Metro Rail System from Uttara to Kamlapur (MRT line 6)
The government has signed two agreements with Japan to take another $158 million in loans for financing the Dhaka Mass Rapid Transit Development Project, Line 6.
The objective of the project is to introduce the Metro Rail System from Uttara to Kamlapur.
To this end, the Economic Relations Division has signed an ``Exchange of Notes' and a 'Loan Agreement" with Japan today, said the division in a press statement.
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Record of Discussions (R/D) for two technical assistance projects has also been signed between the two governments.
The rate of interest for this loan will be 0.70% for construction, 0.01% for consultancy service, and Front End Fee (at a time) of 0.2%.
The repayment period will be 30 years which includes a 10 years grace period. While financing under technical cooperation assistance for two projects will be provided as grants.
Dhaka Mass Transit Company Limited under the Road Transport and Highways Division is implementing the project.
So far the overall average progress of the project is at 76%.
While the progress of civil works from Uttara to Agargaon part is 90%.
As per the approved DPP, the total project cost is Tk21,985.07 crore.
