Japan interested in increasing infrastructure investment

The Japan International Cooperation Agency (Jica) has expressed its interest in providing more loans for infrastructure development in Bangladesh.

The governmental agency of the world's third-largest economy has also asked the authorities in Dhaka to prepare a plan in this regard and send it to the development partner, Planning Minister MA Mannan told reporters after a meeting with visiting Jica Executive Senior Vice President Yamada Junichi on Thursday.

"Jica wants to invest in Bangladesh, with priority given to infrastructure projects. Besides, it is keen to provide loans for human resource development, especially health education and rural infrastructure," said the minister.

"They have assets and are willing to provide them, but the approval process delays the loans. Because of this, Jica is not satisfied with the slow progress of projects," he added.

According to sources at the Economic Resources Division (ERD), Bangladesh has signed loan agreements with Japan totalling more than $25 billion since the independence of the South Asian nation in 1971.

The planning minister said Jica is sometimes inconvenienced by the time taken in the project process here in Bangladesh, but similar work is quickly done in their country.

"We cannot do it the same way as them. We have explained to them that we have rules and regulations that must be obeyed, and we have to be accountable in the parliament. Despite these challenges, we will try to expedite the progress of the projects," he added.

Responding to questions from journalists, Jica's executive senior vice president said Bangladesh has always been considered one of the most important countries for the development agency.

Yamada Junichi said he has visited a few projects, especially Mass Rapid Transit (MRT) in Dhaka, the Special Economic Zone in Araihazar, the Matarbari Power Plant, and the deep seaport projects. He has expressed satisfaction with these projects.

He said infrastructure development is very important in this country, and Jica wants to further support Bangladesh in this area.

Regarding the increase in interest rates by Jica, this official said that it has been done to comply with the decision of the Japanese government.

He said he believes the interest rate has been increased, taking into account the international market. Jica has increased interest not only for Bangladesh but for all countries, and the rates have been fixed in accordance with international standards.

The new proposal by the Jica suggests an interest rate of 1.6%, marking a 40 basis point hike from the previous raise implemented in March. This translates to a total increase of 90 basis points in Jica loan interest rates over the past year, starting from the 0.70% rate at the beginning of the last Japanese fiscal year (April 2022 to March 2023).

Later at a meeting, Prime Minister Sheikh Hasina requested Yamada Junichi to explore the opportunity of producing drinking water from the waste water that comes from seawater following salt production by the local people at the project area in Cox's Bazar.

The Jica official appreciated the proposal, saying, "It is possible", reports BSS.

Executive Senior Vice-President of the Japan International Cooperation Agency (Jica) Yamada Junichi yesterday paid a courtesy call on Prime Minister Sheikh Hasina at her Jatiya Sangsad Bhaban office yesterday evening.

The prime minister said there will be huge amounts of salt in the wastewater and the local people will be benefited by it as they can produce much salt using less water, the PM's Speechwriter M Nazrul Islam told newsmen after the meeting.

The premier also asked the authorities concerned to form an authority to deal with the Maheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI) in line with a joint communique, signed between Bangladesh and Japan on 26 April during her last official visit to Japan.

In reply, the Jica expressed its desire to work with the MIDI upon completion of the Matarbari Power Plant project.

She also asked the authorities concerned to introduce one stop service in the Araihazar Economic zone area to stop the hassle of the investors to fetch more foreign and local investments.

Yamada Junichi apprised the prime minister that he had visited Matatbari Power Plant, Deep Sea Port, Third Terminal of Hazrat Shahjalal International Airport in Dhaka and Economic Zone at Araihazar in Narayanganj projects areas.

Junichi appreciated the progress of the mega projects and hoped the Matarbari Power Plant will be inaugurated early next year as 95% work of the plant has been completed.