Japan, Bangladesh seal $575m loan deal
The funds will support key infrastructure and energy projects in the country
Japan has signed the second batch of its 45th Official Development Assistance (ODA) Yen Loan agreement with Bangladesh, amounting to 85.819 billion yen (approximately $575 million).
The funds will support food safety infrastructure and energy projects in the country.
Japanese Ambassador to Bangladesh SAIDA Shinichi and Economic Relations Division (ERD) Secretary Md Shahriar Kader Siddiky, today (25 March) signed the Exchange of Notes, according to a press release.
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Following this, ICHIGUCHI Tomohide, chief representative of the Japan International Cooperation Agency (Jica) Bangladesh Office, and Siddiky signed the relevant loan agreement.
The funding will support the Food Safety Testing Capacity Development Project and Matarbari Ultra Super Critical Coal-Fired Power Project.
The first is the Food Safety Testing Capacity Development Project, with a loan of 28.699 billion yen, which aims to enhance food safety inspection capabilities in major cities, including Dhaka.
The Food Safety Testing Capacity Development Project, receiving a loan of 28.699 billion yen, aims to enhance food safety inspection capabilities in major cities, including Dhaka.
The project will establish essential infrastructure for scientific-based inspections, strengthening the food processing industry, promoting industrial diversification, and preventing foodborne diseases.
The Matarbari Ultra Super Critical Coal-Fired Power Project (VIII) will be funded with a 57.120-billion-yen loan. This initiative aims to construct a high-efficiency, ultra-supercritical pressure coal-fired power plant to meet Bangladesh's increasing electricity demand.
The project is expected to boost the country's energy supply capacity and contribute to sustainable economic growth by diversifying energy sources.
Ambassador SAIDA Shinichi highlighted Japan's commitment to Bangladesh's economic development through ongoing and new projects.
He stated that this agreement reflects Japan's "steadfast partnership with Bangladesh to chart a pathway towards stable development" and reaffirms Japan's "unwavering dedication to collaborating closely with the interim government to address its development needs."
Japan remains one of Bangladesh's largest development partners, providing long-term financial support for critical infrastructure and energy projects.
