JICA signs Tk 6,700 crore loan deals with Bangladesh for 2 projects

Dhaka, 25 March - The Japan International Agency (JICA) on Tuesday signed two loan agreements with the government of Bangladesh at the Economic Relations Division (ERD) to provide Japanese ODA loans of up to a total of 85,819 million yen (equivalent to Tk 6,700 crore).

The loan agreements were signed for the two projects - Food Safety Testing Capacity Development Project (Loan amount: 28,699 million yen) and Matarbari Ultra Super Critical Coal-Fired Power Project (VIII) (Loan amount: 57,120 million yen).

ERD Secretary Md Shahriar Kader Siddiky and Chief Representative, JICA Bangladesh Office Ichiguchi Tomohide signed the agreements witnessed by Ambassador of Japan to Bangladesh Saida Shinichi.

Under the Food Safety Testing Capacity Development Project, JICA and the Bangladesh Food Safety Authority (BFSA) will work together to improve the food safety testing capacity of BFSA in Dhaka, Chattogram, and Khulna Divisions by constructing a food safety reference laboratory building, a food safety testing room, a training building, an office building, and necessary capacity development.

These will contribute to promoting the food processing industry, diversification and high value-adding of the industry, and prevention of diseases caused by unsafe food.

The annual interest rate of the loan is 1.85 percent for the construction portion and 0.55 percent for consulting services, with a 30-year repayment period including a 10-year grace period.

Matarbari Ultra Super Critical Coal-Fired Power Project aims to secure a reliable base load power and ensure fuel source diversification for Bangladesh. The project includes a 1,200MW highly efficient ultra-supercritical coal-fired plant, 400kV transmission lines, roads, and bridges. It also includes the first deep seaport of the country with a draft of 18.5-meters.

The project also confirms social and economic development components for the local communities, such as electrification, schools, hospitals, playgrounds, community roads, job opportunities, and livelihood improvement programs.

The annual interest rate of the Tranche VIII loan is 1.95 percent for civil works and equipment and 0.55 percent for consulting services, with a 30-year repayment period, including a 10-year grace period.

JICA has financed a total of 712,430 million Japanese Yen for the Project till Tranche VIII.

During the signing ceremony, Ichiguchi Tomohide emphasized, “Today we have agreed to implement two diversified projects. However, the objective of the both projects is one which is to support the people and government of Bangladesh to advance forward for prosperous, inclusive, and sustainable development.”