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Japan has committed a loan package worth approximately $582 million (85,819 million Japanese Yen) under its 45th ODA Loan Package (2nd batch) to support two significant development projects in Bangladesh. The loan will fund the ‘Food Safety Testing Capacity Development Project’ and the ‘Matarbari Ultra Super Critical Coal-Fired Power Project (VIII),’ further strengthening the bilateral ties between the two nations.
The Governments of Bangladesh and Japan signed the ‘Exchange of Notes’ and ‘Loan Agreements’ for two key projects under the 45th Japanese ODA Loan Package (2nd batch) on Tuesday.
The signing ceremony took place at the NEC-2 Conference Room of the Economic Relations Division (ERD) in Sher-E-Bangla Nagar, Dhaka.
Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance, signed the ‘Exchange of Notes’ and the ‘Loan Agreements’ on behalf of the Government of Bangladesh. His Excellency SAIDA Shinichi, the Ambassador of Japan to Bangladesh, signed the ‘Exchange of Notes’, while ICHIGUCHI Tomohide, Chief Representative of JICA Bangladesh Office, signed the ‘Loan Agreements’ on behalf of the Government of Japan.
Food Safety Testing Capacity Development Project
To strengthen food safety testing capacity in Bangladesh, the Government of Japan will provide 28,699 million Japanese Yen (approximately $194 million) for the construction of one reference laboratory, an office and training center in Dhaka, and divisional laboratories in Chattogram and Khulna. The total cost of the project is Tk2,409.70 crore, with Tk1,898.92 crore funded by JICA. The implementation period for this project is from January 2025 to December 2034. The loan will be offered at preferential terms: 1.85% interest for construction, 0.55% for consultancy services, a 0.20% front-end fee, and a 30-year repayment period, including a 10-year grace period.
Matarbari Ultra Super Critical Coal-Fired Power Project (VIII)
This project aims to meet the growing electricity demand and enhance the stable power supply in Bangladesh. The Government of Japan will provide 57,120 million Japanese Yen (approximately $388 million) for the 8th tranche of the project. The total cost of the project is Tk56,693.90 crore, with Tk47,945.03 crore funded by JICA. This large-scale power project is being implemented in Matarbari, Maheshkhali Upazila, Cox’s Bazar district, with an implementation period from July 2014 to December 2026. As of February 2025, the project is 92% physically completed and 86% financially progressed. The loan for this project will carry an interest rate of 1.95% for construction, 0.55% for consultancy services, a 0.20% front-end fee, and a repayment period of 30 years with a 10-year grace period.
Strengthening Bilateral Ties
Japan continues to be the largest bilateral development partner for Bangladesh, providing unwavering support for the country’s socio-economic growth. Since Bangladesh’s independence, Japan has committed a total of $32.62 billion in loan and grant assistance to various sectors, including infrastructure, communications, energy, agriculture, education, health, water supply, sanitation, rural development, and human resource development.
The signing of these loan agreements is a testament to the strengthening economic ties between the two nations, contributing to the continued growth and development of Bangladesh.
