An agreement for Japanese loans worth US$ 1.18 billion to implement five development projects was signed in Dhaka on Monday. The projects include a coal-fired power plant and efficient use of natural gas in the energy-starved country.
Three other projects are linked to improvement of city governance, Haor flood management and livelihood and production and marketing of agricultural outputs by marginal farmers.
Economic Relations Division secretary Mejbah Uddin and Japan International Cooperation Agency’s Dhaka mission chief Mikio Hataeda signed the deal on behalf of the respective sides.
Finance minister AMA Muhith and visiting JICA president Akihiko Tanaka were present during the signing ceremony.
This latest assistance from JICA is the first installment of a total US$ 5.9 billion the Japanese Prime Minister Shinzo Abe had pledged to provide Bangladesh during the recent visit to Japan by Prime Minister Sheikh Hasina.
The Matarbari ultra super coal fired power plant aims at generating 1,200 megawatt electricity at a cost of US$ 406 million at Meheskhai in Cox’s Bazar.
The project also includes construction of jetty for unloading coal, township, transmission line and access roads by 2022.
Under the natural gas efficiency project worth US$ 231 million the government will install compressors for wells at Narsingdi Gas Field and Titas Gas Field, construction of gas transmission pipeline and installation of pre-paid gas metres for domestic consumers in Dhaka and Chittagong. The implementation period of the project is between 2014 and 2022.
The inclusive city governance project id aimed at improving public service in five city corporations in Narayanganj, Comilla, Rangpur, Gazipur and Chittagong. Capacity building of city corporations and improvement of their urban infrastructures, procurement of equipment and consultancy services will be carried out under the project at a cost of US$ 300 million by 2020.
The Hoar flood management and livelihood improvement project worth US$ 150 million will be implemented in upper Meghna basin. Rehabilitation of flood management facility, promotion of fisheries and agriculture will be carried out in districts like Brahmanbaria, Habiganj, Kishoreganj, Netrokona and Sunamganj by 2022.
The government will disburse US$ 97 million loans to small and marginal farmers through microfinance institutions for increasing productivity and development of marketing channel. The project is schedule to run until 2020.
ERD officials said rate of interest of the JICA loan is 0.01 annually and to be paid back in 40 years including 10 years grace period.
Our Dhaka University correspondent added that JICA president Akihiko
Tanaka hoped that Bangladesh would be an economically powerful country in South Asia region once it enhances regional co-operation, further develops its garment industry.
His observation came while he was delivering a lecture on ‘JICA’s Strategy : Bengal Bay Industrial Growth Belt (BIG-B) and Beyond’ at Dhaka University.
Akihiko Tanaka noted that establishment of good governance and creation of employment opportunities were big challenges for the country.
He promised that JICA would continue assistance in development of the country.
Vice-chancellor of the university AAMS Arefin Siddique presided over the lecture session while pro-VC Shahid Akhter Hossain, Nasrin Ahmed, and president of Japan study centre Abul Barakat, among others. were present.
-With New Age input
