Japan to provide 18,285m Japanese Yen for MRT-6

ZOOMBANGLA DESK: “Exchange of Notes” and “Loan Agreement” were signed today between Japan and Bangladesh for the 5th tranche of loans worth 18,285 million Japanese Yen for financing the Dhaka Mass Rapid Transit Development Project, Line 6 under 42nd ODA loan package (2nd batch).

Economic Relations Division (ERD) Secretary Fatima Yasmin signed the “Exchange of Notes” and the “Loan Agreement” on behalf of the government of Bangladesh while Japanese Ambassador to Dhaka ITO Naoki signed the “Exchange of Notes” while Chief Representative, JICA Bangladesh Office Yuho Hayakawa signed the “Loan Agreement” on behalf of Japan.

Besides, Record for Discussions (R/D) for two technical assistance projects were also signed between the two governments. The signing ceremony was held at the NEC-2 of ERD in the city’s Sher-e-Bangla Nagar area.

Under the 42nd ODA Loan Package (2nd batch), Japan will provide 18,285 million Japanese Yen equivalent to Taka 1,350.39 crore for 5th tranche of MRT line 6. The rate of interest of this loan will be 0.70 percent for construction, 0.01 percent for consultancy service and Front End Fee will be 0.2 percent at a time while the loan will be repaid in 30 years with a grace period of 10 years.

The financing under technical cooperation assistance for two projects will be provided as grants. These two projects are Fisheries livelihood enhancement project in the coastal area of the Bay of Bengal and the Project for improvement of comprehensive management capacity of Department of Public Health and Engineering (DPHE) on water supply (phase 2).

The projects being implemented by these loans and technical assistance grants are as follows:

MRT Line 6: The objective of this project is to introduce metro rail system from Uttara to Kamalapur. Dhaka Mass Transit Company Limited under the Road Transport and Highways Division is implementing the project. The overall average progress of this project is 76 percent.

However, progress of civil works from Uttara to Agargaon part is 90 percent. As per the approved DPP, the total project cost is Taka 21,985.07 crore. However, the DPP may be revised due to the extension of line from Motijheel to Kamalapur.

Earlier, JICA has provided 2,37,513 million Japanese Yen in 4 tranches. The loan amount for this 5th and last tranche is 18,285 million Japanese Yen, which will be utilized mainly for the Motijheel to Kamalapur extension.

As being the single largest bilateral development partner of Bangladesh, the ODA commitment of Japan to Bangladesh till February 2022 exceeded to $27.432 billion while the disbursements to $17.459 billion. (BSS)