The governments signed agreements today (November 25, 2024) at Dhaka’s Economic Relations Division (ERD) office. This initiative falls under the 45th Japanese ODA Loan Package’s first batch, according to ERD. This was reported by the railway transport news portal Railway Supply.

Jamuna rail bridge
Flags of Bangladesh and Japan. Illustration: Collected

Japan’s financial commitment will fund the Jamuna Rail Bridge and Chattogram Sewerage System development. The ERD press release highlighted these projects’ importance for Bangladesh’s infrastructure growth.

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The Jamuna Rail Bridge Project secures $237.68 million (¥38,206 million yen) from Japan’s loan. This funding is part of the project’s third tranche. The bridge aims to improve connectivity and strengthen transportation systems across the Jamuna River.

Total costs for the railway bridge project reach Tk16,780.96 crore, with Bangladesh’s government contributing Tk4,631.76 crore. JICA’s contribution stands at Tk12,149.20 crore, enabling timely completion.

Scheduled from July 2016 to December 2025, the project has seen consistent support from Japan. Previous Japanese funding totaled ¥128,697 million yen, demonstrating long-term collaboration.

Loan terms for the railway project include a 1.70% interest rate on construction work and 0.40% for consultancy services. A one-time front-end fee of 0.2% applies. The repayment period extends 30 years, featuring a 10-year grace period.

Benefits of the Jamuna Rail Bridge for Bangladesh

For Chattogram’s Sewerage System Development Project, Japan allocates ¥1,696 million yen ($11.20 million). This engineering service-focused loan aims to develop essential sewage infrastructure.

Planned facilities include treatment plants, pumping stations, and pipelines, contributing to better living conditions in Chattogram. The project aligns with efforts to protect aquatic environments and enhance sanitation standards.

The total cost for the sewerage system project is Tk5,152.56 crore. Funding sources include Tk581.57 crore from Bangladesh, Tk4,144.28 crore from JICA, and Tk39.00 crore from Chattogram Wasa.

The project’s implementation period spans January 2025 through December 2032, according to ERD. Japanese loan terms feature a low-interest rate of 0.20%, alongside a 0.2% front-end fee.

Long-Term Impacts of the Jamuna Rail Bridge

Japan’s longstanding partnership with Bangladesh continues to flourish. With ODA commitments exceeding $32.37 billion since Bangladesh’s independence, Japan remains a key bilateral development ally.

Source: www.tbsnews.net

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