A loan agreement was signed on Friday between Bangladesh and Japan to implement a project titled “Construction of Dual Gauge Double Line Between Joydebpur-Ishurdi Section Project (I)” under the 2nd batch of the 46th Japanese ODA Loan Package.
The deal was signed by by Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division (ERD), Bangladesh and ICHIGUCHI Tomohide, chief representative of the JICA Office in Bangladesh, on behalf of their respective sides in the NEC-2 conference room of the ERD in the capital .
Under the agreement, the Government of Japan will provide a loan assistance of JPY 92,077 million (approximately $630 million) to Bangladesh.
It is noteworthy that during the Honorable Chief Advisor’s recent visit to Japan, the ‘Exchange of Notes’ for the loan of this project was signed on May 30, 2025 in Tokyo, Japan.
This project has been undertaken with the aim of improving the country’s communication system by enhancing the capacity of the existing railway track through double tracking.
The project will include the construction of a 162 km dual gauge main line, 25 km loop and siding lines, 11 km reconstruction of existing tracks, construction of 3 new stations, and other associated works.
The Government of Japan will provide funding for the project in different phases. Previously, a loan agreement of JPY 4,228 million (approximately $ 32 million) was signed with the Government of Japan for the engineering services of the project.
For this first tranche, the interest rate for the loan is 2.00% for construction works, 0.65% for consultancy services, and a Front-End Fee (at a time) of 0.20%. Repayment period of this loan will be 30 years which includes 10 years grace period.
Japan is the largest bilateral development partner of Bangladesh. It has been providing continuous support for the socio-economic development of Bangladesh since our independence.
In line with the Bangladesh government’s priorities for achieving economic growth, the Japanese government has so far committed $ 33.62 billion loan and grant assistance for infrastructure development in different sectors like communications, power and energy, agriculture, education, health and family welfare, water supply and sanitation, rural development, environmental development, and human resource development.