Japan will provide an emergency support loan of up to 50 billion yen (approximately US$312 million) to Bangladesh to help strengthen the country's economic resilience and ensure a stable energy supply.
The Japanese Official Development Assistance (ODA) loan, co-financed by the Asian Development Bank (ADB), is intended to mitigate the socio-economic impacts of recent global challenges, including rising energy prices and growing uncertainty in energy supplies stemming from the deteriorating situation in the Middle East.
Earlier, Japanese Ambassador to Bangladesh Saida Shinichi and the ERD secretary signed the Exchange of Notes related to the loan.
According to the Japanese Embassy, the financing will support the government's efforts to strengthen fiscal management, improve the investment climate and ensure a stable energy supply -- key factors for sustaining economic stability, reform momentum and long-term resilience.
The loan is the first Japanese ODA project under the "POWERR Asia" initiative, launched by Japanese Prime Minister Sanae Takaichi at the AZEC Plus Online Summit on Energy Resilience.
Prime Minister Tarique Rahman also participated in the summit in April.
POWERR Asia aims to enhance energy and resource resilience across the region through both emergency responses and long-term structural cooperation.
The initiative includes support for energy procurement, supply-chain maintenance, energy diversification and industrial resilience.
Speaking on the occasion, Ambassador Shinichi described the agreement as a clear demonstration of Japan's unwavering partnership with Bangladesh at a critical juncture.
He said Bangladesh remains a key partner under the two countries' strategic partnership framework and in advancing the vision of a Free and Open Indo-Pacific.
He also reaffirmed Japan's commitment to supporting Bangladesh's stability, prosperity and sustainable development.
According to the embassy, the loan is expected to contribute to stronger supply-chain resilience across Asia, including networks linked to Japan, by supporting Bangladesh's economic and energy stability.
It is also expected to further expand cooperation between the two countries in areas such as quality infrastructure, energy, transport, trade and investment, human resource development and private-sector collaboration under the Strategic Partnership.
smunima@yahoo.com