Japan signs deal to fund metro rail project

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FE Report Bangladesh and Japan on Wednesday signed the largest-ever US $ 800 million loan agreement for three infrastructure projects including long-awaited first metro rail scheme in Dhaka city. Of the total loan amount, $ 116. 32 million is for Dhaka Mass Rapid Transit Development (DMRTD) Project. It is a part of the 33rd Official Development Assistant (ODA) loan package of the Japan International Cooperation Agency (JICA). Under the same loan package, JICA will provide $ 208 million for National Power Transmission Network Development Project and $ 460.5 million Bheramara Combined Cycle Power Plan Development project. The grant of $ 8.0 million was signed for the ground water investigation and development of deep ground water source in urban and rural areas was also included. Among the three projects, the metro rail project is significant as it will improve the city's chronic traffic congestion. The project, if implemented, would help set up mass rapid transit (MRT) connecting Uttara with Motijheel through 20.1 kilometre elevated line. Of the total project cost, JICA will provide Tk 165.94 billion at an interest rate of 0.01 per cent. ERD Secretary Abul Kalam Azad and Japan International Cooperation Agency (JICA) chief representative Takao Toda signed the loan and grant agreements on behalf of their respective sides. The ERD Secretary and Japanese Ambassador Shiro Sadoshima signed exchange of notes. Addressing the loan signing ceremony, Finance Minister AMA Muhith said, Japan has emerged as the country's top financier and the MRT financing would be the largest infrastructure investment in the country. "Japan tops the list in development assistance and will continue to be so in the years to come," he hoped. The finance minister said, the metro rail will put the country on a new mode of transportation system. He hoped that the Japanese experts would help Bangladesh get the fastest mode of the transport in the shortest possible time. "Let's promise now. Get it in six years," he said citing example of Kolkata metro rail which took 26 years to complete but the timing of Delhi metro rail was reduced to only 10 years. The Japanese Ambassador highlighted the Japanese government's special interest to invest trade and do business with Bangladesh. "Tokyo specially instructed me to increase trade and investment in the country", he said however regretting that many trips of his country's delegation were cancelled due to the unstable situation in Bangladesh. The JICA chief representative highlighted the significance of the three projects for which Japan's highest ever loan has been provided and said the single line metro rail will help 400,000 commuters to travel from Uttara to Motijheel in 36 minutes. He said the power transmission project would help the country reduce transmission loss of 2.65 per cent adding that the combined power generation will increase the energy efficiency by 8.0 per cent which is highest in the world. The JICA chief also said, Bangladesh's loan disbursement rate has been increased significantly from 5.7 per cent to 20 per cent this year. The loan signing ceremony was also addressed by Prime Minister's advisor on Energy Tawfiq Elahi. Visiting JICA Vice President Toshiyuki Kuroyanagi witnessed the ceremony.