JBIC drags its feet on power sector loan deals

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FE Report
The availability of Japanese assistance worth $291 million for three development projects has become uncertain as the Japan Bank for International Cooperation (JBIC) has apparently decided to go slow on signing deals with Bangladesh government.
The JBIC completed negotiations on the proposed loans in December last year. But it is yet to sign agreements to this effect with the government, sources in the finance ministry said.
According to sources, the loan agreements were scheduled to be signed early this year but those were deferred on several occasions until September last.
To help Bangladesh overcome the nagging power problem, the JBIC in early last year pledged to provide $144 million credit for setting up a 360-megawatt (MW) capacity power plant at Haripur.
At the same time, it also assured Bangladesh of giving $104 million loan for modernising railway communications system between Dhaka and Chittagong and $43 million for water resources development.
An Economic Relations Division (ERD) official said: "More than a month ago we requested the Japanese government to fix up a date for signing the loan agreements, but we are yet to get a reply."
He added the ERD in Dhaka and the Bangladesh embassy in Tokyo requested the Japanese government to complete the loan deals, but there is no positive outcome till date.
Meanwhile, a senior Power Division official told the FE that they were waiting for the Japanese loan for setting up one of the priority projects - the Haripur 360MW plant.
But the JBIC's inaction has put us into difficulties, he said.