$112m Japanese loan for railway modernization
Monday, 3 September 2007
FE Report
The country will get US$112 million soft loan from Japan for a railway sector modernisation project, official sources said.
The Economic Relations Division (ERD) and Japan Bank for International Cooperation (JBIC), the lending arm of Japanese government, recently finalised the terms and conditions of the loan at a nominal 0.1 per cent interest rate.
The loan will be used to implement four railway projects.
They are transformation of the Laksham-Chinaka Astana single track to double-track, procurement of 10 locomotives, balancing, modernisation, rehabilitation and expansion (BMRE) of Pahartoli workshop and remodelling of the Chittagong station yard.
An agreement in this connection is expected to be signed between the two sides later this month, sources said.
The government has taken the railway sector reform project worth $ 924 million aiming at transforming the Bangladesh Railway (BR) into a profit-making entity.
The Asian Development Bank (ADB) will provide $430 million and World Bank $250 million.
The government in February signed two agreements with the ADB and the WB for a total of $170 million loan to finance the first phase of the project.
Of the sum, the ADB would provide $130 million and the WB $40 million.
The country will get US$112 million soft loan from Japan for a railway sector modernisation project, official sources said.
The Economic Relations Division (ERD) and Japan Bank for International Cooperation (JBIC), the lending arm of Japanese government, recently finalised the terms and conditions of the loan at a nominal 0.1 per cent interest rate.
The loan will be used to implement four railway projects.
They are transformation of the Laksham-Chinaka Astana single track to double-track, procurement of 10 locomotives, balancing, modernisation, rehabilitation and expansion (BMRE) of Pahartoli workshop and remodelling of the Chittagong station yard.
An agreement in this connection is expected to be signed between the two sides later this month, sources said.
The government has taken the railway sector reform project worth $ 924 million aiming at transforming the Bangladesh Railway (BR) into a profit-making entity.
The Asian Development Bank (ADB) will provide $430 million and World Bank $250 million.
The government in February signed two agreements with the ADB and the WB for a total of $170 million loan to finance the first phase of the project.
Of the sum, the ADB would provide $130 million and the WB $40 million.