$491m loan accords with Japan later this month
Thursday, 16 August 2007
FHM Humayan Kabir
The government is likely to sign loan agreements with Japan later this month on a total of US$491 million fund for the development of country's power, railway and water resources sectors, official sources said.
A senior Economic Relations Division (ERD) official told the FE Monday: "We have sought time for signing the loan agreements with Japan sometime in the last week of August."
Although the loan deal was scheduled early this year, it could not be signed due to political turmoil in the country during that period, the ERD sources said.
The sources also informed this correspondent that negotiations for the Japanese aid were completed in December last year.
The ERD official said that the Japanese donor -- Japan bank for International Cooperation (JBIC) -- would provide $340 million credit for setting up a 360-megawatt (MW) capacity power plant at Haripur, $107 million for development of railway communications system between Dhaka and Chittagong and $44 million for water resources development.
A source in the Power Division said the government has already started the process for setting up the 360MW Haripur power plant. "After signing the loan agreement, the division will start physical work on the installation of the power plant in order to reduce power shortage across the country," he said.
He also said the government expects the proposed plant to begin power generation from the year 2010.
All the power plants in the country now generate about 3200MW to 3600MW of electricity daily against the demand for more than 5000MW, leaving a shortfall of over 1500MW.
The ERD official further said that the $107 million JBIC's loan for railway would be utilised for improvement of railway lines and signals on the Dhaka-Chittagong route.
"If the railway system between the capital and the port city is improved, transportation of passengers and goods will be easier and faster," the official said.
Besides, the rest $44 million aid will be utilised for improvement of water bodies to conserve water for irrigation purposes and development of fish resources, he said.
The government is likely to sign loan agreements with Japan later this month on a total of US$491 million fund for the development of country's power, railway and water resources sectors, official sources said.
A senior Economic Relations Division (ERD) official told the FE Monday: "We have sought time for signing the loan agreements with Japan sometime in the last week of August."
Although the loan deal was scheduled early this year, it could not be signed due to political turmoil in the country during that period, the ERD sources said.
The sources also informed this correspondent that negotiations for the Japanese aid were completed in December last year.
The ERD official said that the Japanese donor -- Japan bank for International Cooperation (JBIC) -- would provide $340 million credit for setting up a 360-megawatt (MW) capacity power plant at Haripur, $107 million for development of railway communications system between Dhaka and Chittagong and $44 million for water resources development.
A source in the Power Division said the government has already started the process for setting up the 360MW Haripur power plant. "After signing the loan agreement, the division will start physical work on the installation of the power plant in order to reduce power shortage across the country," he said.
He also said the government expects the proposed plant to begin power generation from the year 2010.
All the power plants in the country now generate about 3200MW to 3600MW of electricity daily against the demand for more than 5000MW, leaving a shortfall of over 1500MW.
The ERD official further said that the $107 million JBIC's loan for railway would be utilised for improvement of railway lines and signals on the Dhaka-Chittagong route.
"If the railway system between the capital and the port city is improved, transportation of passengers and goods will be easier and faster," the official said.
Besides, the rest $44 million aid will be utilised for improvement of water bodies to conserve water for irrigation purposes and development of fish resources, he said.