Japan pledges $1.18b loan package for 5 BD projects

Japan will provide US$1.18 billion soft loan under its 35th official development assistance (ODA) for implementing five development projects in Bangladesh.
The Japanese Foreign Minister Fumio Kishida pledged it Saturday at a meeting with his Bangladeshi counterpart Abul Hassan Mahmood Ali at his office in the capital.  
"Our foreign minister Mr Kishida has pledged Bangladesh foreign minister Mr Ali to provide US $1.18 billion soft loan under 35th package of ODA of Japan for the development of five projects in Bangladesh," Deputy Press Secretary of Japanese Foreign Ministry Koichi Mizushima told the media at a press briefing on the visit of his country's foreign minister at Pan Pacific Sonargaon Hotel on the day.
He said the officials of two countries will finalise the projects for implementing the pledged loan package. He, however, hinted that coal-fired power plant, textiles and energy sector will get priority for the Japanese loan.
He said that the foreign ministers of both the countries had discussed a wide range of issues that include economic, political, security, cultural cooperation, regional matter and people to people exchange.
 "It is good timing for our (Bangladesh-Japan) relations. The partnership should be comprehensive," he said.  
Mentioning Bangladesh as traditionally very friendly toward Japan, he said the number of Japanese companies in Bangladesh has increased to 176 in 2013 from 61 in 2007. The Japanese companies mainly invest in textiles, food production and motorcycle manufacturing sectors.   
He, however, suggested uninterrupted supply of power for attracting more Japanese investment in Bangladesh.
 "We want stable supply of energy for the improvement of business environment that could draw more Japanese investment in Bangladesh. If investment environment improves more Japanese entrepreneurs will invest in Bangladesh," he said.
About democracy in the country he said, "Democracy should be promoted in Bangladesh. He said that participation of all major parties in the local government (upazila elections) polls will help improve strengthen democracy here.    
Asked whether Japan will invest in the construction of Padma Multipurpose Bridge he said, "There was no discussion regarding the issue".
He said that young people of the two countries should visit each other countries for strengthening bilateral ties.  
He said that Mr Kishida called on Prime Minister Sheikh Hasina and conveyed Japanese Prime Minister's invitation to her for visit to Japan.
Bangladesh's Prime Minister Sheikh Hasina last visited Japan in 2010.
Kishida who arrived in the country Friday last, was the first Japanese foreign minister to visit Bangladesh after 2006. He left the country yesterday (Saturday) night .
Japan is the largest bilateral development partner of Bangladesh since 1972 when it established diplomatic relations with Bangladesh. Its grants and aid reached $11 billion last year.
Japan signed $2.1 billion soft loan agreement with Bangladesh on March 10, 2013 under 34th ODA loan package for four projects in Bangladesh.
The four projects are: Kanchpur, Meghna and Gumti 2nd Bridges Construction and Existing Bridges Rehabilitation Project (I), Karnaphuli Water Supply Project (Phase-2), Northern Bangladesh Integrated Development Project and Renewable Energy Development Project.
The rate of interest of this ODA loan is 0.01 per cent per annum which is payable in 40 years, including 10 years grace period, Economic Relations Division, sources said.
The two-way trade is close to $2 billion with Japan's exports worth more than $1 billion.