Japan to release 3rd tranche of $540m

FE REPORT | Published: December 24, 2023 22:11:21

Japan will provide a third tranche of 76,635 million yen or approximately $540 million for the third terminal at the Hazrat Shahjalal International Airport the construction of which already reached 90 per cent.
With this, the Japanese loan for it stood at 324,191 million yen equivalent to approximately US $ 2.21 billion.
The 3rd tranche of the project has been ensured under the 44th official development assistance (ODA), the deal signing ceremony for which was held at NEC-2 Conference Room on Sunday.
Under the ODA, an 'Exchange of Notes' and 'Loan Agreement' were signed.
Economic Relations Division Secretary Md Shahriar Kader Siddiky and Japanese Ambassador to Bangladesh IWAMA Kiminori signed the Exchange of Notes on behalf of the respective sides.
Senior Representative of Japan International Cooperation Agency Bangladesh Office HIROSHI Yoshida signed the 'Loan Agreement' with the ERD secretary.
Since the project was launched, 30,000 million yen has been disbursed under the first round and 217,556 million yen under the second round.
According to the Japanese Embassy press release, the installment will be used for constructing the HSIA 3rd International Passenger Terminal, a Cargo Terminal, and associated facilities.
The goal is to meet rising aviation demand, expand airport capacity, improve accessibility, and fortify security, contributing significantly to Bangladesh's economic growth. The expanded airport will play a pivotal role in enhancing the connectivity in the region.
The Third Terminal the construction of which began in December 2019 saw a soft opening prior to announcement of schedule of the national election for October 7. According to the development project proposal, project implementation period is from July 2016 to June 2025.
Up to November 2023, physical progress of the project was 9 per cent and financial progress 66 per cent
Of the total project cost of Tk 213.99 billion, JICA's contribution is Tk 161.41 billion.
The Exchange of Notes covers Hazrat Shahjalal International Airport Expansion Project's loan with an interest rate of 1.30 per cent per annum and the part concerning payments to consultants is 0.2 per cent per annum with a loan repayment period of 20 years after 10 years of grace period.
Japan, the largest bilateral development partner of the country, has been providing continuous support for socio-economic development of Bangladesh since independence.
Japanese loans and grants have been utilised for implementation of different projects in a wide range of areas including power, roads, bridges, telecommunication, agriculture, health, education, water supply and sanitation, rural development, environment, human resource development, etc. The Japanese assistance contributed significantly to overall development of the country. The ODA commitment has exceeded $ 31.84 billion till now.
smunima@yahoo.com