Bangladesh and Japan signed a major loan agreement today for a railway construction project. The deal covers building dual gauge double line tracks between Joydebpur and Ishurdi as part of Japan's 46th development aid package. Md. Shahriar Kader Siddiky from Bangladesh's Economic Relations Division and ICHIGUCHI Tomohide from JICA Bangladesh signed the papers at the ministry office. Japan will provide 92,077 million yen, which equals about 630 million US dollars. Officials had already signed preliminary documents for this project during Bangladesh's Chief Advisor's trip to Tokyo on May 30.
The railway project aims to boost Bangladesh's transportation network through improved train tracks. Workers will build 162 kilometers of new dual gauge main railway line and 25 kilometers of loop and siding tracks. The construction plan covers rebuilding 11 kilometers of existing tracks and creating three new train stations. Japan previously approved 4,228 million yen for engineering work on this same project. The government will fund different parts of the work over several phases.
Japan charges 2 percent interest for construction costs and 0.65 percent for consulting services. Bangladesh has 30 years to repay the loan and gets a 10-year grace period before payments start. Japan also requires a one-time front fee of 0.2 percent. These terms match standard development loan agreements between the two countries. The repayment schedule gives Bangladesh flexibility to manage its finances.
Japan ranks as Bangladesh's top bilateral development partner since the country gained independence. Japanese assistance has reached 33.62 billion dollars across many important sectors. The aid covers transportation, power generation, farming, schools, hospitals, water systems and rural development projects. This partnership continues to support Bangladesh's economic growth goals.
The railway project aims to boost Bangladesh's transportation network through improved train tracks. Workers will build 162 kilometers of new dual gauge main railway line and 25 kilometers of loop and siding tracks. The construction plan covers rebuilding 11 kilometers of existing tracks and creating three new train stations. Japan previously approved 4,228 million yen for engineering work on this same project. The government will fund different parts of the work over several phases.
Japan charges 2 percent interest for construction costs and 0.65 percent for consulting services. Bangladesh has 30 years to repay the loan and gets a 10-year grace period before payments start. Japan also requires a one-time front fee of 0.2 percent. These terms match standard development loan agreements between the two countries. The repayment schedule gives Bangladesh flexibility to manage its finances.
Japan ranks as Bangladesh's top bilateral development partner since the country gained independence. Japanese assistance has reached 33.62 billion dollars across many important sectors. The aid covers transportation, power generation, farming, schools, hospitals, water systems and rural development projects. This partnership continues to support Bangladesh's economic growth goals.
