JICA signs loan agreements for Jamuna Railway Bridge Construction Project and Chattogram Sewerage System Development Project

Japan International Cooperation Agency (JICA) has signed two loan agreements with the Government of Bangladesh. Under these agreements, JICA will provide Japanese ODA (Official Development Assistance) loans of up to a total of 39,902 million yen (equivalent to 3,147 crore taka) for the Jamuna Railway Bridge Construction (III) and Chattogram Sewerage System Development Project (Engineering Service). The signing ceremony took place on November 25, 2024, at NEC-2 Conference Room, Economic Relations Division, Sher-E-Bangla Nagar, Agargaon, Dhaka.

Mr. Ichiguchi Tomohide, Chief Representative, JICA Bangladesh Office, signed the loan agreement with Mr. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division. H.E Mr. Iwama Kiminori, Ambassador of Japan to Bangladesh also attended the signing ceremony.

Among the 39,902 million yen committed through the two loan agreements, 38,206 million yen is allocated for the Jamuna Railway Bridge Construction Project (III) and 1,696 million yen for the Chattogram Sewerage System Development Project (Engineering Service).

The loan agreement signed for Jamuna Railway Bridge (III) is for the third tranche of the loan. The picturesque 4.8 km dedicated railway bridge runs over the Jamuna River parallel to the existing Jamuna Multipurpose Bridge. The Bridge is expected to start its operation in early 2025 and will boost rail connectivity between the Eastern and Western zones of the country. The project has adopted cutting-edge technology for long-term sustainability and reduction of recurrent operation and maintenance costs. The loan’s annual interest rate is 1.7 percent for the construction portion and 0.40 percent for consulting services, with a 30-year repayment period including a 10-year grace period.

The Chattogram Sewerage System Development Project will focus on Catchment 2 and Catchment 4 (Kalurghat and East Bakalia) out of a total of six catchments. It’s the first phase of the project and will support the detailed design of the entire sewerage system. The development of the sewerage system will contribute to several key Sustainable Development Goals (SDGs) by promoting public health, environmental sustainability, and economic growth in Chattogram. The project will adopt the advanced technology for wastewater treatment process to effectively remove nitrogen and phosphorous from wastewater and prevent water pollution. The loan’s annual interest rate is 0.20 percent for consulting services, with a 30-year repayment period, including a 10-year grace period.

During the signing ceremony, Mr. Ichiguchi Tomohide, Chief Representative, JICA Bangladesh Office, emphasized, “Today we have agreed to implement 2 two different types of projects. However, the objective of the 2 projects is one, which is to support people of Bangladesh to advance forward for prosperous, inclusive and sustainable development. I hope our contribution will help our dear colleagues of Bangladesh Government who are working very hard to create a better Bangladesh.”

Mr. Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division, thanked the people of Japan for their generous support to the people of Bangladesh.