On June 9, the Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the People’s Republic of Bangladesh in Dhaka, the capital of Bangladesh, for the “Emergency Assistance Loan for Enhancing Economic Resilience and Stabilizing Energy Supply.” The agreement was signed by Mohammad Shahriar Kader Siddiqui, Deputy Secretary General of the Economic Relations Division at the Ministry of Finance of Bangladesh, and Junko Takahashi, Director of the JICA Bangladesh Office.
Scene from the signing ceremony
The business overview is as follows.
Emergency Support Loan for Enhancing Economic Resilience and Stabilizing Energy Supply
Emergency Support Loan for Enhancing Economic Resilience and Ensuring a Stable Energy Supply
・Country (Target Region)
People’s Republic of Bangladesh (the entire country)
・Business Objectives
This project aims to mitigate and minimize the socioeconomic impact of the situation in the Middle East on Bangladesh by supporting the Bangladeshi government as it implements various policy measures related to socioeconomic and energy strategies. It also seeks to contribute to the country’s socioeconomic stability and the promotion of its development efforts. Furthermore, by stabilizing the country’s economy and public finances and ensuring a stable energy supply, this project will contribute to the stabilization and resilience of supply chains across Asia, particularly those centered on Japan, and will also benefit Japanese companies operating in the country. This project is the first yen loan project under the “Partnership for Strengthening Asia’s Energy and Resource Supply Resilience (commonly known as Power Asia).”
・Business Activities
This project provides support to the government of the country based on a policy framework consisting primarily of strengthening fiscal management, enhancing the governance of state-owned enterprises and improving the investment environment, strengthening trade policy and logistics, and ensuring a stable energy supply. Regarding the strengthening of fiscal management, the enhancement of governance in state-owned enterprises and the improvement of the investment environment, as well as the strengthening of trade policy and logistics, common policy actions have been established through co-financing with the Asian Development Bank’s (ADB) Strengthening Economic Management and Governance Program. Furthermore, regarding the strengthening of the stable supply of energy, JICA established policy actions in consultation with the government of the host country.
・Loan Amount (Maximum)
50 billion yen
・Interest rates
Principal: 3.05%
・Repayment period
30 years (including a 10-year grace period)
・Procurement Terms
General Untied
・Implementing Agency
Financial Division, Ministry of Finance, Bangladesh
・ Contributing to the achievement of the SDGs
Goal 7 (Affordable and Clean Energy)
Goal 8 (Decent Work and Economic Growth)
Goal 17 (Achieve the Goals Through Partnerships)
・Upcoming Project Schedule (Tentative)
1. Project completion date: June 2026 (the project will be considered complete upon the finalization of the loan)
2. Scheduled timing for sending invitations to bid for consulting services (detailed design, etc.): No consulting services are planned for this project.
3. Announcement of the first package for international competitive bidding for the main construction work: No construction work involving competitive bidding is planned for this project.
This project is a co-financing initiative with the Asian Development Bank (loan amount: US$750 million), and we will implement it in close collaboration with the Bank.
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