Japan to provide $1.06bn to support Bangladesh’s budget, railways

Japan is set to provide $1.06 billion for budgetary support, railway development and other aid to Bangladesh.

The Chief Advisor’s Deputy Press Secretary Mohammad Abul Kalam Azad Majumder said Japan would provide $418 million of the total amount as a development policy loan for Bangladesh’s economic reform climate resilience, reports Bangladesh Sangbad Sangstha (BSS).

Tokyo will also provide $641 million to upgrade the Joydebpur-Ishwardi rail line to a dual-gauge double line.

Besides, the country will provide $4.2 million in aid for scholarships.

Meanwhile, Japanese Prime Minister Ishiba Shigeru and Chief Advisor Muhammad Yunus met on Friday at Shigeru’s office in Tokyo.

Following the meeting, a joint statement said that the leaders discussed the bilateral relations and interests of both countries, BSS said.

Yunus expressed gratitude for Japan’s continuous support for sustainable economic growth and development, especially for the projects under the Bay of Bengal Industrial Growth Belt (BIG-B) initiative, including the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI), to propel Japan-Bangladesh bilateral relations.

Both countries welcomed the signing of agreements on the budget support and rail development aid.

They also welcomed the signing of Memorandum of Understanding (MoU) and Memorandum of Cooperation (MoC) including a land agreement with Bangladesh Special Economic Zone (BSEZ) to encourage Japanese investment in Bangladesh, including the One Stop Service (OSS) system at BIDA, installation of pre-paid gas metres, setting up a factory for battery-powered bicycles, launching a pilot project for data security.