Japan to Provide Bangladesh $426 Mln Loan For Power, Bridge Projects

Japan will provide Bangladesh a loan of 29.8 billion Taka (about 425.9 million U.S. dollars) for power plant and bridge projects in the country, said a press release issued here Sunday.

The loan agreement was signed here on Sunday by representatives of the two governments, said the release of the Japanese Embassy in Dhaka.

The Japan's loan package was pledged by Japanese Prime Minister Taro Aso to Bangladeshi Prime Minister Sheikh Hasina last month.

The loan package comprises three projects which include 16.66 billion Taka for a power plant project (360 MW), 7.29 billion Taka for a power distribution project and 5.87 billion Taka for a bridge improvement project.

The press release said the conditions of the loans are the most generous. The interest rate is 0.01 percent per annum and the repayment period is 40 years inclusive of 10-year grace period for the three loans.

The accumulated total commitment of Japan's loan to Bangladesh since 1973 is approximately 671 billion Japanese yen (about 503 billion Taka or 7.19 billion U.S. dollars) for 80 projects including three projects under the new package. (1 U.S. dollar equals about 70 Taka)