DHAKA, June 27, (V7N) – Bangladesh and Japan today inked a significant loan agreement for the "Construction of Dual Gauge Double Line Between Joydebpur-Ishurdi Section Project (I)," part of the 2nd batch of Japan's 46th Official Development Assistance (ODA) Loan Package.

The agreement was signed by Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), on behalf of the Government of Bangladesh, and ICHIGUCHI Tomohide, Chief Representative of the JICA Office in Bangladesh, representing the Government of Japan. The signing ceremony took place in the NEC-2 conference room of the Economic Relations Division in the city.

Under this agreement, Japan will provide loan assistance amounting to JPY 92,077 million, which is approximately US$630 million. This follows the "Exchange of Notes" for the project's loan, which was signed in Tokyo on May 30, 2025, during the Honorable Chief Advisor's recent visit to Japan.

The project's primary objective is to enhance Bangladesh's communication system by significantly increasing the capacity of the existing railway network through double tracking. The scope of work includes the construction of a 162 km dual gauge main line, 25 km of loop and siding lines, 11 km of existing track reconstruction, the building of three new stations, and other related infrastructure.

Japan's funding for this project will be disbursed in various phases. Previously, a loan agreement for JPY 4,228 million (approximately $32 million) was signed with Japan for the engineering services of this project.

For this initial tranche, the loan carries an interest rate of 2.00% for construction works and 0.65% for consultancy services, along with a one-time Front-End Fee of 0.20%. The repayment period for this loan is 30 years, inclusive of a 10-year grace period.

Japan stands as Bangladesh's largest bilateral development partner, consistently supporting the nation's socio-economic development since its independence. In alignment with the Bangladesh government's priorities for economic growth, Japan has to date committed a substantial $33.62 billion in loan and grant assistance. This aid has been crucial for infrastructure development across various sectors, including communications, power and energy, agriculture, education, health and family welfare, water supply and sanitation, rural development, environmental development, and human resource development.

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