The Economic Relations Division (ERD) is likely to sign a loan agreement of Tk 11,306 crore with the Japan International Corporation Agency (JICA) this month for implementing two development projects.

The projects are Dhaka Mass Rapid Transit Development Project (MRT-5 Northern Route) and Southern Chattogram Regional Development.
Nagad

Of the loan amount, Tk 9,093 crore will go to the Dhaka mass rapid transit project and Tk 2,213 crore to the other, ERD officials said.

“We are preparing to sign the loan agreement this month,” a senior official of the ERD told The Business Post on Thursday.

“The funding was finalised with JICA at a meeting last month. The meeting was held virtually between ERD and JICA,” he said.

He also said JICA would provide the loan under Japan’s 43 ODA (official development assistance) loan package.

A 20km metro rail line will be built under the Dhaka mass rapid transit project. There will be a 6.5km elevated metro rail line from Hemayetpur to Aminbazar and a 13.5km underground line from Aminbazar to Bhatara.

The cost of the project, which got the Executive Committee of the National Economic Council’s approval in September 2019, is estimated at Tk 41,238 crore while Tk 29,117 crore will come from JICA. The project will be completed by December 2028.

In 2020, JICA already provided Tk 4,528 crore for the project in the first phase. The interest rate of the loan will be 0.95 per cent and it has to be repaid within 30 years.

The implementing agency of the project, Dhaka Mass Transit Company, has completed the feasibility study and basic design for MRT-5. It is now conducting various surveys, making a detailed design, and acquiring land.

It said 51.6 per cent of the detailed design is complete. Also, 60 per cent of the required land has been acquired for the first east-west MRT corridor of Dhaka, which is being constructed on the route.

The other project involves improving living standards for Chattogram, Cox’s Bazar, and Bandarban residents through infrastructure development.

Meanwhile, Japan is also funding the country’s first elevated metro rail line, MRT Line-6, from Uttara to Kamalapur.