JICA, Bangladesh sign Tk3,800cr loan agreement

The Bangladesh government and the Japan International Cooperation Agency (JICA) signed a loan agreement for the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply” on Tuesday, marking a significant step toward strengthening the country’s economic stability and energy security amid evolving global and regional challenges.

Under the agreement, JICA will provide a Development Policy Loan of JPY 50 billion (approximately Tk3,800 crore) to support Bangladesh in building its economic and energy resilience in the face of evolving regional and international challenges, said a press release.

The programme is the first Official Development Assistance (ODA) loan initiative under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), an initiative introduced by the Japan government to address energy supply vulnerabilities and supply-chain disruptions across the region.

The Loan Agreement was signed by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), Ministry of Finance, and TAKAHASHI Junko, Chief Representative of JICA Bangladesh Office.

During the same ceremony, the Exchange of Notes (E/N) was signed by Md Shahriar Kader Siddiky and SAIDA Shinichi, Ambassador of Japan to Bangladesh, on behalf of their respective governments.

According to the press release, the programme is structured on two strategic pillars: Strengthening energy resilience and enhancing economic management and governance.

Under the first pillar on energy resilience, the programme supports policy actions on energy diversification and energy efficiency, contributing to stable power and energy supply by ensuring the sustainability of high-efficiency power generation facilities, strengthening grid system planning, and promoting energy conservation.

In parallel, as a second pillar, the programme also supports policy actions under the economic management and governance framework, which will be co-financed in collaboration with the Asian Development Bank (ADB).

The initiative is expected to contribute to maintaining macroeconomic stability, enhancing the resilience of the energy sector, and improving the overall economic structure of the country, the statement added.