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Press Release

June 14, 2018

Signing of Japanese ODA Loan Agreements with Bangladesh: Contributing the development of Bangladesh with the largest loan amount in the history.

On June 14, 2018, the Japan International Cooperation Agency (JICA) signed loan agreements with the Government of People's Republic of Bangladesh in Dhaka, to provide Japanese ODA loans of up to a total of 200.371 billion yen for the following six projects.

  1. Matarbari Port Development Project (E/S) (loan amount: 2.655billion yen)
  2. Jamuna Railway Bridge Construction Project (I) (loan amount: 37.217 billion yen)
  3. Dhaka Mass Rapid Transit Development Project (Line 5) (E/S) (loan amount: 7.358 billion yen)
  4. Dhaka Mass Rapid Transit Development Project (Line 6) (III) (loan amount: 79.271 billion yen)
  5. Matarbari Ultra Super Critical Coal-Fired Power Project (IV) (loan amount: 67.311 billion yen)
  6. Health Services Strengthening Project (loan amount: 6.559 billion yen)

Details for the projects are provided below.

(1) Matarbari Port Development Project (E/S)

(a)Objective and Summary

The objective of the Project is to strengthen the port logistics capacity of Bangladesh by constructing a new commercial port at Matarbari area in Chittagong Division, thereby contributing to acceleration of logistics with neighboring countries.

The total trade volume of the country has been increasing at the average 12% for the last 10 years due to economic growth rate of average 6% per annum over the last 10 years. As a result, country's container cargo demand is expected to increase from 1,620,000 TEU (Twenty-foot Equivalent Unit) in 2014 to 9,850,000 TEU in 2040. However, port logistics capacity of the country is insufficient to meet such a sharp increase of demand. The container handling capacity of Chittagong Port is even lower than current container demand, and the port does not have enough capacity to handle large container vessels with more than 2,700 TEU due to the restriction of water depth of CDL (Chart Datum Level) - 9.5m.

Considering the situation above, Government of Bangladesh has taken this project for constructing new commercial port with the water depth of CDL - 16m to promote investment and to cope with the future development need of the country. Constructing a new commercial port in Matarbari area will enormously contribute to realize the Bay of Bengal Industrial Growth Belt (BIG-B) initiative which has been mentioned in the joint statement signed by both Prime Ministers of the Governments of Japan and Bangladesh.

(b) Executing Agency

  1. Chittagong Port Authority
    Address: Bandar Bhaban, Chittagong-4100
    Phone: +880-31-2510870, Fax: +880-31-2510889
  2. Roads and Highways Department, Ministry of Road Transport and Bridges
    Address: Sarak Bhaban, Tejgaon Industrial Area, Dhaka
    Phone: +880-2-8879299, Fax: +880-2-8879199

(c) Planned Implementation Schedule

  1. Completion of project: May 2024 – when the facilities are put into service
  2. Issuing of letters of invitation for consulting services (including detailed design work): June 2018

(2) Jamuna Railway Bridge Construction Project (I)

(a) Objective and Summary

The objective of the Project is to improve capacity and safety of transportation by constructing a dedicated railway bridge over the River Jamuna in parallel to the existing Bangabandhu Bridge (Jamuna Multipurpose Bridge), thereby contributing to efficient logistic and passenger network within the country and with neighboring countries.

Existing Bangabandhu Multipurpose Bridge, which Japan had co-financed with World Bank and ADB in late 1990s, has some restrictions like weight (load), size and speed on train movements. Although this railway route has great potentials especially for freight transport with the neighboring countries, it has been limited because of such restrictions. Therefore, construction of dedicated railway bridge is indispensable to meet the increasing and sub-regional traffic demand. Jamuna Railway Bridge (4.8 km) will be an important part of the international and regional transport networks such as Trans Asian Railway network, SAARC Corridor and BIMSTEC railway network. This Project is one of the five projects included in the ‘Japan-Bangladesh Comprehensive Partnership' joint statement and was specifically requested by Prime Minister H.E. Sheikh Hasina during her visit to Japan in May 2014.

(b) Executing Agency

Bangladesh Railway
Address: Railbhaban, 16 Abdul Gani Road Dhaka-1000, Bangladesh
Phone: +880-2-9561200, Fax: +880-2-9565734

(c) Planned Implementation Schedule

  1. Completion of project: November 2023 – when the facilities are put into service
  2. Issuing of letters of invitation for consulting services (including detailed design work): Already procured
  3. Tender announcement of initial procurement package for international competitive bidding on project construction:
    Procurement package title: Construction Works and Signaling and Telecommunication Works
    Release date: September 2018 (Civil Works), November 2018 (Signaling and Telecommunication Works)

(3) Dhaka Mass Rapid Transit Development Project (Line 5) (E/S)

(a)Objective and Summary

The objective of the Project is to alleviate traffic congestion and mitigate air pollution in Dhaka District by constructing a mass rapid transit system (MRT Line 5), thereby contributing to the economic development and improving urban environment.

Government of Bangladesh approved the Revised Strategic Transport Plan (RSTP), 2015 which promote an efficient plan of urban-transport development for the Dhaka Metropolitan Area up to the Year 2035. MRT Line 5, 20 km long (approx.) east-west corridor from Hemayetpur to Vatara, is prioritized as one of the high priority projects by RSTP. MRT Line 5 is only line aligned in east-west direction in the mass transportation network of Dhaka. MRT Line 5 will not only reduce congestion along the corridor, but also decrease the congestion of the whole city by virtue of its network integration.

(b) Executing Agency

Dhaka Mass Transit Company Limited
Address: 71-72 Old Elephant Road, Eskaton Garden, Dhaka 1000
Phone: +880-2-55138099, Fax: +880-2-9358589

(c) Planned Implementation Schedule

  1. Completion of project: December 2028 – when the facilities are put into service
  2. Issuing of letters of invitation for consulting services (including detailed design work): October 2018

(4) Dhaka Mass Rapid Transit Development Project (Line 6) (III)

(a)Objective and Summary

The objective of the Project is to alleviate traffic congestion and mitigate air pollution in Dhaka City by constructing a mass rapid transit system (MRT Line 6) from Uttara to Motijheel (about 20 km), thereby contributing to the economic development and improving urban environment.

Dhaka, nonetheless the capital, suffers from lack of good transport network causing many problems for the city dwellers. Dhaka's population density is 45,000 people/sq. meter and road ratio is only 6%. This situation has worsened in recent years due to increase of large volume of vehicles without adequate infrastructural development. Time lost on the way due to traffic jam is enormous and undoubtedly a big bottleneck for socio-economic development. Annual economic loss is said to be as large as 200 billion Taka, equivalent to 1.5 percent of GDP or 17 percent of tax revenue. MRT Line 6 will carry 5 lakh passengers per day and shorten the average travel time from Uttara to Motijeel from 110 minutes to 36 minutes. Government of Bangladesh has assigned a high priority to the MRT Line-6 Project as one of the ‘Fast-Track' projects.

(b) Executing Agency

Dhaka Mass Transit Company Limited
Address: 71-72 Old Elephant Road, Eskaton Garden, Dhaka 1000
Phone: +880-2-55138099, Fax: +880-2-9358589

(c) Planned Implementation Schedule

  1. Completion of project: June 2022 – when the facilities are put into service
  2. Issuing of letters of invitation for consulting services (including detailed design work): Already procured
  3. Tender announcement of initial procurement package for international competitive bidding on project construction: Already procured

(5) Matarbari Ultra Super Critical Coal-Fired Power Project (IV)

(a)Objective and Summary

The objective of the Project is to meet the increasing electricity demand and achieve stable power supply in Bangladesh by constructing an ultra super critical coal-fired power plant in Matarbari area, thereby contributing to nationwide economic development and the mitigation of the impact of climate change.

Bangladesh has huge potentials of economic growth being led by its domestic demand and promising export industries, but the current insufficient and unreliable electricity supply situation pose a serious obstacle to utilization of the potentials and the economic growth.

The current peak power demand in Bangladesh is estimated to be 8,920 MW in 2015, current power generation efficiency is around 38%. Power Sector Master Plan (PSMP), 2016 states that domestic power demand is forecasted to grow by 6.9% every year, and reach to 51,000 MW in 2041, which the country should address with high priority.

As domestic natural gas production is declining, Bangladesh has to prioritize with other energy sources such as coal for diversification of the energy mix. The coal-fired power plant with coal handling port for imported coal will be leading to critical change in energy diversification.

The net plant efficiency will be 41.29%, which is considerable better than 34% efficiency of the existing coal-fired power plants in Bangladesh and even higher than the average efficiency of 36% of coal-fired power plants in USA. Adoptable of state-of-art technology means less use of coal which results in to less CO2 emission. In this power plant high quality technical equipment will be used, as a result there will be minimum air pollution as compared with international rules and regulation.

(b) Executing Agency

  1. Coal Power Generation Company Bangladesh Limited
    Address: CPGCBL, Unique Heights Level 17, 117 Kazi Nazrul Islam Avenue, Eskaton Garden Road, Dhaka-1217, Bangladesh
    Phone: +880-2-9180788, Fax: +880-2-9348306
  2. Power Grid Company of Bangladesh Limited
    Address: IEB Bhaban 3rd Floor& 4th Floor, 8/A Ramna, Dhaka-1000
    Phone: +880-2-9338529, Fax: +880-2-9348306
  3. Roads and Highways Department
    Address: Sarak Bhaban, Tejgaon Industrial Area, Dhaka
    Phone: +880-2-8879299, Fax: +880-2-8879199

(c) Planned Implementation Schedule

  1. Completion of project: July 2024 – when the facilities are put into service
  2. Issuing of letters of invitation for consulting services (including detailed design work): Already procured
  3. Tender announcement of initial procurement package for international competitive bidding on project construction: Already announced or procured
    Procurement package title: Construction Works
    Release date: Already procured

(6) Health Services Strengthening Project

(a)Objective and Summary

The objective of the Project is to establish a system for strengthening non-communicable diseases control and the access to health services by urban poor population in Dhaka through improving the quality of health services at primary and secondary level health facilities in all division, thereby contributing to the health promotion of the people in Bangladesh.

Proportional mortality rate due to Non-Communicable Disease (NCDs) such as cardiovascular diseases, diabetes, chronic obstructive pulmonary disease and cancers, has been increasing in Bangladesh. NCDs account for 59% of total death in Bangladesh. Further, due to rapid population growth in urban area, demand for health service delivery of the urban people is increasing. In Dhaka, 37.4% of its population lives in slum, of which 60% lives without piped water and 10% lives without sanitary toilet. 69.5% of the slum population in Dhaka uses pharmacies as the first stop of health services, whereas the use of public health facilities remains 13.9%. Comprehensive health care network is not sufficiently available in urban area, which particularly affects urban poor population for the access to essential health care services. Therefore strengthening service provision to respond to emerging issues in NCDs Control and Urban Health Improvement is the urgent need in the health sector.

To reduce this burden, this project will support the Government of Bangladesh's 4th Health Population and Nutrition Sector Program (4th HPNSP) to achieve Universal Health Coverage through improving the access to and quality of health service.

(b) Executing Agency

Ministry of Health and Family Welfare
Address: Bangladesh Secretariat, Dhaka-1000
Phone: +880-2-8113088, Fax: +880-2-8113088

(c) Planned Implementation Schedule

  1. Completion of project: June 2022 – when the facilities are put into service
  2. Tender announcement of initial procurement package for international competitive bidding on project construction:
    Procurement package title: Procurement of Goods
    Release date: October 2018

Terms and Amounts of Loans

Amount (million yen) Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Matarbari Port Development Project (E/S) 2,665 - 0.01 30 10 General, untied
Jamuna Railway Bridge Construction Project (I) 37,217 1.00 0.01 30 10 General, untied
Dhaka Mass Rapid Transit Development Project (Line 5) (E/S) 7,358 - 0.01 30 10 General, untied
Dhaka Mass Rapid Transit Development Project (Line6)(III) 79,271 1.00 0.01 30 10 General, untied
Matarbari Ultra Super Critical Coal-Fired Power Project (IV) 67,311 1.00 0.01 30 10 General, untied
Health Services Strengthening Project 6,559 0.90 30 10 General, untied

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