Signing of Japanese ODA Loan Agreement with Bangladesh: Contributing to the country’s further socioeconomic development by responding to the rapidly increasing demand for air transportation and infrastructure

［Goal 9］ Industry, Innovation and Infrastructure
SDGs

2023.12.25

On December 24, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Bangladesh in Dhaka to provide a Japanese ODA loan of up to 76,635 million yen for the Hazrat Shahjalal International Airport Expansion Project (III).

The objective of the project is to meet the rapidly increasing demand for air transportation in Bangladesh through the improvement of the capacity, convenience, and safety of Hazrat Shahjalal International Airport (hereafter Dhaka International Airport)—the country’s main and largest airport. It will do so by constructing Terminal 3, which will include an international passenger terminal, cargo terminals, and other relevant infrastructure and facilities.

Signing ceremony

Signing ceremony

With Bangladesh’s economy expanding at an average rate of 6% per year, airline travel demand in the country has also been expanding, at an average rate of 8% per year. Accordingly, the number of international passengers at Dhaka International Airport reached 7.92 million in 2022, approaching the terminal’s capacity of 8 million passengers, and this number is expected to increase further in line with economic growth. In addition, the annual volume of air cargo at the airport already reached the maximum handling capacity of approximately 330,000 tons in 2021, and further growth in this regard is expected going forward.

This project will contribute to the promotion of Bangladesh's economic growth by enabling the efficient movement of people and goods through the expansion of the capital airport—which constitutes core infrastructure in terms of supporting the country’s rapidly growing social economy. The project will thereby also contribute to the achievement of SDGs Goal 9 (Industry, innovation and infrastructure).

Details for the loan are provided below.

1. Terms and Amount of Loan

Project title Amount
(million yen)		 Annual interest rate (%) Repayment
period
(years)		 Grace
period
(years)		 Procurement
Project Consulting
services
Hazrat Shahjalal International Airport Expansion Project (III) 76,635 1.30 0.2 30 10 General untied

2. Executing Agency

Civil Aviation Authority, Bangladesh, Ministry of Civil Aviation and Tourism
Address: Kurmitola, Dhaka-1229, Bangladesh
TEL: +880-2-8901400、FAX: +880-2-8901411

3. Planned Implementation Schedule

  • 1 . Completion of project: October 2024—when the facilities are put into service.
  • 2 . Issuing of letters of invitation for consulting services (including detailed design work): already hired.
  • 3 . Tendering of announcement of initial procurement package for international competitive bidding on project construction: already contracted.

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