Signing of Japanese ODA Loan Agreement with Bangladesh: Contributing to the reinforcement of railway transportation capacity and improvement of connectivity through constructing dual gauge double line


2025.06.30
On June 27, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the People’s Republic of Bangladesh in the capital city Dhaka, to provide Japanese ODA loan for the Project for the Construction of Dual Gauge Double Line Between Joydebpur-Ishurdi Section Project (I). The project outline is explained below.
Signing ceremony
Terms and Amount of Loan
- Country
(Target Areas)
People’s Republic of Bangladesh
(Gajipur District, Tangail District, Shiraganj District, Pabna District, Natore District)
- Project Objective
The objective of the Project is to enhance railway capacity by double tracking of the existing rail between Joydebpur and Ishurdi, thereby contributing to economic development through improved connectivity within Bangladesh and with neighboring nations.
- Project Component
1) Construction on dual gauge double line
2) Consulting service
- Maximum Loan Amount
92,077 million Japanese Yen
- Annual
Interest Rate
Project: 2.0%, Consulting Services: 0.65%
- Repayment Period
30 Years
- Grace Period
10 Years
- Procurement
Standard Untied
- Executing Agency
Bangladesh Railway
- Contribution to SDGs
Goal 9 (Industry, Innovation and Infrastructure)
Goal 13 (Climate Action)
-
Planned Implementation Schedule
1. Completion of the Project: June, 2030, when facilities are put into service
2. Issuing of letters of invitation for consulting services (including detailed design work): Employment in process
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:Package for civil work
Release date: July, 2026
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