2026.06.10
On June 9, 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 Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply. The signatures were exchanged between Secretary Md. Shahriar Kader Siddiky of Economic Relations Division, Ministry of Finance of Bangladesh and Chief Representative Takahashi Junko of JICA Bangladesh.
Signing ceremony
The project outline is explained below.
Terms and Amount of Loan
- Country
(Target Areas)
People’s Republic of Bangladesh (Throughout the country)
- Project Objective
The objective of the Programme is to mitigate and curb the socioeconomic impact of the situation in the Middle East by supporting the Government of the People’s Republic of Bangladesh in implementing various policy actions related to socioeconomic and energy measures, thereby contributing to socio-economic stabilisation and development. Furthermore, the programme contributes to the stabilisation and strengthening of supply chains across Asia by promoting economic and fiscal stability and ensuring a stable energy supply in Bangladesh, and it also benefits Japanese companies operating in Bangladesh. The programme is the first ODA loan programme under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia).
- Project Component
The Programme provides support to the government of Bangladesh based on the policy matrix which mainly consists of strengthening fiscal management, enhancing the governance of state-owned enterprises and improving the investment environment, strengthening trade policy and logistics, and ensuring a stable energy supply. The Programme is implemented by sharing some policy actions with the Asian Development Bank’s Strengthening Economic Management and Governance Program under co-financing arrangement. In addition, regarding the area of ensuring a stable energy supply, JICA established policy actions in consultation with the Government of the People’s Republic of Bangladesh.
- Maximum Loan Amount
50 billion Japanese Yen
- Annual
Interest Rate
Program: 3.05%
- Repayment Period
30 Years
- Grace Period
10 Years
- Procurement
General Untied
- Executing Agency
Finance Division, Ministry of Finance
- Contribution to SDGs
Goal 7 (Affordable and clean energy)
Goal 8 (Decent work and economic growth)
Goal 17 (Partnerships for the goals)
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Planned Implementation Schedule
1. Completion of the Program: June 2026, when the loan is executed
2. Issuing of letters of invitation for consulting services (including detailed design work): No hiring of consultants is planned for this program.
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction: No work in conjunction with bidding is planned for this program.
JICA is co-financing this program with Asian Development Bank (US$ 750 million).
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