Economic Cooperation with Japan
The diplomatic relation between Bangladesh and Japan was established on 10th February 1972. One of the most important aspects of this multifaceted relationship is the economic cooperation with Japan which has been growing over the span of past more than five decades. The bilateral relationship was elevated to ‘Comprehensive Partnership’ in 2014 and further upgraded to ‘Strategic Partnership’ in 2023. With joint efforts, along with the ever-expanding bilateral relationship, the economic cooperation with Japan has also been further diversified and deepened over time. Japan is the single largest bilateral development partner of Bangladesh. Japanese economic assistance to Bangladesh encompasses a wide range of cooperation in various sectors. The soft loan that we receive from Japan is concessional in nature with one of the lowest interest rates and favorable repayment period of thirty years including ten-year grace period.
Japanese development assistance
The Japanese development assistance for Bangladesh is mainly channeled through Japan International Cooperation Agency (JICA) which opened their office in Bangladesh in 1973. Their support has always been appreciated by the Government and people of Bangladesh. Now, in the context of Bangladesh’s upcoming graduation from LDC status in 2026, the financial and technical contributions from a friendly country like Japan will continue to help our development endeavors. Bangladesh receives ODA support from Japan in various important sectors including infrastructure, energy, transport, agriculture, water & sanitation, environment, health, education, urban & rural development, human resource development, etc. Their support comes in the form of loan, grant and technical assistance as well as dispatching of Japanese experts and volunteers.
Some basic information:
Official Development Assistance (ODA) Loan Projects:
There are 24 ongoing Loan projects including Matarbari Ultra Super Critical Coal-Fired Power project, Dhaka-Mass Rapid Transit Development project, Matarbari Port Development project, Jamuna Railway Bridge Construction project, Hazrat Shahjalal International Airport Expansion Project, etc.
Grants Aided Projects:
Total 11 Grant assisted projects are ongoing including the Project for Human Resource Development Scholarship (JDS Fellowship program), Improvement of Fish Landing Center of Bangladesh Fisheries Development Corporation in Cox’s Bazar District, Fourth Primary Education Development Programme (PEDP IV), Improvement of Meteorogical RADAR Systems, Ground Water Investigation & Development of Deep Ground Water Source in Urban and Rural Areas, Improvement of Rescue Capacities in the Coastal and Inland Waters, etc. Recently a grant agreement for the ‘Project for the Improvement of Equipment for Air Pollution Monitoring’ has been signed on 3 February 2025.
Technical Assistance Projects:
There are 40 ongoing Technical Assistance projects including ICT Engineers Development for the Promotion of ICT Industry & New Innovation, Capacity Improvement for Air Quality Control, Capacity Development in Relation to Ship Recycling Yard & TSDF Development, Capacity Enhancement on Formulation and Implementation of Local Disaster Risk Reduction Plan, Strengthening Capacity of City Corporations, Capacity Development on Operation Maintenance & Management in Matarbari Port, Fisheries Livelihood Enhancement in the Coastal Areas of the Bay of Bengal, Dhaka Integrated Traffic Management, Improving Ground Handling Capacity at Hazrat Shahjalal International Airport, Strengthening the Inspection Regulatory and Coordinating Function of Bangladesh Food Safety Authority, Strengthening Health Care Systems for Preventing Non-communicable Diseases, Strengthening Public Investment Management System (Phase 2), etc.
Recent list of projects according to JICA’s ODA loan packages
Name of the Projects |
Total Loan Amount |
|
USD |
JP |
|
35th ODA Loan Package (JFY 2014) |
1.184 billion |
120.986 billion |
1. Matarbari Ultra Super Critical Coal-Fired Power Project (E/S) |
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2. Natural Gas Efficiency Project |
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3. Inclusive City Governance Project |
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4. Haor Flood Management and Livelihood Improvement Project |
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5. Small and Marginal Sized Farmers Agricultural Projectivity Improvement and Diversification Financing Project |
||
36th ODA Loan Package (JFY 2015) |
1.076 billion |
133.265 billion |
1. Foreign Direct Investment Promotion Project |
||
2. Dhaka-Chittagong Main Power Grid Strengthening Project |
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3. Western Bangladesh Bridge Improvement Project |
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4. Maternal, Neonatal and Child Health (MNCH) and Health System Improvement Project |
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5. Urban Building Safety Project |
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6.Upazila Governance and Development Project |
||
37th ODA Loan Package (JFY 2016) |
1.549 billion |
173.538 billion |
1. Cross-Border Road Network Improvement Project (Bangladesh) |
||
2. Dhaka Mass Rapid Transit Development Project (II) |
||
3. The Jamuna Railway Bridge Construction Project (E/S) |
||
4. Matarbari Ultra Super Critical Coal-fired Power Project (I) |
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5. Energy Efficiency and Conservation Promotion Financing Project |
||
6. Disaster Risk Management Enhancement Project |
||
37th ODA Loan Package (JFY 2016) |
1.549 billion |
173.538 billion |
1. Cross-Border Road Network Improvement Project (Bangladesh) |
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2. Dhaka Mass Rapid Transit Development Project (II) |
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3. The Jamuna Railway Bridge Construction Project (E/S) |
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4. Matarbari Ultra Super Critical Coal-fired Power Project (II) |
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5. Energy Efficiency and Conservation Promotion Financing Project |
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6. Disaster Risk Management Enhancement Project |
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38th ODA Loan Package (JFY 2017) |
1.5484 billion |
178.223 billion |
1. Dhaka Mass Rapid Transit Development Project (Line 1) (E/S) |
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2. The Kanchpur, Meghna and Gumti 2nd Bridges Construction and Existing Bridges Rehabilitation Project (II) |
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3. Matarbari Ultra Super Critical Coal-Fired Power Project (III) |
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4. Hazrat Shahjalal International Airport Expansion Project (I) |
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5. Dhaka Underground Substation Construction Project |
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6. Small Scale Water Resources Development Project (Phase 2) |
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39th ODA Loan Package (JFY 2018) |
1.831 billion |
200.371 billion |
1. Matarbari Port Development Project (E/S) |
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2. Jamuna Railway Bridge Construction Project (I) |
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3. Dhaka Mass Rapid Transit Development Project, Line 5(E/S) |
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4. Dhaka Mass Rapid Transit Development Project, Line-6 (III) |
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5. Matarbari Ultra Super Critical Coal-Fired Power Project (IV) |
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6. Health Services Strengthening Project |
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40th ODA Loan Package (JFY 2019) |
2.5 billion |
275.786 billion |
1. Matarbari Port Development Project (I) |
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2. Matarbari Ultra Super Critical Coal-Fired Power Project (V) |
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3. Dhaka Mass Rapid Transit Development Project (Line 1) (I) |
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4. Foreign Direct Investment Project (II) |
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5. Energy Efficiency and Conservation Promotion Financing Project (Phase 2) |
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41st ODA Loan Package (JFY 2020) |
3.2 billion |
338.247 billion |
1. Dhaka Mass Rapid Transit Development Project, Line 6 (IV) |
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2. Dhaka Mass Rapid Transit Development Project, Line 5 |
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3. Jamuna Railway Bridge Construction Project (II) |
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4. Hazrat Shahjalal International Airport Expansion Project (II) |
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5. Food Value Chain Improvement Project |
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6. City Governance and Urban Development Project |
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7. Chattogram-Cox's Bazar Highway Improvement Project (E/S) |
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42nd ODA Loan Package (JFY 2021) |
2.823 billion |
310.285 billion |
1. Dhaka Mass Rapid Transit Development Project, Line 1 (Tranche II) |
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2. Matarbari Ultra Super Critical Coal Fired Power Project, Phase 1 (Tranche VI) |
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3. COVID-19 Crisis Response Emergency Support Loan Phase 2 |
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4. Dhaka Mass Rapid Transit Development Project, Line 6 (Tranche V) |
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43rd ODA Loan Package (JFY 2022) |
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Southern Chattogram Regional Development Project |
2.549 billion |
331.18 billion |
Dhaka MRT Development Project, Line 5 (Northern Route) (II) |
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Matarbari Port Development Project (II) |
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Chattogram-Cox’s Bazar Highway Improvement Project (I) |
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Project for the Construction of Dual Gauge Double Line Between Joydebpur-Ishurdi Section (E/S) |
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44th ODA Loan Package (JFY 2023) |
||
Development Policy Loan for Strengthening Public Financial Management |
2.242 billion |
324.191 billion |
Matarbari Ultra Super Critical Coal-fired Power Project (VII) |
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Hazrat Shahjalal International Airport Expansion Project |
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45th ODA Loan Package (JFY 2024 so far) |
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Jamuna Railway Bridge Construction Project (III) |
0.24888 billion |
39.902 billion |
Chattogram Sewerage System Development Project (E/S) |
JDS Fellowship program
The main objective of the Project for Human Resource Development Scholarship (JDS) is to enhance the capacity of Bangladesh Civil Service officials, Bangladesh Bank officials and Bangladesh Judicial Service officials and thus contribute towards the socio-economic development of Bangladesh. Starting since 2001 so far, a total of 537 JDS fellows have been dispatched to Japan to study Master’s and 21 fellows for PhD courses under this JDS fellowship program. At present, 60 officials have been studying Master’s and 10 officials have been pursuing PhD degrees at 11 universities (13 graduate schools) in Japan.
Japan Overseas Cooperation Volunteer (JOCV)
Japan dispatches experts as volunteers under Japanese Overseas Cooperation Volunteers (JOCV) program which have been playing an important part in Japan’s development assistance programs in Bangladesh. It also helps transfer of technology and technical know-how among the professionals of Bangladesh. Starting since 1973, despite a gap of seven years (2016-2023), so far 1,288 JOCVs have been dispatched to work in various fields of Bangladesh including healthcare, education, agriculture, engineering, ICT and sports.