JICA confirms funding for metro-rail project

Discussion in 'Bangladesh Defence Forum' started by Gyp 111, Dec 11, 2012.

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  1. Gyp 111
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    Gyp 111 FULL MEMBER

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    Financial Express :: Financial Newspaper of Bangladesh

    FE Report

    The Japan International Cooperation Agency (JICA) Monday confirmed a loan of US$2.1 billion for constructing Bangladesh's first metro-rail, officials said.

    Economic Relations Division (ERD) officials said the JICA at a meeting finalised modalities of the $2.1 billion credit under its 33rd Official Development Assistance (ODA) package. The credit will be disbursed in 13 years for the metro-rail project.

    On the yearly basis JICA is likely to disburse $898 million for three projects, including the metro-rail project, which will get $133 million out of the $2.1 billion.

    "We are hopeful of signing a deal on $898 million in loan by March next year with the JICA. The negotiations concluded successfully Monday," said an ERD official.

    Bangladesh will repay all the Japanese loans in 40 years with 10 years' grace period that will involve payment of 0.01 per cent service charges, he told the FE.

    The ERD official said the highest-ever Japanese aid package would be very much helpful for Bangladesh's development, especially construction of the country's first metro-rail in Dhaka.

    After a long delay, the JICA on December 2 pledged to provide $898 million (70,693 million Japanese Yen) worth of assistance for Bangladesh under the 33rd ODA package for developing three projects.

    Differences between the government and the JICA on metro-rail route selection delayed the finalisation of the 33rd ODA loan package, officials said.

    In May 2011, JICA confirmed the last (32nd) ODA package worth US$670 million (54.929 billion yen) for implementing three development projects including the much-talked-about Padma Bridge.

    The government will invest the $898 million Japanese loan for constructing the Dhaka's first metro-rail, installing 360-megawatt power plant at Bheramara and upgrading national transmission line across the country.

    The JICA will provide $133 million fund for a study on and design of the 20.1 kilometres metro-rail in the current fiscal, $527 million for installing the Bheramara 360MW power plant and $238 million for installing a 239 kilometres power transmission line.

    The government will spend $133 million, offered by the JICA, for a feasibility study to determine the actual cost and to prepare a detailed design of the metro-rail titled Mass Rapid Transit (MRT) line 6 from Uttara North to Bangladesh Bank.

    The ERD officials said the JICA will provide a total of $2.1 billion in loan for the 20.1 kilometres MRT line 6 scheme during its implementation period up to the year 2024 at a cost of $2.97 billion.

    The government has already undertaken the MRT line-6 from Uttara North to the Bangladesh Bank (BB) crossing in Dhaka to carry nearly 60,000 passengers per hour.
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  2. aazidane
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    aazidane SENIOR MEMBER

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    why dont the Japanese build it themselves instead of just providing the loan? surely they can put a clause in where their firms have to build it..
  3. Contrarian
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    Contrarian ELITE MEMBER

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    So that local firms gain the expertise.
    Delhi metro was also funded by jica but built by Indian companies. As a result metro being built in other cities in India are being built and consulted by Indian companies.
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  4. idune
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    idune ELITE MEMBER

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    Who asked about delhi metro here, go discuss issues of delhi metro in indian forum. If you are unable to do that we can open one or request mod open one for you. Dont hijack thread in Bangladesh section.
  5. Contrarian
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    Contrarian ELITE MEMBER

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    It was an example to draw a parallel, razakar Jammati. I know its hard for you madrassa educated street violence types to understand these nuances. But do try harder. :)
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  6. animelive
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    animelive SENIOR MEMBER

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    :hitwall: why you so stupid? stop giving us a bad name
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  7. BDforever
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    BDforever SENIOR MEMBER

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    Deal for metro rail project inked
    The government on Wednesday signed an agreement with Japan International Cooperation Agency (Jica) to implement the much-talked-about metro rail project in the capital.

    Besides $784.82 million in soft loan to implement four projects including the one for metro rail, Bangladesh will get US$8 million or Tk 72 crore in grant for another project.

    The country will have to pay 0.01 percent interest for the loan, which is payable in 40 years, including 10 years grace period.

    The three other projects are: national power transmission network development; Bheramara combined cycle power plant development; and groundwater investigation and development of deep groundwater source in urban and rural areas.

    Economic Relations Division (ERD) Secretary Abul Kalam Azad and Japan Ambassador in Dhaka Shiro Sadoshima signed the agreements at Ruposhi Bangla Hotel in the capital.

    Finance Minister Abul Maal Abdul Muhith, Communications Minister Obaidul Quader, the Prime Minister’s Energy Adviser Tawfiq-e-Elahi Chowdhury and chief representative of JICA (Japan International Development Cooperation) were present on the occasion.

    Japan will provide $116.32 million within the current fiscal year for detailed design of the 20.1-kilometre metro rail stretching from Uttara Third Phase to Bangladesh Bank in Motijheel.

    A consultant will be appointed soon to prepare the design which will take 2-3 years.
    source: Deal for metro rail project inked
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  8. INDIC
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    INDIC BANNED

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    Who is supplying metro rail bogies.