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Signing of Yen Loan Agreement and Grant Aid Agreement for Bangladesh: Contributing to Economic Reforms and Climate Change Resilience through Financial Assistance, and Enhancing Administrative Capacity by Accepting Young Administrative Officials to Study in Japan | News & PR

Posted on 2025-06-022025-06-03 by Editor in Chief

The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the People’s Republic of Bangladesh on May 30 in Tokyo for the “Development Policy Loan for Economic Reforms and Climate Change Resilience” and a Grant Agreement (G/A) for the “Human Resources Development Scholarship Program”. The Loan Agreement (L/A) was signed for the “Development Policy Loan for Strengthening Resilience” and the Grant Agreement (G/A) for the “Scholarship Program for Human Resource Development. The projects covered by the Loan Agreement and the Grant Agreement are as follows.

Signing Ceremony

Project Summary

Development Policy Loans for Economic Reforms and Climate Resilience Enhancement

Development Policy Loan for Economic Reform and Strengthening Climate Change Resilience

Country (region covered)

People’s Republic of Bangladesh (All of Bangladesh)

Business Objectives

This project will provide financial support to Bangladesh, which has been affected by multiple international risks such as price hikes caused by the crisis in Ukraine and other countries and natural disasters that have increased due to climate change, thereby supporting the government’s various economic reforms and climate change measures and contributing to sustainable economic growth. The project will contribute to sustainable economic growth by providing financial support to Bangladesh.

Business

The project will provide financial support to the government of the country based on a policy matrix consisting of two main areas: economic reforms (e.g., improvement of governance and investment climate) and climate change measures. The co-financing will be implemented by sharing some of the policy actions with the Asian Development Bank (ADB) for economic reforms and the World Bank (WB) for climate change measures, respectively.

Loan amount (maximum)

60 billion yen

Main body of interest rate: 2.00

Redemption period

30 years (including 10 years of deferment)

Procurement Conditions

General untied

Implementing Agency

Bangladesh Department of Finance, Ministry of Finance

Contribution to the achievement of the SDGs

Goal 8 (both job satisfaction and economic growth)

Goal 13 (take concrete action on climate change)

Goal 16 (peace and structure for all)

Goal 17 (Let’s achieve our goals in partnership)

Schedule for future project implementation (tentative)

Scheduled completion of the project: June 2025 (project completion upon completion of the loan)

  1. expected date of sending invitation letter for consulting services (detailed design, etc.): No consulting services are planned to be provided under this project.
  2. public announcement of bids for the first package of international competitive bids for the main body of work: No work with bids is planned for this project.

The project is co-financed by the Asian Development Bank (loan amount: US$60 million) and the World Bank (loan amount: US$50 million), and will be implemented in close collaboration.

Scholarship Plan for Human Resource Development

The Project for Human Resource Development Scholarship (JDS)

Country (Region)

People’s Republic of Bangladesh (All of Bangladesh)

Business Objectives

This project aims to support young administrative officers who are expected to be involved in policy making at the core of the Bangladeshi government to obtain a degree (master’s or doctoral degree) at a Japanese graduate school, thereby contributing to the development of policies and initiatives on priority development issues in Bangladesh and the building of a human network with Bangladesh, thereby strengthening the bilateral relationship and initiatives between the two countries. This will contribute to the strengthening of bilateral relations and initiatives between the two countries.

Business

The program provides financial support for up to 33 young Bangladeshi government officials (30 students in the master’s program and 3 students in the doctoral program) to study at graduate schools in Japan to contribute to policy making on priority issues in Bangladesh.

Maximum Amount of Provision

606 million yen

Scheduled implementation period

57 months

Implementing Agency

Bangladesh Ministry of Finance

Contribution to the achievement of the SDGs

Goal 4 (quality education for all)

Goal 11 (Create a community where people can continue to live)

Goal 16 (Peace and justice for all)

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© Source JICA

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  • Marubeni Corporation Signs Yen Loan Agreement for Bangladesh: Contributing to Strengthening Fiscal Management Capability | News & Media
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