JICA chief in Dhaka over stalled projects

President of the Japan International Cooperation Agency (JICA), Tanaka Akihiko, arrived in Dhaka on Wednesday for a five-day visit aimed at reviewing Japanese-funded development initiatives and strengthening bilateral development cooperation.

During the visit, discussions are expected to focus on several major infrastructure projects supported by Japan, including the stalled metro rail schemes and Bangladesh’s proposal for a reduction in interest rates on Jica loans.

Tanaka met Prime Minister Tarique Rahman on Wednesday afternoon. According to sources at the JICA Bangladesh Office and the Economic Relations Division (ERD), he is also expected to hold talks with Finance Minister Amir Khasru Mahmud Chowdhury and other senior government officials during his stay.

The JICA chief is set to visit a number of Japanese-funded projects, including the Matarbari deep-sea port, one of the flagship infrastructure ventures being implemented with Japanese assistance.

Officials said the meetings are likely to address the prolonged deadlock surrounding key metro rail projects, notably MRT Line-1, which will connect Hazrat Shahjalal International Airport with Kamalapur, and MRT Line-5 Northern, linking Hemayetpur with Gulshan and Bhatara.

The projects have reportedly remained stalled for nearly 18 months following concerns over unusually high cost estimates submitted during the tendering process.

Both sides are expected to explore possible ways to overcome the impasse and expedite implementation.

Bangladesh is also expected to seek a reduction in the interest rate on JICA loans during the bilateral discussions. Government officials noted that the interest rate on JICA financing has increased to 5.05 per cent since April, compared with the previous rate of 2.35 per cent, raising concerns over borrowing costs for major development projects.

Japan remains Bangladesh’s largest bilateral development partner and has played a pivotal role in the country’s socio-economic transformation since independence.

According to official figures, Japan’s cumulative official development assistance commitments to Bangladesh have reached approximately $34.21 billion.

The assistance spans a wide range of sectors, including transport infrastructure, power and energy, agriculture, education, healthcare, water supply, rural development, environmental protection and human resource development through concessional loans and grants.

It is expected that Tanaka’s visit could help advance discussions on several strategic projects and further deepen the long-standing development partnership between Bangladesh and Japan.