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Thursday | October 29, 2026 | Dhaka

Japan pledges $295.5m for two yen-loan projects

Dhaka, Tokyo sign 6 deals
 Staff Reporter
 Published: 12:05 AM, 29 October 2026

Bangladesh and Japan have signed six bilateral cooperation instruments and pledged two yen-loan projects worth about US$295.5 million, expanding cooperation in maritime security, investment, agriculture, fisheries, skills development and climate change.

The agreements and pledges were among the outcomes of Prime Minister Tarique Rahman’s four-day official visit to Japan from October 26 to 29 at the invitation of Japanese Prime Minister Sanae Takaichi, Deputy Press Secretary Shahadat Shadhin said.

The six instruments include a grant agreement worth up to 2.12 billion Japanese yen, or US$13.44 million, to provide a patrol vessel for Bangladesh to strengthen its maritime security capabilities.

The other instruments cover economic relations and the business environment, agricultural cooperation, employment and skills development, fisheries and livestock, and climate change cooperation.

The two governments also pledged loans of 15.88 billion yen, equivalent to US$100.8 million, to improve the investment environment, and 30.68 billion yen, or US$194.7 million, for the second phase of the Upazila Governance and Development Project. The two loan pledges total 46.56 billion yen, or approximately US$295.5 million.

Under the maritime security grant, Japan will provide a patrol vessel to the Bangladesh Coast Guard. The vessel is intended to strengthen the force’s ability to combat maritime crimes and respond to maritime incidents and natural disasters.

The memorandum on economic relations and improvement of the business environment was signed between Japan’s Ministry of Economy, Trade and Industry and Bangladesh’s Economic Relations Division under the Ministry of Finance. It aims to strengthen economic ties and improve conditions for business and investment.

An agricultural cooperation instrument, signed by Japan’s Ministry of Agriculture, Forestry and Fisheries and Bangladesh’s Ministry of Agriculture, seeks to expand collaboration and attract investment in the sector.

A separate memorandum between the Japanese ministry and Bangladesh’s Ministry of Fisheries and Livestock aims to promote trade, investment, technological exchange and capacity building in fisheries and livestock.

The climate change letter of intent was signed between Japan’s Ministry of the Environment and Bangladesh’s Ministry of Environment, Forest and Climate Change.

Another instrument focuses on skills development and employment opportunities for Bangladeshi workers in Japan.

The loan for improving the investment environment is expected to support efforts to create more favourable conditions for domestic and foreign investors. The second loan will finance the next phase of the Upazila Governance and Development Project, which aims to strengthen local governance and development.

The agreements build on the broader outcomes of the bilateral summit between Tarique Rahman and Takaichi at the Japanese Prime Minister’s Office on October 27.

At the summit, the two leaders agreed to upgrade the Bay of Bengal Industrial Growth Belt (BIG-B) initiative into a broader strategic cooperation framework titled “BIG-B for Shared Prosperity”.

During his visit, Tarique also held meetings with Japanese political leaders, business representatives and development partners to explore further investment, technology transfer, skills development and economic cooperation.

The prime minister’s visit is scheduled to conclude on October 29.