Foreign Ministry of Japan Outline of Japan’s ODA to Bangladesh July 2006 １．Background 　Japan has developed and maintained the cordial relations with Bangladesh ever since the establishment of diplomatic ties in 1972, primarily through Japan’s socio-economic and technical cooperation. Together with Bangladeshi people’s firm affinity towards Japan, Bangladesh has a strong hope for Japan’s ODA. Japan is the largest donor country to Bangladesh. The cumulative amount of Japan’s ODA to Bangladesh up to today is as follows; Yen Loan: 597.8 billion yen (E/N based) Grant Aid: 455.3 billion yen (E/N based), Technical Cooperation: 46.6 billion yen. ２．Goals and Significance of Japan’s ODA 　It is important, for further stability and economic growth in the entire region, to help Bangladesh make steady progress, considering the importance of Bangladesh as a moderate and democratic Islamic country that makes efforts towards promoting cooperation in the region, proposing to form the SAARC. Bangladesh has 36% of its total population under poverty line. It is also important to support Bangladesh’s efforts towards poverty reduction to achieve MDGs. ３．Priority Area 　Japan’s Country Assistance Program for Bangladesh was formulated in June 2006 with the following priority areas. （１）Poverty Reduction through economic growth (private sector development, infrastructure development (transport and Power Sector), Agriculture and rural development) 　 （２）Social Development with Human Security (education, health, environment and disaster management) （３）Governance (central, sectoral and local level) ４．Yen Loans 　Japan has been extending yen loans mainly in the area of infrastructure. (Yen loan assistance was not extended by Japan to Bangladesh in FY 2005.) In June 2006, Japan provided yen loans with Bangladesh amounted to 24.606 billion yen. The cumulative amount of yen loans to Bangladesh amounts to 597.8 billion yen. 　In April 2003, Japan decided to relinquish the yen loans of 158.09 billion yen agreed with Bangladesh until FY 1987. Yen Loan Projects for FY 2006 (total amount: approx. 2.5 million Japanese yen, approx. 1,462.5 crore Taka ) The following yen loan projects will carry an interest rate of 0.01% per annum, highly concessional condition. Karnaphuli Water Supply Project （12,224 million Japanese yen: Approximately 717.8 crore Taka） →to improve living standard of urban dwellers and investment climate in Chittagong City by developing water supply facilities and institutional capacity of Chittagong Water Supply and Sewage Authority. Water intake and treatment facility will be constructed in Rangunia and other facilities around Chittagong. Telecommunication Network Development Project （4,642 million Japanese yen: Approximately 272.6 crore Taka） →to increase the interconnection capacity among the fixed and mobile networks and construct an international exchange, optical fiber network and broadband network in major cities and their surrounding areas in order to improve existing telecommunication services in terms of quantity and quality, thereby contributing to the development of the private sector and the country’s economy. Grid Substations and Associated Transmission Lines Development Project（8,040 million Japanese yen: Approximately 472.1 crore Taka） →to improve stability and reliability of power supply through the construction and expansion of substations and transmission lines in five districts, Comilla, Brahmanbaria, Munshiganji, Chittagong and Narayanganji, where demand is rapidly increasing. ５．Grant Aid 　Japan has been extending grant aid to Bangladesh mainly in the fields of basic human needs, especially in the areas of agriculture, medical services and disaster management. In FY 2005, Japan provided the grant aid of 2.828 billion yen for Bangladesh. The cumulative amount of Japan’s grant aid to Bangladesh has reached 455.344 billion yen, out of which 256.866 billion yen was given in the form of grant aid for the debt relief. Bangladesh is the largest country receiving Japan’s grant aid in the form of the debt relief (accounting for 55%). On-going Technical Cooperation Projects ○Participatory Integrated Rural Development Project (Phase 2) ○Strengthening Primary Teacher Training in Science and Mathematics ○The Project for sustainable arsenic mitigation under the integrated local government system in Jessore ODA Projects in FY 2004 (including projects continued from previous year） Projects (FY 2004) ○The Project for the Provision of Portable Steel Bridges on Upazila and Union Roads（679 million yen） →Supply of required material for construction of 36 Portable Bridges ○The Project for the Improvement of the meteorological Radar System at Cox’s Bazar and Khepupara (866 million yen） →Scholarship for about sixty government officials of Bangladesh ６．Technical Cooperation 　 In FY 2004, JICA’s disbursement to Bangladesh (including Development Study) amounted to 2.252 billion yen, while the total disbursement to Bangladesh amounted to 46.561billion yen. During the same FY, JICA received ４,722 Bangladeshi trainees and dispatched １,０89 experts to Bangladesh. Agreement on technical cooperation Agreement on technical cooperation between Japan and Bangladesh was signed in December 2002 for promoting the implementation of the bilateral technical cooperation. Project for Human Resource Development Scholarship (Grant Aid) Project for Grid Substations and Associated Transmission Lines Development (Yen Loan) Project for Telecommunication Network Development (Yen Loan) Project for the Improvement of the meteorological Radar System at Cox’s Bazar and Khepupara (Grant Aid) Project for the Provision of Portable Steel Bridges on Upazila and Union Roads (Grant Aid) Project for Participatory Integrated Rural Development (Phase 2) (Technical Cooperation) Project for Strengthening Primary Teacher Training in Science and Mathematics (Technical Cooperation) Project for sustainable arsenic mitigation under the integrated local government system in Jessore (Technical Cooperation) Project for Karnaphuli Water Supply (Yen Loan) Japan’s ODA to Bangladesh （100 million yen） Fiscal Year Yen Loan Assistance Grant Aid Technical Assistance 1995 210.79 204.95 13.33 1996 0 207.56 16.1 1997 152.52 238.05 18.66 1998 0 197.41 18.67 1999 164.12 291.22 20.86 2000 160.11 230.28 24.23 2001 0 209.14 39.71 2002 92.09 246.03 35.91 2003 0 13.78 26.34 Cumulative amount 2004 113.45 21.13 22.52 　5729.01 4525.16 465.61 （ref.）Yen Loan and Grant Aid are E/N based. Technical assistance is JICA-disbursement based.