In a significant development, Bangladesh has finalized a $540 million loan pact with Japan earmarked for the construction of Dhaka’s third airport terminal, inclusive of a dedicated cargo terminal and associated amenities.
This agreement marks the culmination of the third installment of financial backing from the Japan International Cooperation Agency (JICA) towards the Shahjalal International Airport’s expansion.
As per details disclosed by the Japanese Embassy in Dhaka on Sunday, the loan carries an interest rate of 1.30%—twice the rate set during the preceding agreement inked in August 2020. The repayment terms encompass a 20-year duration, preceded by a grace period spanning a decade.
Furthermore, the consultancy fee associated with this loan witnesses a twentyfold increment under the freshly established terms.
The official loan agreement in Dhaka saw the participation of Japan’s Ambassador to Bangladesh, Iwama Kiminori, alongside Shahriar Kader Siddiky, the Economic Relations Division Secretary.
Cumulatively, the trio of Japanese financial packages directed towards the airport’s expansion amasses a staggering $2.21 billion. Prime Minister Sheikh Hasina’s preliminary unveiling of the third terminal on October 7 underscores the nation’s commitment to meeting escalating aviation needs. This strategic move aims to bolster airport capabilities, refine accessibility, and amplify security measures, thereby catalyzing Bangladesh’s economic trajectory, as highlighted in the embassy’s statement.
Emphasizing the broader regional implications, the expanded airport is poised to significantly elevate connectivity across the vicinity, as articulated by the embassy’s representatives.
