Functions of Economic Wing: Japan

The Economic Wing of the Embassy of Japan is headed by an officer who holds the diplomatic rank of a Minister. As a functional unit of the Economic Relations Division (ERD), the Economic Wing is charged with the responsibilities for strengthening the existing bilateral economic cooperation between Japan and Bangladesh and in particular for promoting investment by Japanese companies/entrepreneurs in Bangladesh.

Economic Wing of the Mission is working for mobilization of resources, technical cooperation, transfer of technology, Human Resource Development through training and higher education and studies in different Japanese Universities and Institutions.

Major Functions

• Mobilizing bilateral aid in the form of Grants, Loans and Technical Cooperation for Bangladesh;
• Monitoring macro-economic indicators of the Japanese economy and report on the implications of the movements of those indicators on the potential ODA flows of Japan;
• Facilitate and arrange signing of ODA Loan Agreement between the Government of Bangladesh and Japan;
• Maintain liaison and coordination with key institutions, bureaus, agencies and relevant ministries such as Finance, Foreign Affairs, International Cooperation Bureaus, JICA, JBIC and other key ministries/institutions of the Japanese Government for facilitating Japanese ODA mobilization to Bangladesh;
• Promoting Japanese investment in Bangladesh through maintaining regular contacts with different Chambers of Commerce and Industries, and briefing them about investment opportunities in Bangladesh;
• Maintain liaison with different Ministries of the Government of Bangladesh with regard to the specific issues relating to Japanese ODA, investment, business, promoting fair etc;
• Assist strengthening Human Resource Development of Bangladesh through coordinating and managing Japanese scholarships such as, Japanese Grant Aid for Human Resource Development Scholarship (JDS), Youth Development Program, Monbukaga Kusho Scholarship, ABD-Japan Scholarship, Japan-IMF Scholarship (JISPA) and others.

Bilateral Economic Relations with Japan

The diplomatic relations between Bangladesh and Japan was established on February 10th, 1972 and bilateral ties evolved during the last 48 years on a strong foundation. Till date, Japan is the single largest bilateral development partner of Bangladesh. Japanese assistance to Bangladesh encompasses a wide range of cooperation in power and energy, transportation, telecommunication agriculture, health, education, infrastructure, water and sanitation, environment, human resource development and in other sectors of economy in the form of loan, grant, technical assistance and dispatching of volunteers and experts. Japanese loans are concessional in nature carrying a lowest interest rate and repayment period of thirty years including a ten-year grace period.

Japanese development assistance to Bangladesh

The JICA Bangladesh office was established in 1973 and the first Japanese ODA loan to the country was made in the same year. In order to accelerate economic growth and become a middle-income country, the government of Bangladesh has adopted Vision 2021. Bangladesh also has adopted vision 2041 to become a developed country. To achieve this goal, Japan Government has been extending continuous support to the development of Bangladesh in different important sectors including communication infrastructure, power, energy, telecommunication, health care, human resource development, urban and rural development etc.

General information:

• Japan is the single largest bilateral development partner of Bangladesh.
• Exchange of visits by Prime Minister Sheikh Hasina and Prime Minister Shinzo Abe was made in 2014 and launched of ‘Comprehensive Partnership’ between Bangladesh and Japan.
• Since independence, Japan has provided financial support of more than US$ 21.10 billion as Project Aid, Food Aid and Commodity Aid to Bangladesh in the form of grants, loans and technical assistance.
• Since independence, Japan has committed to provide financial support of more than US$ 24.72 billion as Project Aid, Food Aid and Commodity Aid to Bangladesh in the form of grants, loans and technical assistance.
• JICA provided budget support of loan in Japanese yen 35.00 billion (329 million USD) as COVID-19 crisis response emergency support. Earlier, the Government of Bangladesh declared a stimulus package amounting USD 8.5 billion for providing additional assistance for some sectors, especially to provide several credit facilities at low interest rate from the banking system for the business; salary support to export oriented manufacturing industry workers, to protect the poor and vulnerable population through social safety net programs etc.
• Currently, there are a total of 99 JICA assisted projects are being implemented under ODA loan,
• The 41st ODA loan package, that is the highest ever, have been signed of JP¥ 338.247 billion (approximately US$ 3.2 billion) in 2020 for 7 (seven) development projects including:
  1. Dhaka Mass Rapid Transit Development Project (IV).
  2. Dhaka Mass Rapid Transit Development Project (Line 5)
  3. Jamuna Railway Bridge Construction Project;
  4. Hazrat Shahjalal International Airport Expansion Project (II);
  5. Food Value Chain Improvement Project;
  6. City Governance and Urban Development Project; and
  7. Chattogram-Cox’s Bazar Highway Improvement Project (E/S).

Official Development Assistance (ODA) Loan Projects:

There are 34 (thirty four) on-going Loan projects including Dhaka-Mass Rapid Transit Development project, Matarbari Ultra Super Critical Coal-Fired Power project, Matarbari Port Development project, Kanchpur, Meghna and Gumti 2nd Bridge Construction project (II), Jamuna Railway Bridge Construction project, Foreign Direct Investment project, Energy Efficiency and Conservation Promotion project, Hazrat Shahjalal International Airport Expansion Project, Health Services Strengthening project etc. with a total loan amount of JP¥ 1,570,532 million.

Grants Aided Projects:

12 (twelve) Grant assisted projects including Human Resource Development (JDS Fellowship program), Improvement of Solid Waste Management Equipment, Primary Education Development Programme (PEDP IV), Economic and Social Development programme, Improvement of Meteorogical RADAR Systems, Saline Water Treatment Plant, Ground Water Investigation and Development of Deep Ground Water Source in Urban and Rural Areas, Project for the Densification of Global Navigation Satellite System, Improvement of Rescue Capacities in the Coastal and Inland Waters etc. are on-going with a total grant amount of JP¥ 20,587 million.

Technical Assistance Projects:

There are 44 (forty four) on-going Technical Assistance projects including Skill Development of ICT Engineers Targeting Japanese Market, Dhaka Integrated Traffic Management, Security Improvement of International Airports, Strengthening of Solid Waste Management in Dhaka North City, Dhaka South City and Chittagong City, Capacity Enhancement of Bangladesh Police, Promoting Building Safety for Disaster Risk Reduction, Capacity Building of Nursing Services, Strengthening Health Systems through Organizing Communities, National Integrity Strategy (NIS), Capacity Development of City Corporations, Strengthening Public Investment Management System (Phase 2) etc.

DRGA + DGRA-CF Projects:

8 (eight) projects including Capacity Enhancement of the Core Courses of BPATC, Strengthening Institutional Capacity of BIAM for Conducting Core Courses, Safe Motherhood Promotion-operations Research on Safe Motherhood and Newborn Survival, Support to Sustainable Graduation Project, Enhancing GoB’s Aid Management and Coordination Capacity for Sustainable Development, Strengthening Capacity of ERD Officials etc. are being implementing.

JDCF Project:

1(one) project titled ‘Rural Development & Livelihood Improvement Project at Narsingdi Sadar Upzilla’ under Local Government Division is being implemented with a total amount of BDT 4956 Lac.

List of ODA Loan Projects as a result of ‘Comprehensive Partnership’ since 2014

Name of the project	Total loan amount
	USD	JPY
35th ODA Loan Package (signed on 16 June 2014)	1.184 billion	120.986 billion
1. Matarbari Ultra Super Critical Coal-Fired Power Project (I)
2. Natural Gas Efficiency Project
3. Inclusive City Governance Project
4. Haor Flood Management and Livelihood Improvement Project
5. Small and Marginal Sized Farmers Agricultural Projectivity Improvement and Diversification Financing Project
36th ODA Loan Package (signed on 13 December 2015)	1.076 billion	133.265 billion
1. Foreign Direct Investment Promotion Project
2. Dhaka-Chittagong Main Power Grid Strengthening Project
3. Western Bangladesh Bridge Improvement Project
4. Maternal, Neonatal and Child Health (MNCH) and Health System Improvement Project
5. Urban Building Safety Project
6.Upazila Governance and Development Project
37th ODA Loan Package (signed on 29 June 2016)	1.549 billion	173.538 billion
1. Cross-Border Road Network Improvement Project (Bangladesh)
2. Dhaka Mass Rapid Transit Development Project (II)
3. The Jamuna Railway Bridge Construction Project (E/S)
4. Matarbari Ultra Super Critical Coal-fired Power Project (II)
5. Energy Efficiency and Conservation Promotion Financing Project
6. Disaster Risk Management Enhancement Project
38th ODA Loan Package (signed on 29 June 2017)	1.5484 billion	178.223 billion
1. Dhaka Mass Rapid Transit Development Project (Line 1) (E/S)
2. The Kanchpur, Meghna and Gumti 2nd Bridges Construction and Existing Bridges Rehabilitation Project (II)
Matarbari Ultra Super Critical Coal-Fired Power Project (III)
Hazrat Shahjalal International Airport Expansion Project (I)
Dhaka Underground Substation Construction Project
Small Scale Water Resources Development Project (Phase 2)
39th ODA Loan Package (signed on 14 June 2018)	1.831 billion	200.371 billion
1. Matarbari Port Development Project (E/S)
2. Jamuna Railway Bridge Construction Project (I)
3. Dhaka Mass Rapid Transit Development Project (Line 5) (E/S)
4. Dhaka Mass Rapid Transit Development Project (Line-6) (III)
5. Matarbari Ultra Super Critical Coal-Fired Power Project (IV)
6. Health Services Strengthening Project
40th ODA Loan Package (signed on 29 May 2019)	2.5 billion	275.786 billion
Matarbari Port Development Project (I)
Matarbari Ultra Super Critical Coal -Fired Power Project (v)
Dhaka Mass Rapid Transit Development Project (Line 1) (I)
Foreign Direct Investment Project (II)
Energy Efficiency and Conservation Promotion Financing Project (phase 2)
41st ODA loan package (signed on 12 August 2020)	3.2 billion	338.247 billion
Dhaka Mass Rapid Transit Development Project (IV)
Dhaka Mass Rapid Transit Development Project (Line 5)
Jamuna Railway Bridge Construction Project
Hazrat Shahjalal International Airport Expansion Project (II)
Food Value Chain Improvement Project
City Governance and Urban Development Project
Chattogram-Cox’s Bazar Highway Improvement Project (E/S)

JDS Scholarships:

The main objective of the project is to provide opportunities for Bangladesh Civil Service Cadre and Bangladesh Bank officials to study Master’s and Ph.D degree courses in Japan which will have human resource development in Bangladesh. Under Japan Human Resources Development Program, a total of 394 JDS fellows have been dispatched to Japan to study Master’s course since 2001. Of them, 293 officers successfully completed their courses and 5 officers were dropped. At present, 58 officers are studying Masters degree in nine reputed universities in Japan. In addition, since 2018, six officers have been enrolled for PhD program in Meiji, Ritsumeikan, Hiroshima and Yamaguchi University.

Japan Overseas Cooperation Volunteers (JOCVs):

Japan dispatched 1,285 Japanese Overseas Cooperation Volunteers to work in different sectors for the skill development of their Bangladeshi counterparts. JOCVs have been a component of Japan’s development assistance program in Bangladesh. All Japanese volunteers were withdrawn followed by the killing of Japanese national Kunio Hoshi at Rangpur in October 2015.

Project for Skills Development of IT Engineers Targeting Japanese Market:

Under this project, Bangladesh is conducting three month long intensive training program on Japanese language, culture, Japanese business manner & IT skills for Japanese Market and most of them are getting job opportunities in Japan and Japanese companies in Bangladesh. This is a pilot project and under this project 320 persons will get training and job opportunities. This project will be ended in April 2021. The impact and job placement rate (almost 100%) of this project is very potential for both the governments and it’s a win-win situation for both the countries.

Dr. Sahida Akter
Economic Minister
Embassy of Bangladesh Tokyo, Japan
Phone: 03-3234-5801 Ext-200
Email: economin.tokyo@mofa.gov.bd