Japan confirms $158m loan for MRT-6

Japan on Tuesday confirmed a $158 million loan for the expansion works of the Rapid Transit Line 6 (MRT-6) from Motijheel to Kamlapur.

In this regard, the Japan International Cooperation Agency (JICA) and the Economic Relations Division (ERD) signed a loan agreement in Dhaka.

JICA Bangladesh Chief Representative Yuho Hayakawa and ERD Secretary Fatima Yesmin signed the agreement on their respective sides.

Japan had previously confirmed its financial support to Bangladesh for the construction of the MRT-6 project from Uttara to Motijheel involving Tk 219.15 billion.

The government then decided to extend the MRT-6 to Kamlapur. The newly signed $158 million loan will be used to build the extended portion.

The Japanese loan will be granted at an interest rate of 0.70% for construction expenses and 0.01% for consultancy services.

The loan will have a maturity of 30 years with a grace period of 10 years.

Japan, Bangladesh’s largest development partner, has so far provided $17.46 billion against its total commitment of $27.43 billion in loans and grants.

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