Japan funding for Hazrat Shahjalal Airport’s major upgrade

In a significant development for Bangladesh’s aviation sector, the country and Japan on Sunday signed the exchange of notes of the 44th Official Development Assistance (ODA) yen loan.

This crucial funding, amounting to 76,635 million yen (approximately USD 540 million), is earmarked for the expansion of Dhaka’s Hazrat Shahjalal International Airport (HSIA).

The installment will be used for constructing Hazrat Shahjalal International Airport’s Third International Passenger Terminal, a Cargo Terminal, and associated facilities, reports UNB.

The agreement was formalized by Iwama Kiminori, Japanese Ambassador to Bangladesh, and Md. Shahriar Kader Siddiky, Secretary of the Economic Relations Division, Ministry of Finance. This latest installment brings the total of the 44th round of yen loans to a substantial 324,191 million yen (around USD 2.21 billion).

A corresponding loan agreement was signed by Yoshida Hiroshi, Senior Representative of JICA’s Bangladesh Office, and Shariar Siddiky, emphasizing the commitment to meet the growing aviation demands, enhance airport capacity, improve accessibility, and bolster security. This expansion is anticipated to significantly contribute to Bangladesh’s economic development and regional connectivity.

Prime Minister Sheikh Hasina, at the recent soft opening of Dhaka Airport’s Third Terminal, highlighted the importance of Japanese companies’ involvement in this grand project. Ongoing intensive discussions between the Japanese consortium and airport authorities reinforce Japan’s commitment to fostering Bangladesh’s development through this strategic partnership, aiming for mutual prosperity.

The 44th ODA loan package specifically targets the Hazrat Shahjalal International Airport Expansion Project (Phase III). The terms include an interest rate of 1.30% per annum, with a repayment period of 20 years following a grace period of 10 years, as outlined by the Japanese Embassy in Dhaka. This agreement marks a pivotal step in enhancing Dhaka’s status as a key aviation hub in the region.