The New Nation - Internet Edition

UNB, Dhaka

Japan and Bangladesh signed an agreement in Tokyo yesterday concerning Japanese loan assistance of 6.96 million yen, equivalent to approximately Tk 44.2 billion or US$ 65 million, for 'Emergency Disaster Damage Rehabilitation' project in the country.

Foreign Advisor Dr. Iftekhar Ahmed Chowdhury, who is now visiting Japan, and Masahiko Koumura, Minister for Foreign Affairs of Japan, signed the agreement after their bilateral meeting, said a release from the Japanese Embassy here.

The loan had been pledged last month by Japanese Ambassador Masayuki Inoue to Dr Mirza Azizul Islam, Advisor, Ministry of Finance and Ministry of Planning.

The rehabilitation project under the loan will be started following the signed agreement. "The loan is provided as co-financing with the Asian Development Bank (ADB)," it said.

The objective of the oroject is to support "quick restoration of economic and social activity" in the areas damaged by the floods 2007 and Cyclone Sidr, through providing quick-disbursement type of import financing for essential agricultural commodities.

Rehabilitating and reconstructing damaged public infrastructure, thereby contributing to sustainable economic growth, are also among the objectives.

Japan has been assisting disaster mitigation and damage recovery of Bangladesh for long. For recovery from the damage caused by Cyclone Sidr, Japan already has provided emergency relief goods equivalent to about US$327,100 and Emergency Grant Aid through UN agencies equivalent to US$3.7million.

Based on the request from the Government of Bangladesh, Japan has already started the assessment procedure for construction of additional cyclone shelters in affected area.

In addition, Japan International Cooperation Agency (JICA) is planning to support for rehabilitation of rural infrastructures with Local Government Engineering Department (LGED) and water supply facilities with the Department of Public Health and Engineering (DPHE) under technical cooperation projects.