Bangladesh and the Japan International Cooperation Agency (JICA) have signed a landmark loan agreement aimed at strengthening the country’s energy security, economic resilience and governance framework amid growing global and regional uncertainties.
Under the agreement, JICA will provide a Development Policy Loan worth JPY 50 billion, equivalent to approximately Tk3,800 crore, to support Bangladesh’s efforts to enhance energy resilience and maintain macroeconomic stability.
The programme marks the first Official Development Assistance (ODA) loan under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), a Japanese government initiative designed to address energy supply vulnerabilities and supply-chain disruptions across the region.
The loan agreement was signed by Md Shahriar Kader Siddiky, Secretary of the Economic Relations Division (ERD), Ministry of Finance, and Takahashi Junko, Chief Representative of JICA Bangladesh Office. The Exchange of Notes was signed separately by ERD Secretary Siddiky and Ambassador of Japan to Bangladesh, Saida Shinichi.
The programme is structured around two strategic pillars: strengthening energy resilience and enhancing economic management and governance.
Under the energy resilience component, the initiative will support policy reforms focused on energy diversification, energy efficiency and sustainable power generation. The programme aims to improve the reliability of Bangladesh’s energy supply through enhanced grid planning, support for high-efficiency power generation facilities and the promotion of energy conservation measures.
The second pillar focuses on economic management and governance reforms and will be co-financed in collaboration with the Asian Development Bank (ADB). The initiative is expected to contribute to stronger macroeconomic management, improved institutional resilience and a more sustainable economic structure.
Officials noted that the support comes at a critical period as Bangladesh continues implementing reforms to ensure sustainable, inclusive and resilient economic growth amid evolving global economic challenges.
The agreement also underscores the long-standing development partnership between Bangladesh and Japan, reaffirming JICA’s commitment to supporting the country’s long-term development priorities, energy transition efforts and economic stability.
