The Government of Bangladesh and the Japan International Cooperation Agency (JICA) on Tuesday signed a loan agreement for the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply,” marking a significant step toward strengthening the country’s economic stability and energy security amid evolving global and regional challenges.
Under the agreement, JICA will provide a Development Policy Loan of JPY 50 billion (approximately Tk 3,800 crore) to support Bangladesh in enhancing its economic and energy resilience in the face of evolving regional and international challenges. The programme is the first Official Development Assistance (ODA) loan initiative under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), an initiative introduced by the Government of Japan 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) under the Ministry of Finance, and TAKAHASHI Junko, Chief Representative of the JICA Bangladesh Office. During the same ceremony, the Exchange of Notes (E/N) was signed by Md Shahriar Kader Siddiky and SAIDA Shinichi, Ambassador of Japan to Bangladesh, on behalf of their respective governments.
The programme is structured around two strategic pillars: strengthening energy resilience and enhancing economic management and governance. Under the first pillar, the programme supports policy actions aimed at energy diversification and energy efficiency, contributing to a stable power and energy supply by ensuring the sustainability of high-efficiency power generation facilities, strengthening grid system planning, and promoting energy conservation.
Under the second pillar, the programme supports policy actions related to economic management and governance. This component will be co-financed in collaboration with the Asian Development Bank (ADB).
The initiative is expected to contribute to maintaining macroeconomic stability, enhancing the resilience of the energy sector, and improving the country's overall economic structure. The support comes at a critical time as Bangladesh continues its reform efforts to ensure sustainable and inclusive growth in an increasingly uncertain global environment.
