$65m Japanese loan for disaster rehabilitation
Japan and Bangladesh signed an agreement in Tokyo yesterday concerning Japanese loan assistance of US$ 65 million for 'emergency disaster damage rehabilitation' project in the country. Foreign Adviser 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 Japan embassy. Japanese Ambassador Masayuki Inoue pledged the loan to Finance Adviser Dr Mirza Azizul Islam last month. The rehabilitation project under the loan will be started following the signed agreement. Asian Development Bank (ADB) is co-financing the loan. The objective of the project is to support 'quick restoration of economic and social activity' in the areas damaged by the floods and cyclone, 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$ 3.7 million. 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.