First ODA loan under Japan's POWERR Asia initiative to bolster energy and economic resilience

The Government of Bangladesh and the Japan International Cooperation Agency (JICA) signed a loan deal for the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply” today, marking a significant step toward strengthening the country’s economic stability and energy security amid evolving global and regional challenges, a press release said.

Under the agreement, JICA will provide a Development Policy Loan of JPY 50 billion (approximately BDT 3,800 crore) to support Bangladesh in building its economic and energy resilience in the face of evolving regional and international challenges. The program 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), Ministry of Finance, and TAKAHASHI Junko, Chief Representative of JICA Bangladesh Office. During the same ceremony, the Exchange of Notes (E/N) was signed by MD. Shahriar Kader Siddiky and H.E. SAIDA Shinichi, Ambassador of Japan to Bangladesh, on behalf of their respective governments.

The program is structured on two strategic pillars: Strengthening energy resilience and enhancing economic management and governance. Under the first pillar on energy resilience, the program supports policy actions on energy diversification and energy efficiency, contributing to stable power and energy supply by ensuring the sustainability of high-efficiency power generation facilities, strengthening grid system planning, and promoting energy conservation. In parallel, as a second pillar, the program also supports policy actions under the economic management and governance framework, which 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 overall economic structure of the country. 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.

The successful conclusion of the agreement ahead of the fiscal year-end highlights the strong partnership between Bangladesh and Japan and reaffirms JICA’s continued commitment to supporting the country’s long-term development priorities. The initiative further strengthens the enduring friendship and cooperation between the two nations while contributing to Bangladesh’s journey toward resilient and sustainable economic growth.