JICA is Bangladesh’s largest development partner. How do you evaluate this longstanding relationship between JICA and Bangladesh?
We started cooperation with Bangladesh in 1973, just two years after independence. Since then, the JICA has extended its cooperation to various sectors including health, power, energy, agriculture, transport, education and environment. Bangladesh saw a remarkable and notable development in the last five decades. We are proud to be a part of that. Bangladesh is notable among the countries JICA supports globally.
As Bangladesh graduates from the list of least developed countries (LDCs), we are also shifting the nature of our cooperation. We are now focusing on sustainable and inclusive development in Bangladesh. Since the change in government last August, we have turned our attention to improving the environment for investment. At this moment, it is essential to enhance the environment for investment to ensure sustainable development.
Why is Bangladesh important to JICA?
Bangladesh is important to JICA for several reasons. The country has a large and youthful population. In terms of population, it is the eighth-largest country in the world. With its size, Bangladesh holds vast potential as both a production hub and a consumer market. In addition, its geopolitical location is highly significant.
Since independence, Bangladesh has benefited from strong leadership. Recently, the governments of Bangladesh and Japan have agreed to elevate their bilateral strategic partnership to a new level. There has been increased engagement between the people and companies of both countries. For example, the number of Japanese companies operating in Bangladesh has risen, while the number of Bangladeshis living in Japan has quadrupled over the past decade.
What role are JICA's projects playing in bringing about positive change?
We are prioritising high-quality infrastructure projects. If the initial construction cost is low but the maintenance and repair costs are high, such projects often suffer damage during natural disasters. High-quality infrastructure, on the other hand, involves a higher initial investment but lower maintenance and repair costs in the long run. Dhaka Metro Rail is an example of such a high-quality project. Other examples include the third terminal of Dhaka Airport and the Matarbari deep-sea port.
Before launching any project, JICA conducts a feasibility study through international consultants. Balanced planning is another key focus for JICA. We have a set of social and environmental guidelines, and every project must adhere to them to ensure that there is no adverse impact on the environment or the livelihoods of local communities.
JICA also ensures that project operation and maintenance are sustainable. For instance, in the case of Dhaka Metro Rail, we continue to provide training and technical assistance through JICA funding for its operation and maintenance.
Which other sectors does JAICA provide assistance in besides infrastructure?
Besides infrastructure, JICA is assisting Bangladesh in education, information technology, and health sectors. In health, JICA is currently supporting nursing education, non-contagious disease control, and hospital construction. In education, JICA emphasises primary education and has been cooperating for 20 years to improve the mathematics and science curricula.
JICA is also helping enhance the capacity of local government officials in 495 upazilas and 12 city corporations across the country.
Additionally, JICA provides scholarships for higher studies in Japan to 560 government officials. This capacity building is applied in sectors like agriculture, river management, food security, technology, and solid waste management. JICA is expanding its cooperation beyond infrastructure to these sectors.
In the IT sector, Bangladesh has huge potential with many talented individuals doing excellent work. JICA is helping the government develop a master plan and roadmap for this sector. By providing training, they create skilled manpower and facilitate employment in Japan. So far, 250 IT engineers have been trained and recruited in various Japanese organisations.
Is there any new investment from Japan?
Bangladesh must move away from excessive reliance on the ready-made garment industry. Although it is undeniable that this sector is a driving force behind the country’s economic development, achieving a sustainable economy will require the growth of other industries. The special economic zones in Bangladesh will act as catalysts for industrial diversification. Eight companies, including Singer, have already decided to invest in these zones. Singer has begun manufacturing refrigerators and plans to start producing air conditioning units in the near future.
Japan’s well-known company Lion has chosen Bangladesh for its first investment in South Asia. The company plans to produce essential household items in Bangladesh. Lion is the second company to begin constructing a factory in a special economic zone. One of the main challenges is that land development costs in these economic zones are quite high. To protect the land from flooding, JICA has raised the ground level by four metres through its ODA loan programme.
To promote carbon neutrality and renewable energy, a power and energy master plan was prepared with JICA’s support. Around 95 per cent of our financing goes to the government, while only 5 per cent goes to private companies. Like the World Bank’s IFC, JICA has formed PSIF (Private Sector Investment Finance). For example, to encourage green financing, JICA provided BRAC Bank with USD 90 million and gave BSRM USD 50 million to produce environmentally friendly steel.
For sustainable development, Japan and Bangladesh have a framework agreement on science and technology research partnerships. Under this framework, we have initiated six projects to enhance collaboration between Bangladeshi and Japanese researchers.