Bangladesh’s energy security received a significant boost on Tuesday as the government and the Japan International Cooperation Agency (JICA) signed a loan agreement worth JPY 50 billion, equivalent to around Tk 3,800 crore, to strengthen economic resilience and ensure a stable energy supply amid growing global and regional uncertainties.
The agreement for the “Emergency Support Loan for Enhancing Economic Resilience and Stable Energy Supply” was signed in Dhaka 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, an Exchange of Notes was signed by Siddiky and Saida Shinichi, Ambassador of Japan to Bangladesh, on behalf of their respective governments.
Under the agreement, JICA will provide a Development Policy Loan aimed at strengthening Bangladesh’s economic and energy resilience. The programme marks the first Official Development Assistance (ODA) loan initiative under the Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia), a Japanese-led framework designed to address energy supply vulnerabilities and supply-chain disruptions across the region.
The programme is built around two core pillars. The first focuses on energy resilience through policy measures designed to diversify energy sources and improve energy efficiency. The initiative is expected to support a more reliable electricity and fuel supply by sustaining high-efficiency power generation facilities, strengthening power grid planning and expanding energy conservation efforts.
For Bangladesh, which remains heavily dependent on imported fuel, liquefied natural gas and petroleum products to meet rising electricity demand, strengthening energy resilience has become increasingly important as global energy markets face recurring volatility and supply-chain disruptions.
The second pillar centres on economic management and governance reforms and will be implemented through co-financing arrangements with the Asian Development Bank (ADB). Officials said the measures are expected to help preserve macroeconomic stability, improve the resilience of the energy sector and strengthen the country’s overall economic structure.
The support comes as Bangladesh continues to pursue reforms aimed at ensuring sustainable and inclusive growth while navigating uncertainty in the global economy and energy markets.
Officials said the successful completion of the agreement before the end of the current fiscal year reflects the strong partnership between Bangladesh and Japan and underscores JICA’s continued commitment to supporting the country’s long-term development priorities.
The initiative is also expected to deepen bilateral cooperation between the two countries while supporting Bangladesh’s efforts to build a more resilient, sustainable and secure energy future.
