[🇧🇩] Strategic Aspect of Bangla-Japan Relation

[Saif]

CA urges Japan to enhance cooperation with Bangladesh

Chief Adviser Professor Muhammad Yunus today urged Japan to further strengthen its cooperation with Bangladesh

en.prothomalo.com

CA urges Japan to enhance cooperation with Bangladesh

BSS
Published: 03 Jul 2025, 21: 29

Chief Adviser Professor Muhammad Yunus today urged Japan to further strengthen its cooperation with Bangladesh in areas such as investment, fisheries, Rohingya humanitarian response, and youth development, including education and sports.

The Chief Adviser made these remarks during his meeting with Miyazaki Katsura, Executive Senior Vice President of JICA (Japan International Cooperation Agency), at the State Guest House Jamuna in Dhaka.

"Japan has always been a trusted friend. I recently visited your country, and I was deeply touched by the warmth and hospitality extended to me and my delegation," said Prof Yunus.

Miyazaki noted that Bangladesh remains one of Japan's most important partners in Asia and reaffirmed Japan's commitment to continue supporting Bangladesh's development journey. "We deeply mourn the lives lost and those injured in July, (uprising)" she said.

During the meeting, the Chief Adviser highlighted the importance of the Matarbari project, describing it as "the most important region for our country's future."

He emphasised Bangladesh's maritime potential. "When I spoke with the JICA President in Japan, I told him that we wanted to become a sea-based economy," he added.

Prof Yunus also requested Japan to increase scholarships for Bangladeshi young people to study in Japan, as well as expand opportunities for employment. "Many young people can go to Japan for work too. The issue is language. We proposed that Japanese teachers come here or offer distance learning so our people can learn Japanese language and workplace etiquette," he said.

The Chief Adviser also raised concerns about the situation of Rohingya. "It is a sad situation. Thousands of young people are growing up in camps with no hope. They are becoming frustrated and angry." he said.

Miyazaki said JICA is focusing on supporting reforms in Bangladesh's judiciary, public administration, local government, and health sector as the country prepares for its graduation from LDC status in 2026.

She added JICA has taken up a Bangladesh focused project in an effort to introduce advanced ICT human resource training in collaboration with local governments, companies, and universities in both countries.

On youth development, the Chief Adviser highlighted Bangladesh's success in women's sports.

"Our girls are winning everywhere. Yesterday they won another match and reached the final. We are increasing hostel facilities but need help for their health and training as well," he said.

Miyazaki responded positively, stating that Japan is already sending volunteers for schooling projects in many countries and will consider further cooperation in women's sports.

During the meeting, the Chief Adviser thanked Japan for signing the recent Loan and Grant Agreements worth over USD one billion for economic reforms, railway construction, and human resource development, and requested an increase in Japan's annual ODA threshold from JPY300 billion to 450 billion to implement more development projects.

"Bangladesh will always remember Japan's friendship and contributions," Prof Yunus concluded.​

 

[Saif]

Japan-only bidders, fat quotes and no room to negotiate

A fresh dilemma has emerged in Dhaka's ambitious metro-rail expansion as the state-owned operator faces exorbitant bids from a narrow pool of Japanese firms. Despite interest from companies worldwide, restrictive Japan-specific tender conditions have effectively sidelined all but a few players, re

thefinancialexpress.com.bd

DMTCL in a fix over MRT 5 North execution
Japan-only bidders, fat quotes and no room to negotiate

Munima Sultana
Published :
Jul 09, 2025 00:35
Updated :
Jul 09, 2025 00:35

A fresh dilemma has emerged in Dhaka's ambitious metro-rail expansion as the state-owned operator faces exorbitant bids from a narrow pool of Japanese firms.

Despite interest from companies worldwide, restrictive Japan-specific tender conditions have effectively sidelined all but a few players, resulting in a staggering 162-percent cost overrun in one major contract package, sources said.

The lowest bid for contract package (CP) 6 of MRT Line 5 North came in at over Tk 155 billion, dwarfing earlier cost estimates and putting the Dhaka Mass Transit Company Limited (DMTCL) in a bind with no room for negotiation, due to the Japan International Cooperation Agency's (JICA) rigid financing rules.

Procurement insiders and engineers now warn that the country's metro rail procurement process has become increasingly monopolised by Japanese firms, with systemic limitations built into tender documents.

Despite initial global interest, only a handful of Japanese companies made it through to final bidding stages-raising questions about transparency, competitiveness, and long-term technological dependence in one of Bangladesh's most significant infrastructure undertakings.

The DMTCL is currently implementing two major metro projects-MRT Line 1 and MRT Line 5 North-funded primarily by JICA. In the case of CP 6 of MRT 5 North, the lowest bidder quoted Tk 155.27 billion while the second came in slightly higher at Tk 164.30 billion.

These bids overshot the revised project cost of Tk 59.51 billion, already up from the Tk 39.67 billion outlined in the original 2019 development project proposal (DPP), and even exceeded the engineering estimate of Tk 61.26 billion prepared in 2025 by the project's Japanese design consultant.

CP 6's prequalification process, initiated in August 2024, saw 15 firms express interest, yet only four (all Japanese) were prequalified. Ultimately, just two companies submitted final bids.

DMTCL insiders say such one-sided participation reflects deeper flaws in the procurement framework, where Japan-specific tender conditions and tax exemptions discourage wider competition.

While Japanese firms enjoy full VAT and income tax waivers, other countries' bidders do not, making it financially unviable for them to compete.

This trend has persisted across multiple contract packages of both MRT 1 and 5 North. For example, CP 1 of both projects, related to depot land development, was awarded to Japanese firms.

In MRT 1, which will be the country's first underground metro rail, 15-36 companies initially bought prequalification documents across various CPs, including CPs 2 through 10.

However, the final bids overwhelmingly came from just two or three Japanese firms with some packages receiving no final bids at all, despite strong initial interest.

According to officials involved in bid evaluations, this pattern reveals a systemic issue: foreign firms with technological expertise and interest are deterred by the tender structure, which is narrowly tailored to Japanese firms.

This is in part due to JICA's guidelines, which do not allow price negotiations once the lowest bidder is selected, further tying DMTCL's hands, even when costs far exceed both estimates and fiscal logic.

Critics argue that this quasi-monopoly stems not just from JICA's terms, but also from a lack of technical competence and awareness within DMTCL.

Engineers working on the project say that tender documents were developed with little understanding of global MRT technologies, leaving little room for alternatives.

"We cannot even negotiate with the final bidders against these unusual quotations," said a DMTCL insider, noting that previous management failed to negotiate key terms with JICA before signing the loan agreements.

Preferring not to be named, an insider in the overall procurement, evaluation process told the FE that as only Japanese companies enjoy total tax exemption in all development projects, making it non-competitive for other countries.

This has led to concerns about future technology lock-ins. As one engineer put it, "The three MRT lines, including MRT 6, already partially operational, have been blocked by Japanese systems. Even if DMTCL wants to bring in other technologies in the future, it may not be possible."

Sources at the Japanese consultant side have defended the current arrangement, pointing out that many government-funded projects worldwide, including those financed by China or through India's Line of Credit, often prioritise firms from the donor country.

However, procurement experts in Bangladesh counter that in this case, the issue lies in the extreme extent of that preference and its rigid enforcement, which has turned procurement into a non-competitive process.

The DMTCL is overseeing the development of a 128-kilometre MRT network comprising six metro lines across Dhaka's north-south and east-west corridors.​

 

[Saif]

JICA hosts tour in Bangladesh for Japanese cos

The Japan International Cooperation Agency successfully carried out a four-day business tour in Bangladesh for a delegation of Japanese companies...

www.newagebd.net

JICA hosts tour in Bangladesh for Japanese cos
Bangladesh Sangbad Sangstha . Dhaka 28 July, 2025, 22:16

The Japan International Cooperation Agency successfully carried out a four-day business tour in Bangladesh for a delegation of Japanese companies.

The tour titled ‘Urban Environmental Business Study Tour’ was held from July 20, 2025, to July 23, 2025. Nine Japanese companies joined the tour to learn more about environmental issues, promoting sustainable solutions, and exploring future business opportunities in the country’s rapidly growing market, said a press release today.

Bangladesh consistently attracts significant interest from global investors, with a steady rise in the number of Japanese businesses establishing a presence in the country.

However, with rapid urbanization, the country faces growing environmental challenges such as unplanned solid waste disposal, insufficient wastewater treatment, low sewerage coverage, and poor air quality, among others. With this business study tour, JICA invited Japanese companies that specialize in solid waste management, water treatment, and air pollution control with the objective of connecting them with relevant stakeholders in Bangladesh.

The delegation visited a variety of sites, including Secondary Transfer Stations (STS), sanitary landfill sites, sewage treatment plants, groundwater purification facilities, and local companies operating in related sectors.

Through these on-site observations and active dialogue with local authorities and companies, the delegation was introduced to on-the-ground realities and acquired a clearer understanding of the situation.

The tour also encouraged the participants to consider how their technologies could help address these issues to create cleaner, healthier cities with vibrant water environments.

Additionally, it encouraged them to explore future collaboration through JICA’s Private Sector Partnership and SDGs Business Support (JICA Biz) program, which assists businesses in developing sustainable business models based on the Sustainable Development Goals (SDGs).

JICA is committed to building a strong partnership between Bangladesh and Japan to eradicate the pressing environmental issues and move towards a more sustainable and inclusive Bangladesh.

This tour was a great opportunity to build connections, share knowledge, and explore the strong potential for future collaboration between Japanese innovation and Bangladesh’s development landscape.​

 

[Saif]

JICA stresses on infrastructure projects like metrorail

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...

en.prothomalo.com

JICA stresses on infrastructure projects like metrorail

JICA’s senior executive vice president Miyazaki Katsura

JICA’s senior executive vice president Miyazaki Katsura highlights Bangladesh’s development potential, strategic importance and various areas of JICA’s cooperation in an interview with Prothom Alo. Prothom Alo’s staff correspondent, Mostafa Yusuf took the interview.

Prothom Alo: 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.

Prothom Alo: 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.

Prothom Alo: 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.

Prothom Alo: 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.

Prothom Alo: 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.​

 

[Bilal9]

Bangladesh signs Defense MOU with Japanese Govt.