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Japan keen to invest

Asks govt to fix infrastructure first during talks, says metro rail financing is on

Diplomatic Correspondent
Japan has no reservations about changes in Dhaka's metro rail plan; rather, it is very positive about funding the project.
The statement came from Japanese Deputy Prime Minister Katsuya Okada during bilateral talks with Foreign Minister Dipu Moni at Sonargaon Hotel in the capital yesterday, official sources said.
Okada is the highest ranking Japanese official to tour Bangladesh since foreign minister Taro Aso's visit in2006.
The most prestigious visit from Japan was by prime minister Yoshiro Mori in 2000. The last top-level trip from Bangladesh to Japan was by PM Sheikh Hasina in November 2010.
Okada, who arrived here yesterday on a two-day official visit, renewed the Japanese commitment to fund the $2.9 billion Padma bridge project, coordinated by the World Bank. The WB agreed on a $ 1.2b loan to construct the country's longest bridge. Asian Development Bank was to provide $615 million, Japan International Cooperation Agency (Jica) $400m and Islamic Development Bank $140 million.
But the project stalled in October last year after the WB brought corruption allegation in the biddingprocess.
Okada suggested Bangladesh negotiate with the World Bank to settle the issue immediately, according to meeting sources.
He also said Japan wants a breakthrough in the problem and will talk to World Bank about how to find a solution.
The deputy PM recommended infrastructure development and smooth supply of electricity and gas for attracting a huge investment from Japan.
The Bangladesh side agreed to provide land for an export processing zone exclusively for Japanese industries. Urging them to invest in power generation and gas exploration for the zone, it pledged necessary supports, foreign ministry sources said.
In response to Dhaka's request for a comprehensive partnership deal, Okada said Japan is eager to strike Economic Partnership Agreement, provided infrastructure and uninterrupted supply of electricity and gas here.
“Japanese investors are eager to come and invest in Bangladesh...we sincerely want to assist Bangladesh the way we help others,” an official quoted Okada as saying.
The Bangladesh side requested for Japanese assistance to its food security efforts through con-
struction of some huge warehouses to preserve food for two to three years. Officials said Japan agreed to consider it.
Meeting sources said Dhaka discussed a proposed $700 million Japanese loan package and also the progress of the 19-point joint statement issued during Hasina's Japan visit in 2010.
The two-way trade volume is around $2 billion. The export from Bangladesh to Japan has been recorded at around $500 million, which is on the rise after Bangladeshi products got duty-free access.
Some 208 Japanese companies had registered for $1.24 billion investment in Bangladesh by December 2011 with employment opportunity for 45,000 people.
An official estimate shows Japan has provided about $10 billion assistance to Bangladesh since the establishment of diplomatic relations between the two countries in 1972.