FE REport

The government is hopeful of signing the 33rd Official Development Assistance (ODA) loan package of Japan as per schedule, so far the highest on the part of the country, as it has made good progress in this regard, officials said Monday.

They said an inter-ministerial meeting on the 33rd ODA loan package held at the Economic Relations Division (ERD) observed the progress made and hoped to sign the agreement by March.

The officials said the meeting discussed the drafts of the exchange of notes and the loan agreement which had been prepared by the Japan International Cooperation Agency (JICA).

Under the 33rd ODA loan package, the soft loan lender Japan has assured of funding US$ 2.1 billion for the US 2.97 billion-dollar metro rail project known as Mass Rapid Transit (MRT) project.

Besides, the world's third-largest economy also assured of funding two other power related projects - Power Transmission Network Development Project and Bheramara Power Plant under its next country-ODA package.

The Communications Ministry officials said they were hopeful of signing the agreement on time as the MRT project has already been approved by the Executive Committee of National Economic Council (ECNEC).

"Formation of the MRT company is also in progress and it is expected to get the cabinet approval next week," said an official preferring not to be named.

He said subsidiary loan agreement under the loan package with the Finance Ministry would also be reached soon.

Over 15 projects are at implementation stage under Japanese ODA in the country. According to available data of JICA, the amount of Japanese ODA provided to new projects has increased to Japanese Yen (JPY) 55 billion.