#1JICA Japan International Cooperation Agency JICA's Activities in Bangladesh August 2018, JICA South Asia Department Japan International Cooperation Agency | 1#2JICA 1. How Bangladesh Should Pave the Way for the Future While Reaching the Ignition Point of Economic Development 2. JICA's Activities in Bangladesh Japan International Cooperation Agency | 2#3JICA 1. How Bangladesh Should Pave the Way for the Future While Reaching the Ignition Point of Economic Development Japan International Cooperation Agency | 3#4JICA Synopsis of Macroeconomic Situation Robust macroeconomic situation with high economic growth rate, but challenges remain to achieve sustainable development Robust economic growth with more than 6% in recent years based on strong performance of export in Ready-made Garment (RMG) sector • Achieving lower middle-income country status of the World Bank in 2015 with $1,190 of GNI/Capita and full-filling the eligibility criteria of graduation from the Least Developed Country (LDC) status of the United Nations for the first time in 2018. At the same time, Possibility of deteriorating current account balance due to growing competition in RMG sector, depletion of natural gas and decrease of remittance from overseas workers ● Possibility of growing public debt if the fiscal balance remains in deficit and the government continues to borrow Japan International Cooperation Agency Bangladesh needs to manage macroeconomic situation more capably, including: • Development of new industries, especially the export-oriented ones ● Tax reform and capacity enhancement of tax collection to increase revenue Proper debt management to keep it at sustainable level | 4#5JICA Stages of Economic Development and Ignition Point in Economic Growth Reaching ignition point in mid-2010s with the possibility of robust growth in coming years Emerging country growth stages Mid 2010s- I ~Mid 2010s Late 1980s Early 1990s - 1990s 2010s 2010- Early 1980s Mid 1980s 1980s 1997 - Early 2000s- Mid 1990s Late 1990s 2000- - -1990s Early 2000s 2000 - Natural Growth Economic growth based on the domestic demand and natural resources Reaching ignition Reaching ignition point and accelerating growth led by single/limited industries Rapid Growth Robust growth with diversified industrial base characterized by high infrastructure investment and rapid technology progress (Source: Developing Study Towards Quality Industrial Growth and Economic Development: JICA: February, 2018) Mature Growth Time Mature economy characterized by increasing domestic focus based on growing consumer spending#6JICA How Bangladesh Should Pave the Way for the Future After Reaching the Ignition Point The key for Bangladesh to achieve sustainable economic development is if Bangladesh can direct limited resources to (1) develop most potential industries, (2) improve infrastructure and (3)nurture human resources in a balanced manner while promoting FDI & Export Emerging country growth stages Reaching ignition Rapid growth Diversification Prioritiza- tion Improve conditions Infrastructure Skills Receive Exports &FDI Reach Acquire Acquiring ignition surplus point resources resources and tech- nology not available in BD Driving growth cycles Tech- nology and skillset upgrading Further Exports & FDI (Source: Developing Study Towards Quality Industrial Growth and Economic Development: JICA: February, 2018) Japan International Cooperation Agency Continue growth while overcoming weaknesses | 6#7JICA 2. JICA's Activities in Bangladesh Japan International Cooperation Agency | 7#8JiCA JICA's Cooperation Strategy in Bangladesh JICA's cooperation approach, focusing on both economic development and social stability under 2 pillars, 7 sectors and 9 programs Sustainable Economic Growth and Accelerating Economic Growth Economic Infrastructure Development Private Sector Development Urban Development Power and Energy Transportation Network Investment Climate/Export Promotion (Industry) Water Supply and Sewerage Waste Disposal Management Poverty Alleviation toward Rural and Agricultural Development Rural Development Addressing Social Maternal and Child Health, Health System Human Development a transition to Governance Improvement Primary Education Industrial Human Resource Development a middle-income Vulnerability country Disaster Prevention/ Climate Change Measures Japan International Cooperation Agency Governance Disaster Management | 8#92000 Approved Amount of ODA Loan Projects (2004~2018) 2500 (Unit :100 million yen) jiCA (Reference 1) Scale of Japan's Cooperation to Bangladesh JICA's cooperation in Bangladesh is expanding since early 2010s with the scale of ODA Loan Projects and Technical Cooperation Projects increasing 1500 1333 1210 957 1000 707 549 430 397 388 500 249 113 50 0 2004 2005 2006 2007 T 2008 2009 T 2010 2011 T 2012 Disbursed Amount of ODA Loan Projects (2004~2017) 1535 1600 (Unit :100 million yen) 2004 1400 17351782 1200 1000 800 600 610 442 471 384 336 400 200 0 56 29 19 79 79 86 43 139 2013 2014 2015 T 2016 7 2017 2018 Approved Amount of Grant Aid Projects (Unit: million yen) (2004-2016) 4,500 3,979 4,000 3,500 3,254 3,000 2,500 2,254 2,032 1,819 2,000 1,588 1,327 1,500 1,134 919 756 1,000 238 500 0 2004 2005 2006 2007 2008 2009 2010 2011 20122013201420152016 Japan International Cooperation Agency 2004 2005 2006 2007 2008 Amount of Expenditure Under Technical Cooperation Projects (2004~2016) (Unit: million yen) 2009 2010 2011 2012 2013 2014 2015 2016 2017 5,000 4,000 2,535 2,9042,839 3,000 2,177 2,252 2,5032,411 2,190 2,000 1,6281,6121,641 1,000 (Source: JICA Annual Report 2017) 4,623 4,238 4,155 3,815 2004200520062007200820092010201120122013201420152016 | 9#10JiCA (Reference 2) Breakdown of Japan's ODA Loans to Bangladesh Power, Energy and Transportation Network are major sectors, but Governance, Disaster Management, Industry and other sectors are also expanding in recent years Approved Projects since 2016 Approved Amount (100 million JPY) Japanese Fiscal Year 2016 1,735.38 Sector-wise approved amount of ODA Loans (2004~2018) 3%2% 5% 14% Dhaka Mass Rapid Transit Development Project (II) Matarbari Ultra Super Critical Coal-Fired Power Project (II) Cross-Border Road Network Improvement Project (Bangladesh) 755.71 378.21 286.98 4% 6% Energy Efficiency and Conservation Promotion Financing Project 119.88 5% 20% Disaster Risk Management Enhancement Project 169.96 Jamuna Railway Bridge Construction Project (E/S) Japanese Fiscal Year 2017 24.64 1,782.23 7% 34% Hazrat Shahjalal International Airport Expansion Project (i) The Kanchpur, Meghna and Gumti 2nd Bridges Construction and Existing Bridges Rehabilitation Project (II) 768.25 527.3 Road/Bridge Port/Airport Railway Power/Gas Water supply and sewerage Governance Dhaka Mass Rapid Transit Development Project (Line 1) (E/S) Matarbari Ultra Super Critical Coal-Fired Power Project (III) Dhaka Underground Substation Construction Project 55.93 107.45 204.77 Disaster Management Industry Agricuture Small Scale Water Resources Development Project (Phase 2) 118.53 Health Japanese Fiscal Year 2018 2,003.71 Matarbari Port Development Project (E/S) 26.55 Jamuna Railway Bridge Construction Project(I) 372.17 Dhaka Mass Rapid Transit Development Project (Line 5) (E/S) 73.58 Dhaka Mass Rapid Transit Development Project (III) 792.71 Matarbari Ultra Super Critical Coal-Fired Power Project (IV) 673.11 Health Services Strengthening Project 65.59 Japan International Cooperation Agency#11JiCA Recent Activities under Power, Energy and Transportation Network -Development of Moheshkhali / Matarbari Area- Integrated Development of Moheshkhali and Matarbari area, the game changer for the future growth of Bangladesh Background: ✓ With the development of Matarbari Power Plants, both the Prime Ministers agreed on the concept of Bay of Bengal Industrial Growth Belt (Big-B) in the Summit Talks in 2014 to develop a regional node and hub of value chains in Dhaka-Chittagong- Matarbari belt. • Future Cooperation: ✓ Placing the Matarbari Power Plants and the Seaport as the core infrastructure, JICA considers assistance for the integrated development of the entire area with the Moheshkhali-Matarbari Integrated Infrastructure Development Initiative (MIDI), led by Prime Minister's Office (PMO). Dakshin Dur Rajakhali How Magnama W Bars Mahak Pichhan Project Name: (ODA Loan) Matarbari Ultra Super Critical Coal-Fired Power Project Loan Amount : About 645 billion JPY Expected completion date: July, 2024 as Bak Fasiakhali Saspu Project Name: (ODA Loan) Matarbari Port Development Project Loan Amount: About 140 billion JPY Expected completion date: June, 2023 Isgaon Project Name: (Private Sector Investment Finance) Private Sector Investment Finance for constructing and operating the Floating Storage and Regasification Unit (FSRU) Approved Amount: 33 million USD out of 168 million entire project cost Expected completion date : July, 2018 Garjana Kachhapis Nakhongchhari Japan International Cooperation Agency Khudalang || 11#12JICA Recent Activities under the Transportation Network -Dhaka Mass Rapid Transit Project (Line 1,5 and 6) Changing the mode of transportation among 20 million city dwellers in Dhaka with 70km long urban railways under operation in coming years Line 6 Airport Uttra Sectral Line 6 Line 1 Line 5 Purbachal 2016 Loan Agreement (II) 2017 Line 1 Loan Agreement (E /S) Line 5 Mirpur 10 2018 Vatara Loan Agreement (III) 2019 Banani Hemayetpur Loan Agreement (E/S) Loan Agreement (I) E/S Consultant Selection Gabtoli •Agargaon 2020 2021 2022 Opening Google Kamlapur Dhaka University Total Length 2023 2024 Stations Total Project Cost 2025 (Billion Yen) 2026 Line 1 31km (11km viaduct / 20km underground) 7 (viaduct) 650 (Tentative) ★ Opening 12 (underground) 2027 Line 5 20km (6.5km viaduct/ 13.5km underground) 5 (viaduct) 520 (Tentative) 9 (underground) 2028 Line 6 20km (All Viaduct) 16 (viaduct) 350 Japan International Cooperation Agency ⭑Opening | 12#13JICA Recent Activities under Investment Climate & Export Promotion Providing support for GoB from Policy Level to Operation Level through comprehensive approach of Technical Cooperation and ODA Loan Policy Level • Conducting policy level dialogues with high officials of Government of Bangladesh (GoB) through the "Development Study Towards Quality Industrial Growth and Economic Development" Suggested Bangladesh should adopt an industrial growth model to focus on both manufacturing sector and service sector Selected (1) leather, (2) food processing, and (3) pharmaceuticals sectors as the most potential sectors to develop. Law, Rules and Regulation Level • Assisting Bangladesh Economic Zones Authority (BEZA) in introducing One Stop Service (OSS) through the "Project for Promoting Investment and Enhancing Industrial Competitiveness" Suggested BEZA to adopt a standard of procedures (SOP) for OSS based on the experience of ASEAN countries Operation Level • Providing comprehensive financial package to develop an EZ through "Foreign Direct Investment Promotion Project" Japan International Cooperation Agency . Currently supporting BEZA to develop an Araihazar EZ through 1. Concessional finance to tenant companies 2. Equity-back finance to GoB to invest in SPC to develop an EZ 3. Project sector loans to develop off-site infrastructure | 13#14jica Recent Activities under Governance -Capacity development of Local Governments- Promoting local governance and rural development at different levels, the key to robust growth and social stability in Bangladesh Ministry of Local Government, Rural Development and Cooperative (LGD) Local Governance Engineering Department (LGED) 8 Divisions 64 Districts 11 City Corporations 319 Municipalities Local Governance System and JICA's Support 1.Support for City Corporations "Inclusive City Governance Project" (ICGP) (Yen Loan) "Capacity Development of City Corporation" (Technical Cooperation) 2.Support for Municipalities "Northern Bangladesh Integrated Development Project" (NOBIDEP) (Yen Loan) "Strengthening Paurashava Governance Project" (Technical Cooperation) Jalpaigur Dingram Koch Bihar NEPAL Pancha Kishangan hakurgaon -25 Nilphamario Dhubun Pirgan almaniro Raiganj Saidpur Hal Din our Famaka Gaibandha O maputra Goalpara INDIA BANGLADESH Guwahati BANGLADESH NOBIDEP Ja Hat She ur Jaria 10 Jamalpu Raupara Silchar Naogac Mymensi Gouripur awabganj "Maulvi Bazár Rajshahi Nator Sirajgan QKishorgan Habigan Tangail INDIA hamrapur Pabna Dabgram; Kushtia Meherpur Chuadanga Baban Gazi Manika airab Bazar Narsinghe Brahmanbaria Agartala INDIA 240- Ganges Dhaka (Dacca) Ajal yangan ohenic Magu Faridpur Munshiganj Comilla Burdwan Santipur Chandpur Nrail Bangaon 20Madangaro Laksha Gopalga 23 -23 Barrackpore Kolkata (Calcutta) Diamond Harbour Haldia, KHULNA Khulna HITTAGONG Habra Satkhira Chaina o Pirojpur BARISALE Patuakhal Bargura Bagherh Barisal ola Noakha halaka Sandwip Karnarli Res Chittagong Bungtlang Bandarban Sathecia Unda utubdia Bichari 489 Upazilas 4,550 Unions 3.Support for Upazilas and Unions "Upazila Governance Development Project (UGD)" (Yen Loan) "Integrated Upazila Capacity Development Project" (Technical Cooperation) Japan International Cooperation Agency ICGP Moarks (Rangpur, Gajpur, Narayanganj, Comilla and Chittagong) - Provincial boundary Main road -Railroad Map No. 3711 Rev. 2 UNITED NATIONS January 2004 100 Cox's Bazar MYANMAR Maungdaw designations da nacementor 910 92 UGDP (489 Upazilas) | 14#15JICA jiCA Recent Activities regarding Partnership with Private Sector JICA supports Japanese private companies to full-fill the development needs in Bangladesh with various supporting menus, including Feasibility Study and Private Sector Investment Finance 2 Phase of Preliminary Survey Feasibility Study Phase of Business Expansion SME.SDGs Business Program (Preparatory Survey, Feasibility Survey, Verification Survey) Private Investment / Finance ⇒ 35 Surveys have been conducted since 2012 Case. (Health) Case. (Agriculture) BOP Business Survey for Mung Bean Cultivation (Euglena Co.Ltd) Through the trainings to low-income farmers, Euglena has successfully produced Mung Beans and exported them to Japan. Currently the number of contracted farmers are around 8,000, (KJS Co.Ltd) and the production volume has reached 3,000 ton annually, bringing a lot of benefit to them. Case. Verification Survey for E-Learning Tool, utilizing on the Education IT) Courses of the Information Technology Engineers Examinations (ITEE) Feasibility Studies are conducted through the installation of E-Learning course for ITEE at BRAC Universities and other universities. The learning tool has contributed to developing the IT human resources in Bangladesh through the increase of the number of ITEE passer. East West Medical College and Hospital Project JICA makes capital contribution to Ship Aichi Medical Service Limited, which was established jointly by East West Medical Hospital (Bangladesh) and Green Hospital Supply Inc (Japan). This will provide international level of health services to Bangladeshi people, by utilizing Japanese know-how in terms of hospital management. Japan East West Medical College and Specialized Hospital Japan International Cooperation Agency | 15#16JICA Thank you so much for your kind attention Japan International Cooperation Agency | 16