Japan will provide USD 2.5 billion to Bangladesh to build the country's first underground railroad project, a media report said Thursday.
A stretch of 26.6-km rail line will be constructed in Dhaka in two phases under the Mass Rapid Transit (MRT) project, the bdnews24.com reported.
"The design of the underground rail is being prepared and the tender process of the project will be finalised by end of the year," Project Director Md Saidul Haque was quoted as saying.
"Japan has agreed to finance the project which is a big one," he added.
According to the contract, Bangladesh will get USD 2.5 billion which will be spent on five projects including the MRT-1 airport route.
This financial assistance of Japan will be more than those it gave in previous fiscal years. The interest rate will be 0.95 per cent and the loan has to be repaid within 30 years, the report said.
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