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Bangladesh has urged Japan to lower the cost of its funded projects and extend loans on easier terms, citing rising expenses in metro rail and other infrastructure schemes.

An interim government delegation, led by Finance Adviser Dr. Salehuddin Ahmed, visited Japan on September 1–4 and conveyed the request in meetings with Japanese ministers, the Japan International Cooperation Agency (JICA), and the Japan External Trade Organisation (JETRO).

The 10-member team included officials from the Economic Relations Department, Civil Aviation and Tourism Ministry, Bangladesh Railway, and Dhaka Mass Transit Company Limited. The Asian Development Bank (ADB) sponsored the visit under a program on advanced railway development and multimodal transport integration.

Delegates said they were concerned over project cost escalation linked to closed tenders and rigid loan conditions. They asked Japan to revise JICA’s guidelines to allow open tenders and flexible financing. One official confirmed, “The delegation expressed the government’s willingness to continue the long-standing relationship between the two countries and sought funds for Bangladesh’s development.”

The Japanese side assured that the request would be considered. In return, Tokyo pressed Dhaka to resolve the issue of operating and managing Hazrat Shahjalal International Airport’s 3rd terminal, where a Japanese consortium has shown strong interest.

During the visit, the delegation also studied Japan’s transit-oriented development model, integrating rail, road, inland transport, real estate, and tourism. They toured stations under Japan Railway East and West as well as Kyoto’s high-speed rail operations.

Japan, through JICA, has been financing key projects in Bangladesh across rail, road, shipping, civil aviation, and energy. But three metro rail projects have recently faced serious cost overruns. The long-delayed 3rd terminal of the Dhaka airport is also awaiting final negotiations with the Japanese consortium for operation and maintenance.