Japanese Ambassador to Bangladesh Matsushiro Horiguchi and Economic Relations Division (ERD) Secretary Ismail Zabiullah yesterday signed an exchange of notes to this effect in Dhaka.

The projects under Local Government Engineering Department (LGED) will be implemented in Sylhet and Chittagong divisions.

The projects include development of 1,189 kilometres of upazila and union roads, plantation of trees by roads, construction of 6,523 metres bridges and culverts and 45 km submergible roads in the haor areas in Sunamganj and Habiganj, 20 boat landing stations and 73 Union Parishad complexes, physical improvement of 67 growth centres (market places) and institutional capacity building in the local government.

"The project is aimed at improving access to economic opportunities and social services in rural areas and providing basis for agricultural development and promoting other economic activities to alleviate poverty," a Japan Embassy press release said.

The projects will be launched 90 days after the loan agreement is signed in Tokyo on March 22 and will be completed in 4 years from its inception. The loan will be extended through the Japan Bank for International Cooperation.

The loan, with an interest rate of 0.9 percent per annum, is to be repaid in 30 years with a grace period of 10 years. The equipment and services under the project will be procured in due course, the release added.

This is the third time the government of Japan is providing loan assistance for rural infrastructure development. The total amount of Japanese loan assistance to Bangladesh since 1971, including this one, is around $5,730 million.