In terms of Bangladeshi currency, the deal is worth Tk 92 billion. Economic Relations Secretary Fatima Yasmin and Japanese Ambassador Naoki Ito signed the deal in a virtual meeting on Tuesday.
On the 19.6-kilometre Route 5, metro rail link will be established between Savar's Hemayetpur and Bhatara via Gabtoli, Mirpur 10, Kochukhet, Banani and Gulshan 2.
The tracks from Hemayetpur to Aminbazar and from Notun Bazar to Bhatara will be elevated while the remaining 13.5 kilometres will be under the ground.
The total estimated cost of the project is Tk 410 billion, of which Japan will provide around Tk 290 billion.
Under the 43rd yen credit deal, Japan will also provide around Tk 22 billion through currency swap for the South Chattogram Development Project.
The Japan International Cooperation Agency or JICA has provided around Tk 166 billion out of nearly Tk 220 billion for the project’s Uttara-Motijheel phase.
It will provide Bangladesh with $158 million in loan to extend the Dhaka metro rail line from Motijheel to Kamalapur, according to a deal signed in March.
A test run was held on the first metro rail project's Uttara-Agargaon portion in December 2021. This portion is expected to become operational in December 2022.