Bangladesh and Japan have agreed to upgrade their flagship economic cooperation initiative, the Bay of Bengal Industrial Growth Belt (BIG-B), into "BIG-B for Shared Prosperity", with a broader focus on infrastructure, energy security, investment and resilient supply chains.
The decision was announced following a summit between Prime Minister Tarique Rahman and his Japanese counterpart Sanae Takaichi in Tokyo today (27 October), as the two countries also signed five cooperation documents covering economic relations, agriculture, fisheries and livestock, and environmental protection.
Japan is also targeting private investment of up to 1 trillion yen, or around $6.34 billion, in Bangladesh over the next five years, with the potential to create 200,000 jobs, according to the joint statement issued after the summit.
The two leaders agreed to deepen economic cooperation and strengthen supply chains amid global uncertainty, technological changes and growing geopolitical risks.
Five cooperation documents signed
The five documents cover economic relations and the business environment, agriculture, fisheries and livestock, and environmental protection.
These include a memorandum of cooperation between Japan's Ministry of Economy, Trade and Industry and Bangladesh's Economic Relations Division; separate memoranda between Japan's Ministry of Agriculture, Forestry and Fisheries and Bangladesh's ministries of agriculture and fisheries and livestock; and a memorandum of cooperation on the environment between Japan's Ministry of the Environment and Bangladesh's Ministry of Environment, Forest and Climate Change.
The fifth document is a letter of intent between Japan's Global Environment Bureau and Bangladesh's Department of Environment under the Ministry of Environment, Forest and Climate Change.
Matarbari at centre of economic cooperation
Under the upgraded BIG-B framework, the two countries will work to develop the Matarbari-Maheshkhali area into a major logistics, energy and industrial hub centred on Matarbari Deep-Sea Port.
The proposed infrastructure development will integrate power and energy facilities, ports, airports, roads, railways, inland waterways and special economic zones to strengthen connectivity, improve supply chains and support industrial growth.
The two sides will also explore cooperation on the operation and management of Matarbari Deep-Sea Port.
They agreed to improve Bangladesh's investment climate by promoting transparency and predictability in business regulations, developing human resources and expanding public-private partnerships.
The countries will also seek to expand trade and investment under the Japan-Bangladesh Economic Partnership Agreement (EPA), promote industrial upgrading and diversify exports.
Cooperation will focus on building resilient supply chains in manufacturing, logistics, food and agriculture, information and communication technology (ICT), pharmaceuticals and other sectors.
The two leaders also agreed to advance preparations for the early operation of the third terminal at Hazrat Shahjalal International Airport in Dhaka and pursue the early construction of Dhaka's mass rapid transit (MRT) lines.
Energy security, climate resilience
To strengthen energy security, Japan and Bangladesh will promote initiatives under Japan's Partnership on Wide Energy and Resources Resilience Asia (POWERR Asia) framework and explore opportunities for energy infrastructure development in the Matarbari region.
The two leaders welcomed Japan's 50-billion-yen emergency support loan to strengthen Bangladesh's economic resilience and ensure a stable energy supply.
They also agreed to deepen cooperation on climate change, including developing a long-term low-emission development strategy, improving energy efficiency and expanding energy capacity and renewable energy.
The two sides will strengthen disaster preparedness and emergency response capabilities and develop sustainable infrastructure to improve resilience to natural disasters and climate risks.
Security and defence cooperation
Japan and Bangladesh agreed to strengthen security and defence cooperation, with a focus on maritime security, maritime domain awareness, coastal patrols and port security.
Under the framework, Japan will provide patrol boats to Bangladesh through its first Official Security Assistance (OSA) project. The two countries will also explore a second OSA project and the provision of patrol vessels through official development assistance (ODA) to strengthen Bangladesh's coastal security capabilities.
They will also work together to address emerging technological challenges, including cybersecurity, and enhance resilience against geopolitical uncertainties.
Leaders reaffirm strategic partnership
At the summit, Takaichi congratulated Tarique Rahman on assuming office as prime minister and described Bangladesh as a friend that shares democratic values.
Amid growing international instability, she said Japan strongly supports Bangladesh's ability to make its own decisions freely and strengthen its resilience under Japan's updated "Free and Open Indo-Pacific" (FOIP) vision.
She also expressed her intention to work with Tarique to promote regional peace and prosperity.
In response, Tarique said Japan, as a peace-loving nation, was among the first countries to recognise Bangladesh's independence and holds a special place in the hearts of the Bangladeshi people.
He said the two countries had built longstanding friendly relations and expressed his commitment to taking bilateral ties to new heights.
The two leaders reaffirmed their commitment to strengthening relations under the countries' Strategic Partnership, with a focus on regional peace, prosperity and stability.
The summit began at 11:45am local time and lasted around 25 minutes, followed by a joint press event and luncheon, according to Japan's Ministry of Foreign Affairs.