The Matarbari Ultra Super Critical Coal-Fired Power Project will receive an additional 217,556 million Japanese Yen (JPY) (about $1,500 million) in the 7th tranche of the 44th Japanese Loan Package (2nd batch).
‘Exchange of Notes’ and ‘Loan Agreement’ for the seventh tranche of the Matarbari Ultra Super Critical Coal-fired Power Project under the 44th Japanese ODA Loan Package (2nd batch) were signed today by the governments of Japan and Bangladesh.
Sharifa Khan, Secretary, Economic Relations Division (ERD) signed the ‘Exchange of Notes’ and the ‘Loan Agreement’ on behalf of the Government of Bangladesh. IWAMA Kiminori, the Ambassador of Japan in Bangladesh signed the ‘Exchange of Notes’ and ICHIGUCHI Tomohide, Chief Representative, JICA Bangladesh Office, Dhaka signed the ‘Loan Agreement’ on behalf of the Government of Japan, said a press release today.
The signing ceremony was held at NEC-2 Conference Room of ERD in the capital’s Sher-E-Bangla Nagar.
This loan will have an interest rate of 1.60 percent for construction, 0.10 percent for consulting services, and 0.2 percent for the front end fee, with a repayment period of 30 years that includes a 10-year grace period.
By constructing a 1200 MW (600 MWx2 units) Ultra Super Critical Coal-fired Power Plant in the Matarbari Area of Maheshkhali Upazila inside the Cox’s Bazar district, this project aims to satisfy the growing demand for electricity and increase the stability of the power supply. The project would cost a total of Taka 51,854.88 crore (GOB 6,406.16 crore, JICA 43,921.03 crore, and CPGCBL 1,527.69 crore).
The project will be implemented between July 2014 and December 2026. Physical and financial progress of the project as of August 2023 are both at 78.30 percent.
This project is receiving help from JICA at various stages. JICA has already made 6 tranches totaling 437,754 million JPY available. JICA will contribute 217,556 million JPY as part of this project’s 7th ODA Loan tranche.
According to the press release, Bangladesh’s largest bilateral development partner is Japan. Since our independence, Japan has consistently supported the socioeconomic growth of Bangladesh. Up to this point, the ODA pledge has surpassed $30.34 billion.
Power, roads, bridges, telecommunication, agriculture, health, education, water supply and sanitation, rural development, environment, human resource development, and many more fields are supported by Japanese loans and grants.
Significantly to the country’s overall development was the Japanese help.
