Bangladesh, Japan sign loan agreement for Matarbari coal power plant project
An "Exchange of Notes" and a "Loan Agreement" for the 7th tranche of the Matarbari Ultra Super Critical Coal-fired Power Project were signed on Saturday (30 September) between the Governments of the People's Republic of Bangladesh and Japan.
The ceremony, held at the NEC-2 Conference Room of the Economic Relations Division in Sher-E-Bangla Nagar, Dhaka, marked another milestone in the bilateral cooperation between the two nations.
Sharifa Khan, secretary of the Economic Relations Division at the Ministry of Finance, represented Bangladesh government, signing both the "Exchange of Notes" and the "Loan Agreement." On the other hand, Japanese Ambassador to Bangladesh Iwama Kiminori signed the "Exchange of Notes," while Ichiguchi Tomohide, chief representative of the JICA Bangladesh Office in Dhaka, signed the "Loan Agreement" on behalf of Japan Government.
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Under the 44th Japanese ODA Loan Package (2nd batch), Japan will extend financial support of 217,556 million Japanese Yen (JPY), approximately $1,500 million, for the Matarbari Ultra Super Critical Coal-fired Power Project.
The loan terms include an interest rate of 1.60% for construction, 0.10% for consultancy services, a one-time Front End Fee of 0.2%, and a repayment period of 30 years, including a 10-year grace period.
The primary objective of this project is to address the surging electricity demand and enhance a stable power supply by establishing a 1200 MW (600MWx2 units) Ultra Super Critical Coal-fired Power Plant in Matarbari of Maheshkhali upazila under Cox's Bazar district.
The total project cost is Tk51,854.88 crore, with the Bangladesh govt contributing Tk6,406.16 crore, JICA providing Tk43,921.03 crore, and CPGCBL contributing Tk1,527.69 crore. The project implementation period spans from July 2014 to December 2026.
As of August 2023, the physical progress of the project stands at 78.30%, with a financial progress of 65.14%. Japan International Cooperation Agency (JICA) has been a crucial partner in different phases of this project, having already disbursed 437,754 million JPY in six tranches. The 7th tranche, under the ODA Loan for this project, involves an additional 217,556 million JPY.
