JICA signed Tk 6,700 crore loan agreements for two projects

The Japan International Agency (JICA) signed two loan agreements with the Government of Bangladesh on Marc h 25, 2025, at NEC-2 Conference Room, Economic Relations Division (ERD) to provide Japanese ODA loans of up to a total of 85,819 million yen (equivalent to Tk 6,700 crore) for the following two projects: Food Safety Testing Capacity Development Project (Loan amount:  28,699 million yen) and Matarbari Ultra Super Critical Coal-Fired Power Project (VIII) (Loan amount: 57,120 million yen).

The agreements were signed between Md. Shahriar Kader Siddiky, Secretary, Economic Relations Division, and Ichiguchi Tomohide, Chief Representative, JICA Bangladesh Office, at a ceremony being witnessed by H.E. Saida Shinichi, Ambassador of Japan to Bangladesh. 
Under the Food Safety Testing Capacity Development Project, JICA and the Bangladesh Food Safety Authority (BFSA) will work together to improve the food safety testing capacity of BFSA in Dhaka, Chattogram, and Khulna Divisions by constructing a food safety reference laboratory building, a food safety testing room, a training building, an office building, and necessary capacity development, thereby contributing to promoting the food processing industry, diversification and high value-adding of the industry, and prevention of diseases caused by unsafe food. The loan's annual interest rate is 1.85 per cent for the construction portion and 0.55 per cent for consulting services, with a 30-year repayment period, including a 10-year grace period.

Matarbari Ultra Super Critical Coal-Fired Power Project aims to secure a reliable base load power and ensure fuel source diversification for Bangladesh. The Project includes a 1,200MW highly efficient ultra-supercritical coal-fired plant, 400kV transmission lines, roads, and bridges. It also consists of the country's first deep seaport, which has a draft of 18.5 meters. The Project also confirms local communities' social and economic development components, such as electrification, schools, hospitals, playgrounds, community roads, job opportunities, and livelihood improvement programs. The annual interest rate of the Tranche VIII loan is 1.95 per cent for civil works and equipment and 0.55 per cent for consulting services, with a 30-year repayment period, including a 10-year grace period. JICA has financed 712,430 million Japanese Yen for the Project till Tranche VIII. 
During the signing ceremony, Ichiguchi Tomohide, Chief Representative of the JICA Bangladesh Office, emphasized, "Today, we have agreed to implement two diversified projects. However, both projects aim to support the people and government of Bangladesh in advancing for prosperous, inclusive, and sustainable development."