Japan International Cooperation Agency (Jica) has signed a loan agreement with the Bangladesh government for the Matarbari Ultra Super Critical Coal-Fired Power Project (Tranche VII). The loan amounts to 217,556 million Japanese Yen, which is equivalent to Tk16,000 crore. The signing ceremony took place on Saturday, at the NEC-2 Conference Room, Sher-E-Bangla Nagar, Agargaon, Dhaka. Ichiguchi Tomohide, chief representative, Jica Bangladesh, and Sharifa Khan, secretary, Economic Relations Division, Ministry of Finance, signed the agreement.

Iwama Kiminori, Japanese Ambassador to Bangladesh, attended the ceremony. The first deep seaport of the country with an 18.5-meter draft will also be constructed under the project. The deep seaport was initially designed for coal delivery; however, now it will be expanded for commercial use due to Jica’s support. Commencing in 2016, the project is already generating power in Unit 1 (600MW) on a trial basis and is scheduled to start commercial operation of Unit 1 in January 2024 and Unit 2 (600MW) in July 2024. The loan has been extended for the Matarbari Ultra Super Critical Coal-Fired Power Project to contribute to stabilizing the power supply and fuel source diversification. The project includes constructing a 1,200MW highly efficient ultra-supercritical coal-fired plant, 400kV transmission lines, roads, and bridges. The project will also lead to considerable social and economic development components for the local communities, such as electrification, construction of schools, hospitals, playgrounds, community roads, job opportunities, and livelihood improvement programs.

The loan bears an annual interest rate of 1.6% for works and equipment and 0.1% for consulting services with a 30-year repayment period, including a 10-year grace period. Japan is the largest bilateral development partner of Bangladesh. The financial assistance is provided in the form of concessional loans for supporting the praiseworthy and remarkable development of the people of Bangladesh. Ichiguchi Tomohide, chief representative, Jica Bangladesh, commented on the long-lasting friendship between Japan and Bangladesh: “Matarbari Project will not only secure a stable and reliable power supply system but also support diversifying the fuel source warranting a robust energy security. Moreover, the deep seaport will aid Bangladesh to become the heart of the regional economy, providing the gateway for both South and South-East Asia.”

News Link: Jica to lend Bangladesh 16,000C for Matarbari Thermal Power Plant