The Japan International Cooperation Agency on Saturday signed a loan agreement of Tk 16,000 crore with the Government of Bangladesh for the ‘Matarbari ultra super critical coal-fired power project, tranche VII’. JICA Bangladesh chief representative Ichiguchi Tomohide and secretary to the Economic Relations Division of the finance ministry Sharifa Khan signed the agreement at a ceremony at Agargaon in the capital, said a press release. Ichiguchi Tomohide said, ‘Matarbari project will not only secure a stable and reliable power supply system but also support Bangladesh in diversifying the fuel sources needed to ensure a robust energy security system.’

‘The deep seaport will aid Bangladesh to become the heart of the regional economy, providing the gateway for both South and South-East Asia,’ he added. The first deep seaport of the country with an 18.5-metre draft will also be constructed under the project. The deep sea port, initially designed for coal delivery; will be expanded for commercial use with support from the JICA. Started in 2016, the project has already begun generating power in Unit 1 (600MW) on a trial basis and is scheduled to run its commercial operation in January 2024 and Unit 2 (600MW) in July 2024. The project also included 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 programmes. According to the press release, the loan bears an annual interest rate of 1.6 per cent for works and equipment and 0.1 per cent for consulting services with a 30-year repayment period, including a 10-year grace period. Japanese ambassador to Bangladesh Iwama Kiminori also attended the ceremony.

News Link: JICA to lend Tk 16,000cr for Matarbari coal-fired power plant