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Tk 11,000cr deal inked for Matarbari power project

Tk 11,000cr deal inked for Matarbari power project

DHAKA: Japan will provide Bangladesh with Taka 11,000 crore for the Matarbari Ultra Super Critical Coal-Fired Power Project at Moheshkhali in Cox’s Bazaar.

The two countries signed Exchange of Notes and loan agreement to this end at a ceremony at the Economic Relations Division (ERD) here today.

ERD Secretary Monowar Ahmed penned the Exchange of Notes with Japan Ambassador to Bangladesh Hiroyasu Izmi and loan agreement with Japan International Cooperation Agency (JICA) Chief Representative Hitoshi Hirata.

The objective of the project is to meet the growing demand of electricity and to ensure stable power supply by installing a 1200 MW (600MW X 2 unit) Ultra Super Critical Coal-Fired Power Plant.

The Coal Power Generation Company Bangladesh Limited (CPGCBL) will implement the project. The Matarbari coal-based thermal power plant project, involving Taka 35,984 crore is one of the largest projects in the country.

Of the project cost, JICA would give Taka 28,939 crore and the government Taka 4,926 crore, while the remaining Taka 2,118 crore would come from the organization’s own fund.

JICA would give the credit under the 40th official development assistance (ODA) loan package. The annual interest rate for this loan is 0.9 percent for the construction of the project, 0.01 percent for consultancy services and front fee is 0.2 percent. Loan repayment period is 30 years, with 10 years of grace period.

Monowar Ahmed said JICA is giving the loans for the projects in phases. Agreements have already been signed under 35th, 37th, 38th and 39th loan packages.

Besides, separate loan agreements were signed for two more projects.

Of them, a loan agreement of Taka 93.55 crore was signed for “The Project for the Densification of Global Navigation Satellite Continuously Operating Reference Station Network and the Modernization of Tidal Stations in Bangladesh”.

Through this project, survey and mapping work will be done in the country. The project will be implemented during the period from January 2019 to December 2020.

Besides, a Taka 84.54 crore loan agreement was signed for the “Human Resource Development Scholarship” project.

The project began in 2001 and will continue till 2020. Under the project, BCS cadres and first class officers of Bangladesh Bank will be given scholarships for Masters Degree in various Japanese universities.

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