Japan will provide 2,17,556 million Japanese Yen (approximately $1,500 million) more in seventh tranche under the 44th Japanese Loan Package (2nd batch) for the Matarbari Ultra Super Critical Coal-Fired Power Project.

Under the project, 'Exchange of Notes' and 'Loan Agreement' for 7th tranche of Matarbari Ultra Super Critical Coal-fired Power Project under the 44th Japanese ODA Loan Package (2nd batch) were signed on Saturday (September 30) between the Government of Bangladesh and the Government of Japan.

Sharifa Khan, Secretary, Economic Relations Division, signed the 'Exchange of Notes' and the 'Loan Agreement' on behalf of the Government of Bangladesh.

IWAMA Kiminori, Ambassador of Japan in Bangladesh, signed the 'Exchange of Notes' and ICHIGUCHI Tomohide, Chief Representative, JICA Bangladesh Office, Dhaka signed the 'Loan Agreement' on behalf of the Government of Japan, said a press release on Saturday.

The signing ceremony was held at NEC-2 Conference Room of ERD in the capital's Sher-E-Bangla Nagar.

The rate of interest of this loan will be 1.60 per cent for construction, 0.10 percent for consultancy services, Front End Fee (at a time) 0.2 per cent, and repayment period will be 30 years which includes 10 years grace period.

This project is being implemented to meet growing electricity demand and to improve stable power supply by installing 1200 MW (600MWx2 units) Ultra Super Critical Coal-fired Power Plant at Matarbari Area of Maheshkhali Upazila under Cox's Bazar district. Total cost of the project is Taka 51,854.88 crore (GOB Taka 6,406.16 cr., JICA Taka 43,921.03 cr., CPGCBL Taka 1,527.69 cr.).

Project implementation period is July 2014 to December 2026. Up to August 2023, physical progress of the project is 78.30 per cent and financial progress is 65.14 per cent.

JICA is providing assistance for this project in different phases. JICA has already provided 437,754 million JPY in 6 tranches. Under this 7th tranche of ODA Loan for this project, JICA will provide 217,556 million JPY.

The release said Japan is the single largest bilateral development partner of Bangladesh. Japan has been providing continuous support for the socio-economic development of Bangladesh since our independence. The ODA commitment has exceeded $30.34 billion till now.

Japanese loans and grants are being utilized in a wide range of areas including power, roads, bridges, telecommunication, agriculture, health, education, water supply and sanitation, rural development, environment, human resource development etc.

The Japanese assistance contributed significantly in overall development of the country.