Japan government will provide $582 million loans to Bangladesh under its 45th ODA loan package to help implement two projects – a coal-fired power plant in Matarbari and a food safety ensuring scheme.
In this regard, exchange of notes and loan agreements was signed between the two governments at the Economic Relations Division (ERD) in Dhaka on Tuesday, says a release.
The projects are ‘Food Safety Testing Capacity Development Project’ and ‘Matarbari Ultra Super Critical Coal-Fired Power Project (VIII)’ under 45th Japanese ODA Loan Package (2nd batch).
Md Shahriar Kader Siddiky, Secretary, Economic Relations Division, Ministry of Finance has signed the ‘Exchange of Notes’ and the ‘Loan Agreements’ on behalf of the Government of Bangladesh.
Japan’s Ambassador to Dhaka SAIDA Shinichi signed the ‘Exchange of Notes’ and JICA Bangladesh Office’s Chief Representaqtive ICHIGUCHI Tomohide, signed the ‘Loan Agreements’ on behalf of the government of Japan.
To increase food safety testing capacity of Bangladesh Food Safety Authority one reference laboratory, office and training center in Dhaka and two divisional laboratory in Chattogram and Khulna will be constructed under ‘Food Safety Testing Capacity Development Project’.
Total cost of the project is Tk2,409.70 crore including GoB’s Tk390.78 crore and Jica’s loan Tk2.018.92 crore. Implementation period is January 2025-December 2034. Under this Japanese ODA loan package (2nd Batch), the government of Japan will provide 28,699 million Japanese Yen (approximately $194 million) for the project.
The rate of interest of this loan will be in preferential term 1.85% for construction, 0.55% for consultancy services, Front End Fee (at a time) 0.20% and repayment period will be 30 years which includes 10 years grace period.
To meet growing electricity demand and to improve the stable power supply of the country ‘Matarbari Ultra Super Critical Coal-Fired Power Project’ is being implemented at Matarbari Area of Maheshkhali Upazila under Cox’s Bazar district.
Total cost of project is Tk56,693.90 crore where GoB is providing Tk7,221.19 crore, implementing agency CPGCBL Tk1,527.68 crore and JICA will contribute with a total of Tk47,945.03 crore loan for it.
Project implementation period is July 2014 to December 2026. Up to February 2025, physical progress of the project is 92% and financial progress is 86%. JICA is providing assistance for this project in different phases.
JICA has already provided 655,310 million JPY in 7 tranches. Under this 8th tranche of 45th Japanese ODA loan Package (2nd batch), JICA will provide 57,120 million JPY(approximately USD 388 million).
The rate of interest of this loan will be 1.95% for construction, 0.55% for consultancy services, Front End Fee (at a time) 0.20% and repayment period will be 30 years which includes 10 years grace period.
Japan is the largest bilateral development partner of Bangladesh. Japan has been providing continuous support for the socio-economic development of Bangladesh since our independence.
In line with the Bangladesh government’s priorities for achieving economic growth, the Japanese government has so far committed $32.62 billion loan and grant assistance for infrastructure development in different sectors like communications, power and energy, agriculture, education, health and family welfare, water supply and sanitation, rural development, environmental development, and human resource development.