The power situation in Bangladesh, which has raised concerns within the country’s industries, is on the verge of a transformation following a recent agreement between Japan and the Bangladesh Government.
As part of the same, Japan has committed to providing a US $ 1.5 billion loan for the Matarbari Ultra Super Critical Coal-fired Power Project in Cox’s Bazar.
The agreement was signed by Sharifa Khan, the Secretary of the Economic Relations Division (ERD), and Ichiguchi Tomohide, the Chief Representative of JICA Bangladesh Office, at the ERD office located in Dhaka’s Sher-E-Bangla Nagar area recently.
As part of this Japanese Official Development Assistance (ODA) loan, Japan will extend 217,556 million Japanese Yen (approximately US $ 1.5 billion) to support the project, as stated in a press release by the Finance Ministry.
The loan will carry an interest rate of 1.60 per cent for construction, 0.10 per cent for consultancy services, a front-end fee of 0.2 per cent, and a repayment period spanning 30 years, inclusive of a 10-year grace period.
The primary objective of this project is to address the rising electricity demand and enhance the stability of the power supply by installing a 1,200 MW (600 MWx2 units) Ultra Super Critical Coal-fired Power Plant in Matarbari.
Bharat Tex Special Report 2026 
