The governments of Bangladesh and Japan have signed an “Exchange of Notes” and a “Loan Agreement” for the 7th tranche of the Matarbari Ultra Super Critical Coal-fired Power Project. Under the 44th Japanese ODA Loan Package, Japan will provide financial support of approximately $1,500 million for the project. The loan terms include an interest rate of 1.60% for construction, 0.10% for consultancy services, a one-time Front End Fee of 0.2%, and a repayment period of 30 years, including a 10-year grace period. The project aims to address increasing electricity demand and enhance power supply by establishing a 1200 MW Ultra Super Critical Coal-fired Power Plant in Matarbari. The total project cost is Tk51,854.88 crore, with contributions from the Bangladesh government, JICA, and CPGCBL. The project is expected to be completed by December 2026.
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