Japan pledges $3.7 billion for Bangladesh thermal power plant

• 11 years ago (2013-04-30)
• David Flin

Asia 930 North America 1042

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The Bangladesh Power Division has announced that the Japan International Cooperation Agency (JICA) is likely to provide about $3.7 billion in the form of a soft loan for setting up a 1200 MW coal-fired power plant in Cox’s Bazar. If approved, it will be the biggest ever financial support from Japan for a single project.

The Power Division said the proposed plant at Matarbari will have two units, each of 600MW. Installing the coal-based plant and setting up a deep sea port to unload imported coal will cost an estimated total of $3.95 billion. The JICA has offered to provide $3.69 billion in the form of a concessional loan.

In addition to the port and power plant, the Bangladesh government will also use the JICA support to build a coal stockyard, a link road, and install a 61.5 km, 400kV transmission line linking Matarbari to Anwara.

According to a feasibility study conducted by JICA, Bangladesh would save $900 million a year by generating electricity from coal instead of oil.