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Signing of Yen Credit Agreement for Bangladesh: Contributing to the Promotion of Food Processing Industry and Disease Prevention by Enhancing Food Safety Inspection Capacity and Accelerating Economic Growth through the Development of Core Infrastructure | News & Press Releases

Posted on 2025-03-262025-04-24 by Editor in Chief

The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the government of the People’s Republic of Bangladesh on March 25 in Dhaka, the capital city of the country, for the “Food Safety Inspection Capacity Improvement Project” and the “Matabali Ultra Supercritical Pressure Coal-Fired Power Project (Phase VIII)”. The Loan Agreement (L/A) signed this time is for the Matabali Ultra Supercritical Pressure Coal-Fired Power Project (Phase VIII). The projects covered by the Loan Agreement are as follows

Signing Ceremony

Project Summary

Food Safety Inspection Capacity Improvement Project

Food Safety Testing Capacity Development Project

Country (Region)

People’s Republic of Bangladesh (Dhaka City, Dhaka Prefecture; Chotgram City, Chotgram Prefecture; Khulna City, Khulna Prefecture)

Business Objectives

This project aims to improve the food safety inspection capacity of the Bangladesh Food Safety Authority (BFSA) in the capital city of Dhaka and other major cities by developing infrastructure to enable food safety inspections based on sufficient scientific evidence, thereby This will contribute to the promotion of the food processing industry, industrial diversification, and the prevention of diseases caused by unsafe food products.

Business

1) Construction of a new food safety inspection building (including reference laboratory functions), office building, and training building in Dhaka City

2) New inspection facility and office building in Chotgram and Khulna

(3) Maintenance of testing equipment (pesticide residue testing equipment, heavy metal and mineral testing equipment, microbiological testing equipment, etc.)

(4) Consulting services: detailed design, bidding assistance, construction supervision, organizational structure and inspection capacity enhancement, etc.

Loan amount (maximum)

28,699 million yen

Interest Rates

Body: 1.85% Consulting and services: 0.55

Redemption period

30 years (including 10 years of deferment)

Procurement Conditions

General Untied (Preferred Condition)

Implementing Agency

Food Safety Agency, Ministry of Food

Contribution to the achievement of the SDGs

Goal 2 (zero hunger)

Goal 3 (health and well-being for all)

Goal 9 (Create a foundation for industry and technological innovation)

Schedule for future project implementation (tentative)

Scheduled completion of the project: March 2031 (project completion upon provision of all facilities) Scheduled date of sending invitation for consulting services (detailed design, etc.): September 2025 Scheduled date of public announcement of bidding for the first package of international competitive bidding for the main construction: January 2028

Matavali Ultra Supercritical Pressure Coal-Fired Thermal Power Project (Phase VIII)

Matarbari Ultra Super Critical Coal-Fired Power Project (VIII)

Country (Region)

People’s Republic of Bangladesh (Chotgram District, Chotgram Division and Matabari District, Moheshkhali District, Cox’s Bazar District)

Business Objectives

This project will construct a high-efficiency ultra-supercritical pressure coal-fired power plant with a rated output of approximately 1,200 MW (approximately 600 MW x 2 units), a coal loading port, transmission lines, access roads, and other related facilities in Matabari District, Chotgram District, southeast Bangladesh, thereby expanding the power supply in Bangladesh The project aims to expand the power supply and diversify energy sources in Bangladesh, thereby contributing to the overall economic revitalization of Bangladesh.

Business

(1) Construction of ultra-supercritical pressure coal-fired power plant (approx. 600 MW x 2 units), construction of port for coal delivery

(2) Transmission line construction (approx. 94 km of transmission lines, towers, etc.)

(3) Access road maintenance (bridges: approx. 900 m, new road construction: approx. 7.4 km, existing road repair: approx. 5.2 km, etc.)

(4) Electrification of surrounding areas (approx. 25 km of transmission lines, substations, distribution facilities)

(5) Consulting services (basic design/detailed design, bidding assistance, construction supervision, organizational strengthening, long-term maintenance contract supervision support, etc.)

(6) Power plant long-term maintenance contract (dispatch of resident/technicians during periodic inspections, support for operation and maintenance of the power plant through remote monitoring, spare parts costs, etc.)

Loan amount (maximum)

57.12 billion yen

Interest Rates

Body: 1.95% Consulting and services: 0.55

Redemption period

30 years (including 10 years of deferment)

Procurement Conditions

General untied

Implementing Agency

(1) Bangladesh Coal Fired Power Generation Company

(2) Bangladesh Electricity Transmission Company

(3) Department of Roads and National Highways, Ministry of Road Transport and Bridges

Contribution to the achievement of the SDGs

Goal 7 (Energy for All and Clean)

Goal 9 (Create a foundation for industry and technological innovation)

Schedule for future project implementation (tentative)

read more

© Source JICA

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