The government has signed a $1.18 billion concessional loan deal with Japan for five development projects including a 1,200mw coal-based power plant.
Mohammad Mejbahuddin, Economic Relations Division (ERD) under the Ministry of Finance Mohammad and Mikio Hataeda, Chief Representative of Japan International Cooperation Agency (JICA) has inked the deals from the respective sides on Sunday in the capital.
According to the deal, the donor will provide loan for the proposed 1,200mw coal-fired power plant at Matarbari in Cox’s Bazar.
Besides, the JICA will also provide loans for natural gas efficiency project, inclusive city governance project, Haor flood management and livelihood improvement project, small and marginal-sized farmers’ agricultural productivity improvement and finance project.
Out of $1.18 billion loan, $406.22 million will be provided for Matabari ultra super critical coal-fired power project, $231 million for natural gas efficiency project, $149.47 million for Haor flood management and livelihood improvement project and $97.20 million for small and marginal-sized farmers’ agricultural productivity improvement and finance project.
The rate of interest of the Japanese financial package is 0.01% per annum which is payable in 40 years including 10 years’ grace period, sources said.
