Prime Minister Sheikh Hasina will lay the foundation stone of the 1,200MW Matarbari coal-fired power plant through a video conference at her official residence Ganabhaban in Dhaka on Sunday.
The state-run Coal Power Generation Company Bangladesh Ltd (CPGCBL) is implementing the project at Maheshkhali upazila of Cox's Bazar.
The plant will use imported coals to generate power, and it will have two units, each having 600MW production capacity.
Speaking to the Dhaka Tribune, CPGCBL Managing Director Md Abul Quasem said: “The project will gain momentum once the foundation stone is laid by the prime minister. The Matarbari area is expected to turn into a power hub [once the project is implemented].”
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On July 27, 2017, the CPGCBL inked a deal with a Japanese consortium – comprising Sumitomo Corporation, Toshiba Corporation and IHI Corporation – at an estimated cost of $4.5 billion for implementing the project that also features a deep-sea port.
Of the total amount, $1.3 billion will be spent for constructing the port and the rest for the power plant.
The signing of the deal with the consortium was delayed by over a year due to the horrific Gulshan terror attack in Dhaka on July 1, 2016, which left over 20 people including seven Japanese nationals killed.
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Japan International Cooperation Agency will provide a loan of $3.7 billion for the project, which is payable at an annual interest rate of 0.1% over 30 years with an initial grace period of 10 years, and the Bangladesh government will arrange the necessary additional funding.
On November 9, 2017 , the CPGCBL signed a memorandum of understanding (MoU) with a Japanese firm, Mitsui Company Ltd, to build a 500-600 MW re-gasification LNG-based combined cycle power plant at Matarbari.