Bangladesh and Japan on Monday signed a $2.665 billion loan agreement for the implementation of Matarbari Ultra Super Critical Coal-Fired Power project (6th tranche) and Dhaka Mass Rapid Transit Development Project (Line 1). The agreement also covers the Covid-19 Crisis Response Emergency Support Loan Phase-2. Appreciating the agreement between Dhaka and Tokyo, Finance Minister AHM Mustafa Kamal who virtually joined the function said Japan has been Bangladesh's most trusted friend and the foundation of which was laid during the historic visit of Father of the Nation Sheikh Mujibur Rahman to Japan on October 18-24 in 1973. READ: Consumers have to bear some of the burden of increased fuel price: Finance Minister Economic Relation Division secretary Fatima Yasmin signed the loan agreement with Japan International Cooperation Agency (JICA) Bangladesh chief representative Yuho Hayakawa Japanese while  an exchange of note was also signed with Japanese Ambassador ITO Naoki on the occasion at the function held at the at NEC-2 conference hall of Economic Relations Division (ERD). The finance minister expressed gratitude to the government of Japan for its involvement in a number of iconic mega projects in Bangladesh, including Bangabandhu Road and Rail Bridge over the Jamuna River, Metro Rail Networks in Dhaka city, Hazrat Shahjalal International Airport 3rd Terminal, Matarbari Coal Fired Power Plant and Matarbari Sea Port. Senior officials of the Ministry of Finance, Finance Division, Power Division, Road Transport and Highways Division, CPGCBL, PGCB, RHD, DMTCL and other officials of Bangladesh, representatives from Embassy of Japan and JICA were present at the loan signing ceremony. Japan will finance the two development projects under the 42nd ODA Loan Package (1st batch) at an interest of 0.60 per cent for construction, 0.01 per cent for consultancy service, Front End Fee (at a time) 0.2 per cent with a repayment period of 30 years including a 10 years grace period. However,  the ‘Covid-19 Crisis Response Emergency Support Loan Phase 2’ project’s interest rate will be 0.55 per cent, Front End Fee (at a time) 0.2 per cent having a repayment period of 30 years, including  10 years grace period. Currently, the 1200 MW Matarbari Ultra Super Critical Coal-Fired Power Project is being implemented to meet growing electricity demand and improve stable power supply by 2 units, each having 600MW capacity at Matarbari in Maheshkhali Upazila under Cox’s Bazar district. Power transmission lines, access roads, township development, and creating a channel for Matarbari Port works are included in the project. READ: Youths to make Bangladesh prosperous, says Finance Minister The implementation period of the project, involving the total cost of Tk35,984.46 crore (GOB 4926.66 cr. + JICA 28939.03 cr. + CPGCBL 2118.77 cr.), is July 2014 to June 2023. As of October 2021, the project achieved physical progress of 49 per cent and financial progress 51 per cent. JICA is providing assistance for this project in different phases. JICA has already provided $ 2.63 billion in 5 tranches. Under this, the 6th tranche of ODA loan for this project, JICA will provide $ 1.20 billion. On the other hand, the 31.241 km Dhaka Mass Rapid Transit Development Project (Line 1) km project will cost Tk 52,561.43 crore (GOB Tk 13,111.11 +JICA 39,450.32 crore) is divided into two parts—one is from Airport to Kamlapur and another is Purbachal route (from Natun Bazar to Pitolganj depot).     The 19.872km airport route will have 12 underground stations while the 11.369 km Purbachal route will have nine overhead stations. The project will be implemented from 2019 to 2026.

The first unit of 1320MW Maitree Power project in Rampal will be commissioned in December next, coinciding with the Golden Jubilee celebration of Bangladesh’s Victory Day. The second unit of the project is expected to be commissioned matching with the implementation of the associated transmission system. The project is an environmentally friendly supercritical technology-based thermal power plant, said the Press Information Bureau of India on Tuesday.  READ: Nat’l Committee demands public health safety, cancellation of Rampal, Rooppur projects Secretary (Power), government of India, met Secretary (Power), Bangladesh on Tuesday through videoconferencing to discuss the issues related to 1320MW Maitree Power project.  This meeting was convened shortly after the 8th high-level monitoring committee meeting held on June 17 during which certain critical issues were identified that required to be addressed for the timely commissioning of unit number 1 in December next. The meeting was attended by senior officials, including the officials from Ministry of Power (MoP), Ministry of External Affairs (MEA), High Commissioner of India in Bangladesh, Department of Heavy Industries (DHI), Central Electricity Authority (CEA), NTPC Ltd. BHEL and BIFPCL.  Read: Rampal project anti-constitutional: Sultana Kamal The Covid situation since March 2020 has presented enough challenges to the people of both the countries and have affected the implementation of the Maitree project, and both sides are putting in their best efforts to complete the project in time.  The Bangladesh side was assured that BHEL and BIFPCL are confident to meet the timelines, with support from the government of Bangladesh regarding the entry permission and Visa approvals for the highly-skilled expat manpower from India, customs related issues/imposition of advance income tax (AIT) after latest SRO 126, court case against BHEL employees posted at Maitree site & in offices in India and vaccination of the workforce. Secretary (Power) of Bangladesh assured of the necessary support for completion of the project in time and appreciated the progress made by the project so far, despite the COVID constraints since last year. READ: PGCB moves to transmit power from Payra, Rampal to Dhaka Both sides also discussed the date of the meeting of the next JWG/JSC for the India-Bangladesh Cooperation in power sector. It has been decided to hold the JWG/JSC meeting in the 3rd week of September 2021. The Indian power secretary thanked the Bangladesh side, and expressed gratitude for the support committed by his Bangladesh counterpart.