The Japan International Cooperation Agency (Jica) has signed two loan agreements with Bangladesh, providing 85,819 million yen (approximately Tk 67 billion) in Official Development Assistance (ODA) loans for two key projects.

The agreements, signed at the Economic Relations Division (ERD) in Dhaka, will fund the Food Safety Testing Capacity Development Project (28,699 million yen) and the Matarbari Ultra Super Critical Coal-Fired Power Project (VIII) (57,120 million yen).

ERD Secretary Md Shahriar Kader Siddiky and Jica Bangladesh Chief Representative Ichiguchi Tomohide formalised the deal in the presence of Japanese Ambassador Saida Shinichi.

Jica will collaborate with the Bangladesh Food Safety Authority (BFSA) to enhance testing capabilities in Dhaka, Chattogram, and Khulna. The initiative includes setting up a food safety reference laboratory, training facilities, and office buildings. The loan carries a 1.85% interest rate for construction and 0.55% for consulting services, with a 30-year repayment period, including a 10-year grace period.

The Matarbari Power Project will help strengthen Bangladesh’s energy security through a 1,200MW ultra-supercritical coal plant, transmission lines, roads, and a deep seaport. It also includes community development initiatives like electrification, education, healthcare, and job creation. This tranche has an interest rate of 1.95% for civil works and 0.55% for consulting services, with similar repayment terms.

So far, Jica has provided 712,430 million yen for the Matarbari project across multiple phases.