Signing of Japanese ODA Loan Agreement with Bangladesh: Promoting food processing industry and disease prevention by improving food safety testing capacity, and accelerating economic growth through core infrastructure development



2025.04.30
On March 25, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the People’s Republic of Bangladesh in the capital city Dhaka, to provide Japanese ODA loan for the following two projects: the Food Safety Testing Capacity Development Project and the Matarbari Ultra Super Critical Coal-Fired Power Project (VIII).
Signing ceremony
Terms and Amount of Loan
- Country
(Target Areas)
The People’s Republic of Bangladesh
(Dhaka District, Chattogram District, and Khulna District)
- Project Objective
The objective of the Project is to improve the food safety testing capacity of the Bangladesh Food Safety Authority (BFSA) throughout Bangladesh by constructing relevant infrastructures that help enhance evidence-based food safety inspections, and supporting necessary capacity development, thereby contributing to the promotion of the food processing industry, the diversification and high value-adding of the industry, and the prevention of diseases caused by unsafe food.
- Project Component
1) Construction of Food Safety reference laboratory building, food safety testing room, training building and office building in Dhaka
2) Construction of Testing Facilities and office building in Chattogram and Khulna
3) Procurement of equipment for reference laboratory
4) Consulting Services
- Maximum Loan Amount
28,699 million Japanese Yen
- Annual
Interest Rate
Project: 1.85%, Consulting Services: 0.55%
- Repayment Period
30 Years
- Grace Period
10 Years
- Procurement
General Untied
- Executing Agency
Bangladesh Food Safety Authority (BFSA) under the Ministry of Food
- Contribution to SDGs
Goal 2 (Zero hunger)
Goal 3 (Good health and well-being)
Goal 9 (Industry, innovation and infrastructure)
-
Planned Implementation Schedule
1. Completion of the Project: March 2031, when facilities enter service.
2. Issuing of letters of invitation for consulting services (including detailed design work): September 2025
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:Package for Equipment, Package for Construction Release date: January, 2028
- Country
(Target Areas)
The People’s Republic of Bangladesh
(Chattogram District and Matarbari area, Cox's Bazar District)
- Project Objective
The objective of the Project is to increase stable power supply and to diversify energy source in Bangladesh by constructing an ultra super critical coal-fired power plant in Matarbari area, thereby contributing to nationwide economic development.
- Project Component
1) Ultra super critical coal-fired power plant (600MW*2units), port for coal transport
2) Transmission lines
3) Access roads
4) Electrification of the surrounding areas
5) Consulting services
6) Long-term service agreement for power plant
- Maximum Loan Amount
57,120 million Japanese Yen
- Annual
Interest Rate
Project: 1.95%, Consulting Services: 0.55%
- Repayment Period
30 Years
- Grace Period
10 Years
- Procurement
General Untied
- Executing Agency
(1) Coal Power Generation Company Bangladesh Limited
(2) Power Grid Bangladesh PLC
(3) Roads and Highways Department, Ministry of Road Transport and Bridges
- Contribution to SDGs
Goal 7 (Affordable and clean energy)
Goal 9 (Industry, innovation and infrastructure)
-
Planned Implementation Schedule
1. Completion of the Project: July, 2024, when facilities enter service.
*Although the project has already been completed, this phase covers the cost of price escalation related to the construction of the power plant and the cost of long-term service agreement to be concluded by the executing agency.
2. Issuing of letters of invitation for consulting services (including detailed design work): Already hired.
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction: Already contracted.
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