The interim government has signed two loan agreements with Japan International Cooperation Agency (Jica) for Japanese Official Development Assistance (ODA) loans worth 85,819 million yen (approximately Tk 6,700 crore) for two projects.

The agreements were signed at the Economic Relations Division (ERD) yesterday.

Around two-thirds of the funds will go towards the Matarbari Ultra Super Critical Coal-Fired Power Project (VIII) while the rest will be used for the Food Safety Testing Capacity Development Project.

Md Shahriar Kader Siddiky, secretary of ERD, and Ichiguchi Tomohide, chief representative of the Jica Bangladesh Office, signed the agreements in the presence of Japanese Ambassador to Bangladesh Saida Shinichi.

Under the Food Safety Testing Capacity Development Project, Jica will collaborate with the Bangladesh Food Safety Authority (BFSA) to enhance food safety testing capabilities in Dhaka, Chattogram and Khulna.

The initiative includes constructing a food safety reference laboratory, training facilities, and office buildings alongside capacity development measures.

The loan carries an interest rate of 1.85 percent for construction and 0.55 percent for consulting services, with a 30-year repayment period, including a 10-year grace period.

The Matarbari Ultra Super Critical Coal-Fired Power Project (VIII) aims to strengthen Bangladesh's energy security through a 1,200MW ultra-supercritical coal-fired plant, transmission lines, roads, and a deep-seaport with an 18.5-metre draft.

The project also includes community development initiatives such as electrification, education, healthcare, and job creation.

The loan has an interest rate of 1.95 percent for civil works and 0.55 percent for consulting services, with similar repayment terms.

Across multiple phases, Jica has provided a total of 712,430 million yen for the project.