$4.5bn cost to be covered by JICA’s largest-ever yen loan
TOKYO — A consortium comprising five Japanese companies, including trader Sumitomo Corp., IHI, Toshiba and Penta-Ocean Construction, will build an advanced coal-fired power plant and a port in Bangladesh.
The Japan International Cooperation Agency will cover the estimated 500 billion yen ($4.51 billion) or so in costs in what will be the organization’s largest yen loan.
Japan is in fierce competition with China and South Korea to supply infrastructure to emerging countries. It is particularly keen on exporting the most advanced thermal power plant, which has a relatively smaller impact on the environment. The government and relevant companies hope to win more orders in the emerging world.
As the leader of the consortium, Sumitomo made the successful bid in a competition held by a Bangladeshi utility.
IHI will supply boilers that will burn coal to produce steam. Toshiba and Toshiba Plant Systems & Services will supply steam turbines, power generators and peripheral equipment. Penta-Ocean Construction will build the port.
The project will start in August in the Matarbari district in southern Bangladesh. It is scheduled to be completed in 2024. The power station, with an output capacity of 1.2 gigawatts, will be the country’s largest electricity generator, serving about 10% of Bangladesh’s electricity demand. The port will also be one of the nation’s largest, receiving coal for the power station from Indonesia, Australia and elsewhere.
Of the 500 billion yen to be provided by JICA, 300 billion yen will be used to build the power station; the rest will go into building the port.
The power station will use what is called ultra-supercritical technology, which can cut carbon dioxide emissions by about 20% compared to conventional thermal power plants.