Matarbari power plant, port projects overshoot their budgets by Tk 160bn

The government has approved a proposal to raise the estimated cost of a coal-fired power plant and port at Matarbari in Cox’s Bazar by around Tk 160 billion to Tk 520 billion.

With half of the initial plan implemented, the deadline has also been extended by three and a half years to December 2026.

The Executive Committee of the National Economic Council, or ECNEC, cleared the revised proposal in a meeting chaired by Prime Minister Sheikh Hasina on Tuesday.

The cost of the project, titled 'Matarbari Ultra Super Critical Coal-Fired Power’, was estimated at nearly Tk 360 billion when the original plan was approved in 2014, with a June 2023 deadline.

Sharifa Khan, a member of the Planning Commission, said the initial plan included a jetty to unload coal for the 1,200 MW plant. Now, the government wants to develop a port there, requiring additional funds to dig a channel, build a commercial jetty and a township, and develop the land.

State Minister for Planning Shamsul Alam said Hasina ordered the formation of a development authority to coordinate with others agencies, such as Sonadia tourism centre, on the project.

Japan International Cooperation Agency, or JICA, pledged nearly Tk 290 billion for the Matarbari project. Bangladesh signed a deal with Japan on Monday to raise the fund to Tk 440 billion.

At the ECNEC meeting, a total of 10 proposals involving projects worth around Tk 293.5 billion were passed.