JICA may halt Matarbari power project funding over corruption allegations

Japan's development agency JICA has warned it may suspend funding for Bangladesh's Matarbari coal-fired power plant project, following corruption allegations involving a former project director.

In a letter to Bangladesh's Economic Relations Division (ERD), JICA requested responses to seven specific questions by 4 June. Failure to respond within this timeframe could lead to a suspension of the loan.

The Anti-Corruption Commission (ACC) has filed a case against Jahangir Alam, who served as the project director for the road construction component of the Matarbari project from 2022 to 2024.

Also Read: ACC files graft case against Matarbari PD over Tk 29cr

He is accused of amassing illegal wealth worth Tk 29 crore and conducting suspicious transactions totalling Tk 127.35 crore through 94 bank accounts.

The Matarbari 1,200 MW coal-fired power plant in Maheshkhali, Cox’s Bazar, was initiated in 2013 with Japanese financial assistance through JICA, aiming to address the country's power shortage.

The project's implementation cost was initially set at Tk 57,000 crore, with JICA agreeing to provide Tk 48,000 crore.

Additionally, the Roads and Highways Department undertook a Tk 1,025 crore project to construct a 43 km connectivity road, for which JICA agreed to provide Tk 791 crore.

The ACC's case and JICA's subsequent inquiry have raised concerns about the project's future, with potential implications for Bangladesh's infrastructure development and international partnerships.