Power Division mulls opening liaison office in Japan

Power Division is set to establish a liaison office at Japan or Singapore to complete the tendering process of 2x600 MW Matarbari coal fired power project, the country's biggest ever power project funded by Japan government.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid made this offer on Thursday to the Japanese Ambassador in Dhaka Masato Watanabe as the selected bidders are not willing to visit Bangladesh right now due to security ground. However, about 43 Japanese nationals are now working in this project.
Two Japanese bidders-Marubeni Corporation and Sumitomo Corporation-were shortlisted following their submission of expression of interest (IOE). But they did not like to visit Bangladesh right at the moment.
Japanese donor agency-Japan International Cooperation Agency (JICA)-has been financing the mega project of 1200 MW of power plant with a financial loan support of $3.7 billion at an annual interest rate of 0.1 percent over 30 years, also having an initial ten-year grace period.
 "We need to expedite the job as soon as possible as we are already delayed to complete the job," a senior official told the Daily Observer on Thursday.
The tender process for Matarbari 2X600MW Ultra Super Critical Coal- Fired Power Plant has been put on hold as the Japanese contractors are unwilling to visit Bangladesh right now on security grounds, according to a Japanese daily news report.
Toshiba Corporation and Mitsubishi Hitachi Power System Ltd were expected to take part in the tender on July 24, 2016; however, they have requested the Bangladeshi counterpart to delay the process for one month, according to the Coal Power Generation Company Bangladesh Ltd.
Earlier, the Japan Times reported that the tender process has been stopped due to security reasons in the wake of the Gulshan terror attack.
As many as 20 people, including 17 foreigners were killed in the July 1 attack at the Holey Artisan Bakery and O' Kitchen Restaurant.
Seven Japanese nationals were among those killed. They were surveyors for the Dhaka metrorail project.
As per schedule the construction work of the country's largest coal-fired power plant was to begin within eight to nine months' time following completing the tendering process, according to an official.
Japan International Cooperation Agency (JICA) is supposed to provide US $3.7 billion for the project. According sources at the Economic Relations Division (ERD), the company will borrow $3.7 billion from JICA at an annual interest rate of 0.1 per cent for the next 30 years, with an initial 10-year grace period.
Earlier, the Executive Committee of the National Economic Council (ECNEC) approved the Matarbari 2X600MW Ultra Super Critical Coal Fired Power Plant project involving Taka 35,984.46 crore and aimed at boosting power generation significantly.
"Now the work process would be delayed by at least 6 months," an official said. As per schedule the construction work of the power plant was supposed to begin within eight to nine months.
The entire project is scheduled to be completed by June, 2023. The power plant will possess highest thermal efficiency in the world at 41.3 per cent compared to 36 per cent in the USA, 29 per cent in India, the UK and Germany, 38 per cent in France and 40 per cent in Japan. The project also includes a deep-sea port near the plant for handling coal imports for the plant.
The government is implementing the Matarbari project as a priority one with the targeting to start its implementation in January 2017, while operation in 2023.