Bangladesh plans to build a second-phase 1,200-megawatt coal-fired power plant at Matarbari, Cox’s Bazar, using domestic funds after Japan declined to finance the project over concerns about carbon emissions.
The state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL) has proposed a Tk 198.39 billion investment to install two 600MW units under the project titled Matarbari 2x660MW Ultra Super Critical Coal-Fired Power Project (Phase-2).
According to officials, the government will provide Tk 175.11 billion, while CPGCBL will contribute Tk 23.28 billion from its own resources. The estimated cost is equivalent to around US$1.61 billion.
The project is scheduled to run from October 2026 to September 2030. CPGCBL has submitted the Development Project Proposal (DPP) to the Planning Commission for approval. Construction will begin after the necessary clearance.
Japan International Cooperation Agency (JICA), which financed the first-phase 1,200MW plant, was expected to support the second phase but withdrew over the project’s potential carbon emissions.
The first two units, built with Japanese assistance at a cost of Tk 518.55 billion, have been supplying electricity to the national grid since August 2023.
A senior Power Division official said the government considers the additional capacity important for addressing the country’s energy shortages, particularly as gas-fired power plants face fuel constraints.
The project aims to expand electricity generation, improve supply reliability and strengthen energy security through fuel diversification. However, financing the large investment from domestic resources could put additional pressure on the national development budget and limit allocations for other priority sectors.
