September 5, 2024

Joint Statement:
Local company official and others arrested for corruption in ODA coal-fired
power project in Bangladesh ~JICA should immediately investigate thesituation and suspend the loan~
Japan Center for a Sustainable Environment and Society (JACSES)
Friends of the Earth Japan
Mekong Watch
Kiko Network
Market Forces
Several Bangladesh media reported that a Board member of a Bangladesh’s powercompany was arrested on suspicion of corruption in the Matarbari Ultra Super Critical
Coal-Fired Power Project in Bangladesh, which has been supported by Japan’s OfficialDevelopment Assistance (ODA) with approximately 600 billion yen (USD 4.2 billion), thelargest amount provided by Japanese ODA in history (*1). We, environmental NGOs,request the Japan's Ministry of Foreign Affairs (MoFA) and Japan International Cooperation
Agency (JICA) to immediately take appropriate measures, such as suspending the loan
disbursement for this project until the alleged corruption case is thoroughly investigated andappropriate measures are taken to prevent its recurrence.
Bangladesh’s media reported that Abul Kalam Azad, a Board member of the publicly owned
Coal Power Generation Company Bangladesh Limited (CPGCBL), which operates theMatarbari Ultra Super Critical Coal-Fired Power Plant, was arrested on September 1 on
suspicion of fraud in the selection of coal importers. Additionally, seven other individuals
involved in the project were also arrested on the same day on suspicion of smuggling
electric cables at the power plant, and there has also been whistleblowing about
irregularities in the tendering of coal ash disposal contractors.
Since signing the first loan agreement for the Matarbari Ultra Super Critical Coal-Fired
Power Project in June 2014, JICA has signed seven loan agreements totaling more thanJPY 600 billion (USD 4.2 billion). The engineering, procurement and construction (EPC) ofthe power plant has been undertaken by Sumitomo Corporation, Toshiba and IHI. Under theJICA Guidelines for Environmental and Social Considerations, JICA is able to suspend loan
disbursement or request early repayment of loans in case of violations of regulations foundin their supported projects. Already that in this project, violations of the guidelines have beenraised such that many residents who made a living from salt and shrimp farming lost theirjobs, and local residents were forced to live in hardship due to delays in compensation
payments and the provision of alternative housing, etc (*2).
Therefore, JICA should immediately suspend the loan disbursement for this project until theactual circumstances of the alleged corruption cases are thoroughly investigated andappropriate measures are taken to prevent recurrence. In addition, if any act of corruption isrevealed, those involved should be subject to contractual exclusion for a certain period of

time based on JICA Rules on Measures for Fraudulent Practices, etc. in Projects of ODA
Loan and Grant Aid.
*1: Related articles released by Daily Sun Report and Country Today
https://www.daily-sun.com/post/764923
https://dailycountrytodaybd.com/story/massive-corruption-against-of-pd-azad-of-matarbari-co
al-power-project-alleged*2: https://jacses.org/en/monitoring-on-matarbari-coal-fired-power-project/Contact:
Japan Center for a Sustainable Environment and Society (JACSES)
Yuki Tanabe
tanabe@jacses.org
Marika Kita
kita@jacses.org