The Matarbari deep-sea port in Moheshkhali upazila of Cox's Bazar will transform the region into a logistics, energy and manufacturing hub by playing a significant role in facilitating cargo shipments, said a senior official of Japan International Cooperation Agency (Jica).

The country's first deep-sea port will be equipped to accommodate large mother vessels, facilitating the transshipment and transit of import-export cargo, the official said.

This will lead to the establishment of new local industries that will boost overall economic development.

"So, Matarbari deep-sea port will help diversify the industrial sector of Bangladesh," said Ito Teruyuki, director general for South Asia at Jica.

Jica director Ito Teruyuki

Teruyuki also said it would cost about $2.5 billion to complete the project for developing Matarbari deep-sea port, which he hopes will begin commercial operations by early 2027.

Speaking in an interview with The Daily Star at his office in Dhaka, Teruyuki informed that economic zones are being set up on a fast-track basis through public and private initiative in Moheshkali upazila.

"Besides, there is a masterplan for building integrated infrastructure across the region," he said while adding that Jica is supporting the government in its implementation.

And other than those for logistics and manufacturing, energy projects such as the 1,200-megawatt ultra-supercritical coal-based power plant in Matarbari union are underway as well.

"So, there is huge potential to attract foreign direct investment to the region but it first requires adequate port facilities and road connectivity," Teruyuki said.

Regarding the support they offer, Teruyuki said Jica provides concessional loans, technical training, grants and volunteers when needed.

Japan consistently remained as the largest bilateral development partner of Bangladesh since the 1980s.

Over the years, Jica has provided Bangladesh with more than $20 billion, making the country one of its top three recipients of development support worldwide.

"Bangladesh is a significant country on the priority list of JICA," he said.

Teruyuki believes Bangladesh that shows great potential but it has challenges at the same time.

In this perspective, Bangladesh is given more priority by Jica in providing technical cooperation and concessional loans, he explained.

Teruyuki also said Jica's loan support has helped the country construct important infrastructure, such as the Jamuna Multipurpose Bridge, Kanchpur Bridge, Meghna Bridge, Gumti Bridge and Rupsha Bridge.

More recently, Jica supported the construction of three lines of Dhaka Metrorail, the third terminal of Hazrat Shahjalal International Airport, Matarbari deep-sea port, and the Bangladesh Special Economic Zone in Araihazar of Narayanganj.

At the same time, Jica emphasises on furthering the country's education, health, governance, rural development and disaster management sectors, he added.

Teruyuki pointed out that while many development partners also provide funds for these sectors, very few support the country's infrastructure development.

Regarding the rising interest rate for Jica's concessional loans, he said the global interest rate on loans made in US dollars is very high while that of the Japanese yen is still relatively low.

"So, we revise the charges in line with the global market but still maintain low, concessional interest rates," he added.

Asked for his opinion on the foreign currency crunch in Bangladesh, Teruyuki said the government is carefully taking policies to address the volatile situation at home and abroad.

"But the government needs economically and financially viable loans, and needs to become very careful about external borrowing," he added.

Regarding the high host of certain Jica-funded projects, he said they follow G20 Principles for quality infrastructure investment keeping in mind environmental issues, disaster resilience, and societal impact.

"We ensure transparency in the tendering of infrastructure projects and aim for prolonged sustainability as we do not want projects to die out in like five years' time," Teruyuki said.

"In essence we want to ensure that projects are technically sound and this is probably behind the relatively high cost of Jica-funded projects," he added.

Regarding their funding plans for Bangladesh in the next 10 years, Teruyuki said Japan's government would reach a decision in this regard but Jica would continue to provide support where necessary.

"Particularly, we want to work with Bangladesh to diversify its industries by supporting the development of economic zones, skills and ICT in the country," he said.

"Also, we want to ensure improvements in the country's investment environment, such as by supporting the One-Stop Services of the Bangladesh Economic Zones Authority," Teruyuki added.