This project plays a pivotal role in facilitating irrigation and managing floods across areas in Feni and Chittagong districts.
The surrounding area, featuring artificial water bodies, forestry, bird watching hotspots, and fish farms, has become a notable tourist destination, drawing visitors from across the country.
This project aimed to develop agricultural land covering approximately 27,000 hectares (270 km2) in the tidal zone of the Feni (then part of Noakhali) and Chittagong districts.
Its purpose was to mitigate flood risks during the monsoon season and enhance irrigation resources for the aman crop across several upazilas (sub-districts) in Feni and Chittagong districts.
[7] The key solution to address the aforementioned challenges was the construction of the Feni River Closure Dam, which enabled the storage of freshwater and prevented flooding and saline intrusion.
[6][2] Funding from CIDA, EEC, and the World Bank, along with support from the Japanese company Simujhu, facilitated the construction at a cost of ৳168 crore (US$14 million).
[9] This project, aimed at enhancing and modernising the irrigation system, received funding from the Asian Development Bank, supplemented by an additional US$13.5 million concessionary loan.
Although power generation resumed for about six years, as of 2022, the facility remains non-operational due to factors such as inadequate wind speeds, as reported by officials.
[12][13] The Muhuri Project area stands out as the largest fisheries zone in Bangladesh, contributing significantly to the country's economy through substantial annual revenue.