Bangladesh Govt Sign Contracts for 4 Mega Power Plants

[Lankan Ranger]

Bangladesh Govt Sign Contracts for 4 Mega Power Plants

The government of Bangladesh on Thursday signed separate contracts with two companies to set up three base-load power plants and one peaking plant having total generation capacity of 1167 MW.

Of the four plants, three base-load plants will be set up by private sector sponsor Summit Group as independent power producer (IPP) while the other will be installed in the public sector by a Spanish EPC contractor.

Summit Group's three IPP projects are 341 MW Bibiyana-I, 341 MW Bibiyana-II, and the 335 MW Meghnaghat dual-fuel plant. State-owned Power Development Board (PDB) will purchase electricity from these plants at rates between 3.3220 and 3.9863 US cent per kilowatt hour (about Tk 1.90 per unit).

Single cycle units of these three plants are scheduled to come into operation in May 2013 while their combined cycle units will start commercial operation in May 2014.

As per contracts, all the three base-load plants will be combined cycle and will supply electricity to the government for 22 years. Since the Awami League government took office in January 2009, this has been the biggest contract signing for power generation in the country.

On the other hand, state-owned North-West Power Generation Company Ltd (NWPGC) signed contract with Spanish company Isolux Ingenieria SA to set up the 150 MW Khulna Peaking Power Plant by March 2013.

Isolux Ingenieria SA & Initec Energia SA JV will supply and install the project as EPC contractor.

Earlier, the government signed 34 contracts to set up 37 power plants having total capacity of 3334 MW. But all those projects were either peaking plants or rental or quick rental power plants each having small scale generation capacity of less than 150 MW.

Energy experts were critical about those projects as their power generation costs are exorbitant, even at Tk 22 per unit. But the production cost of these IPP projects is as low as Tk 1.90 per unit.

Finance Minister AMA Muhith, who was present at the contract signing ceremony, said that through these projects, the government has finally proceeded towards resolving power crisis by setting up big projects.

Mentioning the energy as the key tools for enhancing work capacity for the development, he said that without electricity development is not possible.

Prime Minister's Advisor Dr Tawfiq-e-Elahi Chowdhury, State Minister for Power Enamul Haque, Power Secretary Abul Kalam Azad and PDB chairman Alamgir Kabir were also present at the signing ceremony held at Bidyut Bhaban.

US Ambassador James F Moriarty, Chinese Ambassador Zhang Xianyi and the Spanish Ambassador also attended the function. Summit Group director Faisal Karim Khan and PDB's acting secretary Iskander Ali signed the contracts for their respective sides. A representative of US company GE, which is a joint venture partner with Summit Group, also signed the contracts.

Summit Group chairman Mohammad Aziz Khan said that about US$ 800 million will be invested for the three IPP projects in which different international and local financers like IFC, ADB, Islamic Development Bank, IPFF, IDCOL and BIFF will finance US$ 550 million. He said his group is confident to implement the projects on schedule, and even ahead of the schedule.

For 150 MW peaking plant, a senior official of Isolux and company secretary of NWPGC signed the contract on behalf of their respective sides.

Energy Bangla - Bangladesh Govt Sign Contracts for 4 Mega Power Plants

 

[eastwatch]

Shortage of power is the main obstacle for economy to grow further and spread into multiple sectors. With new additions, BD economy will grow at 8% every year. But, what will be the source of fuel of these power plants? If it is gas, then where is the supply? BD is already producing a quantity that cannot even fulfill the present demand.

 

[TopCat]

Shortage of power is the main obstacle for economy to grow further and spread into multiple sectors. With new additions, BD economy will grow at 8% every year. But, what will be the source of fuel of these power plants? If it is gas, then where is the supply? BD is already producing a quantity that cannot even fulfill the present demand.

There is abundance of Gas in Sylhet, and new field are getting explored. But I still prefer a better use of gas than producing electricity. We can produce electricity from different cheaper alternatives like coal or neclear. Government should straighten those commies in our western part of the country and bring those coal mines under production.

 

[Arko]

Good to hear that

 

[Arko]

If Summit can successfully implement these projects, it will be a major achievement and would lead to a path away from corruption ridden Gov power projects. I have my fingers crossed for them.

Even a few years ago, this company was totally unheard of. And now, they are our leading private power company. Amazing. However, what always seemed odd is that the real big wigs, the big conglomerates are not coming up. What exactly are stopping them?....... How long are they gonna rely upon BIRI (cigarette), REAL ESTATE, GARMENTS alone.......... Some of these companies will be able to afford the entire cost of Summits projects out of their own pocket. Isn't the power sector lucrative enough?

We are in dire need of power. We live in a country where even government might change just due to this factor. The government has declared a number of big projects..........but should not they also try and figure out a permanent solution for our energy???............ No advancement has been seen in case of coal; are we ever going to get through the open pit and underground mining dilemma??

I believe we have enough big words from our government; the excuse of being a new government is no longer valid. It is for the ruling party's own good that they deal with it swiftly.

And its not just power we lack........... what amazes me is the repeated whining of the EPZ authorities when they say they had to refuse investment proposals due to shortage of land, of all other excuses. If the Rangs Bhaban could be demolished within months to give way for roads, what is stopping the government form acquiring more lands.......... I dont think a similar thing like the one faced by TATA will happen.

I once went to an EPZ where after giving a presentation prepared for foreign investors, one of the officials proudly stated that they are getting so much proposals that they cannot allot enough land. What exactly is there to be proud of??......unbelieveable....... What good is it doing to the economy?

It is time to act