FE Report
The government has contracted out four large power plant projects worth US$ 1.27 billion to sponsors Thursday to generate around 1,167 megawatts (mw) of electricity in a desperate move to augment electricity production.
Of the four power plants, two are gas-fired and two are dual-fuel power plants, which will be run either by natural gas or furnace oil.
Three subsidiary companies of the country's largest local power giant Summit-led consortium signed deals on three large power plants worth $1.05 billion to generate around 1,017mw of electricity.
Spanish firm Isolux Corsan will build a 150mw power plant worth $220 million as the engineering, procurement and construction (EPC) contractor.
Finance Minister Abul Maal Abdul Muhith was the chief guest at the contract signing ceremony at Biddyut Bhaban in Dhaka Thursday.
Summit Industrial and Mercantile Corporation (Pvt) Ltd and its partner GE Energy LLC, USA will build 341mw Bibiyana-I power plant, 314mw Bibiyana II power plant and 335mw Meghnaghat power plant.
Bibiyana-I power plant and Bibiyana II power plant are gas fired, while the Meghnaghat Power plant is dual-fuel to be generated either by natural gas or high sulfur furnace oil.
Among three subsidiary companies of the Summit-GE consortium, Summit Bibiyana-I Power Company Ltd will build the 341 mw Bibiyana-I gas-fired power plant, Summit Bibiyana II Power Company Ltd will build the 341mw gas fired Bibiyana II power plant and Summit Meghnaghat Power Company Ltd will build the 335mw dual-fuel Meghnaghat power plant.
All the three power plants will be implemented on build, own and operate (BOO) basis pursuant to a 22-year implementation agreement.
The government will provide land and fuel to run the power plants and purchase the entire electricity output as per the contracts signed Thursday.
State-owned Bangladesh Power Development Board (BPDB) will purchase electricity from the plants, while Jalabad Gas Transmission & Distribution Systems Ltd and Titas Gas Transmission and Distribution Company Ltd will provide natural gas to the power plants.
Around 150 million cubic feet per day (mmcfd) of gas will be required to run these power plants.
Project costs of each of the three power plants will be US$ 350 million each.
The Summit-GE consortium has committed to generate 222 mw of electricity from simple-cycle power plants of Bibiyana-I gas-fired power plant and Bibiyana II gas-fired power plant within 24 months of signing deals by May 2013.
The entire generation of 341mw each from the combined-cycle power plants of the two power plant projects will come into effect within 36 months of signing the agreements by May 2014.
Of the Meghnaghat dual-fuel power plant, the 220 mw (gas-based) or 203 mw (HSFO) based one will come online as simple-cycle power plant within 24 months of signing deals by May 2013.
The plant will be operational by generating 335mw of electricity from its combined cycle power plants within 36 months of signing the agreements by May 2014.
The BPDB will purchase electricity at a levelised tariff of 3.3220 US Cents per unit (1 kilowatt-hour) from 341mw Bibiyana-I gas-fired power plant, 3.3972 US Cents per unit from 341mw Bibiyana II gas-fired power plant and 3.9863 US Cents per unit from 335 mw Meghnaghat power plant (gas-based).
If the Meghnaghat power plant is run by furnace oil, the levelised tariff rate will be 9.7086 US Cents.
Isolux Corsan has signed deal with the Bangladesh's state-owned North-West Power Generation Company Ltd (NWPGCL) Thursday to build the plant by May 2013.
Once implemented, the NWPGCL will sell electricity to end users from the plant.
Asian Development Bank (ADB) will provide the lion's share of the project cost of around 89 per cent, while the remainder will be borne by Bangladesh government.
The plant will be a simple-cycle one.
Gas turbine will be designed to use natural gas as primary fuel and diesel as back-up fuel.
Net output from the plant using natural gas will be 157mw, and diesel will see an output of 159 mw.
"Today is a special day," said Finance Minister Abul Maal Abdul Muhith.
The augmented energy will enhance the people's capacity to work, he said.
The government has a plan to add around 20,000mw of electricity by 2020, he said.
Prime Minister's adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury hoped that the project will be completed as per schedule.
Terming electricity crisis as the key obstacle to Bangladesh development, US ambassador to Bangladesh James F Moriarty hoped that the new power plants would help growing the country's economy.
"This is a dream come true," Summit Group Chairman Muhammed Aziz Khan said at the contract signing ceremony.
There will be no electricity shortage once it comes true in 2013, he said.
"What a relief," he said, adding, "We will grow in double digit, create employment and remove poverty. Summit shall empower Bangladesh," said the Summit Group chairman.
"This is a new venture by a Spanish firm in Bangladesh," said the Spanish ambassador to Bangladesh Mr Arturo Perez Martinez during the deal signing ceremony.
He said the Spanish firm is 'fantastic' and hoped that the project will be completed on time.
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