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17 February, 2016 01:18:19 AM / LAST MODIFIED: 17 February, 2016 12:07:17 PM
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Deal signed for $2.5 billion project

1,320MW coal-fired power project at Banskhali
Staff Reporter
Deal signed for $2.5 billion project

The largest ever private investment in the power sector worth of $2.5 billion is going to take place at Banskhali Upazila of Chittagong district. A joint venture company (JVC) comprising of country’s S Alam Group and Chinese SEPCO-3 Electric Power Constitution Corporation and HTG Group is going to build two 660 MW (1320 MW gross capacity) imported coal fired super critical thermal power plants. The signing ceremony of project agreements for the 1320 MW power plant between the Power Division, Bangladesh Power Development Board (BPDB), Power Grid Company Bangladesh (PGCB) and SS Power-1 Ltd and SS Power-2 Ltd took place yesterday at Bidyut Bhaban in the capital.
The government has selected SS Power-1 Ltd for the construction of first unit through a tender process while SS Power-2 Ltd was given an unsolicited deal to construct the second unit under the Power and Energy Quick Supply Act 2015. Mazharul Haque, Secretary, BPDB and Mohammad Saiful Islam, Chairman, SS Power Ltd signed on behalf of their respective organizations. As per the agreement, the government will buy electricity from these plants at 8.259 US cents/kWh (levellized tariff) from the plant. The project has to be implemented within 45 months of the project effective date and the contract period is 25 years, said sources. The total project cost is estimated at $2.401 billion out of which $1.739 million will be foreign investment (from a Chinese bank). The EPC contractor of the project is SEPCO-3 Electric Power Constitution Corporation, China. China based Qingdao Hongrui Electric Power Engineering Consulting Co Ltd has already completed the feasibility study for the project. Also, around 600 acres of land in Banshkhali upazilla has been purchased for the project.
Center for Environmental and Geographic Information Services (CEGIS) has already completed the Environmental and Social Impact Assessment study and the report was submitted to the Department of Environment (DoE) on August 18, 2015 for approval. The DoE, however, has not yet given its consent over the EIA report. Non binding Memorandum of Understanding (MoU) including term sheets for 100% coal supply has been signed with three world international coal supplier Glencore, Bayan and APG who have coal mines in Indonesia, Australia, South Africa, Russia and Colombia. Speaking at the signing ceremony as the chief guest, Dr Tawfique-E-Elahi Chowdhury, Energy Advisor of the Prime Minister Sheikh Hasina, said, "We have been able to incorporate private sector in electricity production in the country". "Only few years ago, it was unthinkable that a private company will take up a $2.5 billion venture in Bangladesh to produce electricity from imported coa.l" Backing up the government's stance on unsolicited deal, the Energy Advisor said that without the provision of Power and Energy Quick Supply Act, the present advancement in power sector wouldn't have been possible. "Electricity production would have been stuck in red tape if the Power and Energy Quick Act hasn't been enacted," he said. Abdus Samad, Vice Chairman of S Alam Group said this is one project in the country where no loan is being taken from a local bank.

 

 

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Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

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