Payra 1,320MW coal-based plant deal to be inked today

It will be the first-ever contract signed under a joint venture firm.

A consortium of two Chinese firms – NPEC and CECC – will be the engineering, procurement and construction (EPC) contractor for the project, while Bangladesh-China Power Company Limited (BCPCL) – a joint venture of Chinese power company CMC and Bangladesh’s North-West Power Generation Company Limited (NWPGCL) – will implement it.

“All the necessary negotiations are done. Ultra super-critical technology will be used to build the plant,” BCPCL Managing Director AM Khurshedul Alam told the Dhaka Tribune yesterday.

“The final deal will be inked on March 29 and in April, the foundation stone is likely to be laid,” he said.

The NWPGCL and the CMC signed a memorandum of understanding on March 19, 2014 to set up the plant.

State-owned West Zone Power Distribution Company Limited has been assigned to construct a 65km 33kV distribution line from Patuakhali’s 132/33 kV Grid sub-station to the project area with two 33/0.4 kV and 200kva transformers.

The land development and protection project involving Tk783 crore was approved by the Executive Committee of the National Economic Council on October 21, 2014.

The plant will be built on the bank of the Rabnabad River near Payra maritime port. It will cost an estimated $2bn.

To set up the plant, the NWPGCL and the CMC will have equal share in the joint venture company.

The project will be implemented on a 30:70 equity:debt basis. It means the NWPGCL and the CMC will have to provide 30% of the total project cost and mobilise the remaining 70% from international sources.

The cost of generating each unit of electricity is being estimated at Tk6.

As per the conditions of the tender, there is no need to wait for the completion of the financial agreement to begin construction. It can begin right after the signing of the contract.

China Export and Credit Insurance Corporation Sinosure, which is the financier of China’s government projects, could invest in the project.

Officials implementing the project hope that it will start generating electricity in 2019.

They also hope the first unit will start commissioning on April 25, 2019 while the second on October 25 of that year.

The plant will be built in Kalapara on a 397-hectare land. To acquire the land from locals, the government transferred Tk69 crore to the deputy commissioner of Patuakhali on April 29, 2014.

So far, the NWPGCL has implemented two 150MW power plants – one in Sirajganj and the other in Khulna.

The government has a plan to set up a series of coal-fired power projects to generate 20,000MW electricity by 2030.

On the other hand, to implement the Rampal coal-based power plant project, Bangladesh-India Friendship Power Company Ltd is going to sign an EPC deal with Indian firm Bharat Heavy Electricals Limited by next month.