http://www.thefinancialexpress-bd.com/2009/03/17/61473.html
Locals, NRBs join hands to produce power in Sylhet
A Z M Anas
A private sector entrepreneur will invest over Tk 4.5 billion to produce power in Sylhet region, the company said Monday.
Backed by Bangladeshi diaspora, the Sylhet-based Barkatullah Electro Dynamics Ltd (BEDL) will add 51 megawatt electricity to the national grid by May with plans to add another 50 MW by early next year, managing director Gulam Rabbani Chowdhury said.
“We want to bring about a renaissance in private power generation,” Mr Chowdhury said.
“The first leg of the project is budgeted at Tk 1.83 billion. We hope to run the Fenchuganj unit by May with a generation capacity of 51 MW. The total cost will be nearly Tk4.5 billion,” he told the FE in an interview.
The parent company of BEDL has interests in real estate and agricultural tools manufacturing in the country.
Royal Homes, its sister concern, is the biggest real estate company in the Sylhet division. The company’s parent group is also involved in manufacturing of agricultural machinery since early 1980s.
BEDL, 53 per cent owned by five local entrepreneurs and the rest by Bangladeshi diaspora, is believed to be the first power producer to attract investment from the overseas.
So far, the Bangladeshi overseas community has investments in airlines, hotels, real estate business, amusement parks and superstores.
The company’s investment should be seen as a welcome step, given the chronic power shortage that has plagued the nation for years.
The country’s power generation capacity is nearly 3600 MW, far short of the daily demand of 5000 MW.
It is also one of 11 rental power units contracted out by the state-run Power Development Board to supply electricity to the national grid.
According to the World Bank, pervasive power outages rob the country of an estimated 2.0 percentage points of the gross domestic product (GDP).
Based on the power and energy sector master plan, the global lender has estimated that Bangladesh needs $1.5 billion a year through 2015 in energy and power sectors to keep the country’s growth momentum.
The economy has been growing 6.0 per cent over the last six years, underscoring demand for more electricity.
Power sector experts say if commissioned, the new plant would emerge as the major challenger to Summit and United, the leading private players.
Summit Power, the country’s first private electricity generator, is still the biggest player with a combined capacity of 230 MW.
United Group jointly operates the 110 MW Khulna Power Company Limited.
Officials said BEDL with an authorised capital of Tk1.0 billion would build and operate the plant over the next 15 years.
Last year, company officials said, it signed a power purchase agreement with state-run Power Development Board and gas supply contract with Jalalabad Gas Transmission Company.
“The power plant comprises 19 units of brand new General Electric gas engines. We have also engaged a Thai company to oversee operation and maintenance,” Mr Chowdhury said.
Infrastructure Development Company Limited (IDCOL), a government-owned infrastructure lender, became the lead financier for the project, doling out Tk 500 million to the company, its officials said. It also arranged Tk 1.25 billion in syndicated loans.
“We need policy support and guaranteed supply of gas. Then we can sell power at a competitive rate,” the company chief said.
Company officials said the bulk of the investment went to gas engines, auxiliaries, land purchase and land development cost, building and civil construction. Cost per megawatt of installed capacity is US$0.53 million, they added.
