2640MW power deals with China, Malaysia soon

http://www.daily-sun.com/details_ds-2640mw-power-deals-with-china,-malaysia-soon_369_1_3_1_1.html

Two joint venture coal fired power plants in Ctg
2640MW power deals with China, Malaysia soon
Shamim Jahangir

The government will sign two separate deals with China and Malaysia to set up two coal-fired power plants in Chittagong, having electricity generation capacity of 1,320MW each. Two separate memorandums of understanding (MoU) will be signed with China-based Chinese Hudian Hong Kong Company and Malaysian state-owned power company Tenaga Nasional Berhad (TNB) to install the joint venture plants, sources said.

The Power Division will submit a summary to Prime Minister Sheikh Hasina within a day or two for her approval for the joint venture with Chinese firm, a senior official of the Power Division told daily sun on Tuesday.

After signing the MoU, both sides would sit to decide the power tariff and select the site for the power plant.

Another MoU will be signed with Malaysia to install a joint venture power plant, State Minister for Power and Energy Muhammed Enamul Huq told daily sun yesterday after a meeting with a high-powered Malaysian delegation at his office.

After signing the MoU, the both sides will settle the equity sharing and electricity production cost for the import-based coal-fired mega power plant, a senior Power Division official said.

Both of the power plants will be installed in Moheskhali in Cox’s Bazar of Chittagong.

The officials of the Chinese company have already visited the Moheskhali Island in Cox’s Bazaar to determine the feasibility for setting up the power plant there, sources said.

Ships loaded with 50,000 tonnes of coal would be able to enter at Moheskhali belt, sources said.

The government has already asked the Deputy Commissioner of Cox’s Bazar to acquire 5000 acres of land to install the plant in Moheskhali Island.

If the joint venture plant is installed, the China Hudian Hong Kong Company would be responsible to import coal for the plant while the equity for installing the power plant would be fifty-fifty.

The China Hudian Hong Kong Company has already produced 90,000MW of power, of which 70 percent came from coal-fired plants. The company has coalmine sites in Cambodia, Indonesia and Australia, official said.

On the other hand, TNB is the largest electricity utility company in Malaysia with as asset of Ringgit 69.8 billion that serves over seven million customers throughout Malaysia.

The company has already generated around 12,000MW of electricity in Malaysia and Pakistan.

In Pakistan, TNB Remaco is operating and maintaining two power plant projects – a 235MW combined cycle power plant and the 225MW diesel-engine power plant.

It would be the second effort by the Power Division to install joint venture coal-fired power plants after signing of a MoU with Indian National Thermal Power Company (NTPC) in September last year to install another 1,320MW power plant in Bagerhat.

The coal-based power plants in Chittagong are among the 10 priority projects the government took last year, the power division officials said.

Initially, the government had a plan to install the power plant on 3,188 acres of land at Anwara in Chittagong. But it had to change the location following protest by the local people.

The signing of the deal with NTPC on installation of the 1,320 MW power plant missed the schedule that was expected to be signed in March this year.

The government is however continuing negotiation with India to install the power plant.

The government has set a target to generate around 20,000MW of electricity from coal-based power plants by 2030.

Of the targeted electricity, 11,250 MW would be generated depending on domestic coal supply while the rest would be generated using imported coal, according to the road map in Power sector prepared recently.

The Power Division requested seven countries — Australia, South Africa, China, Canada, Vietnam, Kazakhstan and Poland– to rent out coalmine sites to meet the demand of coal for the two power plants.

Advertisements

Comments are closed.