Deal signed to set up 3 coal-fired power plants

Deal signed to set up 3 coal-fired power plants
Another 18MW solar power plant to be set up in private sector
Author / Source : Independent Online/UNB

DHAKA: The government on Tuesday signed a deal with local conglomerate Orion Group to set up three coal-fired independent power producer (IPP) plants in the country.

The Power Development Board (PDB), on behalf of the government, signed another deal with a private firm to set up a 18MW solar-based power plant in Mymensingh.

The total capacity of the three plants is 1087.34MW of which the first one is of 522MW capacity, to be set up at Mawa in Munshiganj, while the capacity of each of the second and third plants is 282.67 MW.

One of the 282.67MW plants will be built in Chittagong and Khulna.

PDB Secretary Md Abdul Aziz, Orion Group Managing Director Salman Obaidul Karim and Solarium Power Managing Director Nazmul Abedin inked the deals on behalf of their respective sides.

Prime Minister’s energy adviser Tawfiq-e-Elahi Chowdhury, State Minister for power and energy Enamul Haque, Power Secretary Abul Kalam Azad and PDB Chairman ASM Alamgir Kabir and senior officials of the PDB, Orion and Solarium were present at the function at Bidduyt Bhaban in the capital.

Orion Group will implement the projects on build-own-operate (BOO) basis and the PDB will purchase electricity from the plants for 22 years.

As per the contract, the PDB will buy per kilowatt hour (each unit) electricity at 5.8497 US cents (Tk 4.095) from 522 MW Mawa plant while tariff for the Chittagong plant was set at 5.4214 cents (Tk 3.795) and tariff for Khulna plant at 5.4071 US cents (Tk 3.785).

Orion will implement he Mawa project within the next 45 months while it will take 36 months for each of the Chittagong and Khulna projects. Imported coal will be used in the project for power generation. The local business house has already procured lands at separate locations to set up the power plants.

“We’ve already procured required lands for our project. Our project will be initially run by imported coal for which we’ve managed dedicated coal mines in Indonesia,” said Obaidul Karim adding that the three projects will require an investment of $1.4 billion.

Local firm Solarium Power Ltd will set up the 18MW solar plant at a location in Mymensingh from which the PDB will buy electricity at Tk 5.50 per kilowatt hour for the next 15 years. This will be the first large solar power plant in private sector.

Tawfiq-e-Elahi termed the deal signing with private sector forms for coal-fired power plants and also for solar plant a milestone in Bangladesh history.

He said neighbouring India has yet not been able to sign contract for setting up any power plant in private sector. “But we’ve been able to sign such deals.”


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