The Power Development Board (PDB) has signed a 15-year deal with Sri Lanka’s state-owned company Lakdhanavi Bangla Power Limited to purchase electricity from its 52.2megawatt (MW) dual-fuel power plant to be set up in Jangalia, Comilla.
The agreement was signed at the Bidyut Bhaban in the city yesterday by PDB Secretary Azizul Islam and Ravindra Kumar Pitigalage, managing director of Lakdhanavi Bangla Power Limited.
The Prime Minister’s Energy Advisor Tawfiq-E-Elahi Chowdhury, Power Secretary Monowar Islam, High Commissioner of Sri Lanka in Bangladesh WA Sarath K Weragoda, and PDB chairman Md Abdul Wahab were present during the deal signing.
The Sri Lankan firm will implement the power plant under independent power project (IPP) project. The government in August 21, 2011, had approved signing Power Purchase Agreement (PPA) with the company,but the company deferred the deadline for signing due to lack of funds.
Meanwhile, a Petrobangla official said PDB has signed a PPA for the power project at Jangalia without any assurance of gas supply.
The 52.2MW plant would require 12 million cubic feet (mmcf) of gas per day.
Speaking at the programme, Tawfiq-E-Elahi Chowdhury said Bangladesh’s power generation capacity (both public and private) has increased to about 10,000MW.
The PDB has so far signed deals to generate a total of 9909MW electricity from 70 power plants during the incumbent Awami League-led government’s tenure.
Sources at Power Development Board (PDB) the country’s present power production is more than 5,500MW against a daily demand of 6,500MW.
The government has undertaken plans to step up power production to 15,000MW by 2016.
As per the agreement, PDB will buy electricity from the company for the next 15 years at the rate of Tk2.45 per unit (kilowatt hour) while generating electricity from gas and Tk7.10 per unit (kilowatt hour) when using oil.
According to the deal, the plant will start commercial operations within 15 months.