Signing of a memorandum of understanding (MoU) between Malaysia and Bangladesh to set up a 1320MW joint-venture coal-fired power plant in Cox’s Bazar has been postponed, after the parties reportedly failed reaching a consensus.
“We could not reach an agreement to form a joint-venture company to set up the power plant, compelling us to postpone the whole deal. We do not know when the agreement will be signed in future,” Power Development Board (PDB) Chairman, Md Abduhu Ruhullah told the Dhaka tribune yesterday upon his return from Malaysia.
“A deal for corporation in the power sector was also supposed to be signed under the same arrangement, has also been delayed.”
The MoU was supposed to be signed on December 18 with Malaysia’s state-owned Tenaga Nasional Berhad (TNB) and PDB, to set up a plant on equal share basis at Moheshkhali in Cox’s Bazar.
A high-powered Bangladesh team, led by Power Division Secretary, Monowar Islam, had flown to Malaysia on December 16 to sign the MoU.
Earlier, the MoU was supposed to be signed in Dhaka in October, but was postponed for the same issue.
However, a PDB official seeking anonymity claimed, weaknesses in negotiations on Power Division’s part have lead to the deal being postponed.
The terms and conditions of the proposed MoU with TNB would be similar to that of signed with India’s National Thermal Power Company (NTPC) to install a 1320MW power plant at Rampal in Bagerhat, he said.
The Power Division secretary said under the power sector master plan, the government would require producing 24,000MW of electricity by 2021 and 40,000MW by 2030. The government has targeted producing around 20,000MW of electricity by 2030 from coal.
The team that travelled to Malaysia, led by Power Secretary comprised a director general at the Prime Minister’s Office, PDB Chairman Md Abduhu Ruhullah, Power Division Joint-Secretary Md Anwar Hossain, PDB Director (IPP Cell-1) Golam Kibria and PDB Assistant Chief Engineer Mahbubur Rahman.