State-owned Bangladesh Power Development Board (PDB) yesterday signed a deal with Mumbai- based Indian multinational Larsen and Toubro Limited to construct a 225 MW combined cycle dual fuel power plant at Shikalbaha in Chittagong.
PDB secretary Md Zahurul Haque and Larsen and Toubro Limited vice president Saurav Indwar signed the deal on behalf of their respective sides. The contract signing ceremony was held at Bidyut Bhaban in the city.
Larsen and Toubro Limited will build the plant as engineering, procurement and construction (EPC) contractor at a cost of Tk1,707.75cr, or around US $202.22 million.
Four development partners in the Middle-East, namely Abu Dhabi, Saudi Arabia, Kuwait and the OPEC Fund are financing the project with a fund of US $167.73 million.
Of the total project cost, the Abu Dhabi Fund for Development (ADFD) will contribute US $31.40 million, the Saudi Fund will put forward US $53.33 million, the Kuwait Fund for Arab Economic Development (KFAED) will provide US $53 million and the OPEC Fund will contribute US $30 million. The remaining cost will be borne by the Bangladesh government.
Larsen & Toubro Limited also received a US $280 million order for the EPC job at Bheramara power plant in Khulna Division, according to a press release published on the Larsen and Toubro Limited website.
State Minister for Power and Energy Nasrul Hamid said many reputed Indian companies like the Reliance Group were keen on investing in Bangladesh.
The charge d'affaires of the Kuwait Embassy in Dhaka, Nasser al Onaizi, Power Division secretary, Monwar Islam, PDB chairman, Abduhu Ruhullah, Petrobangla chairman, Hossain Monsur, and Larsen and Toubro Limited senior executive vice president, Shailendra Roy, were among those who spoke at the programme.
According to the contract, the construction of the project’s simple cycle unit will be completed within the next 18 months while the combined cycle unit will start operation within 30 months of the effective date of the contract.
On February 19, 2013, the Executive Committee of the National Economic Council (Ecnec) approved the project aimed at meeting the growing demand for power in the greater Chittagong region.
In the project, JVCA of Development Consultant Pvt, India; Sief Engineering Consultants, Kuwait; and Karigari Paramarsha, Bangladesh will work as consultants to the PDB.