The Bangladesh-China Power Company Limited (BCPCL) will build another 1,320MW coal-based power plant in Patuakhali's Payra upazila near the maritime port.
BCPCL Managing Director AM Khurshedul Alam said: “a deal has already been signed with an EPC [engineering, procurement, and construction] contractor,” adding: “The new power plant will be built beside the under-construction power plant.”
“A file has been sent to Prime Minister Sheikh Hasina [also the minister in-charge of the Power, Energy and Mineral Resources Ministry] for approval in this regard. Ultra super-critical technology will be used to build the new plant,” he told the Dhaka Tribune yesterday.
Work on the new plant will begin after approval from the prime minister, Khurshedul said.
The earth-filling work has been completed for the new power plant area, he added.
The land development and protection project involving Tk783 crore was approved by the Executive Committee of the National Economic Council (Ecnec) on October 21, 2014.
The plant will be built in Payra on 397 hectares of land. To acquire the land from locals, the government transferred Tk69 crore to the deputy commissioner of Patuakhali on April 29, 2015.
The BCPCL is a 50:50 joint venture between Bangladesh's North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import and Export Corporation (CMC).
On March 30 this year, the BCPCL signed a $1.56 billion contract with a consortium of two Chinese firms – NPEC and CECC – for engineering, procurement and construction of a 1,320MW coal-fired power plant in Payra.
The project will be implemented on a 30:70 equity:debt basis. It means the NWPGCL and the CMC will have to provide 30% of the total project cost and mobilise the remaining 70% from international sources.
The cost of generating each unit of electricity is estimated at Tk6.
China Export and Credit Insurance Corporation Sinosure, which is the financier of China's government projects, could invest in the project.
Officials implementing the project hope that it will start generating electricity in 2019.
They also hope the first unit will start commissioning on April 25, 2019 while the second on October 25 of that year.
So far, the NWPGCL has implemented two 150MW power plants – one in Sirajganj and the other in Khulna.
The government has a plan to set up a series of coal-fired power projects to generate 20,000MW electricity by 2030.