The government has decided to relax foreign investment condition for the proposed 163-megawatt gas-fired combined cycle power plant in Fenchuganj, Sylhet.
As per the decision, Kushiara Power Company, the project implementing firm, can seek bridge loan from local banks as foreign lenders are unable to provide funds in two years of project launch, official sources said.
Bangladesh Power Development Board made the proposal to ease the foreign investment condition, which is likely to be placed at the meeting of cabinet committee on public purchase today for its approval.
The Kushiara Power Company has to meet a condition of taking out 70% foreign funding to construct the plant.
Meanwhile, Jalalabad Gas Transmission and Distribution System Ltd, the supplier of gas to the plant, and Kushiara Power Company are still in disagreement on the matter of liquidated damage. For this, the gas supply agreement cannot be signed yet.
On March 2, 2013, PDB signed a 22-year deal with Kushiara Power Company Ltd to purchase electricity from a 163MW gas-fired combined cycle power plant.
Besides, the PDB placed another proposal of 20MW solar power park in Taknaf, Cox’s Bazar.
According to the proposal, the PDB will sign a 25-year contract with Joules Power Ltd for buying electricity from the solar park at a rate of $0.14 or Tk10.92 per unit.
In 25 years, the PDB will spend Tk Tk884.85 crore to buy solar electricity from Joules Power Ltd under “no electricity, no payment” basis.
