The Power Division will place a proposal for the approval of the construction of the 300MW furnace oil-based power plant in Chittagong during the next meeting of the Cabinet Committee on Public Purchase.
“The project was planned to meet shortage of electricity in Chittagong. We forwarded the proposal last week for the approval of the cabinet committee,” a Power Division official told the Dhaka Tribune yesterday.
A local company named United Enterprises and Co Ltd will build the plant and it will be operated as independent power producers (IPPs) on a build, own and operate (BOO) basis.
United Group operates a total of seven plants, currently having the capacity to generate 435MW of electricity.
State-owned Power Development Board will buy electricity from the project at Tk14.70 per unit for 15 years.
The company will import fuel under their own arrangement to operate the plant.
Power Development Board sources said the country already has such plants with the capacity of generating a total of 2,507MW of power. This is 20.77% of the country’s total power generation capacity.
Earlier, United Enterprises and Co Ltd proposed the government to supply electricity at the tariff of Tk14.98 per unit from the proposed plant to be built at Anwara in Chittagong.
