The Power Division has cleared the way for awarding another five coal-based power projects to local private sector entrepreneurs having combined capacity to generate 2,087MW of electricity.
The proposal is now awaiting nod from the cabinet committee on purchase, Power Division officials said.
If the proposal gets the go-ahead, the Orion Group will be awarded with three more power projects having a combined capacity of 1,199MW while S Alam Group for the first time is likely get two power projects having a combined capacity of 888MW.
“We forwarded the proposal last week for approval of the cabinet committee on purchase,” a top official of the Power Division told the Dhaka Tribune.
According to the proposal, the Orion Group is likely to be awarded the 635MW Dhaka coal-based power project to generate electricity at Tk6.70 per unit and another 282MW project in Chittagong to produce power at Tk6.72 per unit for 25 years.
Earlier, the government awarded Orion two units – one Khulna power project of 282.5MW capacity to produce power at Tk4.45 per unit and another in Munshiganj, which produces power at Tk4.79 per unit.
Electricity produced at the country’s lone coal-fired power plant at Barapukuria costs Tk6 per unit.
The S Alam Group, which was mainly involved in transport sector and then expanded its role to other ventures, is eyeing two coal-fired power projects having a combined capacity to generate 888MW of electricity in Chittagong and Barisal.
It offers to sell electricity at Tk6.60 per unit from the proposed 612MW Chittagong plant and at Tk6.75 per unit from the 276MW Barisal power project.
Orion Group, a big local conglomerate having presence indifferent sectors, has already been awarded three coal-fired projects to be set up in Khulna and Munshiganj having a combined capacity to generate 1,087MW of electricity.
On June 27 last year, the government signed an agreement with the Orion Group to this end.
The Orion Group planned to install one of the plants at Mawa of Munshiganj with a capacity of 522MW while two others with a total capacity of 565MW in Khulna region.
According to the agreements, the company was supposed to complete financial closings by March 25 this year. However, it is yet to mobilise funds, a top official of the Power Development Board told the Dhaka Tribune.
The government has extended the time until this month to arrange fund for the projects, granting time extension by six months, the official said.
The Dhaka Tribune contacted several times over the last two days with the spokesman of Orion Group, Chowdhury Khaled Masud, but he refused to make any comment on the issue.
State Minister for Power and Energy Muhammed Enamul Huq told the Dhaka Tribune that he was yet to say anything about this power plant as the purchase committee would not permit the order till date.
The government has so far taken initiatives to set up eight coal-based power projects in public and private sectors.
Of them, the Orion Group was supposed to build three 1,087MW coal-based plants while two 1,450MW plants are under government initiative and three 7,960MW plants are joint-venture projects.
The government has a target to generate around 20,000MW of electricity from coal-based power projects by 2030.
The Orion Group is involved in pharmaceuticals, cosmetics and toiletries, infrastructure, real estate and construction, power, and textiles and other sectors.
The S Alam Group has its presence in transport, cement, shrimp hatchery, gas refuelling, edible oil, refined sugar, agro and other sectors.
