The state-run Coal Power Generation Company Bangladesh Ltd (CPGCBL) has inked a deal with a Japanese consortium at an estimated cost of $4.5 billion for the Matarbari 1,200MW coal-based power plant project that includes a deep-sea port.
The development came on July 27 when the deal of engineering, procurement and construction (EPC) was signed after a delay of more than a year owing to the Gulshan terror attack in July 1, 2016.
Out of the total sum of money (equivalent to Tk 36,000 crore), $1.3 billion will be spent for the port while the rest for the power plant.
The CPGCBL is implementing the top priority project, using the fund of Japan International Cooperation Agency (Jica).
“The deal was signed with a Japanese consortium- Sumitomo Corporation, Toshiba Corporation and IHI Corporation- for constructing the plant including a deep-sea port near it for handling the import of coal,” said CPGCBL Managing Director Md Abul Quasem on Tuesday.
The deal became effective from Tuesday after an approval by the Jica as it is funding the project, he said, adding, the lead contractor- Sumitomo Consortium- will construct the power plant by January 2023.
Stating that a post-deal signing event will be held in a Dhaka hotel today, Quasem said the sourcing of the imported coal will start next year.
The CPGCBL had planned to implement the project in Cox’s Bazar several years back. Finally, two shortlisted Japanese bidders- Marubeni Corporation and Sumitomo Corporation – submitted tender documents on January 31 this year.
The firms had been shortlisted upon submission of their expression of interest (EoI), but Marubeni was rejected as its financial offer was reportedly not satisfactory.
The project’s technical evaluation committee (TEC) then recommended Sumitomo Corporation as the eligible bidder.
The original deadline of the final bid submission was on July 24, 2016 but following the attack on Holey Artisan Bakery where terrorists killed seven Japanese nationals along with 15 others, the bidders requested the CPGCBL to suspend the tender submission process indefinitely.
The Matarbari plant will have two units producing 600MW each, and will use imported coal to meet the rapidly growing power demand.
The project will be partly funded by a loan of $3.7 billion from the Jica, which will be payable at an annual interest rate of 0.1% over 30 years, with an initial 10-year grace period. The government will cover the rest of the cost.