The project is to start on its commercial operation within 36 months from signing of all project agreements
Bangladesh Power Development Board (BPDB) is going to ink another agreement for purchasing power from a private venture, while keeping one third of its existing capacity unused.
Unique Meghnaghat Power Limited (UMPL), a subsidiary of Unique Group of Companies, will implement 584 megawatt Gas/R-LNG fired Combined Cycle Power Plant on Build, Own and Operate (BOO) basis.
The project is to start on its commercial operation within 36 months from signing of all project agreements.
BPDB will purchase power from the UMPL project for 22 years after commencement of commercial operation, said a power division source.
Energy economists, however, criticised this move; as about one third of country’s existing power generation capacity, amounting to 5000megawatt, remains unused.
They further noted that there are another 51 ‘power generation projects’ in the process of implementation by Independent Power Producers-IPPs; when completed, these projects would add another 13,000megawatt.
Concerned sources said that three agreements, namely, Power Purchase Agreement (PPA) with BPDB, Gas Supply Agreement (GSA) with Titas Gas Transmission and Distribution Company Limited (TGTDCL), and Implementation Agreement (IA) with Power Grid Company of Bangladesh Limited (PGCB) will be signed (as part of the BPDB-UMPL deal) on Wednesday.
The contract will be inked in the presence of Nasrul Hamid, the state minister for Ministry of Power, Energy and Mineral Resources, while BPDB chairman Khaled Mahmood will chair the program.
The UMPL has been selected by the government as the project sponsor through proper evaluation of the former’s technical and financial proposal, submitted to the power division through a competitive bidding process, said Unique Group’s company secretary Md Shorif Hossain FA.
To supply gas to the power generation plant, a 20-inch diameter gas pipeline will connect Meghnaghat Valve Station to the Regulating and Metering Station (RMS), located at the project site, he said.
A jetty for transportation, loading and unloading of equipment, heavy materials, and machinery is being constructed on the bank of Meghna River, he added.