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United Group wins 200 MW power plant in Mymensingh

Local conglomerate United Group have won the contract to build another 200MW furnace oil-fired power plant in Mymensingh.

United were awarded a BOO, or build-operate-own contract for the project, which means after a specified period during which United will first set it up, as well as manage production of the electricity at the plant, all of which would be sold to the government.

Cabinet purchase committee on Wednesday approved a proposal of the Power Development Board (PDB) to purchase electricity from independent power producer (IPP) project at a tariff of 10.7 cents per kilowatt hour (Tk 8.5 per unit) for next 15 years.

The plant will run at 80 percent plant factor with 12 percent discount factor. To purchase all the electricity produced at the plant over the next 15 years, the government will pay Tk 17,640 crore.

However, in a condition attached to the contract, United will have to set up the plant within 9 months of signing of the contract – that is expected to take place in the near future. Earlier, United Group won and implemented a number of IPP projects.

The cabinet body, with AMA Muhith in the chair, also approved another proposal of Power Ministry to award a contract to supply 23,211 distribution transformers.

Local firm Confidence Electric Ltd won the contract at a cost of Tk 170 crore.

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