Germany based Siemens AG on Sunday signed a Memorandum of Understanding (MoU) for setting up a 3600 megawatt (MW) combined cycle power plant based on Liquefied Natural Gas (LNG) by 2021 at Payra in Patuakhali district.
The state-run North-West Power Generation Company Limited (NWPGCL) and Germany based Siemens AG signed the MoU to build the 3600-MW power plant having three units, each having electricity generation capacity of 1,200 MW, by December 2021.
Managing Director of NWPGCL Engineer AM Khurshedul Alam and Chief Executive Officer of Siemens South Asia Sunil Mathur signed the MoU on behalf of their respective sides at Bidyut Bhaban in Dhaka.
Prime Minister`s Energy Advisor Dr Towfiq-E-Elahi Chowdhury witnessed the signing ceremony as the chief guest, while State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Ambassador of the Federal Republic of Germany Dr Thomas Prinz were present as the special guests.
Dr Towfiq-E-Elahi Chowdhury said workshops and training programmes would help engineers to make them skilled for operating modern equipment in the power sector.
He urged authorities concerned for arranging workshops and training programmes in future.
Nasrul Hamid said this is the single largest investment from Germany, adding, "The estimated cost is $ 2.8 billion including debt of $ 2.4 billion and equity $ 400 million."
He said the German government came forward with the largest investment showing their trust in Prime Minister Sheikh Hasina`s government.
Ambassador of the Federal Republic of Germany to Bangladesh Dr Thomas Prinz said the German government stood beside Bangladesh on the Rohingya crisis, adding, "We are keen to be a reliable development partner of Bangladesh and Germany is the single largest buyer of RMG (readymade garment)."
According to the project details, it will be implemented in three phases on 100 acres of land adjacent to Payra 1320-MW Thermal Power Plant site by establishing a joint venture company (JVC) as a project company.
It is expected that the first unit of the plant with 1200-MW generation capacity will go into operation in June 2020, while the second with the same generation capacity in December 2020 and the third in December 2021.
The project also stipulates that the efficiency of the machine will be more than 60 percent and the plant will be operated by imported LNG, while the power will be transmitted through 400 kV transmission line (Under Construction) from Payra Power Plant to Dhaka via Gopalganj.
The companies will also construct the LNG terminal there for ensuring availability of necessary natural gas to generate electricity.