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Orion’s Rupsha plant adds 105MW to national grid

Orion Group, one of the leading independent power producers (IPP) in Bangladesh has started commercial operation of a 105MW heavy furnace-oil based power plant at Rupsha in Khulna.

With successful completion of this project, currently Orion Group is delivering 407MW electricity to national grid, said a press release.

“Some more power projects with diversified fuel and renewable energy are in the pipeline of Orion Group, which will come soon and increase contribution to the economic development of Bangladesh,” said a high Orion Group official.

 “Only within 307 days since signing the agreements, the plant—Orion Power Rupsha Ltd—started supplying electricity to the national grid on October 9 this year on a trial basis while the commercial operation began on October 14,” he said.

“This was a remarkable achievement indeed because, upon getting letter of intent (LoI) from the state owned Bangladesh Power Development Board, the sponsor managed to procure necessary lands, all equipment and construction of entire plant,” he added.

The plant is equipped with six 18V50 engines newly introduced by Wartsila of Finland and Italy. They are of latest design and highest efficient HFO (high sulfur fuel oil) engines and were supplied within five months.

Wartsila supported of the need by providing fast-track deliveries and strong local based expertise to complete the project at earliest.

“The capability of Orion’s power project execution is commendable. The project will help the growth of local industries and, therefore, will create new jobs. We, Wartsila are delighted to be involved in this positive development,” said Jillur Rahim, Managing Director of Wartsila Bangladesh.

Among major equipment, boilers were supplied by Alfa Laval Aalborg (Finland and China), ABB (Sweden, Switzerland, Malaysia, Singapore, Vietnam and China), and Triveni (India).

The financing of the project was raised with a mix of local and foreign sources: Mercantile Bank Ltd was the lead lender with participation of Mashreqbank psc of the UAE.

 “We are delighted to be a part of the financing mechanism of such an important establishment for the country. We enjoyed working with Orion and want to continue the business relationship by investing in other projects if found preferable,” said Mati Ul Hasan, Additional Managing Director of Mercantile Bank Ltd.

This is Mashreq Bank’s third work with Orion, said Iqbal H Khanyari, Head of the International Corporate Division of the bank. Previously, Mashreq provided a mid-term and a short-term loan to two of Orion`s power plants.

The major challenge in the project was the construction of around 7km 132-kilovolt double circuit evacuation line, which is connected to the existing 132kV Goalpara-Bagerhat double circuit transmission line.

Also river erosion played havoc in constructing jetty for unloading the heavy equipment at project site.

“The highly efficient project team has overcome all the challenges and brought the project in commercial operation by the grace of Almighty Allah and under the auspices and direction of skilful management,” said Major General (Retd) Salahuddin Miaji, Executive Director of Orion Group.

 

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