State-run Bangladesh Power Development Board (BPDB) signed a deal with the Dongfang Electric International Corporation (DEC) of China on Tuesday to construct a 150-megawatt (MW) power plant at Saidpur in Nilphamari.
Through signing engineering, procurement and construction (EPC) contract between BPDB and Chinese company, 150 MW electricity will be added to the country’s northern region by June 2021.
“The proposed power plant would be set up at Saidpur and it would start supplying electricity from 2021 June,” Chairman of BPDB Engineer Khaled Mahmood said.
According to the deal, BPDB Secretary Mina Masud Uzzaman and Deputy Manager of Dongsang Electric International Corporation Ou Yanjiang signed the contract on behalf of their respective sides at Bidyut Bhaban in Dhaka.
The plant will be built on 18 acres of land in Syedpur under Nilphamari district within 540 days by June 2021.
It will be run with diesel, to be imported from India through a 130-km (kilometre) cross-country pipeline.
The total cost to build the power plant has been estimated at around Tk 10 billion, of which the government will provide around Tk 3.02 billion.
Besides, the BPDB will provide around Tk 2.15 billion from its own coffer, and the remaining Tk 4.83 billion will be project loan.
The power plant will be built under the buyer`s credit, and the Bank of China will provide 85 per cent of the EPC cost worth US$ 68.49 million.
Prime Minister’s Energy Affairs Advisor Dr Towfiq-E-Elahi Chowdhury witnessed the signing ceremony as the chief guest and said the government signed the contract with Chinese company due to reasonable price.
“We often go for open tender so that we can verify market price. The government developed the power sector tremendously. That’s why Awami League got reelected easily,” he said.
Addressing the function as the special guest State Minister for Power, Energy and Mineral Resources Nasrul Hamid said the proposed power plant will supply uninterrupted electricity to the northern region.
He opined that diesel transportation from India`s Numaligarh refinery through the proposed pipeline to run the power plant will be risk-free and cost-effective.
The state-run Bangladesh Petroleum Corporation (BPC) usually imports diesel and furnace oil from international market through different suppliers to run the country`s power plants.
The BPC and the Indian state-run Bharat Petroleum Corporation Ltd (BPCL), the owner of Numaligarh refinery, are currently working together to build the cross-country pipeline to supply the fuel.
Chaired by BPDB Chairman Engineer Khaled Mahmood, the signing ceremony was also addressed by Power Secretary Dr Ahmad Kaikaus.