State-owned Bangladesh Power Development Board (BPDB) on Sunday signed deal with a Chinese engineering, procurement and construction (EPC) contractor to set up a 7.4 MWp grid connected solar power plant in Kaptai hydropower station area.
Addressing the contract signing ceremony at Biduyt Bhaban State Minister for Power and Energy Nasrul Hamid said the government has taken initiative to increase solar power generation in line with Power System Master Plan which says 20 percent of power will come from renewable energy by 2020.
He said many advanced countries in the world are taking new environment-friendly renewable energy projects as this will dominate future energy source.
Power Division secretary Dr. Ahmad Kaikaus and BPDB chairman Khaled Mahmood also spoke at the function.
The EPC contractor ZTE Corporation of China won the contract to set up the plant within a year at a contract value to Tk 73.80 crore.
The plant will generate solar power for next 25 year where per unit cost of power generation will be about Tk 5.48 per kilowatt hour (6.79 US Cents).
The Asian Development Board is financing part of the project cost.
The cost of total project is Tk 10,955.39 lakh out of which the government will provide Tk 1,755.28 lakh, Asian Development Bank would provide Tk 8,455 lakh and PDB Tk 744.21 lakh.
The ADB has provided loan with interest rate of sum of LIBOR AND 0.60%. The loan repayment period is 20 years with a grace period of five years. The lifetime of the plant is 25 years.
PDB secretary Mina Masud Uzzaman and ZTE Corporation project implementation director Liu Wei signed the contract on behalf of their respective sides.