Energy Bangla

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Dhaka Saturday,  Mar 23, 2019

All but one fast-track power projects fail


PowerAll but one furnace oil (HFO)-fired fast track private power plant projects, hurriedly undertaken on emergency basis last year to manage the crisis, failed to come into operation as per schedule.

Of the 14 June, only one such fast-track IPP (independent power producer’s) project has been commissioned in the last month. The rest (13) projects could not be completed largely because of sponsors’ lacks in fund accumulation or for want of land acquisition.

With a combined projected power generation capacity of 1,935 megawatt, the 14 power plants were undertaken aiming at giving the rural power consumers some relief from power outage during the current summer season.

The only successful case is Summit Group’s 300 MW (HFO) Gazipur-2 project that has been built and commissioned as per scheduled, according to an official document obtained by UNB.

It was placed at a review meeting on 24 May at the power division to discuss the overall progress of the projects.

The division’s document shows that most of the projects’ implementation deadlines were extended twice or thrice, but the projects could still not be completed.

The failed projects with their implementation rates show that United Enterprise’s 200 MW achieved 75 per cent progress while Acorn Infrastructure Services Ltd’s 100 MW Julda project 70 per cent, Orion Power’s 105 MW Jabusa 58 per cent, Desh Energy’s 200 MW Chandpur 60 per cent, Midland East Power’s 150 MW Ashuganj 79 per cent, Confidence Power’s 113 MW Bogra 65 per cent, Consortium of Baraka Patenga Power and Royal Home Ltd’s 105 MW 10 per cent and Consortium of Changzhou Huntag Coal Power, China and Icon Enterprise Ltd, Bangladesh’s Manikganj 162 MW power project 10 per cent, and North West Zone Power Company’s 100 MW Madhumati power achieved 19 per cent progress.

Four projects failed to achieve any progress. They are – Ashuganj Power Station Company’s 100 MW power, Rural Power Company Ltd’s Gazipur 100 MW,EGCB’s Hahipur 100 MW plant and BR Power Gen company’s Codda 100 MW plant.

Officials said most of the plants’ implementation schedules were May this year. But their implementation times were extended twice or thrice.

“Despite that those sponsors of the projects failed to implement those because of lack of mobilisation of funds or arranging required land,” said a top official at the power cell which monitors the projects and prepared the implementation progress report.

The official said the government signed contracts with the sponsors of power plants to offer much higher rates to purchase electricity compared with other plants because of their fast-track nature that they would have to be implemented within 9 months from the effective date of contract signing.

As per terms of the contracts, if they failed to come into operation as per COD (commercial date of operation) they will have to pay a huge penalty, said the official preferring anonymity.

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