The government has undertaken another milestone plan to set up a new energy hub in the country’s southern part through installing four mega power projects and a small size LNG Terminal at Payra in Patuakhali district.
Under the plan, around 9000-MW of electricity will be produced from here in the next couple of years, using coal and LNG to implement the power sector master plan.
“To create this new energy hub in the country’s southern part, we need about $US13 billion, which is three times more than the cost of Padma Bride project,” State Minister for Power, Energy and Mineral Resources Nasrul Hamid said while addressing a press conference at Payra Friday noon.
To implement the project, the government to take loan from China and Europe, he added.
Infrastructure development work, including land filling, power and energy connections, machineries’ loading, water-navigation, construction work of the approach roads are going in the area.
“We already completed 34 per cent work of the projects by this time, we are ahead of the schedule and hopefully we could be able to complete it by the stipulate timeframe,” Nasrul Hamid said.
The plants which are to be built on a 397 hectares of land is a part of the Prime Minister Sheikh Hasina government’s plan to set up a series of coal-fired power projects to generate 20,000MWelectricity by 2030.
As per the government plan, the first unit of 1320 (660) MW coal-power project will come into operation by April 2019 and another one will come into operation by October 2019.
The government has already engaged state-owned North-West Power Generation Company Limited (NWPGCL) to produce 6,240MW of electricity from this energy hub. It has also engaged Chinese CMC to produce another 1320MW of power, Germen’s Siemens to produce 3600 MW from LNG, Rural Power Company to produce 1320 MW and Asuganj Power Company to produce 1320 MW of electricity in the next couple of years.
Nasrul said the government will build energy hub in different parts of the country to fulfil its dream to make Bangladesh a middle income country.
Talking to the reporters, the State Minister said the government gives importance to diversification in electricity generation. The projects will be the best of an example, he said.
International lenders have already shown keen interest in financing the projects. Both NWPGCL and CMC are working closely to raise the required funds from the global market under an overseas investment insurance guarantee from China Export & Credit for Insurance Corporation (Sinosure).
“Payra power plants will not only provide power but also create a host of coal-based infrastructure projects, creating decent paying jobs,” Nasrul added.
Bangladesh-China Power Company Pvt Limited (BCPCL), a joint venture firm of Chinese power company CMC and state-owned North-West Power Generation Company Limited (NWPGCL), will implement the mega power projects.
Two units with a capacity of 660MW each will be set up at Dhankhali in Patuakhali district, 319 kilometers (199 miles) south of Dhaka and close to the Payra sea port.
Bangladesh needs to produce 24,000 MW of electricity daily by 2021 to meet its demand for power that is growing 10 percent annually. At present, it produces 8,500MW a day and has the capacity to produce 11,000 MW per day.
“After achieving the 24,000MW goal, we will be planning for producing 60,000MW of electricity,” hopes Nasrul Hamid.
Several solar power projects, including the establishment of solar parks, are being implemented to bring diversification in power generation, the state minister said.