State-run Power Development Board on Tuesday signed two power purchase agreements with two private joint ventures led by S Alam, a local firm, to buy electricity from two power plants for 25 years.
The power board and the state-run Power Grid Company of Bangladesh also signed project implementation agreements with the JV company, 27 months after awarding it with the contracts in October, 2013.
The power board will buy each unit or kilowatt-hour of electricity at Tk 6.61 as per levelised tariff considering the price of imported coal $120 per tonne, a power board official told New Age.
He said that the price of electricity will be different in different years of purchase. The price of electricity will also vary for the import cost of coal, he added.
SS Power I Ltd and SS Power II Ltd, two joint ventures of S Alam and SEPCOIII Electric Power and HTG of China, will set up two power plants with capacities of 612MW each at Gondamara village of Banshkhali union, Chittagong by November 2019.
Prime minister’s energy adviser Tawfiq-e-Elahi Chowdhury, power division additional secretary Ahmad Kaus, power board’s former chairman and adviser of the joint venture company Alamgir Kabir attended the signing ceremony among the others.
The project would require an investment of $2.4 billion of which $1.75 billion would come from Chinese bank, according to a handout served during the contract signing ceremony.
The JV partner SEPCOIII would be the contractor for engineering, procurement and construction of the two power plants.