Energy Bangla

Rural Power Company Limited is working to set up two separate power plants having total capacity to generate 450MW of electricity under government to government deals under Chinese Concessional loan, a top official said.
The China-Based PowerChina Hubei Hongyuan Power Engineering and Co Ltd (HYPEC) has made a proposal to set up a coal-fired and another solar-based power plant under G-G deals, RPCL Managing Director Md Abdus Sabur told daily sun Saturday.
He said the company has proposed to set up these two power plants under 12 years’ pay back period with below two percent interest rates.
The Chinese counterpart also sought another five years as grace period, he said.
RPCL managing director said the investment of these projects would require $700 million, including $550 million for coal-fired power project and $150 million for solar-fired power plant. The company has already assured to provide 100 percent loan.
He infirmed that the company has tagged a condition to implement the power projects allowing its selected firm as Equipment Procurement Contractor (EPC).
“We replied, the EPC contractor has experience in setting up such power plants in China and other countries,” the MD said, adding, the company allowed Bangladesh proposal.
Besides, a high-powered team of Economics Relations Division, Power Division and RPCL will examine the company activities in plant sites. The Chinese counterpart has also agreed on this, he said.
“If the Power Division allows, then we will move forward,” Md Abdus Sabur said.
He added the company has selected Gazaria under Munshiganj district for 350MW ultra super critical coal-fired power project.
Besides, it has also selected two separate spots for solar based power project at char area near the river Padma in Rajshahi and another at Mollar Hat under Bagerhat on availability of 600-700 acres of khas land.
The government has already set a target to generate 30,000MW of electricity by 2020 and 40,000MW by 2030.
The Power Division has already set a target for RPCL to produce 2,730MW of electricity by the year 2030. Power Division has already set up several power projects under non-concessional loan with interest rate more than five percent.