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Bangladesh, India to jointly build $1.7b mega coal-fired power plant
Bangladesh, India to jointly build $1.7b mega coal-fired power plant
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to Bangla-India ties.
Bangladesh and India will build jointly a mega coal-fired power plant at an investment of US$1.7 billion, having the generation capacity for 1320 megawatts (MW) in Khulna near the country's southeastern Mongla seaport.
Bangladesh's state-owned Power Development Board (PDB) signed a joint venture deal with Indian state-owned National Thermal Power Corporation (NTPC) Friday night to build the plant to be run by imported coal.
State-owned power companies of the two neighbouring countries also signed a memorandum of understanding (MoU) to enhance bilateral cooperation in power sector.
Prior to signing of these deals, top power ministry officials of both these countries discussed the issues during the meeting of the joint steering committee at a city hotel with Bangladesh's power secretary Md Abul Kalam Azad and visiting Indian power secretary H S Brahma leading their respective sides.
They subsequently took part in a joint press briefing at the PDB headquarters in the capital Friday afternoon and announced that all necessary works to ensure electricity grid inter-connectivity would be completed by 2012 next.
The agreements between NTPC and PDB will, however, require to be ratified by governments of both the countries.
Under the proposed joint venture coal-fired power plant, Bangladesh and India would invest 25 per cent of the total costs altogether while the remaining 75 per cent would be met by loans from external sector, Mr Abul Kalam Azad said.
Valuation of land will be calculated and could be treated as Bangladesh's equity in the joint venture coal-fired power plant project, said PDB chairman ASM Alamgir Kabir.
The NTPC would separately conduct a feasibility study, prior to setting up the proposed 1320 mw coal-fired power plant, having two units each being of 660 mw capacity.
"The international tender for setting up the power plant will be floated by July 2010 on completion of the study, with a target to complete the project within 48 months," said the power secretary.
The coal-fired power plant project will be implemented as an independent power plant (IPP) where the private sector investors will have opportunities to get involved.
Speaking at the press conference on grid connectivity, the power secretary said initially Bangladesh would import around 250 MW of electricity from India.
"Investments worth Tk 11 billion will be required to establish the inter-country electricity grid connectivity," said Mr Azad.
Installation of around 133 kilometers of electricity transmission lines will be required to implement the project, which 88 kilometers will be within the Indian territory and 45 kilometers, inside Bangladesh.
The international tender will be floated by February 28 to establish the transmission line and complete all necessary infrastructures, he added.
Electricity grid of both these countries will be connected by 2012 next to initiate electricity trade, said the power secretary.
Electricity tariff might be around Rs 2.5 per unit (1.0 kilowatt-hours) including wheeling charge, which is Tk 3.74.
The Indian power secretary, however, said the Indian regulatory authority will finalise the tariff structure.
Bangladesh will be able to import Indian electricity for next 35 years under the deals signed between the two countries.
Indian power secretary HK Brahma said Bangladesh has made remarkable progress with economic development activities in recent years and itselectricity demand will be growing faster to cope with the pace of its development.
He said India will be happy to see Bangladesh making further progress, by extending its support to enable the latter achieve a faster growth rate.
The Indian power secretary said within the next 10-12 years' time, Bangladesh might export electricity to India.
Bangladesh, India to jointly build $1.7b mega coal-fired power plant
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to Bangla-India ties.
