MATARBARI 1200MW POWER PROJECT: $4.3b loan deal in March likely


July 24, 2013

By Manjurul Ahsan

State-run Coal Power Generation Company Bangladesh is likely to sign a $4.3 billion loan agreement with Japanese donor agency JICA by March 2014 for the construction of a 1,200MW coal-fired plant at Matarbari on Moheshkhali Island in Cox’s Bazar, officials said.

JICA at a meeting on Tuesday formally confirmed power division secretary Monwar Hossain that it would lend about 95 per cent of the required investment to the $4.53b project, they said.

Bangladesh will invest $226 million to the projects.

According to the loan proposal, CPGCB will have to repay the loan in 40 years with a 10-year grace period. The interest rate has been set at 0.01 per cent, a power division official told New Age.

The project includes developing port and storage facilities for imported coal, installation of a 1,200MW power plant and 400 kilovolt power transmission line, construction of 36 kilometre access road, consulting services, procurement of vehicles, development of township and rural electrification.

Matarbari 1,200MW plant will be the second large imported coal-fired power project in Bangladesh.
Earlier, the government initiated to install a 1,320MW imported coal-fried power plant at Rampal in Baagerhat, near the Sundarbans.

Bangladesh-India Friendship Coal-Fired Power Company is implementing the project with a 50-50 share between Bangladesh Power Development Board and Indian National Thermal Power Corporation.

Both the plants will run on super critical technology which is considered as most efficient and least environment polluting technology in coal-fired power generation.

When asked, a CPGCB official said that the company would appoint a consultant by August next year to draft bid document for installation of the two-unit coal-fired power plant at Matarbari. Each of the units will have a generation capacity of 600MW.
According to the plan, the state-run coal-fired power generation company will complete the project by 2026.

Meanwhile, CPGCB approved a feasibility study report last month, CPGCB chairman Abul Kashem said.

The report identified Indonesia, Mozambique, Australia and Canada as source of coal to run the plant.

The carbon emission rate of the plant is only 0.9, while it is between 0.6 and 0.8 for gas-fired power plants, the study shows.
Each of the 240-metre-long ships having capacity to carry 80,000 tonnes of coal will enter the power plant’s storage site at the sea of 13 metre depth for 53 times annually, the report said.

The government has also a plan to implement three mega coal-fired power plants at Moheshkhali each having capacity to generate 1200MW electricity under private sector or joint venture deals.

The government has a target to generate 19,650MW of electricity from coal-fired plants to raise total power production capacity to 38,700MW by the year 2030.

Source: New Age BD