Govt to sign 10-yr deal with Indonesian co for coal import

Shamim Jahangir

16th June, 2019 11:19:29 printer

Govt to sign 10-yr deal with Indonesian co for coal import

The government will sign a 10-year agreement today with Indonesian largest coal supplier PT Bayan Resources Tbk for import of coal to feed the country’s first largest coal-fired power plant at Pyara, said officials concerned.

“We are willing to import 4 million tons of coal annually for 10 consecutive years to feed the coal fired power plants,” said Bangladesh-China Power Company Limited (BCPCL) Managing Director Engr. AM Khurshedul Alam while talking to the Daily Sun yesterday.

He added the company will import the coal as per the tariff rate of ICE New Castle coal with maximum 60 percent discount. He claimed that they have negotiated properly with the company to import the coal for long term to feed the power plants.

The PT Bayan Resources Tbk of Indonesia has ownership with several coalmines, said the top official adding that the company’s single coalmine has a capacity to produce 53 million tons of coal. 

The country’s first public sector large coal-fired power plant in Pyara is expected to start producing electricity in September next, five months behind the schedule, said officials concerned.

“We are hopeful to produce electricity from unit-1 of the Pyara power plant from September next as we are expecting to synchronize the plant by this time,” said the Bangladesh-China Power Company Ltd Managing Director.

He also expected that the power plant will go for commercial generation of electricity from November this year. Besides, the unit-2 of the power plant will go into commission in early 2020, he said.

He said that the physical progress of the power plant is about 75.95 percent while the financial progress of the plant is about 57.20 percent until April last.

All equipments of the unit-1 of the coal fired power plant, implemented by Bangladesh-China Power Company Ltd, have been installed by this time, according to the officials.

The government has set a target to generate 18,392MW electricity from coal-fired power plants. Of the electricity, some 5040MW of electricity will come from public power plants.