The Bangladesh Power Development Board (BPDB) is likely to sign a Power Purchase Agreement (PPA) with China Machinery Engineering Corporation (CMEC) next month to implement the 42.5MW waste-based power plant project in Aminbazar.
As per the draft PPA, BPDB will purchase per unit of electricity at $21.78 cents (equivalent to Tk 18.295) for a 25-year period, a top official said.
“We are taking all the preparation for singing the deal next month,” BPDB chairman Engr Belayet Hossain told the Daily Sun on Tuesday.
Besides, the Dhaka North City Corporation (DNCC) will sign a separate land lease agreement (LLA) with CMEC for implementing the country's first-ever waste-based power plant.
At least 3,000 tonnes of solid waste will be utilized to feed the 42.5-megawatt plant as the main fuel.
“Both sides agreed about the draft terms and conditions to compensate each other for failing to meet the terms of the PPA,” Belayet added.
For example, BPDB will compensate if it fails to purchase produced electricity and then the DNCC will compensate if they fail to supply require waste for generating electricity.
DNCC chief waste management officer M Saidur Rahman also confirmed the matter and said they will sign two agreements regarding hand-over of land and waste delivery.
The DNCC official hoped that the power plant will be able to ensure environment-friendly waste management and utilisation of the resource of waste.
DNCC Additional Chief Waste Management officer SM Shafiqur Rahman said DNCC received proposals from a total of 17 companies for the waste-based power plant in Aminbazar and the ministry of local government and Ministry of Power, Energy, and Mineral Resources selected the proposal of CMEC.
They, however, did not receive any proposal for biogas and compost plants at the waste landfill.
“We will hand over 30 acres of land to the company in the extended portion (81 acres) of Aminbazar landfill by June 22 and they will set up the plant within 18 months after signing the deal. They will pay us Tk 1.96 crore as the rent of the land annually,” he also said.
“After the singing the agreement we have to give them 3,000 tonnes of solid waste and if the city corporation fails to provide the amount of waste, it will have to pay Tk 4,000 for per tonne of waste as liquidity damage,” he said, adding that DNCC has the capacity to supply the required volume of waste.
About the terms and conditions of waste delivery, DNCC Chief Waste Management Officer M Saidur said, “The Company will receive all the wastes other than the medical waste, metal, construction materials because these cannot be incinerated in the plant. We will incinerate waste as an intermediary process to reduce it.”
DNCC Waste Management Chief Saidur also said that the proposal of the Chinese company is being vetted by the law ministry.
Earlier on 12 November 2020, the Cabinet Committee on Public Purchase approved the proposal of a 42.5MW waste-based power project.