The government is going to build a 3,600-megawatt power plant at Payra in Patuakhali, the largest in the country and first to be run by imported liquefied natural gas or LNG. The LNG-based mega power project will cost about US$2.80 billion.
The state-owned North-West Power Generation Company Limited (NWPGCL) and German based Siemens AG signed a joint development agreement (JDA) for implementing the plant on Friday at a local hotel in Dhaka.Of the total cost, about $2.40 billion is expected to come as loan while the rest $400 million will be equally shared by the NWPGCL and Siemens AG.
NWPGCL company secretary Dipak Kumar Dhali and President of Siemens Gas and Power Richard Clayton Reising signed the deal on behalf of their respective organisations.
Power division secretary Dr Ahmad Kaikaus attended the signing ceremony as the chief gust while Power Development Board chairman Khaled Mahmood, deputy head of mission of German embassy in Dhaka Michael Schultheiss, NWPGCL chief executive officer AM Khurshedul Alam and chief executive officer of Siemens Bangladesh Prabal Bose were also present.
“The project will add 1200 megawatt electricity to the national grid by 2021 and rest of 2400 megawatt electricity will be added in the next year,” NWPGCL Chief Executive Officer AM Khurshedul Alam told the signing ceremony.
Power division secretary Ahmad Kaikaus said that the project, a major investment of Germany based company Siemens, will be completed in schedule. Highlighting the sector’s development, the power secretary said that the power and energy sector now contributes about 20 percent to the GDP.
NWPGCL chief executive hoped that the agreement would help to finalise the feasibility study, implementation of LNG, power purchase, initial environmental assessment, land leasing, EPC contract and establish a joint venture company.The first unit of the plant having capacity to generate 1200MW of electricity will come into generation by December, 2021 while another 2400MW in December, 2022.