Delay in Projects

Govt to scrap power deals with Malaysian, S Korean firms

Shamim Jahangir

21 January, 2020 12:00 AM printer

The government has decided to scarp deals with a Malaysian and a South Korean firm for two join-venture (JV) power projects (1320 MW each) due to slow progress in project implementation. 

The government is also planning to drop some more coal-fired power projects. The number of abandoned projects stood at 16 including two projects having a combined capacity to generate 15,752MW of electricity from imported coal.    

State-owned Bangladesh Power Development Board (BPDB) and Malaysian firms Powertrac and Tanega Nasional Barhed (TNB) signed a Memorandum of Understanding (MoU) six years back for setting up a mega coal-fired power plant having the capacity to generate 1320MW of electricity at Moheskhali in Cox’s Bazar.

In September 2016, Malaysian counterpart TNB placed a proposal for excluding the Tenega Barhead and signed a separate MoU with Powerpac Barhed of Malaysia for implementing the plant with equal sharing with BPDB.

The government has already sent the revised MoU for singing the deal in the middle of last year.

But the government of Malaysia is yet to respond to the MoU, an official said, adding, so we have decided to drop the project.

Regarding the joint venture project with Korean firm KEPCO, another official said the government had signed a MoU in August 2016 with the South Korea for implementing another 1320W coal-fired power plant. 

In March 2018, BPDB had discussed about the financing of the joint development agreement (JDA) and financing for implementing the mega power plant at Moheskhali in Cox’s Bazar.

But the South Korean company has been delaying the implementation of the power project in last two years, official said.

The government has so far initiated seven joint venture coal-fired power projects including the two mega projects, having a combined capacity to generate 8500MW of electricity. Of those, only three coal-fired power projects including 1320MW Payara coal-fired power project and 1320MW Rampal coal-fired power projects are showing some progress.

Besides, the government has also taken 11 other coal-fired power projects in public and private sector. Of those, only 1200MW Matarbari coal-fired power project are progressing as per the schedule.

But the progress in seven coal-fired power projects in private sector having a combined capacity to generate 4852MW is slow.

The power division, in its regular meeting, reminded and warned the private sponsors about the delay.

The government has so far taken the electricity generation capacity to 22787MW against the maximum demand of 12893MW.