China Machinery Engineering Corporation (CMEC) will generate 42.5 megawatt of electricity using 3,000 tonnes of solid waste of Dhaka North City Corporation (DNCC).
The power generation will begin in two years in the project. Bangladesh Power Development Board (BPDB) will purchase the electricity from the CMEC.
Bangladesh Power Development (BPDB), DNCC and CMEC signed four separate agreements on the land use, waste supply, purchase of electricity and implementation at Aminbazar waste dumping grounds of DNCC.
The deals were signed on Wednesday for 25 years.
BPDB secretary Saiful Islam Azad and Deputy General Manager of Third Complete Plant of CMEC Wang Pengfei signed the power purchase agreement.
Wang signed land use and waste supply agreements with DNCC chief executive officer Md Selim Reza.
He also signed the implementation agreement with joint secretary at Local Government Division Mohammad Noor-E-Alam Siddiqui, joint secretary (Development-1) Mohammad Nazmul Abedin, secretary of Power Grid Company of Bangladesh Mohammad Jahangir Azad.
BPDB will purchase the generated waste from CMEC at Tk 18.29 per unit.
DNCC officials said they would hand over 30 acres of land to the company in the extended portion (81 acres) of Aminbazar landfill by June 2022. They will pay DNCC Tk 1.96 crore as the rent of the land annually. Speaking on the occasion, LGRD Minister MdTazul Islam said he traveled to many countries including Thailand, Singapore, and India, and discovered incineration as a sustainable solution to municipal waste.
“Electricity will be generated from waste in compliance with protection of the environment and public health,” he said.
“The Chinese company will go to power generation within 18 months of commencement of the activities. All kinds of directions are given in this regard,” the minister added.
He said if the project was successful, the same will be replicated in big municipalities and other city corporations including Dhaka South, Chattogram, Gazipur, and Narayanganj. “Many are saying that most of the waste of city corporation is wet and do not have enough calorific value to generate electricity.” “But it is not our concern if the Chinese company can generate power from it. The company will not invest Tk 15,325 crore if there is no return,” the minister said.
State Minister for Power and EnergyNasrul Hamid said the power ministry would cooperate with the CMEC to implement the project.
DNCC mayor Atiqul Islam hoped the waste incineration project would help curb the emission of greenhouse gas which was also a government goal to meet the climate change challenges.
He also hoped Bangladesh would be a role model ofsuch projects in city corporations and municipalities.