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Govt okays 660MW LNG-based power plant at Mirsharai

  • Staff Correspondent
  • 30 December, 2021 12:00 AM
  • Print news

The government has given nod to five power sector procurement proposals, including one to set up a 660 MW gas or re-gasified liquefied natural gas (RLNG)- based power plant at Mirsharai in Chattogram.

The approval came at the meeting of the Cabinet Committee on Government Purchase (CCGP) on Wednesday held virtually with Finance Minister AHM Mustafa Kamal in the chair.

In total, the meeting approved 12 proposals of different ministries, Cabinet Division Additional Secretary Md Shamsul Arefin told journalists at an online news briefing after the meeting.

A procurement proposal of the shipping ministry was withdrawn at the meeting, he informed.

A consortium of Confidence Power Holdings Limited, GE Capital US Holding Inc, Confidence Power Limited and Electropac Industries Limited bagged the work of setting up the gas or RLNG-based power plant.

In a 22-year period, the government will buy electricity worth Tk 691.52 billion from the power plant, Arefin informed.

The CCGP also agreed on giving an extension to four rental power plants. Of them, a 53 MW gas-based rental power plant in Ashuganj, Brahmanbaria, sponsored by United Energy Ltd, has been extended for five years. Some Tk 4.51 billion will be spent to buy electricity from the plant.

Kumargaon 50 megawatts gas-based rental power plant, located in Sylhet sadar upazila, got a tenure extension of one year until December next year. The government will buy electricity at a cost of Tk 865.2 million from there.

Arefin said another 50MW gas-based rental power plant of Energy Prima Ltd in Fenchuganj, Sylhet gets a tenure extension of three years. The extension will cost the exchequer Tk 2.79 billion for buying electricity.  

Energy Prima Ltd's another 20 MW gas-based rental power plant in Bogura has also been extended for three more years. The government will buy power from the plant at a cost of Tk 1.07 billion.

The rental power will be bought on no electricity, no pay method.

The tenure of many rental power plants have already passed and they have realised capital costs and all other things.

"We won't have to pay extra charges for their operations. Only electricity price will be paid," Finance Minister AHM Mustafa Kamal said.

The minister said Bangladesh will have to set up some more power plants to meet demand as the government has stopped approving new coal-based power plants in line with its commitment to saving the planet from the impacts of climate change.