Another power hub at Payra to cost $12b

A move is underway to create a 9,000mw power generation hub at Payra of Patuakhali in the southwestern region of Bangladesh, reports UNB.

Disclosing the plan, State Minister for Power and Energy Nasrul Hamid said Payra would be another power hub like the two others being developed at Maheshkhali and Matarbari in Chittagong in the eastern region of Bangladesh.

"We've drawn up the plan for Payra power hub considering the uplift of the country's southern region, which remained under-developed, compared to other regions of the country," he told reporters while visiting the construction site of a 1320 MW power plant, now being installed in the area.

The state-owned North-West Power Generation Company Ltd (NWPGCL) is installing the 1320mw coal-based power plant under a joint venture with the Chinese state-owned company CMC (China National Machinery Import and Export Corporation).

The first unit of the plant, having two units of 660mw each, is expected to come into commercial operation in April 2019 and the second unit in October of the same year, said A M Khurshedul Alam, managing director of the NWPGCL.

The state minister visited the plant site on Friday along with a group of journalists from Dhaka. NWPGCL and Forum for Energy Reporters Bangladesh (FERB) jointly organised the tour.

NWPGCL officials said that the construction work was going on in full swing keeping in mind the timely completion of the project.

Nasrul Hamid said about $160 billion was being spent for the project, of which 80 per cent is debt and 20 per cent is equity investment by the Bangladesh side and the Chinese side each having 50 per cent stake.

He said the proposed 9000mw power hub will require about $12 billion in investment where NWPGCL will implement some projects having a total of 6000mw capacity. The remaining 3000mw will come from investment by some other state-owned companies like RPCL and APSCL.

The State Minister said the plant would use coal coming from Indonesia and Australia and the coal would be utilised in a process so that it would not create any pollution in the area.

"This will be an absolutely cleanest power plant as coal will be stored in a covered area," he said. The coal will be unloaded at the power plant's own jetty and will directly come to the plant through a conveyer belt.

He also said Payra would have not only coal-fired plants. Rather, it would have solar power and LNG-based power generation projects as well.

Officials said NWPGCL would implement 100mw solar and 50mw wind power projects too.

The NWPGCL and CMC have formed a joint venture company- Bangladesh-China Power Company (Pvt) Limited (BCPCL)-to implement the 1320mw plant.

It has already appointed a China-based consortium of NEPC and CECC as an engineering, procurement and construction (EPC) contractor to install the project.

An official of the Chinese consortium Zhu Yue Yong noted that about 6000 workers now remained engaged to set up the projects where 1500 are Chinese and 4500 are local Bangladeshis and so far 37 per cent of the construction work is completed.

He said they completed the pilling work. Now the boiler house is being built. Afterwards, the turbine and generator will be installed in phases.