ECNEC likely to approve 300mw S'ganj plant today

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FHM Humayan Kabir
State-owned company EGCB will start construction of a 300-megawatt power plant at Siddhirganj early next year as the ECNEC is expected to approve the scheme today (Tuesday), officials said Monday.
Power division officials said they had sought approval of Tk 20.77 billion Siddhirganj power project from the ECNEC (executive committee of the national economic council), aiming start generation of power from early 2012.
"The EGCB (electricity generation company of Bangladesh), a subsidiary of the power division, has almost completed the process of selecting a contractor. The contractor is expected to get work order by December this year," a senior power division official told the FE.
World Bank will lend Tk 15.02 billion for installation of the Siddirganj plant having two gas fired units with 150mw capacity each.
The rest of project cost will be borne by the government.
Last year, the Washington-based lending agency confirmed a $350 million loan for an integrated energy development scheme, under which the 300mw peaking power plant at Siddhirganj, a gas pipeline and a power transmission line will be installed.
"We hope the Siddhirganj power station will be set up by December 2011. So, we are hopeful for adding 300mw additional electricity to the national grid by early 2012," the power division official said.
Following the power supply crunch and the growing demand for electricity, the power division has decided to construct the peaking power plant to supply power to Dhaka and the national grid.
Bangladesh's demand for power is now more than 5000mw a day. The power producers supply only 3600mw to 4000mw a day, leaving about 1000mw to 1500mw shortfall.
The poor electricity supply is estimated to cost around two percent of gross domestic product (GDP) each year as industrial production and other development activities are hampered.
The power division official said: "The EGCB invited tenders few months back. It has selected a bidder for setting up the 300mw gas-fired plant at Siddhirganj."
After getting the ECNEC's approval, the power division will place the tender evaluation report before the cabinet committee on public purchase to appoint the contractor for constructing the power station at Siddhirganj, an existing power generation site to the southeast of Dhaka.
A 60-km natural gas pipeline from Bakhrabad to Siddhirganj that will improve the reliability of gas supply to the proposed power plant, and an 11-km electricity transmission line will be installed in a bid to supply power from the plant to the national grid.
Following the severe power crisis across the country, the donors including the WB, Asian Development Bank (ADB) and Japan in early 2006 simultaneously pledged funds for several power generation projects.
Another ADB-funded 240mw power station at Siddhirganj is now nearing completion and it expects to generate electricity by December this year.
Besides, the power division has also started implementation work of two more ADB-funded power plants having 150mw each in Sirajganj and Khulna, and a Japan-funded 360mw plant at Haripur.