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Payra power plant

2nd consignment of coal arrives

FE REPORT | October 29, 2019 00:00:00


The Bangladesh-China Power Company Ltd (BCPCL) received second consignment of around 20,000 tonnes coal as Malta's vessel Erne Olden Dorff reached Payra jetty on Monday.

Unloading from the vessel initiated immediately after its arrival, BCPCL managing director AM Khurshedul Alam told the FE.

The first consignment of similar quantity had reached the newly-built jetty last month for generating electricity at the 1,320-megawatt (MW) Payra coal-fired power plant, the country's first such facility to run on imported coal.

This coal will facilitate commissioning of the first 660 MW unit of the thermal power plant. Mr. Alam expected to initiate electricity generation by December this year.

State-run Power Grid Company of Bangladesh Ltd has been working to complete a 400-kilovolt transmission line to facilitate power evacuation from the plant.

BCPCL, the project executor, has signed an agreement with an Indonesian supplier to annually import an estimated 4.0 million tonnes of coal for 10 years to operate the power plant.

The coal price has been tagged with the Newcastle international coal price index having a discount of up to 60 per cent depending on the price movement.

The discount would increase if the coal price shoots up globally and it would decrease if the price slides.

Initially, BCPCL will import directly from Indonesia with half-loaded 'Supramax' vessel having the volume of around 20,000 tonnes per cargo, said a BCPCL official.

After successful construction of a trans-shipment facility in the Andaman, mother cargo vessel would be able to carry coal for the power plant, he added.

The second unit having the similar capacity of 660 MW is expected to be completed by June 2020.

Some 13,000 tonnes of coal will be required per day to run the plant with full capacity.

It will use the best coal and apply ultra-supercritical technology with minimal environmental impacts, said a senior official of power division under the power, energy and mineral resources ministry.

BCPCL is a 50-50 joint venture between Bangladesh's NWPGCL and China National Machinery Import and Export Corporation (CMC).

BCPCL has been providing 20 per cent equity to implement the project and the remaining 80 per cent is being sourced as loan from Exim Bank of China.

Bangladesh has issued a $1.0-billion worth of state guarantee in favour of the Chinese loan to this end.

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