ADB approves $0.6m TA to help process tenders for two power plants

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FE Report
The Asian Development Bank (ADB) has approved a technical assistance (TA) worth US$600,000 as grant to help Bangladesh process tenders for building two gas-fired independent power plants (IPPs) with a total generation capacity of 900 megawatt (MW).
The power projects are 450 MW Sirajganj clean-fuel combined cycle power generating plant and 450 MW Meghnaghat Phase-3 combined cycle power generating plant under private sector.
The plants are expected to be commissioned by 2010 on a build-own-operate (BOO) basis, said the ADB.
The TA will assist the Bangladesh government in the tendering process for selecting private sector sponsors for these two power generating plants through a transparent international competitive bidding process.
"The TA is expected to contribute to sustained economic growth in Bangladesh by providing increased capacity and reliable power supply at an affordable price," the ADB added.
The ADB conducted a mission during 8-10 May 2007 and reached an understanding with the government of Bangladesh on the impact, outcome, outputs, cost estimates, financing, implementation arrangements, and consultant terms of reference for the proposed technical assistance.
Currently, about 85 per cent of the power generation capacity in the country is gas based, 10 per cent is based on imported fuel, and 5.0 per cent is hydro power. In terms of energy generated, about 90 per cent of the total, in fiscal year 2005 was from gas-fired power plants. Present gas reserves and production are considered adequate to serve the existing power plants, and it is highly probable that additional reserves could be developed to serve the needs of those power plants projected until 2025, the ADB said.
Over the last 10 years, consumption of electricity in Bangladesh has grown at a compound annual rate of 8.1 per cent, and it is expected that demand for electricity will grow at an annual rate of about 8.0 per cent over the next 10 years.
The ADB-funded power system master plan update projected that a total capacity expansion of 17,900 MW would be necessary through 2025, of which 3,500 MW would be needed by 2010.
The country's current dependable generating capacity is 4,120 MW, while peak demand is about 5,000 MW.