MoU signed with China toset up 1320mw plant in Ctg

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Bangladesh and China will set up a 1320 megawatt (mw) coal-fired joint venture power plant in Chittagong, official sources said, reports UNB. A Memorandum of Understanding (MoU) in this connection was signed during a Bangladesh delegation's visit (December 2-10) to China. Chairman of the state-owned Power Development Board (PDB) ASM Alamgir Kabir led the 6-member delegation comprising senior officials of Power Ministry. According to the sources, the PDB and Chinese state-owned Huadian Corporation will implement the project through a joint venture company. The Bank of China will finance the mega project. Power Ministry officials said the MoU was signed following an approval by Prime Minister Sheikh Hasina. They said this will be the second government-to-government joint venture project. Earlier, a similar MoU was signed between the PDB and Indian state-owned National Thermal Power Corporation (NTPC) to build a similar 1320 mw power plant in Khulna near the Sundarbans mangrove forest. But there has been little progress in the last two and half years since signing of the MoU. Official sources said the Chinese government is very keen to implement the joint venture project and its Embassy in Dhaka played a vital role in arranging the deal between the PDB and the Beijing-based Huadian Corporation. The Huadian Corporation is one of the five largest state-owned power generation companies in China. Out of total 960,000 mw power generation in China, the Huadian alone produces 80,000 mw, said an official who visited the company's power plant in Chinese Shandong province. The Huadian Corporation also has overseas projects in different countries, including Indonesia, Russia and Cambodia. The officials, however, said though a MoU was signed between the two state-owned companies, still there are some unresolved issues, which would be addressed through further negotiations. "Particularly, the Chinese side wants to execute the project through appointing an EPC contractor from their own choice. They want this in order to implement the project in a faster pace and also to secure their investment," said an official. "But we haven't yet given our decision as it needs the go-ahead signal from the highest level," added the official.