The government is going to develop 1,000 acres of land investing Tk 7.83 billion for a private limited company to set up a 1,320-megawatt coal-based power plant in Patuakhali, officials said Friday.
A Bangladesh-China joint venture company would set up the 1,320MW capacity coal-fired ultra-super critical power station in coastal district of Patuakhali.
Power Division officials said the state-owned North-West Power Generation Company Limited (NWPGCL) would acquire 1,000 acres of land in Patuakhali and develop it in a bid to set up the thermal power plant.
"It had sent a project proposal with a cost of Tk 7.83 billion to the Power Division. After scrutiny, the division has sent it to the Planning Commission for getting approval," said a senior Power Division official.
He said the NWPGCL signed a Memorandum of Understanding (MoU) with the China Machinery Import and Export Corporation (CMC) in March last for installing the 1,320MW power plant.
The official said the two companies would form the Bangladesh-China Power Company (Pvt) Limited for setting up the power station.
Earlier, another state-owned power generator Bangladesh Power Development Board (BPDB) had decided to inject Tk 550 million and Tk3.31 billion respectively for developing two lands for setting up each of two 1320MW capacity power units at Rampal for the Bangladesh-India joint venture company.
The Planning Commission recently refused approval of one of the land development projects for the Rampal power plant as the government fund would not be included in the equity of the BPDB in the Bangladesh-India joint venture company.
Another senior Power Division official said: "The fund for developing the land at the proposed 1,320MW power plant site in Patuakhali will not be included in the equity of the Bangladeshi power generation company. So, why will the government provide funds for land development for a private limited company?"
Of the Tk 7.83 billion cost for the land development project at the proposed 1,320MW power plant site in Patuakhali, Tk 7.73 billion will be provided by the government from its own exchequer while the rest Tk 98.62 million by the NWPGCL from its own fund.
The Power Division official said Bangladesh needs to generate more power for its growing consumers, especially for the industrial ones.
The Patuakhali 1,320MW coal-based power will boost the generation capacity of the country.
"The coal for the power plant will be imported from abroad through mother vessels and unloaded nearly 60 kilometres away from the proposed plant site. Small vessels will carry the coal to the power station," said the Power Division official.
Meanwhile, the government has already approved setting up of two coal-fired power plants-1,320MW plant at Rampal and 1,200MW plant at Matarbari-for boosting the electricity supply capacity of the country.
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