Deal on 225mw power plant with Indian co signed

State Minister for Power, Energy and Mineral Resources Nasrul Hamid said Sunday that the country's growing gross domestic product (GDP) is set to witness a substantial jump with the implementation of the planned power and energy projects.
He said the country has been achieving a consistent GDP growth of around 6.0 per cent over the past one decade, which would get a big boost with the new power and energy projects.
Mr Hamid was speaking as the chief guest at the contract signing ceremony of Shikalbaha 225 megawatts (MW) combined cycle power plant to be implemented at a cost of Tk 17.07 billion (US$ 202.22 million).
The function was also addressed by Kuwait's Charge-de-Affairs in Dhaka Nasser al Onaizi, power secretary Monwar Islam, BPDB chairman Abduhu Ruhullah, Petrobangla chairman Dr. Hussain Monsur and Larsen & Toubro' whole-time director Shailendra Roy.   
State-owned Bangladesh Power Development Board (BPDB) inked the contract with Indian Larsen & Toubro Ltd (L&T) for construction of the 225 MW combined cycle (dual fuel) power plant at Sikhalbaha in Chittagong at the function.
The Indian firm will install the plant as engineering, procurement and construction (EPC) contractor.
As per deal, construction of the project's simple cycle unit will be completed within the next 18 months while the combined cycle will start operation within the next 30 months.
Speaking on the occasion, the state minister said many countries and reputed firms like those of Indian Reliance, Ambani are showing keen interest to invest and jointly set up power plants in Bangladesh considering its good investment climate.
Chinese and Singaporean companies are also offering to set up joint venture projects, he said.
"It proves that we are on right track," he said adding, "We are in a transition point and the investment climate of the country is one of the best in South and South East Asian region."
Bangladesh never failed to pay any debt in its history, he added.
Power secretary Monwar Islam urged the officials of the L&T to transfer its technology and maintain quality and timeline in implementing the project.
L&T's Shailendra Roy said his company has been one of the largest firms in India working for many years in different fields from service to engineering sectors.
He said his company has also been engaged as EPC contractor of the Bherama Power Plant.
Four development partners of the Middle-East-Saudi Arabia, Kuwait, UAE and OPEC Fund-are financing the project with a fund of US$ 167.73 million.
Of the total project cost, the Kuwait Fund for Arab Economic Development (KFAED) will provide $ 53 million, Saudi Fund $ 53.33 million, UAE's Abu Dhabi Fund for Development (ADFD) $ 31.04 million and the OPEC Fund $ 30 million, apart from the government's contribution of $ 82.34 million.
The government has already signed necessary agreements with the co-financiers.
The Executive Committee of the National Economic Council approved the project on February 19, 2013.
Under the project, JVCA of Development Consultant Pvt., India, Sief Engineering Consultants, Kuwait & Karigari Paramarsha, Bangladesh, will work as consultants of the BPDB.