Ministries at odds over using Mongla port for coal shipment
M Azizur Rahman | Saturday, 19 March 2011
M Azizur Rahman
The Ministry of Power and Energy and the Ministry of Shipping are at loggerheads over using the Mongla seaport for coal shipment to run the 1,320 megawatt (mw) power plant in Khulna. The ministry of power is interested to utilise the Mongla port for transporting coal to the thermal power plant. The plant would be constructed under a joint venture of Power Development Board (PDB) of Bangladesh and National Thermal Power Corporation (NTPC) of India. However, the Mongla Port Authority (MPA) under the ministry of shipping has expressed its unwillingness to let the use of MPA jetties for coal transportation. MPA said handling of a large quantity of coal would affect its usual shipping activities. The dispute between the two key ministries is delaying the completion of the feasibility study of the plant, being conducted by NTPC, a top government official said. He also said the problem is also affecting the formation of the proposed joint venture company between PDB and NTPC. "If the shipping ministry sticks to its decision of not allowing us to use its jetties, we might have to build a separate jetty for coal transportation," PDB Chairman A S M Alamgir Kabir told the FE Friday. Capital dredging might be required to build the proposed jetty and other necessary infrastructure for transportation and handling of coal for the power plant, he added. Bangladesh assigned NTPC to conduct a feasibility study on setting up the 1,320 mw plant, after signing a deal in August last. PDB would pay NTPC US$ 250,000 to carry out the study. PDB and NTPC inked a memorandum of understanding (MoU) September last in New Delhi to build the coal-fired power plant. Both the companies agreed to set up a joint venture company (JVC) to install the plant with equal equity participation. They also agreed to constitute the JVC board with an equal number of members from the two sides. Together PDB and NTPC would invest around $425 million, 25 per cent of the total cost of the proposed plant. The remaining 75 per cent cost would be met with loans from external sources. Officials said building the coal-based power plant is necessary to meet the ever-increasing electricity demand in the country and ensure diversification of its energy sources. The country's overall electricity generation is now hovering around 4,000 mw per day against the demand for over 6,000 mw. The demand is rising by at least 10 per cent every year to feed the growing number of industries, commercial users and households. The government has set a target to augment electricity generation to 7,000 mw by 2013 and 10,000 mw by 2015.
The Ministry of Power and Energy and the Ministry of Shipping are at loggerheads over using the Mongla seaport for coal shipment to run the 1,320 megawatt (mw) power plant in Khulna. The ministry of power is interested to utilise the Mongla port for transporting coal to the thermal power plant. The plant would be constructed under a joint venture of Power Development Board (PDB) of Bangladesh and National Thermal Power Corporation (NTPC) of India. However, the Mongla Port Authority (MPA) under the ministry of shipping has expressed its unwillingness to let the use of MPA jetties for coal transportation. MPA said handling of a large quantity of coal would affect its usual shipping activities. The dispute between the two key ministries is delaying the completion of the feasibility study of the plant, being conducted by NTPC, a top government official said. He also said the problem is also affecting the formation of the proposed joint venture company between PDB and NTPC. "If the shipping ministry sticks to its decision of not allowing us to use its jetties, we might have to build a separate jetty for coal transportation," PDB Chairman A S M Alamgir Kabir told the FE Friday. Capital dredging might be required to build the proposed jetty and other necessary infrastructure for transportation and handling of coal for the power plant, he added. Bangladesh assigned NTPC to conduct a feasibility study on setting up the 1,320 mw plant, after signing a deal in August last. PDB would pay NTPC US$ 250,000 to carry out the study. PDB and NTPC inked a memorandum of understanding (MoU) September last in New Delhi to build the coal-fired power plant. Both the companies agreed to set up a joint venture company (JVC) to install the plant with equal equity participation. They also agreed to constitute the JVC board with an equal number of members from the two sides. Together PDB and NTPC would invest around $425 million, 25 per cent of the total cost of the proposed plant. The remaining 75 per cent cost would be met with loans from external sources. Officials said building the coal-based power plant is necessary to meet the ever-increasing electricity demand in the country and ensure diversification of its energy sources. The country's overall electricity generation is now hovering around 4,000 mw per day against the demand for over 6,000 mw. The demand is rising by at least 10 per cent every year to feed the growing number of industries, commercial users and households. The government has set a target to augment electricity generation to 7,000 mw by 2013 and 10,000 mw by 2015.