Rampal power plant gives rise to controversies

Khondkar Abdus Saleque The Government decision of going ahead with the implementation of imported coal-fired power plant at Rampal, Bagerhat located at about 14KM from Bangladesh's lone World Heritage the Sundarbans mangrove forest, has triggered controversies among Bangladeshis at home and abroad. Many, including the prime minister, Leader of the Opposition in Parliament, political leaders, professionals, academicians, environmentalists, NGOs (non-governmental organistation) and the media are now locked into controversies in favour or against the government initiative. The government has demonstrated its firm commitment for proceeding with its plan and those who are opposing have announced their strong resolve to resist the government plan. Prime ministers of Bangladesh and India have jointly laid the foundation for the joint venture project through video conferencing on October 05, 2013. Those who are opposing have serious concerns about the impacts from emissions of the plant and other associated impacts on the eco system and biodiversity of the Sundarbans arising out of coal transportation through the canals of the Sundarbans. The government is assuring the people that use of sweet coal and adoption of appropriate technology will minimise emissions from the plant to acceptable level and all actions will be taken for environmental safeguards during coal import, transshipment and transportation. But hurried actions of the government policymakers at the twilight stage of its present term have created surprise for many observers. Several questions are coming to mind. Is Rampal the most appropriate location for a coal-fired plant? Can Bangladesh afford to expose the Sundarbans, a natural barrier against natural calamities (tsunami, cyclones, and tidal surge) to any kind of emission impacts? Why is such a mega project being implemented without a comprehensive feasibility study, risk identification, assessment and credible mitigation plan? Why and how had the National Thermal Power Corporation (NTPC) and Bangladesh Power Development Board (BPDB), representing respectably India and Bangladesh, to enter into joint venture for this initiative? Why was there no bidding process seeking joint venture partner for such a mega initiative? Why was NTPC denied of similar project implementation in India? Will the Indian government allow a similar coal-fired project in Indian part of the Sundarbans? THE PROJECT: The Rampal power station is a proposed 1320-megawatt coal-fired power station at Rampal Upazila of Bagerhat District in Khulna. It is a joint partnership between India's state owned National Thermal Power Corporation (NTPC) and Bangladesh Power Development Board (BPDB). The joint venture company is known as Bangladesh-India Friendship Power Company (BIFPC). The proposed project, on an area of over 1834 acres of land, is situated 14 kilometres north of the world's largest mangrove forest Sundarbans which is a UNESCO world heritage site. It will be the country's largest power plant. In August 2010, a Memorandum of Understanding (MoU) was signed between BPDB and NTPC where both parties agreed to implement the project by 2016. On January 29, 2012 BPDB signed an agreement with NTPC to build the plant. BPDB and NTPC agreed to implement the project on a 50:50 equity basis. NTPC will set up and operate the plant. Bangladesh and India will equally share up to 30 per cent of the equity of the project. The remainder of the equity, which might be equivalent to USD 1.5 billion, will be taken as bank loans with the help of NTPC. According to sources in the Bangladesh Power Division, the joint venture company will enjoy a 15-year tax holiday. BANGLADESH VISION OF FUEL DIVERSIFICATION: Power is the prime mover of economic development. For sustainable growth of GDP Bangladesh needs smooth power supply for feeding its emerging economy. Achieving MDG, especially poverty alleviation, largely depends on assured supply of power at affordable cost. Vision 2021 aiming at power for all cannot be achieved unless sustainable supply for required primary fuel at affordable cost can be guaranteed. But the alarming depletion of finite reserve of principal fuel - natural gas - has caused serious challenge to fuel security underling the requirement of fuel diversification. Failure to adopt an appropriate strategy for mining the country's own coal resources has further compounded the situation. This situation has driven Bangladesh to rely on imported liquid fuel for contingency action. For long-term sustainable energy security, Bangladesh requires importing pipeline gas, LNG and coal, apart from comprehensive coordinated action for exploring and exploiting own coal and hydrocarbon resources. Bangladesh has rightly planned to diversify fuel mix bringing in coal as major contributor for power generation. About 50 per cent power by 2030 will be generated by coal. To achieve that target, Bangladesh must start exploring its own coal adopting appropriate mining method and using all-proof transparent environmental and social impacts safeguards. Bangladesh must also set up enabling port infrastructure for importing coal. COAL IMPORT INFRASTRUCTURE: It is well known that Bangladesh does not have required port infrastructure to support import of LNG and coal. It will take several years and huge investment to set up deep sea port. Coal is a special commodity which cannot be compared with food grains, clinkers and other commodity for its self-burning and polluting nature. Coal carriers are covered vessels for negating environmental impacts during carrying, and standard vessels require minimum draft to ply and anchor in port facilities.