S\\\'pore firm gets Cabinet body\\\'s nudge to set up 400MW power plant

The Cabinet Purchase Committee has approved four proposals, including a Singaporean company’s unsolicited offer for setting up a 400MW dual-fuel power plant on build-own-operate (BOO) basis and importing of 30-50 MW power from India in addition to existing 500 MW. The committee approved the proposals at a meeting with Finance Minister AMA Muhith in the chair. Senior ministers, who are members of the Cabinet body, attended the meeting. As per the proposal placed by the Power Division, Singaporean firm Sembcorp will implement the scheme as independent power producer (IPP) project under a joint venture with the North-West Power Generation Company Ltd (NWPGCL). The plant would be set up on the same site in Sirajganj where the government terminated a letter of intent (LoI) issued to an Indian company, Lanco, that failed to provide the necessary performance security deposit (PSD). As per the proposal, Sembcorp Utilities Pte Ltd will have 71 per cent shareholding in the joint venture, while state-owned NWPGCL will hold the remaining 29 per cent. The Cabinet purchase body approved the proposal under the Speedy Power and Energy Supply (Special Provision) Act 2010. The Sembcorp offered to implement the project with the same tariff, and under the same terms and conditions agreed with Lanco. As offered, the tariff would be Tk3.19 per kilowatt hour for gas-fired operation and Tk13.56 per kilowatt hour for diesel-fired (HSD) operation. The state-owned Power Development Board (PDB) would purchase the electricity for the first 22 years, according to a news agency.
- mbz