Despite being physically completed, the Power Division has sought an additional one year for commissioning the 800MW Rupsha Combined Cycle Power Plant in Khulna, which has yet to enter commercial operation due to technical glitches.
The Industry and Energy Division of the Planning Commission has scheduled a project evaluation committee (PEC) meeting on Sunday to assess the proposal.
Under the revised proposal, the project cost has been estimated at Tk 67.62 billion, of which Tk 19.72 billion will come from government funds, Tk 47.19 billion from external project loans, and the remaining Tk 700 million from the own resources of the implementing agency, the North-West Power Generation Company Limited.
The project, launched in July 2018, was initially estimated to cost Tk 84.99 billion, according to the proposal.
Analysis of the working paper prepared for the PEC meeting shows that a total reduction of Tk 28.38 billion has been proposed across several major cost components.
The largest proposed savings are in taxes and VAT for the EPC contractor, amounting to Tk 5.54 billion, followed by reductions in customs duty, taxes and VAT worth Tk 3.87 billion.
Significant cuts have also been proposed in mandatory and essential spare parts (Tk 2.74 billion) and the Balance of Plant (BOP) package (Tk 3.16 billion).
However, some project components have seen proposed cost increases.
Interest During Construction (IDC) is set to rise by Tk 4.08 billion, land development by Tk 1.27 billion, turnkey civil works by Tk 2.25 billion, and primary commissioning fuel (HSD and natural gas) by Tk 1.51 billion, among other adjustments.
These increases total Tk 11.01 billion, resulting in a net proposed project cost reduction of Tk 17.36 billion after adjustment against the proposed savings.
The project was originally scheduled for completion by June 2022, four years after its approval in 2018.
However, its implementation period has already been extended three times without additional cost, pushing the deadline to June 2026.
If the latest proposal is approved, the project's implementation period will stretch to nine years.
The project achieved around 94 per cent physical progress as of March 2026, but commissioning has been delayed due to technical problems in the gas turbine system, according to a senior Power Division official.
During testing, Unit-1 experienced excessive vibration at the "first fire" stage, the official said.
Despite several corrective measures, including bearing adjustments and installation of a special imported bearing from Italy, the problem persisted. Engineers have since recommended rotor repair, which requires partial dismantling of the turbine system.
Under the revised schedule, Unit-1 is expected to be commissioned this month, while Unit-2 is likely to enter operation by February 2027, subject to gas supply availability from Petrobangla.
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