A joint-venture of the state-run Coal Power Generation Company Bangladesh Limited and Japan’s Mitsui and Company Limited is set to install a 500-600MW imported LNG-based power plant involving an investment of approximately $600 million at under-construction Matarbari power station, Cox’s Bazar.
On Wednesday, the power generation company and Mitsui signed a memorandum of understanding to form the joint-venture with 50-50 stakes, said officials, adding that JV partner would help obtaining 70-80 per cent of the investment from Japan for the project.
The coal power generation company managing director on Wednesday told New Age that the LNG-based power plant was expected to be commissioned by 2021.
Petrobangla, the state-run Oil, Gas and Mineral Resources Corporation, will supply the Liquefied Natural Gas to the power plant, he said.
With this, Japan’s funding will exceed $5 billion at a single power station in Bangladesh as JICA was already in a deal to finance approximately $4.6 billion in the construction of a 1,200MW coal-fired power plant and other infrastructures to facilitate coal import to and storage on Matarbari Island.
Meanwhile, Bangladesh government in August this year requested Japan to provide funding for construction of another 1,200MW power plant at Matarbari power station with approximately $2 billion funding requirements.
Asked about the progress, Quassem said that they were yet to be informed about Japan’s decision in this regard.
On July 27, the coal power company signed a contract with a Japanese consortium led by Sumitomo Corporation for the construction of the first 1,200MW coal-fired power plant and other infrastructures on Matarbari Island at a cost of $4.59 billion (Tk 37,730 crore).
Under the first project, Sumitomo-led consortium would build a 1,200MW coal-fired power plant, jetty and coal handling facilities, excavation of a six kilometres long and 300 metres
wide canal, coal storage, township development, rural electrification and construction of power transmission facilities and road communication.
The first unit of the 1,200MW power plant would be commissioned by December 2022 and the other by June 2023.
Matarbari power station is part of a large multi-plant complex being developed by the state-run Power Development Board, the parent organisation of the coal power company.
The other parts of the complex would be developed by the power companies of China, Malaysia and Singapore in joint-venture with the power board and its enterprises.
The power board plans to build a number of coal-fired power plants with a combined generation capacity of 7,000MW on two adjacent Islands—Matarbari and Moheshkhali. It also plans to set up a number of combined cycle power plants with a combined generation capacity of 3,000MW to be run on imported Liquified Natural Gas.
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