State-run Bangladesh Power Development Board on Sunday assigned Shanghai Electric Group Company Limited of China for conversion of a 150MW simple cycle power plant into a 231.29MW combined cycle plant (CCP) in Sylhet.
The power board signed a contract with Shanghai Electric at Bidyut Bhaban in Dhaka for the job which would cost Tk 766.63 crore and to be completed by June 2019.
Speaking at the contract signing ceremony, power secretary Ahmad Kaikaus asked the Chinese contractor to complete the project in due time.
The project would be financed from the Electricity Maintenance Fund created by Bangladesh Energy Regulatory Commission, he said.
In February 2011, the energy commission created the fund with 5.17 per cent of the bulk power tariff for increasing low-cost power generation capacity in the country. The fund now approximately Tk 1,300 crore a year.
Power board chairman Khaled Mahmud said that the power plant would
not require additional gas once it is converted into a combined cycle version although its power generation capacity would be increased by more than 80MW.
The 150MW gas-fired power plant was commissioned in Sylhet on March 28, 2012 with its simple cycle version.
In January 2013, the power board took up the project with financial assistance from the Islamic Development Bank to convert the simple cycle power plant into a combined cycle one with a schedule for commissioning in December 2017.
A dispute between the power board and the Islamic Development Bank in awarding the contract stalled the project until the government decided to implement it with the Electricity Maintenance Fund.
On May 5, 2017, the Executive Committee of the National Economic Council approved the revised project proposal with the new funding source.
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