ECNEC okays Tk 360bn Maheshkhali power plant project

The government has approved the Tk 360 billion, 1200 megawatt (MW) coal-based power plant at Maheshkhali, Bangladesh's most expensive power project so far.

Chief Economics Correspondentbdnews24.com
Published : 12 August 2014, 01:27 PM
Updated : 12 August 2014, 04:08 PM

According to the project summary, the Japanese development agency, JICA, will bear TK 290 billion of the total cost, while the government will contribute Tk 40.92 billion.

The company implementing the project - Coal Power Generation Company Limited - will provide Tk 20.11 billion, the summary says.

The 'Matarbari 2x600 Megawatt Ultra Super Critical Coal Fired Power Project' was approved on Tuesday at an Executive Committee of the National Economic Council (ECNEC) meeting chaired by Prime Minister Sheikh Hasina.

The government's latest move follows last year’s foundation-laying of a 1320 MW coal-fired plant, to be jointly built with India at Rampal, near the Sundarbans, despite strong protests from environmentalists.
The High Court, in February, had issued a rule asking why an order would not be given to stop the government from building the power plant at Maheshkhali Upazila, an island near Cox's Bazar.
The project summary describes it as the 'most valued development project in the country's history'.
It said the project at the Upazila's Matarbari and Dhalghata would begin this year and end in October, 2023.

Almost 75 percent of the power in Bangladesh is produced from gas, while coal accounts for less than three percent. The government plans to notch this up to nearly 50 percent by 2030.

The summary says 'ultra-supercritical technology' will be used in the Matarbari plant to attain 41.9 percent efficiency.

At present, no thermal power plant in Bangladesh has an efficiency level over 34 percent.

“With this high-efficiency technology will require less coal and there will be lower carbon-dioxide emission, reducing air pollution and the impact on environment,” it claimed.

The summary also said that 'low-rate burners' would be used to reduce Nitrous Oxide emission, 'desulphurisation methods' to reduce sulphur dioxide and 'electrostatic precipitators' to reduce ash.

Ocean water will be used for steam and cooling the plant, a first in Bangladesh.

The two 600 MW units will run on 4,700-5,200 kCal/kg grade imported coal.

A township having residential buildings, water treatment plant and jetties will be built around the plant.

The machinery for the plant are costly because of the advanced technology but sub-bituminous coal will make the power more affordable.

Planning Minister AHM Mustafa Kamal said two more power plants will be set up at the project site in future along with an LNG terminal.

“Since the Department of Environment has issued an environment assessment certificate, there are no risks of environmental disaster,” he claimed.

The finance, industry, commerce, agriculture and telecom ministers and the state minister for power were present at the ECNEC meeting, besides senior government officials.

Rule in limbo

After the government initiated the coal-based power plant project for Matarbari, three locals moved the High Court against it.

The High Court issued a rule on Feb 10 this year, asking why the project should not be scraped considering its adverse impacts on natural resources, biodiversity, swampland, soil fertility and the health of local communities.

Petitioner's lawyer Sheikh Md Zakir Hossain told bdnews24.com the Coal Power Generation Company Bangladesh Limited had replied to the rule but the state counsels were not cooperating with them to continue with the hearing.

“In their reply, the company claimed there would be no damage to the environment from the plant but did not produce any evidence.”

“We raised the concern that the project area is populated by a density of 6000 per sq km. All these people would be displaced and the people from the low-lying areas would be isolated.”

“We also raised environmental concerns, but none of these have been addressed in their reply.”