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Reliance Bangladesh LNG & Power Limited, the client of the Meghnaghat Combined Cycle Power Plant, has awarded the project to South Korea’s Samsung C&T.
Published : 02 Oct 2019, 02:44 AM
Samsung C&T said in a media release on Tuesday it received a letter of award from Reliance on Monday.
As the exclusive contractor, Samsung C&T will spend 34 months from October 2019 to July 2022 to build the plant, it said in the release.
Under the project, a 718MW combined cycle power plant consisting of two gas turbines, one steam turbine, two heat-recovery boilers, and a substation will be built.
In total, it is valued at $630 million, according to the release.
Reliance Bangladesh spokesman Ranjan Lohar told bdnews24.com Smsung C&T will implement the project on a turnkey basis.
Samsung C&T is already working on the Siddhirganj Combined Cycle Power Plant project in Bangladesh.
Japan’s JERA had earlier agreed to acquire 49 percent stakes in the Meghnaghat power project.
The Bangladesh Power Development Board will buy electricity from the project for 22 years.
The project company, with support from the two Asia’s energy giants, will negotiate the engineering, procurement and construction contract and loan agreements for the project in order to make final the investment decision for the project.
Reliance plans to invest about $1 billion to set up the plant by 2022, Reuters reported.
The combined-cycle power plant will be fuelled by gas and liquefied natural gas.
Bangladesh’s installed power capacity is more than 20,000 MW and the country aims to provide electricity to all of its more than 160 million people by 2020.
The country’s energy sector has grown 12.5 percent in recent years, with renewable making up only 3 percent of the total, government officials said. Bangladesh plans to boost this to 10 percent by 2022.
