Bangladesh signs deal with Siemens to build its largest power plant

Bangladesh has signed deal with Germany's Siemens to build a $2.8 billion LNG-based power plant, the country's largest.

Senior Correspondentbdnews24.com
Published : 5 Nov 2017, 11:51 AM
Updated : 5 Nov 2017, 01:27 PM

The 3,600-megawatt plant will be built in the southern district of Patuakhali's Payra, which also boasts a seaport.  

The agreement between state-owned North-West Power Generation Company Ltd and Siemens has been signed in Dhaka on Sunday.

North-West Managing Director AM Khurshedul Alam and Siemens South Asia CEO Sunil Mathur signed the memorandum of understanding or MoU.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid told bdnews24.com on Saturday that the project is expected to start by June next year.

The estimated cost of the project is $ 2.8 billion, according to a statement by the government's power division.

Hamid had said that 80 percent of the cost is expected to come as loans.

He said Siemens would also construct another 3500MW power plant at Maheshkhali in Cox's Bazar.

An MoU between the Power Development Board or PDB with the firm for the Maheshkhali plant soon, he said.

At Payra, North-West Power Generation is already constructing a 1320MW coal-fired power plant with China's help, and 26 percent work of the project is complete.

The LNG-run plant will be on a 100-acre plot, adjacent to the site of coal-fired plant, said the statement by the government.

The first phase of the project, implemented by a joint venture company, is expected to finish in June 2020, when the plant will be able to generate 1200MW of electricity.

North-West Managing Director Alam told bdnews24.com the plant will be able to produce another 12000MW power in December the same year and the rest by the end of 2021.

Alam said an LNG terminal would also be set up in Payra to supply the LNG, which will be imported, to the plant.

The Bangladesh government has a series of large infrastructure projects in Payra, including a port and economic zone for the development of the country's southern region.

The country's capacity to generate electricity now stands 15,821MW. The government targeted to raise it to 24,000MW by 2021 and 40,000MW by 2030.

Since 2009, a total of 87 power plants with a combined capacity to generate 9,254MW have been set up.

Now the government is eyeing larger power plants. The work to build a nuclear power plant at Rooppur in Pabna is under way.

Besides this, some more coal-run power plants Cox's Bazar's Maheshkhali, in Bagerhat and some other gas-run power plants are being set up.