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Home Around South Asia Bangladesh

China sends money for power plant at Pyra in Bangladesh to match India’s Rampal project

Editor by Editor
April 18, 2018
in Bangladesh, Business
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Dhaka, April 18 (newsin.asia) : China’s Exim bank has confirmed funds for a power plant that is being built in Payra in Bangladesh. The Bangladesh-China Power Company Limited (BCPCL) on Monday sent an invoice for US$ 439 million to the Chinese Exim Bank.

This comes in the wake of the Indian coal powered plant coming up at Rampal in the Sundarbans.

Both plants will generate 1320 MW of power when they become fully operational.

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The Bangladesh-China Power Company Ltd (BCPCL) Managing Director, AM Khorshedul Alam said: “We have sent an invoice for $430 million to the bank already, and they will provide the rest of the funds in due time.

“China’s Exim Bank will provide a total loan of $1,980 million for the establishment of the power plant, which will arrive via Bangladesh Bank. 17 accounts have been opened in this regard, of which nine are Foreign Currency Accounts (FCA). These have all been opened with Standard Chartered Bank as it is working as the agent for China’s Exim Bank,” he also said.

A source at BCPCL said 38% of the work on the power plant has already been done, and that currently the infrastructure of the power plant is being developed. The mechanical equipment will arrive in Bangladesh from July, and the first unit of the ultra-supercritical plant will be operational from June 2019, followed by its second unit in December.

Affiliates say that the plant will be operational within the determined time frame.

Local company North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import and Export Corporation (CMC) are stakeholders in the power plant.

20% of the money for the plant is being provided by the government of Bangladesh, with the other 80% coming from the Chinese bank.

India-funded plant at Rampal

The India-funded Rampal power plant in the Sunderbans, will also provide 1,320 MW of electricity. It will be producing 600 MW electricity by December 2019 when the first phase will have been completed.

Strategically, the Rampal power plant is aimed at meeting the electricity demand of the underprivileged and underdeveloped southwestern Khulna region. The people of this region have been left out of the development process.

Until 2009, 96% of electricity generation was coming from gas-fed plants. Now 62% electricity comes from gas.

Rampal is the second coal power plant in Bangladesh. The first was at Boropukuria (in Dinajpur) in 2003. The first plant was based on old technology, called sub-critical, which is hugely polluting. Now we have the third generation technology, ultra super-critical, which we are using for the Rampal power plant.

The Sundarbans mangrove forests will not be affected as they are 14 km away officials said in response to an agitation.

(The featured picture at the top shows a coal based power plant. A representational picture)

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