India’s Reliance Group has signed agreements with the Bangladesh government on Sunday to set up a 718 megawatt gas-based combined cycle power plant in Meghnaghat, Narayanganj.
The price of electricity bought from the plant will be Tk 5.85 per-kilowatt, whereas, in the 2017-2018 fiscal year, BPDB spent Tk 2.47 per-kilowatt on average to buy electricity from Independent Power Producer (IPP) plants.
This Liquefied Natural Gas or LNG-fueled power plant is expected to be completed 36 months after the project starts.
The government will buy electricity from this plant for 22 years, says the contract.
This is the second project which is going to be set up with hundred percent ownership of an Indian company.
Shapoorji Pallonji Infrastructure, which is building a 250 megawatt power plant in Bhola, was the first Indian private company to secure hundred percent ownership of the plant.
In total, four deals were signed between Bangladesh government agencies and Reliance on Sunday (September 1, 2019).
Of the deals, the power purchase agreement was signed with the Bangladesh Power Development Board (BPDB).
Another deal was signed with Titas Gas Transmission and Distribution Company Ltd (TGTDCL) separately for gas purchase and supply to the plant.
Another deal was also signed with the Power Grid Company of Bangladesh (PGCB) for power distribution.
Sheikh Faezul Amin, joint secretary of the power division signed the agreement on behalf of the Power Division, while Saiful Islam Azad, secretary of BPDB, Mohammad Jahangir Azad, company secretary of PGCB, Mahmudur Rab, secretary of TGTDCL and Sameer Kumar Gupta, director of Reliance Bangladesh LNG & Power Limited signed on behalf of their respective companies.
The Power Energy and Mineral Resources Adviser to the Prime Minister Dr Tawfiq-e-Elahi Chowdhury was the chief guest at the signing ceremony, where Indian High Commissioner to Bangladesh Riva Ganguly Das was a special guest.
BPDB’s move comes at a time when almost 35 percent (5,000MW) electricity generation capacity in the country remains idle.
Currently, the country has 18,000 megawatts electricity generation capacity while demand is below 13,000 megawatts.
In his speech, Tawfiq-e-Elahi Chowdhury said, “All the citizens of the country will get electricity as big power plants are under construction.”
He urged the companies to complete the projects on time.
Riva Ganguly Das said, “Relations with Bangladesh have reached a new height and this project is a sign of that. Investment in Bangladesh is very attractive and this project will inspire others to invest in Bangladesh.”
Among others, Md Abul Kalam Azad, principal SDG coordinator at the prime minister's office and Dr Ahmad Kaikaus, senior secretary of the Power Division, were present at the ceremony.
PBDB Chairman Khaled Mahmood preside over the program.