China Machinery Engineering Corporation (CMEC)'s proposal to generate 42.5 MW electricity from the waste of Dhaka North City Corporation (DNCC) has been approved.
The Cabinet Committee on Public Procurement approved the proposal on Thursday.
Based on "No Electricity, No Payment," Bangladesh Power Development Board will purchase electricity generated in this project at a cost of US$0.2178 (Tk18.29) per unit for the next 25 years.
The DNCC will provide 30 acres of land and 3,000 tonnes of wastes per day to the company for the power generation.
In the event of failure to supply the required waste, the City Corporation must pay a Tk 1,000 fine per tonne of waste. Similarly, if the company does not use the waste, it must pay a fine of Tk1,000.
In a bid to prevent environmental pollution, CMEC will implement EU 2010/75/EY standard and purchase an additional 20 acres of land to construct an ash yard at its own expense. It will also construct a 12 km 132KV transmission line and GIS Bay for the 42.5MW waste power project.
It is worth noting that the country currently produces 416.22 MW of energy from solar sources, 2.9 MW from air, 230 MW from hydropower, 0.63 MW from biogas, 0.4 MW from biomass.
Earlier, in September, the Public Procurement Committee approved another 6-megawatt project at Jalkuri in Narayanganj, where the unit price of electricity has been fixed at Tk17.56.