The state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL) inked a major deal with Japanese firm Sumitomo Corporation, Toshiba Corporation and IHI Corporation for constructing the country’s ever largest coal-fired power plant in Matarbari.
“We signed the EPC (Engineering Procurement and Construction) contract on July 27 with Japanese firm Sumitomo Corporation, Toshiba Corporation and IHI Corporation for constructing Matarbari Coal-Fired Power Plant,” Managing Director of CPGCBL Md Abul Quasem told.
On completion, the coal-fired Matarbari plant will have an installed capacity of 1,200MW, with two units having a capacity of 600MW each.
The project also includes a deep-sea port near the plant for handling coal imports for the plant.
The Matarbari Coal-fired Power Project is the country’s second largest investment project, next to Rooppur Nuclear Power Project, funded by Japan International Cooperation Agency (JICA).
JICA will provide $4.56 billion for the project when the government would arrange necessary additional funding.
On July 6, JICA, the lending agency of the country’s second largest project, approved the evaluation report of the financial proposals, said officials.
The government started designing the Matarbari 1200MW plant project in 2010 and completed the feasibility study in September 2013.
The first unit of the 1,200MW power plant with 600MW capacity would be commissioned by December 2022 and the other by June 2023.
Officials said the government attached top priority to the Matarbari power project and the plant would be built after addressing all environmental concerns with effective measures.
State Minister for Power, Energy and Mineral Resources Nasrul Hamid stressed for taking rehabilitation initiative for local people, adding, “We have to accommodate salt traders and local people by providing jobs and other scopes.”
The government has identified Moheshkhali Island in the Bay of Bengal as an energy hub by implementing there a cluster of projects including power plants and liquefied natural gas (LNG) terminal to boost the country’s overall economy.
It has also a plan to build a deep sea port near Moheshkhali at Sonadia island in the Bay.
A number of countries and multinational firms have already shown interest to invest in projects to be implemented near Moheshkhali island, he said.
Finance Minister Abul Maal Abdul Muhith today expressed his hope in August that development work at Moheshkhali Island will increase financial and job security with the construction of a 1,200-MW Matarbari power plant.
Prime Minister’s Energy Adviser Dr. Tawfiq-e-Elahi Chowdhury said the Moheshkhali would be a developed area like Singapore because the government is implementing many projects there.