The United Chattagram Power Ltd (UCPL), a joint venture between Bangladesh and Japan, signed deals with the state-run power and gas entities on Thursday to implement a 590-megawatt (MW) combined cycle power plant project at Anwara in Chattagram.
The UCPL inked power purchase agreement with the Bangladesh Power Development Board (BPDB), implementation agreement (IA) with the Power Division and the Power Grid Company Bangladesh Ltd (PGCB), and gas sales agreement (GSA) with the Karnaphuli Gas Distribution Company Ltd (KGDCL).
The deals were inked under special law bypassing competitive tender - at a function at Bidyut Bhaban in the city with BPDB Chairman Md Belayat Hossain in the chair.
The power plant will run either on natural gas or re-gasified liquefied natural gas (RLNG). Its electricity tariff will be Tk 2.95 or 3.686 US cents per unit (one kilowatt-hour), if it is run on natural gas, and Tk 5.44 per unit, if it is run on RLNG.
If the plant uses gas to generate electricity, the government will have to pay around Tk 283.71 billion for 22 years, and Tk 523.62 billion for the same period in case of RLNG usage.
The contractor will have to commission the power plant by January 28, 2026, and it will be able to operate the plant on a build-own-operate basis for 22 years.
The United Enterprises and Company Ltd has 60 per cent stake in the UCPL, while the Japanese Kyushu Electric Power Co Inc and Sojitz Corporation have 20 per cent stake each.
Power Secretary Md Habibur Rahman was the chief guest at the function, which was addressed, among others, by United Group Chairman and UCPL Managing Director Moinuddin Hassan Rashid and top officials of the power entities.
Speaking on the occasion, the BPDB chairman hoped that the UCPL would be able to implement the power plant project within the stipulated period.
The government has been encouraging private sector to implement power plant projects alongside the public sector.
Prime Minister Sheikh Hasina always gives importance to the contribution of private sector in power sector development, he added.
The power plant would help implement her commitment to ensure electricity for all, said Mr Rashid.
The Cabinet Committee on Government Purchase earlier approved the Power Division's proposal to implement the power plant by the UCPL in January 2019.
