Bangladesh-China Power Company Limited is searching for buyer of dry ash to be produced from the under construction 1,320-megawatts (MWs) coal-fired thermal power plant at Payra in Patuakhali.
The first unit of the power plant, having the capacity of 660 MWs, is expected to be commissioned by December 2019.
BCPCL, the executing agency of the Payra power plant, is now receiving bids from interested buyers to sell dry ash for five years having the option to extend contract by five more years.
The bid submission deadline has been extended to September 15 following request from some potential buyers, said a senior company official.
BCPCL is a joint venture between Bangladesh's state-run North-West Power Generation Company Ltd and China's China National Machinery Import and Export Corporation, or CMC, having 50:50 equity.
The proposed power plant is some 320 kilometres south of Dhaka and close to the proposed Payra seaport.
The BCPCL has been providing 20 per cent equity to implement the power plant project and the remaining 80 per cent is being sourced as loan from Exim Bank of China.
The power plant would require around 12,000 tonnes of coal a day to generate electricity.
The government has issued a US$ 1.0 billion worth of state guarantee in favour of Chinese loan for implementing the power plant project.
It has allocated 998.77 acres of land to NWPGCL for implementing the project on a turnkey basis by using eco-friendly ultra supercritical technology.
The country would be importing coal from Indonesia's PT Bayan Resources for generating electricity.
First coal cargo from the Indonesian firm is expected to reach the Payra port next month. Coal price would be tagged with the NewCastle international coal price index having discount of up to 60 per cent depending on the price movement.
Discount would increase if the coal price in the international market goes up and that will decrease if the price slides.
