Dhaka, Nov 5 (UNB) - State-owned North-West Power Generation Company Ltd (NWPGCL) on Sunday signed a memorandum of understanding (MoU) with German firm Siemens AG to jointly set up an LNG-based 3,600 MW power plant at a location near Payra seaport in Patuakhali.
The plant will be the largest one in the country under a single project.
State Minister for Power and Energy Nasrul Hamid, who addressed the signing ceremony, said the project has got the largest European investment in Bangladesh as it involves $4 billion.
He also said state-owned Power Development Board (PDB) is trying to sign a similar deal with Siemens for another same capacity power project.
The junior minister said many big companies from different countries like China, Singapore and Malaysia are showing interest to invest in Bangladesh’s power sector. “This proves that the foreign nations have confidence in the Sheikh Hasina government for the country’s development,” he said.
The function was also addressed by Prime Minister’s Energy Adviser Dr Tawfiq-e-Elahi Chowdhury, German Ambassador in Dhaka Dr Thomas Prinz, Power Secretary Dr Ahmad Kaikaus, PDB Chairman Khaled Mahmood, NWPGCL Managing Director Khurshid Alam, Siemens South Asia CEO Sunil Mathur and Siemens Bangladesh Managing Director Prabal Bose.
The German envoy said their foreign minister will visit Dhaka on November 19 to show Germany’s solidarity and support to Bangladesh for sheltering forcibly displaced Rohingyas who fled Myanmar.
He said Germany is not only economically supports Bangladesh but also politically.
Thomas Prinz expressed the hope that the proposed LNG-based 3600 MW power plant will boost the power generation in Bangladesh.
The function was informed that the proposed plant will be set up at a location adjacent to ongoing 1320 MW Payra Thermal Power Project in Dhankhali.
The project will be implemented in three phases with the first phase of 1200 MW coming into generation in June 2020 while the second phase of the same capacity in December 2020 and the third one of the same capacity in December 2021.
The project cost has been estimated at $2.8 billion where $2.4 billion is debt and $400 million is equity. The NWPGCL and Siemens will set up a separate joint venture company to implement the project on 100 acres of land.
Addressing the function, Dr Tawfiq-e-Elahi urged the two companies to consider introducing a new mechanism for heat recovery to use the exhausted heat of the plant for other purposes and setting up workshop for power plants in Bangladesh.