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Dhaka Monday,  Sep 20, 2021

Plan to construct 2nd power plant to reduce cost of Matarbari project

The per unit power production cost at Matarbari is Tk 13; if power is produced with imported coal then expenditure will be double compared to the manufacturing cost with furnace oil.
To reduce the abnormal price, the government wants to construct another power plant. To establish this power plant, the government has asked loan assistance from Japan International Co-operation Agency (JICA). The matter has been discussed by PM Sheikh Hasina during her ongoing Japan trip.
To reduce the production cost of Matarbari, another power plant will have to be constructed; the acquisition of land, payment of compensation, building of infrastructure, excavating channels and jetty to offload coal are being done with JICA funding.
It’s been said, the per unit power production cost with imported coal will be around Tk. 6.5. But at Matarbari, the cost will be Tk 13.5. If another power plant is constructed then it will be able to use the same infrastructure. As a result, the production cost will fall.
In Matarbari, 1200 megawatt plant is being constructed by Coal Power Generation Company of Bangladesh, CPGCBL, with funds from JICA.
The government wants to construct another plant here.
They have already asked the Economic Relations Department, ERD, to provide funding for the second phase.
ERD has given a letter to JICA through the Japanese Embassy.
The expected cost of the project is Tk 359.84 billon, of which, JICA is giving Tk 289.39 billion.
The rest Tk 70.45 billion will be given from Bangladesh government and CPGCBL.
Sumitomo Corporation, Toshiba and IHI Corporation of Japan are building the consortium. For this, 1608 acres of land have been acquired.
Secretary Ahmed Kaikaus, says: “to make this economically viable, two more units will be planned and once there are two plants, the whole project will be feasible. The extra expenditure is due to the construction of a port and other infrastructure.”
Relevant to mention, PM Sheikh Hasina left for a three-country tour on 28 May, starting with Japan; she is accompanied by state minister for power, energy and mineral resources, Nasrul Hamid. In the 12 day tour, she will also visit Finland and Saudi Arabia.

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