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Three small power projects set to open


Posted on Saturday, September 30th, 2006 at 6:01 am
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When the country is reeling under more than 2,000 MW of load-shedding, the government is planning on formal inauguration of three power projects — including a half megawatt one.

While the half-megawatt project actually made a breakthrough in the remote hill tracts area, the two other power projects are neither new nor very promising.

Power Development Board (PDB) sources said other than laying the foundation stone, the ruling party leaders are unlikely to deliver any public speech at the three project sites.

The three projects are: 250MW Barapukuria coal-powered project built by a Chinese consortium, Fenchuganj 90MW power project being built by incompetent Chinese company Harbin and the half-megawatt Barakal hydroelectric power plant in Rangamati.

Sources said, Finance Minister M Saifur Rahman will inaugurate the ground-breaking of the Fenchuganj plant on October 3. The construction of this Tk 560 crore plant began six months back, upon advance down payment of Tk 56 crore to Harbin. This down payment was done last year in violation of the government’s own rules.

Deputy Minister for Chittagong Hill Tracts Affairs Moni Swapan Dewan will inaugurate the Barakal hydroelectric power plant on the 5th of next month.

Prime Minister Khaleda Zia will inaugurate the two-unit 250MW Barapukuria plant on the October 10.

The Barapukuria plant started generating power from January this year. However, due to poor and inappropriate machinery, the plant kept on tripping from the beginning. The two units of this plant cannot continue operation for long and earlier this month, both the units tripped.

The government awarded this power project to the Chinese consortium of CMC, SEC and SEEC under a Chinese Supplier’s Credit of about $188.1 million in July 2001, with a total project cost of $220 million. The price is at least $70 million more than any other power projects of similar size.

As per World Bank (WB) analysis, the capital cost of the Barapukuria plant’s per unit power would be $973 per kilowatt (KW) against other contemporary plants like AES Haripur ($500), Khulna ($551), Siddhirganj ($538), and Chandpur ($330) which are gas powered.

The first unit of the Barapukuria plant was supposed to be commissioned in October 2005 and the second one in January this year.

However, the first unit came on line in January, and started showing signs of under-performance. The second unit came into operation a few months later. But the plant could hardly reach optimal production as it kept on tripping. Since the plant is unable to function properly and consume the allocated amount of coal, its site is now piled with more than 1.20 lakh tonnes of coal.

According to the power plant sources, the installed machinery is not appropriate for the type of coal produced by the over-priced Barapukuria coal mine. Plant operators say that the coal contains more water and iron than initially perceived by the Chinese developers. As a result, the plant runs into trouble frequently.

Both the units of this plant went off-line two weeks ago. It is now functioning partially. Sources said the prime minister is unlikely to deliver any public speech at the inauguration ceremony of the plant.

Finance Minister M Saifur Rahman is set to inaugurate the 90MW Fenchuganj power plant now being developed by Harbin — the same company responsible for the junk-like 80MW Tongi power plant. The Tongi plant tripped over 80 times since its inception in March, 2005. Harbin has been also accused of bid price manipulation in other bids of the PDB.

Harbin won the sixth bid for the Fenchuganj power project when a Japanese co-bidder withdrew from the tender upon receiving zero response from PDB on its allegation of bid manipulation. Harbin was technically disqualified in the same project’s third bid.

After Harbin was awarded the tender in 2005, the government suddenly decided to give the company a down payment of Tk 56 crore or 10 percent of the project’s cost. Yet, in 2002 the government put a total restriction on making such down payments –identifying it as a corrupt system.

The development of the Fenchuganj project site began six months ago.

The 500KW mini hydroelectric power project in Rangamati, to be inaugurated by Moni Swapan Dewan on October 5, is something totally new in the country’s power sector.

Sources said the mini plant has been installed by the PDB itself at an approximate cost of Tk 70 lakh to bring power to remote areas that has no electricity. The power generator was brought from Nepal and it will provide power to about 200 households.

“This plant was launched during the World Cup football in June-July,” said a PDB official adding, “This is a model of how we can resolve lack of power supply in hilly areas having lakes and no distribution lines. The cost is very low and this can open a new horizon of economic activities here.”

The official said the PDB has also installed solar panels in that area.

However, the government is yet to fix any tariff for the mini hydroelectric power plant. This would create a problem with the PDB’s accounts unless resolved quickly.

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This entry was posted on Saturday, September 30th, 2006 at 6:01 am and is filed under Bangla, Bangladesh, Bangladesh Economy, Bangladesh News, Daily Bangladesh News, Economy, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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One Response to “Three small power projects set to open”

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    vahila Says:

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