1,320 MW plant in Rampal likely to be set up thru buyer’s credit
Dhaka, July 21 (UNB) - The proposed 1,320 MW coal-fired joint-venture power plant project in Rampal of Khulna region is likely to be implemented under “buyer’s credit” financing, official sources said.
According to the sources, the plan for costly buyer’s credit financing was taken during the visit of a Bangladesh delegation to India last week.
Dhaka and New Delhi had agreed to build the power plant in Rampal, only 15 kilometres off the world heritage site, the Sundarbans.
The Power Development Board (PDB) of Bangladesh and the National Thermal Power Corporation (NTPC) of India have been entrusted with the job to implement the project. They signed an agreement in January this year in this regard.
Environmentalists are opposing the proposed power plant, claiming it will be harmful to the Sundarbans and local ecology.
Sources said sensing lack of interests from international donors like World Bank and Asian Development to finance the coal-fired power project, both the Bangladeshi and Indian sides have opted for implementing the project through buyer’s credit, said a source.
Under the buyer’s credit financing system, selected contractor will arrange the required finance for the project and execute it on a turnkey basis. But the cost of buyer’s credit financing is relatively higher than that of international donors.
Chairman of the state-owned PDB ASM Alamgir Kabir led the Bangladesh delegation to India which included officials of Power Ministry and Power Grid Company of Bangladesh (PGCB).
They discussed some issues relating to the proposed power plant to be set up in Bangladesh under joint venture with NTPC.
Recently, a joint venture company named Bangladesh India Friendship Power Company has been formed to implement the project, but the registration process of the company has not yen been completed.
After setting up the power plant, Bangladesh will buy entire electricity from the project.
Official sources said different important issues like financing of the project, the modalities of the Implementation Agreement (IA) and the Power Purchase Agreement (PPA) for purchase of power from the proposed power plant dominated the talks with Indian side during the Bangladesh team’s visit.
A top official, who was a member of Bangladesh delegation, claimed that they made substantial progress in the way to sign IA and PPA deals.
Though Bangladesh and India signed the agreement about two years ago for the project, its implementation has been facing serious hurdles from different sides.
While they signed the agreement, initially the project was planned to be implemented within 2-3 years and put in operation by 2013-14. But now both the Bangladesh and India authorities have deferred the implementation of the proposed 1,320 MW coal-fired power plant by two years and set a timetable of project implementation by 2016.
Meanwhile, the environmental groups have started campaign against the proposed power plant, fearing that it will be a serious blow to the ecology and environment for the world heritage site, the Sundarbans, as the plant’s site is very close to the largest mangrove forest of the world.
The main opposition BNP has already raised its voice against the joint venture power project considering it an anti-state deal against the country’s environment and ecology.
According to the sources, the plan for costly buyer’s credit financing was taken during the visit of a Bangladesh delegation to India last week.
Dhaka and New Delhi had agreed to build the power plant in Rampal, only 15 kilometres off the world heritage site, the Sundarbans.
The Power Development Board (PDB) of Bangladesh and the National Thermal Power Corporation (NTPC) of India have been entrusted with the job to implement the project. They signed an agreement in January this year in this regard.
Environmentalists are opposing the proposed power plant, claiming it will be harmful to the Sundarbans and local ecology.
Sources said sensing lack of interests from international donors like World Bank and Asian Development to finance the coal-fired power project, both the Bangladeshi and Indian sides have opted for implementing the project through buyer’s credit, said a source.
Under the buyer’s credit financing system, selected contractor will arrange the required finance for the project and execute it on a turnkey basis. But the cost of buyer’s credit financing is relatively higher than that of international donors.
Chairman of the state-owned PDB ASM Alamgir Kabir led the Bangladesh delegation to India which included officials of Power Ministry and Power Grid Company of Bangladesh (PGCB).
They discussed some issues relating to the proposed power plant to be set up in Bangladesh under joint venture with NTPC.
Recently, a joint venture company named Bangladesh India Friendship Power Company has been formed to implement the project, but the registration process of the company has not yen been completed.
After setting up the power plant, Bangladesh will buy entire electricity from the project.
Official sources said different important issues like financing of the project, the modalities of the Implementation Agreement (IA) and the Power Purchase Agreement (PPA) for purchase of power from the proposed power plant dominated the talks with Indian side during the Bangladesh team’s visit.
A top official, who was a member of Bangladesh delegation, claimed that they made substantial progress in the way to sign IA and PPA deals.
Though Bangladesh and India signed the agreement about two years ago for the project, its implementation has been facing serious hurdles from different sides.
While they signed the agreement, initially the project was planned to be implemented within 2-3 years and put in operation by 2013-14. But now both the Bangladesh and India authorities have deferred the implementation of the proposed 1,320 MW coal-fired power plant by two years and set a timetable of project implementation by 2016.
Meanwhile, the environmental groups have started campaign against the proposed power plant, fearing that it will be a serious blow to the ecology and environment for the world heritage site, the Sundarbans, as the plant’s site is very close to the largest mangrove forest of the world.
The main opposition BNP has already raised its voice against the joint venture power project considering it an anti-state deal against the country’s environment and ecology.
Comments
No Comments on this News
