Bangladesh ropes in China Energy for 1,320-MW power project

18 July 2017 Week 28 Issue 416

Bangladesh’s state-run Ashuganj Power Station Company Limited (APSCL) and China Energy Engineering Corporation Limited have agreed to build a 1,320-MW coal-fired TPP in Patuakhali in Southern Bangladesh through a joint venture.


“APSCL and China Energy will have equal share in the proposed joint venture,” said Bangladeshi Power and Energy Minister Nasrul Hamid after signing a memorandum of understanding (MoU) with the representatives of the companies in Dhaka last week.

A final agreement is expected to be signed before the start of construction work for the project, he added.

The proposed 2x600-MW generating project is to be developed at Kalapara in coastal Patuakhali district at an estimated cost of US$2 billion, with a debt-to-equity ratio of 70:30.

The Chinese partner has agreed to arrange loans from the Export Import Bank of China for the project.

The ultra supercritical technology-based plant will be fuelled by the imported coal of around 12,000 tonnes of coal per day. The developer is looking to import coal from the countries such as Indonesia, India, and Australia.

Bangladesh’s state-owned West Zone Power Distribution Company Limited will a transmission line from the proposed plant to Patuakhali sub-station to connect the national power grid.

The first 660-MW unit is expected to be commissioned in 2021 and the second unit in 2013

This project will be second coal-fired power plant in Patuakhali district after the Payra project.

Another state-run North-West Power Generation Co Limited last year set up a 50:50 joint venture with China National Machinery Import and Export Corp. for development of a 1,320-MW coal-fired TPP at Payra.

The Chinese export import bank provided a US$1.6 billion loan for this project.

Both these projects are being developed as part of a plan to increases the country’s total power generation capacity to 40,000 MW by 2030, from the current level of around 13,500 MW.

According to Power Systems Master Plan 2016, 30% of the target capacity will be generated from coal-fired power plants while the remaining 70% is to come from other sources like hydropower, solar and imported power. APSCL currently operates several power plants with a total generation capacity of 1,876 MW, around 13% of the country’s generation capacity.

Edited by

Richard Lockhart


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