The government has taken an initiative to construct another 1200MW coal-fired power plant with two units at Matarbari in Cox’s Bazar by 2028 which will make the under-construction coal-based power plant at the same place economically viable.
To this end, the government is seeking Japan International Cooperation Agency’s (JICA’s) funding for installing the power plant, power division sources said.
Currently, state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL) is constructing a coal-fired power plant with capacity of 1200MW at Matarbari in Cox’s Bazar. It is expected that the first and second units of the power plant, each with a 600MW generation capacity, will go into commercial operation by January 2024, and July 2024 respectively.
The per unit power generation cost of the power plant will be around taka 12-13, which is more than furnace oil. However, two coal power plants are now underway, one is Payra with 1320MW and the other is Rampal with 1320MW. Both power plants generation cost will be around taka 6.
“To reduce the abnormal price, the government wants to construct the new power plant. If another power plant is constructed then it will be able to use the same infrastructure. As a result, the production cost will fall,” a power division official said.
An official said JICA has shown interest to invest in the new project of unit-3 and unit-4. Power division have already discussed about the issue with the Embassy of Japan in Dhaka and made a proposal in this regard. The government is giving top priority to Japanese involvement in development process.
A top CPGCBL official said, “The initial cost of the ongoing power plant will be high due to channel dredging and other expensive works. To reduce the generation cost of Matarbari, another power plant with two units willhave to be constructed.”
“If we can set up another power plant, it will require less amount of initial investment because the acquisition of land and development, building of infrastructure, excavating channels and jetty to offload coal and other major works are being done for the ongoing power plant. So, only equipment cost will be needed for the second power plant. As a result, the generation cost will be reduced, which will be more economically viable,” he added.
The official said some 1,608 acres of land has been acquired for the construction of the ongoing 1200MW power plant. Normally, some 350-400 acres of land is needed for a 1200MW power plant. However, around 4 times land has been acquired. The preliminary study on Matarbari power project conducted by JICA in July 2013 kept the provision for unit-3 and unit-4.
According to CPGCBL, the proposed construction of unit-3 and unit-4 of similar nature of Matarbari under-construction power plant will minimize the operation and maintenance cost of the plant. CPGCBL is implementing the ongoing project at a cost of Tk 35,984 crore, of which Tk 7,045 crore is coming from the government exchequer and CPGCBL fund, while the remaining Tk 28,939 crore as project assistance from JICA.
A total of 10 development projects, including a number of power plants and deep seaport schemes, will be implemented at Matarbari and Dholghat areas under Maheshkhali upazial of Cox’s Bazar. All these projects have been brought under a single project called “Maheshkhali-Matarbari Integrated Infrastructure Development Programme,” which has been included in the government fast-track project list. However the government has undertaken a number of coal-and LNG-based power plants across the country to generate 24,000MW electricity by 2021, 40,000MW by 2030 and 60,000MW by 2041.