Energy & Power

Report

Deal Signed for 240MW Siddhirganj Peaking Plant

The government has recently signed a deal with an Indian company to set up a Tk 1,133 crore power peaking plant in Siddhirganj. Electricity Generation Company of Bangladesh (EGCB), a subsidiary of the Power Development Board, made the deal with India's Bharat Heavy Electricals Limited.

If the project, partly financed by the Asian Development Bank, is implemented by the December 2008 deadline, the plant will add 240 megawatts of electricity to the national grid from its two units.

ADB will provide $109.864 million (about Tk 770 crore) for the project.

Chief Advisor Fakhruddin Ahmed has asked the Power Ministry to adopt a one-year energy sector action plan to improve the generation and supply of power.

Bangladesh has been going through a nagging shortfall of power for years, and the interim government is struggling to cope with increased energy demand in industrial and agriculture sectors.

Energy Advisor Tapan Chowdhury said the interim government would sign more deals, if necessary, to improve the sector, because the country's development depended on it.

"We'll give all-out support to you (Bharat Heavy) to help complete the plant in the shortest possible time," Chowdhury said at the signing ceremony.

He said the country must be freed from the constant power crisis to help sustain economic growth.

Indian High Commissioner Pinak Ranjan Chakravarty also oversaw the deal signing by two officials from the respective sides at PDB.

Bharat Heavy's Executive Director Ravindra Belapukar said the project would be complete on schedule.

The government floated the project tender in October.

The Indian company won the deal after its Chinese competitor Harbin Power Engineering pulled out of the race.

It is Bharat Heavy's second project in Bangladesh. Last year, it set up a 100-megawatt plant in Sirajganj.

According to project details, the cost per unit of power generation from the plant will be Tk 2.014 while the Power Development Board's average generation cost is Tk 1.96 per unit.

No Immediate Remedy to Power, Gas Crises: Tapan Chowdhury

Energy Advisor Tapan Chowdhury has ruled out any immediate solution to the current gas and power crises. He, however, said the government is taking some steps to help minimize the present crisis, caused by the short supply of both natural gas and electricity.

“There is no immediate solution to the ongoing problems regarding the gas and power and their supply in the country… But we are initiating some measures to improve the situation," he told newsmen after holding a meeting with senior officials of the Petrobangla and the Power Division to discuss the prevailing gas and power crises.

The advisor sat with the officials concerned against the backdrop of a gas scarcity that has been persisting for the past few days, hampering electricity generation and industrial output and causing sufferings to many owners of CNG-run vehicles and household users.

He expressed the hope that the present situation would improve within the next couple of weeks with an increase in the gas supply. He informed newsmen that production in the Sangu gas field was expected to rise by the early February while production from Bibiyana gas field would start by the next March.

Besides, the government has taken steps so that the Canadian company Niko Resources (Bangladesh) Limited - increases production from its Feni gas field, he said. The Niko has already expressed its intention to increase the gas production, Tapan Chowdhury said, adding that at the same time, the company had said that it was unable to do it due to non-payment of outstanding gas bill by the government.

"We have taken a move to make a partial payment of the arrears to the Niko so that it raises its gas production, Tapan told the media.
He, however, admitted that the country's overall electricity generation was being badly affected due to a short supply of gas.
The adviser also urged the domestic users and owners of shopping centres to be more rational in their electricity use in the backdrop of its current short supply.

At the same time, he said a crackdown on the defaulters of electricity bills is to be launched shortly.
Meanwhile, some owners of compressed natural gas (CNG)-run vehicles and household users of natural gas continued to face tremendous problems until Thursday due to the short supply of gas.

A low gas pressure forced a good number of CNG-filling stations to suspend their operation on the day.
Besides, the supply of gas continued to remain off for hours on Thursday in many places in Dhaka city.
According to official sources, the country's present demand for natural gas is estimated at 1600 million cubic feet per day (mmcfd) while the supply varies between 1500 mmcfd and 1515 mmcfd.

The Energy Division officials said the current short supply of natural gas is mainly due to the fall in production from the country's lone offshore gasfield - Sangu.
They mentioned that production in the Sangu gas field had declined by around 50 mmcfd over the last one year because of some technical faults.