Bangladesh and India Finally Ink Deal for 1,320 MW Coal Plant
The joint venture Bangladesh India Friendship Power Co. (BIFPCL) will soon start primary works to set a 1,320 MW coal-fired power plant at Rampal in Bagerhat district, near the Sundarbans mangrove forests.
The state-owned Power Development Board of Bangladesh and the state-managed National Thermal Power Co. (NTPC) of India are the partners of the joint venture BIFPCL, formed in January this year.
Different agreements on the financing of the project, the modalities of the implementation agreement and the power purchase agreement for purchase of power from the proposed power plant by the PDB will be required to be signed before the joint venture entity gets off the ground, the official said.
The agreements will be signed after the government purchase committee approves the terms and conditions in the light of the proposals made for the purpose of IA and PPA. The purchase committee is set to take up the issue in its next meetings, the official said.
If everything goes ahead undisturbed, the $1.5 billion coal-fired power plant is likely to be operational by end 2016. Initially, the project was planned to be implemented within two to three years’ time for becoming operational by 2013-14.
The coal for the plant will be imported from Indonesia or Australia. For this purpose, the company will have to make appropriate arrangements for a secured long-term import agreement.