Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Friday, May 24, 2019 11:31:04 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Thriving power sector

Foreign cos in race for investment

By
25th-May-2019       
Comments
Share your thought
Post a comment »
Read all () »

Kazi Zahidul Hasan :
Foreign companies have raced to invest in the country's power sector as the government aims to generate 60,000MW of electricity by 2041.
Companies from Russia, Britain, Germany, Japan, China, India and the United States have already joined the race by signing investment deals with Bangladeshi authorities to set up mega power plants here.
The country would require investment worth US$40 billion to increase electricity generation to 60,000MW by 2041, officials said.
Russian state-owned firm Rosatam Atomic Energy Corporation is already investing US$12.65 billion in the country's lone nuclear power plant (2,400MW) at Rooppur. India, China and Japan are also investing in power plants in the country. These four countries are now installing the several largest power plants in the country.
Besides, many foreign companies are knocking at the doors of the Ministry of Power, Energy and Mineral Resources regularly considering boundless opportunities for investment in local power sector, officials said.  
"The power generation capacity of the country has reached over 16,000MW and the government is working relentlessly to raise the capacity to 24,000MW by 2021," State Minister for Power, Energy and Mineral Resources Nasrul Hamid Bipu told The New Nation on Friday.
He said the government also targets to achieve affordable electricity for all by 2021.
By 2030, the country's power generation capacity will reach 40,000MW and by 2041 it will go up further to 60,000MW.
"We will require huge investment in power sector to achieve the goal," said Nasrul Hamid Bipu, adding, "The government is looking for both foreign and private investment for the country's power sector development."  
He cited that the government has already brought a number of reform measures for attracting investment of foreign companies in power sector.
"Bangladesh has become an ideal place for foreign investment. The investment-situation here is now far better than any time in the history. So, various countries are now showing their interest to invest in the country's power sector," said the State Minister.
In July 2017, the Coal Power Generation Company Bangladesh Limited (CPGCBL) signed a contract for construction of 1,200MW Matarbari coal-fired power project at US$4.5 billion project with Sumitomo-led Japanese consortium.
The Matarbari Coal-fired Power Project is the country's second largest investment project, next to Rooppur Nuclear Power Project, funded by JICA.
The first unit of the 1,200MW power plant with 600MW capacity would be commissioned by December 2022 and the other by June 2023.
In May last year, Bangladesh Power Development Board (BPDB) signed a joint venture agreement with China Huadian Hong Kong Company Ltd (CHDHK) to construct a 1,320-megawatt (MW) coal-fired power plant at Maheshkhali in Cox's Bazar at a cost of U$2.0 billion.
Earlier in November 2017, the cabinet approved a joint venture agreement between Bangladesh's state-owned Rural Power Company Ltd and Norinco International China to build two power plants to produce 1320 mw electricity.
The plants will be constructed at Paira  in Patuakhali.
Besides, China's energy giant PowerChina in January this year signed an agreement and a contract with GCM Resources, a leading British resource exploration company, for development of a coal-fired power plant in Bangladesh's northern district Dinajpur.
The proposed project is part of a broader strategy by GCM to generate 6,000 MW of low cost electricity for the Bangladesh market utilizing domestic coal, according to media report.
American company GE also singed a deal with BPDB last year to build a 3600MW power plant LNG-based power plant on Moheshkhali Island in Cox's Bazar.
The plant will cost US$ 2.8 billion, according to details of the memorandum of understanding signed between the GE and BPDB.
Neighbouring India also joined the race to construct 1320 MW Rampal Power Project. Indian state-owned firm National Thermal Power Company (NTPC) formed a joint venture with Bangladesh Power Development Board to implement the project by 2019 at an estimated cost of US$ 1.6 billion.
In February this year, Bangladesh's North-West Power Generation Company signed a deal with Siemens AG of Germany to build an LNG-based power plant in Patuakhali's Payra.
The estimated cost of the 3,600 megawatt plant is $2.8 billion and 80 per cent of the cost is expected to come from loans and rest will remain as equity.
In July last year, Bangladesh Power Development Board (BPDB) inked a memorandum of understanding of worth US$4.4 billion to build 3,600MW power plant.
Although many global players are in the scene, China appears to be winning the competition as Bangladesh's largest partner in power sector development after signing of major deals with Bangladesh government.
Bangladesh received a record $3.61 billion last year as foreign direct investment (FDI), a rise by 68 per cent from 2017. Of the amount, power sector alone attracted investments worth $1.01 billion, where China's contribution was $834 million, according to an official figure.
"The government is now focusing on implementing mega power plants for raising the electricity production by 24,000MW by 2021 when the country will be celebrating the golden Jubilee of its Independence," said Nasrul Hamid Bipu adding that ten of such power plants are now under implementation."
When asked, he said that implementation of power projects faced delays due to technical and financial problems.
"We have resource constraint. So, we are encouraging foreign investment to implement base load power plants in the country," he said.   
Officials said that the government is expecting about US$15 billion investment in its power sector in the next five years. The investment will be used to build power projects and power sub-stations and set up transmission and distribution network across the country.
Countries like Singapore, Malaysia and Saudi Arabia have also promised to invest in Bangladesh's power sector.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

DMP fails to discipline city roads


TRAFFIC jam is a common scenario almost everyday in the capital city Dhaka. Usually, it intensifies every year during the Ramzan. This year it is no exception. But sufferings of commuters have been increased manifold this year because of constructing metro rail projects and unplanned digging in different areas under ...

Cricket »

T20 kings West Indies seek to make fresh World Cup mark


Can the West Indies take the form that has made them such a potent force in Twenty20 cricket into the World Cup?That is the question confronting Jason Holder's side as they head into the one-day showpiece in England and Wales that starts on May 30.The Caribbean team, who open their ...

International »

May clings to power as Brexit gambit backfires


Reuters, London  :Prime Minister Theresa May was clinging on to power on Thursday after her final Brexit gambit backfired, overshadowing a European election that has shown a United Kingdom still riven by division over its EU divorce.May's departure will deepen the Brexit crisis as a new leader is likely to ...

Entertainment »

Momtaz performs with her daughters at Eid Ananda Mela


Entertainment Report :Legendary folk singer and Member of the Parliament Momtaz Begum has been passing best time in her career. Recently her mother Uzala Begum got Gorobini Maa award on International Mother’s Day. Basically Momtaz is delighted with her success. On May 19, Momtaz along with her two daughters - ...

Editorial »

BB failing to lead banking sector


WHEN there are huge frustrations among the political circle, civil society members and the ordinary masses over ongoing banking irregularities, at that time the High Court has halted the loan rescheduling facilities for defaulters till June 23, earlier offered by the central bank, the Bangladesh Bank. The HC on Tuesday ...

Sports »

With the world at her feet, Osaka takes Paris in her stride


AFP, Paris :Twelve months ago at Roland Garros, an embarrassed Naomi Osaka bristled at being hailed as the 'coolest thing' in tennis.Now, however, the 21-year-old Japanese returns to Paris as comfortably the sport's hottest ticket with the world number one billing, a bank balance bursting at the seams and on ...

International »

Top officials say US doesn't want war with Iran


AP, Washington :Top Trump administration officials have told Congress that recent actions by the U.S. have deterred Iranian attacks on American forces. But some lawmakers remain deeply skeptical of the White House approach in the Middle East.After Tuesday's closed-door briefings on Capitol Hill, Secretary of State Mike Pompeo and Acting ...

Entertainment »

Samantha Akkineni’s Oh Baby first look unveiled


The first look of Samantha Akkineni’s upcoming film Oh Baby is unveiled on a special occasion. Suresh Productions, one of the reputed banners of the Telugu Film Industry, which was established by late producer Rama Naidu, has completed 55 years in the industry. On the occasion of this big day, ...

Editorial »

Why youths taking life risk to get a job in foreign lands?


STATE Minister for Foreign Affairs yesterday said the government has taken zero tolerance policy against illegal migration. "Our government will not tolerate any illegal practices in migration. Even a single case of harassment and a life lost is important... one success story of reaching Europe illegally cannot be an example ...

City »

Bangladesh Sammilita Peshajibi Parishad formed a human chain in front of the Jatiya Press Club on Tuesday demanding release and proper treatment of BNP Chief Begum Khaleda Zia.


Football »

Japan's Honda quits Melbourne Victory after one season


AFP, Melbourne :Japanese superstar Keisuke Honda Tuesday announced he will leave Melbourne Victory this week after one season as he pursues new challenges.The former AC Milan striker, one of the highest profile names in Asian football, was an instant hit with fans, with his early season form drawing rave reviews.However, ...

International »

India's Congress urges workers to ignore ominous exit polls, be vigilant


Reuters, New Delhi :India's main opposition Congress party has told its workers not to lose heart and to remain vigilant at vote-count centers after exit polls predicted a clear election victory for Prime Minister Narendra Modi.The counting of votes cast in the seven-phase general election will take place on Thursday, ...

National »

EED implements Tk 2259.12 cr uplift schemes in Rajshahi divn


BSS, Rajshahi :Education Engineering Department (EED) has implemented 5403 schemes involving around Tk 2259.12 crore in over last ten years in all eight districts under Rajshahi division.Implementation works of 503 other schemes are progressing with an estimated cost of around Tk 210.45 crore. Mijanur Rahman Engineer of EED, here said ...

Business & Economy »

Gazi Yar Mohammed, Agent Banking Head of ONE Bank Limited and Meskat Hossain Rakib, Director of Piickme Limited, exchanging an agreement signing document at the corporate office of the Bank in the city recently. Under the deal, OK Wallet customers will be able to make ride sharing payment and enjoy cash back and attractive prizes.


Entertainment »

Sonam Kapoor's first look from Cannes 2019


Bollywood actor Sonam Kapoor took time out for a brand photoshoot on her day two of Cannes 2019. The actor shared photos from the French Riviera on her social media accounts. Her sister Rhea Kapoor too shared photos as the Bollywood diva got ready for the photoshoot of a perfume ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news