Supplement, Oil & Energy

BCPCL seeks dry ash buyers for Payra Power Plant

Published : 31 Aug 2019 06:45 PM | Updated : 07 Sep 2020 10:30 AM

Bangladesh-China Power Company Limited (BCPCL) is searching for buyer of dry ash to be produced from the under construction 1,320MW coal-fired power plant at Payra in Patuakhali.

BCPCL, a joint venture company with NWPGCL of Bangladesh and CMC of China, is constructing the $2 billion power plant with the financial support of China's Exim Bank. Its current physical progress is around 85 percent. 

The first unit of the power plant, having the capacity of 660 MWs, is expected to be commissioned by December 2019.

BCPCL has floated a tender to sell dry ash for five years having the option to extend contract by five more years. The bid submission deadline has been extended to September 15 following request from some potential buyers, said a senior company official.

The proposed power plant is some 320 kilometres south of Dhaka and close to the proposed Payra seaport.

The BCPCL has been providing 20 percent equity to implement the power plant project and the remaining 80 percent is being sourced as loan from Exim Bank of China.

The power plant would require around 12,000 tonnes of coal daily to generate electricity. BCPCL would import around 4.0 million tonnes of coal from Indonesia annually to run the power plant. First coal cargo from the Indonesian firm is expected to reach the Payra port next month.

The plant will use sub-bituminous coal, whose calorific value is 4700-5500 Kcal. This type of coal is chiefly abundant in Indonesia and Australia. 

The government has issued a $1.0 billion worth of state guarantee in favour of Chinese loan for implementing the power plant project.

The government has also allocated 998.77 acres of land to the NWPGCL for implementing the project on a turnkey basis by using eco-friendly ultra-super critical technology.