“Russia-Ukraine war has changed the pace of economy of the whole world. We are suffering, but many other countries are suffering more. Fuel price adjustments are hurting everyone. We are trying to get out of this problem quickly,” said State Minister for Power, Energy and Mineral Resources Nasrul Hamid.
He made the remark at an agreement signing ceremony to build 6-MW waste-based power plant at a hotel in the capital on Thursday.
Bangladesh Power Development Board (BPDB), the Narayanganj City Corporation (NCC) and Chinese firm U&D signed the agreement on behalf of their respective sides to develop the country’s second waste-based power plant.
The power plant will generate 6-MW of electricity from garbage of Narayanganj city and adjoining areas.
Welcoming the deal, LGRD and Cooperatives Minister M Tajul Islam said more such projects will be set up in different city corporation areas.
The LGRD Minister said, "The power plant is one of the projects that the Bangladesh government is going to undertake to protect the environment. Like this, work will be done in other municipalities and villages across the country. We have already identified 20 to 30 in this regard.”
“There are two factors involved in the generation of electricity from waste, such as the use of renewable energy and environmental protection. The work of generating electricity from waste will start in Dhaka North City Corporation area within the next one month. All the processes are over in Gazipur district too. Dhaka South City Corporation will also start work on such project soon. Besides, work is under process in Chattagram also,” he added.
Earlier, a similar agreement was signed in December last year between the BPDB, Dhaka North City Corporation (DNCC) and the Chinese firm CMEC to develop the country’s first ever waste-based power plant in Dhaka with electricity generation capacity of 42.5-MW from garbage in the capital.
As per the agreement, Narayanganj City Corporation will supply 600 metric tons of garbage to U&D plant to generate 6-MW electricity, which the BPDB will purchase at a rate of US20.19 Cents (about Tk 20 per unit) for a period of over 25 years.
A number of associated agreements were signed between the parties to implement the projects under which the NCC will also provide 10 acres of land to set up the incineration and power plant at Jalkuri in Narayanganj city while the U&D will complete the construction of the project and start commercial operation within 15 months from the financial closing.
Aimed at making a habitable and clean city, UD Green Energy (NCC Bangladesh) Company Limited, a joint venture private Consortium will build the waste-based power plant on build-own-operate (BOO) basis at Jalkuri in Narayanganj district.
Nasrul Hamid in his address minister said, “No one wants to increase inflation on purpose. In many countries, the rate of inflation has reached 10 to 20 percent. However, it is now around 8 percent in our country. Be patient for a few more months, we are trying to ensure uninterrupted power supply.”
Nasrul Hamid said, “The price of the electricity that will be purchased from the upcoming waste-based power plant will be around Tk 20 per unit. However, we will sell it for five to six taka. The government will provide subsidy here.”
“The main reason for this is that the Prime Minister wants a specific task for waste management all over the country. Today's project is due to her interest. Hope, Narayanganj will become an environment-friendly and model city after the completion of this project,” he continued.
Nasrul said, “We are going to renewable energy for power generation to overcome the crisis. Our goal is to generate 5,000-megawatt of electricity from renewable energy sources. For this reason, we have taken various types of initiatives.”
The junior minister also said, “We have already prepared a guideline for electric vehicles. Once finalized, we will proceed further. Electric vehicles are more efficient than oil-powered vehicles. So, we are giving importance to it. Many countries around the world are also working on hydrogen. We are also thinking about it.”
Narayanganj City Corporation Mayor Selina Hayat Ivy said, “After a long wait of 11 years we are going to get the power plant. For this, we have acquired 23 acres of land. After completion of work on this power plant, there will be no more waste in Narayanganj. Besides, we want to work for the development of Shitalakshya River.”
BPDB Chairman Mahbubur Rahman said that electricity will be purchased from the power plant according to no-electricity no-payment basis, which will be implemented within 455 days after the signing of the agreement.
Among others, Chinese Ambassador Li Jiming, LGRD Secretary Mezbah Uddin Chowdhury and Power Secretary Habibur Rahman also spoke at the event.
The Bangladesh Power Development Board (BPDB) will purchase electricity from the plant at US20.91 cents per kilowatt-hour (each unit) which is equivalent to Tk19.86 for a period of 20 years.
Four Project Agreements including IA (Implement Agreement), PPA (Power Purchase Agreement), Land Utilization Agreement (LUA) and Waste Supply Agreement (WSA) were signed at the event.
The Cabinet Committee on Public Purchase on September 16, 2020 had approved a proposal of a private bidder to set up a waste-based plant on build-own-operate (BOO) basis in Narayanganj. After that the government had issued LOI (Letter of Intent) on October 11 in the same year.
