Sembcorp signs PPA for Sirajganj 4 power plant
The Government of Bangladesh has signed two deals concerning the 414 MW dual-fuel (gas and high speed diesel, HSD) combined cycle power plant in Sirajganj.
The plant will be developed by a consortium of Singapore-based Sembcorp Utilities Pte. Ltd. (Sembcorp) and Bangladesh-based North West Power Generation Company Ltd. (NWPGCL), under a special purpose vehicle (Sembcorp North-West Power Generation Company Ltd), of which Sembcorp has 71% ownership.
The first deal is for the construction of the plant and it was signed by the Power Division and Sembcorp North-West. The second deal consist of a power purchase agreement (PPA) and it was signed between Bangladesh Power Development Board (BPDB) and Sembcorp North-West. PDB will purchase electricity from the plant at the tariff rate of BDT3.188 (US$0.04) per unit (kilowatt-hour) for 22.5 years.
The plant will include one Gas Turbine (GT) unit; one set of heat recovery steam generator; one steam turbine generating unit with associated auxiliary equipment; fuel gas transportation, compression and conditioning system; HSD system; cooling water system; and water treatment facility. A 230 kV substation connects the complex to the national transmission system and the 30” East-West gas pipeline crossing the Jamuna Bridge is located 1.6 km away from the site.
The simple cycle unit of the power plant is expected to be operational in June 2018, with combined cycle commercial operations targeted to commence by February 2019.
The total investment of the project is expected to be US$412.5 million. Sembcorp North-West will borrow 75% of the project cost from international lenders, and will fund the rest of the amount.
The Sirajganj site was developed as a major power generation complex in the north-west region of Bangladesh; NWPGCL is already operating a 225 MW plant within the same complex and will shortly commence construction of another project there in early 2016. The project will thus be the third power project to be located within the Sirajganj complex.
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