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Bangladesh is likely to cancel the Joint Development Agreement (JDA) with German giant Siemens AG, Chinese CMC and USA firm Excelerate Energy, which was signed for setting up a mega 3600MW LNG-based power plant at Payra in Patuakhali district.
Siemens AG signed the deal with the state-owned North-West Power Generation Company Limited (NWPGCL) in September, 2018 in less than a year of singing a non-binding agreement in November 2017.
Later, NWPGCL included Chinese firm CMC and USA firm Excelerate Energy in the JDA in June 2020.
The JDA with Siemens AG already expired under section 9.1.3 as the project was yet to get significant progress, according to the NWPGCL sources.
But the NWPGCL completed feasibility study, ESIA study, LNG concept study, power evacuation and grid stability study to implement the project at 100 acres of land at Kalapara in Patuakhali district.
Besides, the Energy and Mineral Resources Division already decided to install two separate LNG terminals at Patuakhali, Petrobangla officials said.
Of the terminals, one will be implemented by USA firm Excelerate Energy and another by local energy giant Summit.
So, the NWPGCL board decided to cancel the JDA and implement the power plant by the state-owned NWPGCL in phases.
In an official letter to Power Division last week, Engr AM Khorshedul Islam, chief executive officer of NWPGCL, sought permission to cancel the JDA.
According to official sources, the NWPGCL already spent Tk 53.71 crore for development and acquisition of 100 acres of land.
Besides, it also spent Tk 1.31 crore for conducting LNG Concept Study under the external cost of the project.
Another ESIA Study was also completed at a cost of Tk 1.84 crore.
The NWPGCL board already decided to cancel the JDA and paid the external cost for reconciliation to Siemens AG at $131,503.
The state-owned NWPGCL suffered a huge loss as 1320MW coal-fired plant didn’t supply the power to national grid due to incomplete gridline at the Padma River crossing.
On Friday, the 1320MW capacity plant supplied 760MW during day time and another 850MW in the evening peak hours only to greater Khulna region, official data showed.
Consumers Association of Bangladesh (CAB) energy adviser Dr Shamsul Alam told the daily sun that the proposed cancellation of the agreement is as a part of allowing unsolicited deal to install a power plant.
The unsolicited deal caused a huge wastage in the country’s power sector and sufferings for the consumers.
(DS)
