Deals with private sponsors for 10 small power plants signed

The government yesterday signed deals with private sponsors to set up 10 small power plants across the country, having total capacity of about 200MW.
The private sector sponsors will set up the plants, each with 10 to 30MW capacity, at 10 separate locations on `Build-Own-Operate' (BOO) basis.
The Power Ministry yesterday cancelled the 450-MW Meghnaghat phase-II power plant, which was awarded to BON Consortium by the immediate past BNP-led alliance government to install the plant on BOO basis.
An official of the Power Division told UNB that the BON Consortium was given a letter yesterday communicating the government decision cancelling the project for “non-compliance” with the terms and conditions set in the Implementation Agreement (IA).
To implement the 10 small power projects, four types of separate agreements were signed between the officials of different government agencies and each of the 10 private sponsors of the SPPs.
These are Implementation Agreement (IA), Land Lease Agreement (LLA), Power Purchase Agreement (PPA) and the Gas Sales Agreement (GSA).
Joint Secretary (development) of the Power Division signed the IA, the PDB Secretary signed the LLA and PPA, and the officials of gas companies signed the GSA on behalf of their respective sides at a simple function at the Power Cell office, which processed the projects as coordinating agency.
Among the projects, local Summit Group will set up four plants - a 10MW plant at Ullapara in Sirajganj, three 30-MW plants at Jangalia in Comilla and Rupganj in Narayanganj and Maona in Gazipur.
Asian-Entech Power Corporation Ltd (AEPCL) will set up three plants, each of 20MW capacity, at Feni, Tangail and Narsingdi.
Saiham Textile will set up a 10MW plant at Mohipal in Feni and Regent Textile install a 20MW plant at Barabkunda in Chittagong.
Energypac-Confidence Power Venture will set up a 10MW plant in Habiganj.
State-owned Power Development Board (PDB) will purchase electricity at different rates from the projects for next 15 years.
The Power Ministry selected the 10 private sponsors through the bidding process few months back for the proposed plants.
The 10 proposed power plants with a total of 200MW capacity will be added to the national grid by the middle of next year.
As per terms and conditions, the private entrepreneurs will have to install and start commercial production from their respective plants within eight months from the date of signing of the agreements.