Orion Group has started the commercial operation of a 105-megawatt heavy fuel oil-based private power plant at Rupsha in Khulna.

The plant—Orion Power Rupsha Ltd—started supplying electricity to the national grid on October 9 while the commercial operation began on October 14 under a 15-year contract.

One of the leading independent power producers in the country, Orion has set up the plant within 307 days of signing an agreement with the government, according to a statement. With the project, Orion's contribution to the national grid now stands at 407MW.

The plant is equipped with six 18V50 engines newly introduced by Wartsila of Italy and Finland.

Wartsila provided fast-track deliveries and strong local-based expertise to complete the project at earliest, Orion said in the press release. “The capability of Orion's power project execution is commendable. The project will help the local industries to grow further and create new jobs,” said Jillur Rahim, managing director of Wartsila Bangladesh.

Among major equipment, boilers were supplied by Alfa Laval Aalborg (Finland and China), ABB (Sweden, Switzerland, Malaysia, Singapore, Vietnam and China), and Triveni (India). The financing of the project was raised with a mix of local and foreign sources: Mercantile Bank Ltd was the lead lender with participation of Mashreqbank psc of the UAE.

“We are delighted to be a part of the financing mechanism of such an important establishment for the country,” said Mati Ul Hasan, additional managing director of Mercantile Bank.

This is Mashreq Bank's third work with Orion, said Iqbal H Khanyari, head of the international corporate division of the bank. Previously, Mashreq provided a mid-term and a short-term loan to two of Orion's power plants.

The major challenge in the project was the construction of around 7km 132-kilovolt double circuit evacuation line, which is connected to the existing 132KV Goalpara-Bagerhat double circuit transmission line.

“The highly efficient project team has overcome all the challenges,” said Salahuddin Miaji, executive director of Orion Group. More power projects of the group are in the pipeline, according to Orion's statement.