Orion Group has signed two separate agreements worth $191 million with GE of the USA and Doosan of South Korea for suplply of steam and boiler turbine generators for its 660 MW coal-based power plant in Munshiganj.
GE will provide the steam turbine generator worth $66 million, while Doosan the boiler turbine generator worth $125 million for Orion Power Dhaka Ltd.
The agreement with GE was signed in Mumbai, India on May 1. Orion Group Managing Director Salman Obaidul Karim and GE Vice President Vishal K Wanchoo signed the deal in presence of GE Chairman and CEO Jeffrey R Immelt.
The agreement with Doosan was inked by Salman Obaidul Karim and Doosan's CEO Lee Hwang Jik.
Orion Group Chairman Mohammad Obaidul Karim was present on both occasions. Orion is currently operating 300MW heavy fuel oil-based power plants. The company is also implementing two 660MW coal-based private power plants in Dhaka and Khulna.
Last month Orion signed similar agreements with Alstom of France and Doosan for its Khulna power plant worth $189 million.
As per the agreements, Orion has made 2.5 percent down payments to these companies to prepare the primary designs of the turbines within four weeks. After the design is prepared, Orion would make another 5 percent down payments to its contractors.
According to Salman Karim, the company is expected to get environmental clearance by June. This clearance would pave the way for Orion to get 80 percent project cost from Korean Exim, US Exim and Chinese Sinosure.
US-based AECOM, a global provider of professional, technical and management support services, has conducted the environment studies for both plants and submitted its environment reports to the government in mid April.
The two projects would require investment worth $1.65 billion -- making them the biggest private power investment in the country till date.
Both the power plants would be run by coal imported from Indonesia and are expected to come into full operation from March 2016.