Govt to Resume Construction of Power Plant in Nilphamari

Industry: Energy & Power, Power

The government of Bangladesh is considering the resumption of construction for a 150 MW simple cycle power plant in Syedpur, Nilphamari, despite its earlier decision to move away from high-cost power plants. A Project Evaluation Committee (PEC) meeting will be held soon to discuss the restart of the project, which was halted during the Covid-19 pandemic.

The revised project will be implemented by the Bangladesh Power Development Board (BPDB) if approved. The estimated cost of the project has increased by Tk 248.92 crore, with the government providing Tk 309.31 crore, BPDB Tk 376.50 crore, and Tk 564.10 crore to be funded through loans. This decision contradicts the government’s plan to focus on constructing cost-effective combined cycle power plants rather than high-cost diesel-fired simple cycle power plants. The move has raised concerns among experts, as more electricity can be generated with the same amount of fuel in combined cycle power plants compared to simple cycle power plants. The production cost per unit for diesel-based plants is significantly higher compared to gas-based plants.

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