Purchase committee clears 42.5MW waste-to-energy project

The Cabinet Committee on Public Purchase has approved 16 proposals, including the setting up of a 42.5 MW waste-to-energy plant and four solar power plants with the total capacity of 181 MW.

The approval came from a virtual meeting of the committee held on Wednesday with Finance Minister AHM Mustafa Kamal in the chair.

As per the approvals, Canves Environmental Investment Company Ltd, China, will set up the 42.5 MW waste-to-energy project at Kaultia, Gazipur from where state-owned Bangladesh Power Development Board (BPDB) will purchase electricity under a contract for over a period of 25 years at US21.50 Cents, equivalent to Tk 17.20, per kilowatt hour (peach unit).

The BPDB will have to spend Tk 14,408 crore to buy the power during the contract period.

Another three private companies will set up three separate solar parks at three places.

The BPDB will buy electricity from each of the projects at a tariff of US 10.60 cents, equivalent to Tk 8.48, considering US dollar rate at Tk 80, over a contract period of 20 years.

Of the projects, Bangladesh-China Renewable Energy Company (Pvt) Limited will set up a 60 MW grid-tied solar park at Suzanagar Upazila, Pabna, and a 68MW solar park at Sirajganj Sadar upazila while Cyclect Energy Pte. Ltd, Singapore will set up a 50MW solar park at Jibonnagar, Chuadanga.

The BPDB will have to spend Tk 1649.12 crore to buy electricity from the Suzanagar project, 1,798.48 crore from Sirajganj project and 13,22.40 crore from Jibonnagar project for buying electricity during the contract period.

The Western Renewable Energy Pvt. Ltd., will set up a 3MW solar-battery-diesel run hybrid power plant at Monpura upazila, Bhola from where the BPDB will buy electricity at Tk 21.25 per kilowatt hour over a period of 20 years.

It will have to spend Tk 459 crore to purchase electricity from the plant over the contract period.

The CCPP approved three separate proposals for the import of 90,000 metric tons (MT) of urea fertilizer and 30,000 MT of phosphoric acid by Bangladesh Chemical Industries Corporation (BCIC), and another three separate proposals for the import of 90,000 MT of MOP fertilizer by Bangladesh Agriculture Development Corporation (BADC).

Meanwhile, the Cabinet Committee on Economic Affairs approved in principle a proposal to implement the ‘Dhaka East-West Elevated Expressway’ project under the public private partnership.

The project cost was estimated at Tk 16,000 crore. It will connect the Dhaka-Aricha highway to Dhaka-Chittagong highway via Savar and Sonargaon, Narayanganj.