The contract type and the project duration of the Saidpur 150 Megawatt (MW) Simple Cycle HSD (High-Speed Diesel-based) Power Plant development project have been changed yet again.
According to sources at the Ministry of Power, Energy and Mineral Resources (MoPEMR), the Finance Division under the Ministry of Finance has provided the Tk 564 crore-worth Letter of Acknowledgement of a Chinese loan as the Bangladesh Power Development Board (BPDB) is acting as the project implementer.
Additionally, BPDB signed the Amendment and Restatement Agreement and the Restated Facility Agreement with the donor, Bank of China Limited's Sichuan branch, regarding the transfer of USD Loan Interest Rate Benchmark from LIBOR to SOFR due to the project's loan availability period being extended.
BPDB, as a sovereign guarantee, asked the Finance Division for a Letter of Acknowledgement to execute the amended agreement. The Finance Division obliged.
The MoPEMR sources confirmed that as the Saidpur 150MW Diesel Power Plant project was not developed within the stipulated time, both the project period and the loan repayment period have been increased by one year each.
Extended 4 times
The development period of the Saidpur 150MW power plant project has been extended four times in total. The duration was extended by two years in two phases without increasing the costs. However, during the third extension, the project's estimated costs increased by Tk 249 crore while the duration was extended by another two years.
At the time of approval, the proposed implementation timeframe was set from January 2019 to June 2021. The latest amendment has extended that to June 2025.
Regarding the increased costs, the Power Division explained that structuring an extra 1.6-kilometre-long fuel line and increasing the inside diameter of the funnel from six millimetres to eight millimetres has been authorised, increasing the overall costs.
According to Power Division sources, the project's initial cost was assumed to be Tk 1,001 crore. The government financed Tk 302.47 crore, BPDB financed Tk 215.47 crore as the implementer, and the loan amount was assumed at Tk 483.05 crore.
However, the estimates were increased in the recently revised proposal. The government's financing was increased to Tk 309.32 crore, BPDB's financing stood at Tk 376.5 crore, and the rest will fall into the loan amount, which has been increased to some Tk 564.1 crore, the sources confirmed.
Aligned with SDG 7, 8th FYP
According to the BPDB, the 8th Five-Year Plan prioritises the creation of a cost-effective, revenue-saving energy generation system. The power plant is being developed to address the increasing electricity demand, focusing on boosting power production and ensuring a balanced supply in rural areas.
Once the project is implemented, the production capacity of Saidpur's 150MW diesel power plant will be increased to 161.603MW, adding that electricity to the national grid to meet the country's growing electricity demand.
Notable activities under the project include the installation of a 161.603MW gas turbine and generator, establishment of power evacuation facilities, installation of a water supply system, chemical laboratory, and effluent treatment plant, construction of storage tanks and day tanks, installation of oil transfer pumps, the establishment of fuel unloading and transferring facilities, and the necessary civil works for the installation of the power plant.
The project also aligns with the seventh goal of the Sustainable Development Goals (SDGs): to provide affordable, reliable, sustainable, and modern energy for all.
