First private-run power plant in Bangladesh

Sep 19, 1997 02:00 AM

The contract on setting up the first private power plant in Dhaka, capital of the country, was signed between the Rural Power Company Ltd. (RPC) and a consortium of Mitsui Engineering and Shipbuilding Co. of Japan and European Gas Turbine of France.
According to the contract, a 60-MW gas turbine power station in Mymensingh, 193 km from Dhaka, will be built at the cost of about $ 45.45 million.
The Asian Development Bank (ADB) will provide 70 % of the cost with a loan at an interest rate of 8 %, under a condition that the plant be operated with the private sector power generation concept.
The power plant is expected to go into commercial operation within 18.5 months after the signing of the contract, hopefully in December 1998.
The RPC, formed as a public limited company in 1984, is a pilot project of the Bangladeshi government to generate power in the private sector.

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