A Chinese consortium is set to build a 1,320 megawatt coal based power plant at Mirersarai in Chittagong on a build-own-operate (BOO) basis for about $2.5 billion.

The consortium will supply electricity for the next 25 years for 8.1499 cents per kW/h (Tk 6.5199), which was approved yesterday at a meeting of the cabinet committee on purchase chaired by Finance Minister AMA Muhith.

The committee approved the purchase of electricity from the consortium of Hangzhou Jinjjang Group, Hangjhou Zhengcai Holding Group and Jindun Energy Equipment (Hong Kong) under the Quick Supply of Energy and Power (Special Act).

The consortium will bear the cost of purchasing land, setting up 25 kilometres of 400 KV double circuit transmission line and other expenditures, according to the proposal from the power division.

The Chinese party told the power division that they can implement the first unit, which would generate 660 MW of electricity, within 48 months of the project taking effect and the second unit within 52 months.

They will have to spend about $2.5 billion to implement the whole project, and a Chinese bank has committed to provide the loans of up to $2 billion at low interest, according to power division officials.

Super-quality imported coal will be used for the plant and it is likely to be imported from Australia, the consortium told the power division. About Tk 150,000 crore will be needed to purchase electricity from the company over 25 years.

The purchase committee also approved another proposal for setting up 105 MW power plant at Shikalbaha in Chittagong by a consortium of Baraka Patenga Power and Royal Homes.

The sponsor company will set up the power plant on BOO basis, with the tenure being 15 years.

The government would purchase electricity from the diesel-based power plant at 10.4950 cents per kW/h, which is equivalent to Tk 8.2553.

The power division informed the purchase committee that they will go into production in 9 months.

The committee also gave the nod to tenure extension for two quick rental power companies by two years. 

One of them is 50 MW rental power plant at Shahjibazar, whose sponsor company is Energy Prima. During the extended tenure, the government will procure electricity from the company at 3.3908 cents per kW/h, which is equivalent to Tk 2.7126.

The committee also extended tenure of Energy Prima's another gas-based 50 MW power plant in Kumargaon in Sylhet. The government will buy electricity from the company for 3.2739 cents per kW/h, which is equivalent to Tk 2.6191.