Dhaka, Bangladesh (BBN)– The state-run Power Development Board (PDB) has signed agreement with Dubai-based Energy Holdings International INC and its subsidiary EHII MENA DMCC to generate 450 megawatt of electricity in two power plants.
PDB Secretary Azizul Islam and Energy Holdings International Vice Chairman Jalal Alghani signed the memorandum of understanding at a ceremony at the PDB office in the capital Dhaka on Thursday.
One of the plants would be set up in Bibiyana in Sylhet. The other plant would be in Fenchuganj or any other suitable place, the PDB said.
The two power plants — with capacity of 225MW each — would be set up on build-own-operate basis.
The PDB will purchase electricity from the sponsor at a ‘levellised’ tariff of 3.8355 US cents per unit (1kWh).
The sponsor will submit a standard request for proposal (RfP) and subsequently submit a final proposal along with security money to build these power plants.
The PDB will issue letter of intent (LoI) in favour of the sponsor, once the proposals are accepted.
The sponsoring firm must bring online the simple cycle power plant within 20 months of signing the final deal and the combined cycle within 28 months.
The simple cycle operation of the plant will start commercial production within 20 months of the agreement signing, while the plants will go for combined cycle operation within 28 months of the deal signing, a PDB official added.
BBN/SSR/AD-27July12-3:02 pm (BST)
