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Japanese consortium wins EPC contract for 1.2GW coal-fired power plant in Bangladesh

Published 24 August 2017

A consortium consisting of Sumitomo, Toshiba and IHI has secured an engineering, procurement and construction (EPC) contract for the construction of 1,200MW coal-fired thermal power plant and a deep sea port in Bangladesh.

The contract has been awarded by Coal Power Generation Company Bangladesh.

Modeled on Kashima Port in Japan, a coal-fired thermal power plant and a deep sea port will be constructed at designated sites on Matarbari Island in southeastern Bangladesh.

The thermal power plant, which will consist of two 600MW units, will use imported coal as fuel. The power generated by the plant is expected to account for 10% of the total generation capacity of Bangladesh.

Currently, the country generates around 65% of its electricity using domestic natural gas as a source. To secure more reliable energy resources in the long term, Bangladesh is increasing generation capacity based on liquefied natural gas (LNG) and imported coal.

To help further development of Matarbari’s hinterland, the deep sea port will be constructed adjacent to the power plant.

Financed under Yen Credit by the Japan International Cooperation Agency (JICA), the total project is estimated to cost JPY500bn ($4.58bn).

Construction on the project is scheduled to begin in August 2017 and is expected to be completed in July 2024.

Under the contract, Sumitomo will be responsible for civil work and auxiliary equipment as well as for port construction.

While Toshiba will deliver and install the steam turbines and the generators for the power plant, IHI will be in charge of providing and installing the boilers.

In 2015, Toshiba established a branch office in Dhaka to strengthen its energy and infrastructure business in Bangladesh.

Image: The thermal power plant will consist of two 600MW units. Photo courtesy of alex_ugalek/FreeDigitalPhotos.net.