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Oct 9, 20234 min read

Anwara 300 MW (United) HFO Power Plant

Updated: Oct 10, 2023

Current Status: Operation

Source: (United Group)


Anwara 300 MW Furnace Oil Power Plant, also known as United Anwara Power Plant, is a Combined Cycle (CC) power plant situated in Rangadia of Karnaphuli thana under Anwara Upazila in Chattogram District of Bangladesh (Location: 22.2317, 91.8277). It is sponsored by United Anwara Power Limited (UANPL), a Special Purpose Vehicle (SPV) of United Group, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 22 June 2019 and, according to schedule, it is to retire on 21 June 2034.


Capacity

The power plant's installed (gross) and derated (net) capacity is 314.29 MW and 300 MW respectively.


Context

Officials from the Power Development Board (PDB) have reported that the 300-MW furnace oil-fired (HFO) power plant project was awarded to United Enterprises & Company Limited, a subsidiary of the United Group. The contract for project implementation was initially signed on November 13, 2016, with an Implementation Agreement finalized on January 25, 2017.


However, subsequent adjustments to the Commercial Operation Date (COD) were made. Originally set for February 11, 2019, it was rescheduled to April 25, 2019. As per the Power Purchase Agreement (PPA), the officially recognized Commercial Operation Date (COD) for the power plant was eventually determined to be June 22, 2019. On behalf of the government, PDB entered into a contract with the United Group for the procurement of electricity from this project (UNB 2018).


The power plant in question, boasts an installed (gross) capacity of 314.292 MW, with a derated (net) capacity of 300 MW, emphasizing its substantial energy generation capability. The financial backing for this venture is provided by Standard Chartered Bank, as indicated on the United Group's website, demonstrating the trust and support of financial institutions in facilitating such crucial infrastructure projects. United Power Generation & Distribution Company Limited (UPGDCL) stands as the primary sponsor, holding a significant 99% stake in this enterprise.

Envisioned to operate for a span of 22 years, the power plant carries the responsibility of delivering a consistent supply of energy to meet the demands of the region it serves. The project's lifetime extends until 22 June 2041, reflecting a strategic timeline that aligns with energy production projections and industry requirements (BWGED, n.d.)


Land Acquisition

United Power Generation & Distribution Company Limited (UPGDCL) acquired approximately 8.25 Acres (Approximately) of land. The power plant will be built in the Anwara, Rangadia, Upazila: Anwara of Chittagong district. Geographic Position of the area; south bank of Karnaphuli River, opposite of the Chittagong Sea Port. (BWGED, n.d.)


Finance

The financier of this power plant is Standard Chartered Bank according to the website of United Group (United Group). However, the financial details surrounding this project remain shrouded in secrecy, with the total budget, sponsors' investment, UPGDCL's specific contribution, domestic and overseas loans, as well as government of Bangladesh (GOB) investments all undisclosed (BWGED, n.d.).


Sponsor

The Anwara 300 MW Furnace Oil Power Plant stands as a significant endeavor, with United Power Generation & Distribution Company Limited (UPGDCL) as the primary sponsor, contributing a substantial 99% stake (FE 2020).


Contractors

Engineering, Procurement and Construction (EPC) Contractor is NCL (Neptune Commercial Limited). The parent company is UGC (United Group of Companies). The operation and maintenance Contractor is undisclosed. (BWGED, n.d.)


Fuel Supply

The primary fuel source for the United Anwara Power Plant is Heavy Fuel Oil (HFO). It is known that the fuel is sourced through importation but the specific fuel supplier remains undisclosed (United Group 2020). Gas Turbine Supplier of the oil-fired project is Triveni Turbine and Wartsila. Alfa Laval Aalborg supplied a steam boiler for the project. (PT 2023)


Power Generation

The power generated from the project is sold to Bangladesh Power Development Board under a power purchase agreement (PPA). According to the PPA, the expected Commercial Operation Date (COD) of the power plant is scheduled for 22 June 2019. The power is sold at the rate of $0.184kWh for 15 years, starting from 2019. The contracted capacity is 300MW (PT 2023).


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is mandatory for any industry (MOLJPA 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). But, to date, no IEE or EIA report has been conducted for the power plant. The unorganized disposal of waste from the capital city has been polluting the air, water, and lands of the adjacent area in the worst way possible. The leachate drains off waste materials that can contaminate the soil. As a result, the cultivable land gets destroyed. The site gets more polluted by hawks, crows, and rodents. The nearby water bodies also get polluted by the waste. The gas emitted from rotten garbage causes air pollution (Devnath 2020).


Criticism

As we know, the United Anwara Power Plant, heavily reliant on Heavy Fuel Oil (HFO) as its primary fuel source, has raised concerns due to its alignment with high-risk Environmental and Social Standards (ESS) Category A and the designation of "Red" under the Environmental Clearance Procedure (ECR). These classifications signal a potential for significant environmental and social impacts, warranting careful assessment and management. However, a notable point of criticism revolves around the apparent non-compliance with Bangladesh's environmental regulations. No Initial Environmental Examination (IEE) or EIA report has been conducted for the United Anwara Power Plant. This omission of a crucial assessment process raises questions about the transparency, accountability, and adherence to regulatory protocols in the establishment of the power plant. The absence of an EIA or IEE report undermines the comprehensive evaluation of potential environmental and social impacts, as well as the formulation of effective mitigation strategies.


Reference

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