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May 83 min read

Chapainawabganj 100 MW (BPDB) HFO Power Plant

Current Status: Operation


Chapainawabganj 100 MW Furnace Oil Power Plant, also known as Chapainawabganj Peaking Power Plant, is a Gas Turbine (GT) power plant situated near Jhilim Bazar and Amnura Railway Station in Amnura under Chapainawabganj Sadar Upazila in Chapainawabganj District of Bangladesh (Location: 24.6323, 88.4014). It is sponsored by the Bangladesh Power Development Board (BPDB) as a State-owned Power Plant (SOPP) for 25 years. The power plant started its commercial operation on 12 August 2017 and, as per schedule, it will retire on 11 August 2042.


Capacity

The installed (gross) and derated (net) capacity of the power plant is 107.09 MW and 104 MW respectively.


Context

On May 14, 2016, Shahriar Alam, the State Minister for Foreign Affairs, officially inaugurated the construction of a 100 MW power generation plant in the Amnura area of Jhelum Union, located in Chapainawabganj Sadar Upazila. During the inauguration ceremony, it was disclosed that the project is expected to be finalized by March 25, 2017 (BN, 2016)


The Chapainawabganj 100 MW Heavy Fuel Oil (HFO) power plant, with a total estimated investment cost of $131 million, will be equipped with 12 HFO engines. To finance the project, the Hongkong and Shanghai Banking Corporation (HSBC) arranged $112 million of ECA-backed facilities. Guarantees for the project were provided by the Chinese Export Credit Agency (ECA) Sinosure and the Finnish ECA Finnvera. Due to the absence of gas supplies in the northern region, the power plant will operate on Heavy Fuel Oil. The financing package covers 100 percent of the Engineering, Procurement, and Construction (EPC) costs, including the supply of goods and services from China and Finland through Sinosure and Finnvera-supported loans. Associated costs and expenses are financed under an uncovered facility. The implementation of the project began in May 2015. (DS, 2017)


Land Acquisition

The construction of this power plant is starting on 10 acres of land with the help of the Electricity Department (GB, 2015).


Finance

The implementation of this power plant project will cost 1,09,10,187 BDT  (BN, 2016). Hong Kong and Shanghai Banking Corporation (HSBC) arranged $112 million to finance the project (DS, 2017).


Sponsor

It has been sponsored by the Bangladesh Power Development Board (BPDB) as a State-owned Power Plant (SOPP) for 25 years  (GB, 2015).


Contractors

The financing group will cover 100 percent of the Engineering, Procurement, and Construction (EPC) costs, including the supply of goods and services from China and Finland through Sinosure and Finnvera-supported loans  (DS, 2017).

Fuel Supply

The plant will be powered by HFO due to the absence of gas supplies in the northern part of the country (DS, 2017). But the supplier was not found.


Environment

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory 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 found. The power plant is a furnace oil power plant. Furnace oil power plants have significant environmental consequences. The combustion of fossil fuels in these plants releases particulate matter and sulfur dioxide, contributing to air pollution. Greenhouse gas emissions, particularly carbon dioxide, exacerbate global warming (NR, 2023). Water pollution arises from the discharge of heated water, impacting aquatic ecosystems. Land use changes and habitat disruption occur during plant construction. Noise pollution from plant operations affects local ecosystems and communities. Additionally, the resource depletion associated with furnace oil extraction contributes to environmental concerns.


Criticism

A discussion meeting on the environmental and socio-economic impact assessment of the 100 MW power plant project was held in Chapainawabganj. Bangladesh Power Development Board (BPDB) organized a meeting in 2017  in Chapainawabganj. At the time, the speakers said that the life of the people of the area had become difficult due to the toxic smoke and excessive vibration of the 104 MW power plant of Sinha Group established in Amnura. The power plant caused crop loss. (GB, 2017). According to the Environmental Conservation Rule 1997 the project falls in the red category indicating it as potentially polluting sector (MOEFCC 1997).


References

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