top of page
Search
    • May 20
    • 4 min read

Feni 114 MW (Feni Lanka) HFO Power Plant

Current Status: Operation


Feni 114 MW Furnace Oil Power Plant, also known as Feni Lanka Power Plant, is a reciprocating engine-based power plant situated in Kashimpur village of Panchgachia under Feni Sadar Upazila in Feni District of Bangladesh (Location: 23.0096, 91.3485). It is sponsored by Feni Lanka Power Limited (FLPL), a subsidiary of Sri Lankan company Lakdhanavi Limited, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 24 November 2019 and, as per the schedule, the power plant will retire on 23 November 2034.


Capacity

The installed and net capacity of Feni Furnace Oil Power Plant is 138.68 MW and 114 MW respectively.


Context

Lakdhanavi Limited works as a leading Independent Power Producer (IPP), Engineering and Procurement (EPC), and Operation and Maintenance (O&M) solutions provider for conventional and renewable energy projects. It is based in Sri Lanka and a subsidiary of LTL Holdings Limited. In 2010, Lakdhanavi initiated its entry into the Bangladeshi market, actively seeking investment opportunities. Presently, the company has successfully commissioned three power plants, all engineered and constructed by Lakdhanavi itself. The most recent addition to its portfolio is located in Feni, situated in the southern region of the Bangladeshi capital, Dhaka. Feni Lanka, a subsidiary of Lakdhanavi LTD which is a private Independent Power Producer (IPP) for 15 years.


The company engaged in negotiations with the Bangladesh Power Development Board (BPDB). Subsequently, on July 4, 2017. Lakdhanavi Ltd formalized its commitment to the region by establishing Feni Lanka Power Limited, a public limited electricity subsidiary. Feni Lanka Power Limited operates as an oil-fired power plant, leveraging heavy fuel oil (HFO) for electricity generation (BE, 2023). 


The company committed a substantial investment of USD 100 million in Bangladesh. Lakdhanavi Ltd took on the comprehensive responsibility for the entire project life cycle, including engineering, design, procurement, construction, environmental approvals, and logistics. They have signed a power purchase agreement with Bangladeshi authorities, ensuring a stable operation of the Feni 114 MW Furnace Oil Power Plant (DM, 2020). 


Contractors

Infra and Engineering Private Limited (IEPL), the esteemed EPC contractor for the power plant, has used components sourced from international suppliers. The plant's configuration features six 18V50 and one 20V32 reciprocating engine, with the precise engine suppliers remaining undisclosed. Wartsila, a prominent entity from Finland, has been furnishing the control system to ensure optimal operational efficiency. ABB, a distinguished supplier from Finland, contributes seven generators, while MV-Chint from China and HV-ABB from India provide medium-voltage and high-voltage circuit breakers, respectively. The Main Power Transformer is sourced from Jiangsu Huapeng Transformer Co. Ltd, China, and the Auxiliary Transformer is from LTL Transformers (Pvt) Limited.  (FLPLBD, 2023). 


Sponsor

Lakdhanavi Ltd (LAK) served as the primary sponsor for the establishment of a 114 MW thermal power plant in Bangladesh, operating under the Build, Own, and Operate (BOO) model. Having been awarded the Letter of Intent on May 15, 2017, LAK oversaw its fifth power plant venture in Bangladesh. As an independent Sri Lankan company, LAK actively finalized pivotal agreements, including the Power Purchase Agreement (PPA) and Implementation Agreement (IA), with key entities such as the Bangladesh Power Development Board (BPDB) and the Ministry of Power Energy and Mineral Resources (MPEMR). Demonstrating a steadfast commitment to completing construction within an 18-month timeframe, LAK anticipated a total investment of around USD 100 million. This funding was expected to be secured through a strategic combination of equity contributions and project loans from international development finance institutions (DN, 2017). 

  

Financiers

The financing for the power plant project was secured through a Private Sector & Trade Finance model. The power plant project, with a total budget of 64 million, garnered significant financial support from key institutions, positioning them as crucial financiers in the initiative. The OPEC Fund for International Development contributed 21.3 million, mirroring the substantial commitment from the Islamic Corporation for the Development of the Private Sector (ICD) and the Infrastructure Development Company Limited (IDCOL). The collaborative financial backing from these institutions, including ICD and IDCOL, played an instrumental role in facilitating the successful implementation of the power plant project. Their combined commitment underscores a strategic and cooperative approach in sourcing diverse funding streams to realize this infrastructure development endeavor.


Fuel 

No information is found about the fuel supplier of the power plant.


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 of the power plant. According to the environmental conservation rule 2023, the project falls in the “Red '' indicating it is potentially harmful to the environment (MOEFCC 2023).


References

143 views

Comments

bottom of page