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    • May 8
    • 4 min read

Kohelia 700 MW (CPGCBL-Sembcorp) Coal Power Plant

Current Status: Canceled

 Representational Photo (DT)


Kohelia 700 MW (CPGCBL-Sembcorp) Coal Power Plant, also known as Bangladesh-Singapore Coal-fired Power Plant, is a canceled Ultra-supercritical (USC) thermal power plant proposed to be situated on the bank of Kohelia River at the northern part of Matarbari Island under Moheshkhali Upazila in Cox’s Bazar District of Bangladesh (Location: 21.7513, 91.8963) probable. It was proposed jointly by Bangladeshi State-owned Enterprise (SOE) Coal Power Generation Company Bangladesh Limited (CPGCBL) and Singapore-based Sembcorp Utilities Private Limited (SUPL) to install and operate as a private Independent Power Producer (IPP) for 25 years. The power plant was to start commercial operation in December 2023 according to the Bangladesh Power Division's Master Plan "Revisited" (November 2018). However, the Government of Bangladesh (GOB) revoked its permission in June 2021.


Capacity

The installed capacity of the power plant was to be 700 MW.


Context

On December 9, 2015, Bangladesh's state-owned Coal Power Generation Company and Singapore’s Sembcorp signed an MoU to jointly fund and construct a 700 MW ultra-supercritical coal plant in Maheshkhali Upazila. The project, on a 50:50 equity basis, involved Sembcorp handling the power plant, coal import jetty, storage facilities, township development, rural electrification, transmission facilities, and roadways (GEM, 2023). According to the 2015-16 Annual Report of CPGCBL, they planned a second 700 MW unit which  was expected to commence by December 2016" (CPGCBL, 2023)

As per the Bangladesh Power Division's Master Plan "Revisited" (November 2018), the first unit was scheduled to be commissioned by December 2023, followed by the second unit in December 2032  (PD, 2018). By April 2019, approximately 1,400 acres of land had been procured for the plant.  Architecture Engineering Construction Operations and Management (AECOM) India was tasked with conducting the Social and Environmental Impact Assessment (SEIA). Six companies were shortlisted for selecting the EPC contractor. The operational timeline indicated that Unit 1 was slated for commissioning in 2025, with Unit 2 to follow thereafter  (EP, 2019). The role of financial advisor for at least the initial phase of the project was assigned to the Japanese commercial bank Sumitomo Mitsui Banking Corporation (SMBC). (MF, 2020).

In August 2020, Bangladesh's Minister of Power, Energy, and Mineral Resources, Nasrul Hamid, announced a government initiative to reassess numerous proposed coal plants. This suggested a potential shift in Bangladesh's energy strategy, leaning towards greater dependence on gas-based power generated from imported liquefied natural gas (LNG). (Baxter, T., 2020).

In November 2020, The Daily Star reported that Bangladesh's Ministry of Power, Energy, and Mineral Resources finalized an energy plan, canceling all coal plants except five under construction (TDS, 2020) By June 2021, the government officially abandoned ten coal projects totaling over 8 GW due to implementation delays. Among these cancellations was at least one phase (700 MW) of the proposed capacity at the Matarbari Kohelia power station  (UNB, 2019). Additionally, in October 2021, the Government of Bangladesh was expected to convert six planned coal-fired power plants on the Maheshkhali Islands to LNG and renewable energy, part of a shift away from coal (Mehedi, H., 2021).


Land Acquisition

Around 1,400 acres of land had been acquired for the plant (EP, 2019). 


Finance

The overall budget for the project remains undisclosed, encompassing various financial aspects. The sponsors' investment, domestic loan, and external loan details are also undisclosed. However, the total budget, sponsor’s investment of the power plant were undisclosed. The government of Bangladesh (GOB)  contribution to the power plant was set to be 102.00 million  (BWGED, 2023).


Sponsor

The Kohelia Power Plant project, initially slated for operation, faced cancellation. The project featured a 50% ownership by Coal Power Generation Company Bangladesh Limited (CPGCBL), a subsidiary of the Bangladesh Power Development Board (BPDB). The other 50% was held by Kohelia Singapore Holding Private Limited (KPHSL), affiliated with Sembcorp Utilities Private Limited (SUPL) in Singapore (BWGED, 2023). 


Contractors

While Western Engineering Private Limited (WEPL) in Bangladesh had been designated for land development, (WEL, 2023) but the EPC (Engineering, Procurement, and Construction) Contractor, Civil Engineering Contractor, Jetty Construction, Evacuation/Transmission, Boiler Supplier, Equipment Supplier, Fuel Supplier, Generator Supplier, Labour Supplier, and Steam Turbine Supplier remain unappointed as the Government of Bangladesh (GOB) revoked its permission.  (BWGED, 2023).


Fuel Supply

The power plant was designed to rely primarily on coal as the main fuel, with a focus on imported coal. Additionally, heavy fuel oil (HFO) was allocated as the supplementary fuel. However, specific details about the fuel sources were not disclosed (BWGED, 2023).


Environment

The feasibility study for the project has been conducted by Fichtner GmbH & Company KG, a renowned firm based in Germany, bringing their expertise to assess the viability and potential success of the initiative. Additionally, the Environmental Impact Assessment (EIA) has been entrusted to Architecture Engineering Construction Operations and Management (AECOM), an Indian consultancy firm known for its proficiency in EIA processes. As part of the EIA process, the Environmental Quality and Management System (EQMS) in Bangladesh has been subcontracted to contribute their local insights and knowledge (BWGED, 2023).


Criticism

Local farmers, fishermen, shrimp cultivators, and salt producers were among the landowners. The impacted communities included farmers, fishermen, sharecroppers, salt producers, and shrimp cultivators. Directly affected were 865 families, and an additional 3,400 families experienced indirect consequences (BWGED, 2023). According to the Environmental Conservation Rule 1997 the project falls in the red category indicating it as apotential polluting sector (MOEFCC 1997).


References

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