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    • May 25
    • 4 min read

Malancha CEPZ 72 MW (United) DFG Power Plant

Current Status: Operation


Malancha CEPZ 72 MW Gas Power Plant, also known as United Power Generation and Distribution Company Limited (UPGDCL) Chattogram EPZ Power Plant, is a reciprocating engine power plant situated in Chattogram Export Processing Zone (CEPZ) of Halishahar in Chattogram District of Bangladesh (Location Map: 22.2911, 91.7791). It is sponsored by United Power Generation and Distribution Company Limited (UPGDCL), a subsidiary of United Group, as a commercial private power plant for 30 years. The sponsors declared its Commercial Operation Date (COD) on 12 August 2009, and, as per schedule, the power plant is to retire on 11 August 2039.


Capacity

The power plant's installed (gross) and derated (net) capacity is 71.67 and 38 MW, respectively.


Context

United Power Generation & Distribution Co. Ltd (UPGD), formerly known as Malancha Holdings Ltd, has made significant strides in bolstering Bangladesh's power infrastructure through its commercial operations on 12 August 2009 for 30 years in the Chattogram Export Processing Zone (EPZ) (UG, 2023).


On May 16, 2007, UPGDCL CEPZ marked a significant development by entering into a Power Supply Agreement with the Bangladesh Export Processing Zone Authority (BEPZA), outlining its commitment to providing power to the Chittagong Export Processing Zone (CEPZ). Simultaneously, a Land Lease Agreement was established with BEPZA on the same day, securing the necessary space to construct the CEPZ plant. On July 9, 2009, UPGDCL CEPZ strengthened its operational framework by entering into a Gas Supply Agreement with Bakhrabad Gas Distribution Company Limited (BGDCL), ensuring a reliable and diversified energy supply. The company achieved a noteworthy milestone on August 12, 2009, when it commenced Commercial Operations. Subsequently, on September 23, 2009, UPGDCL CEPZ continued to fortify its position in the energy sector by entering into a Power Purchase Agreement with BPDB (Bangladesh Power Development Board), further solidifying its role in the power generation and supply domain. These agreements and operational achievements collectively underscore UPGDCL CEPZ's commitment to providing essential energy services to the Chittagong Export Processing Zone and beyond (UPGDCL, 2023).


Land Acquisition

UPGDCL took 1.49 acres of land in CEPZ on a 30-year lease from the Bangladesh Export Processing Zones Authority (BEPZA) (UP, 2023).


Finance

UPGDCL received a loan of USD 15.45 million for the power plant from Dutch-Bangla Bank Limited (DBBL) under the Investment Promotion and Financing Facility (IPFF) of Bangladesh Bank, which is financed by the World Bank Group and a consortium of local banks led by Standard Chartered Bank(BB 2022).


Sponsor

The power plant is sponsored by United Power Generation and Distribution Company Limited (UPGDCL), formerly known as Malancha Holdings Limited (MHL), under the United Group  (UG, 2023).


Contractors

The power plant was built by Neptune Commercial Limited (NCL), a subsidiary of United Group, using Reciprocating Engines and generators of Wartsila Corporation (Finland), MTU (Motoren-und Turbinen Union), Germany, and Rolls-Royce Power Systems (Germany). Khan Associates (Pakistan) supplied Exhaust Gas Boilers (EGB) for the power plants (UP, 2023).


Fuel Supply

UPGDCL signed fuel supply agreements with Bakhrabad Gas Distribution Company Limited (BGDCL) on 9 July 2009 (UPGDCL, 2023). 


Power Generation

12 August 2009 (CEPZ) under Power Purchase Agreements (PPA) of 30 years with Bangladesh Power Development Board (BPDB). In 2022-23 FY, the power plant could generate 333 gWh of electricity; instead, it generated 165 gWh of electricity with a PLF of 49.7% only. 


Environment

The power plant operates on DFG, which is primarily composed of methane and potentially other hydrocarbons, falling under the fossil fuel category. This mode of electricity generation releases harmful pollutants like CO2, NOx, CO, VOCs, and PM, posing health risks and contributing to air pollution. In adherence to Section 12 of the 1995 Bangladesh Environment Protection Act, it is mandatory for industries, including pollution-causing entities like power plants, to undergo both an Initial Environmental Examination (IEE) and an Environmental Impact Assessment (EIA) as specified in the 2017 Environmental Conservation Rules  (MOLJPA 1995; MOEFCC 1997). The absence of an EIA report for the power plant is a cause for concern. To address environmental issues, a more conscientious approach involves implementing a carbon tax and transitioning towards renewable energy sources. UPGD CEPZ holds ISO certifications for quality, environmental management, and occupational health and safety—ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018, respectively (UPGD, 2023).  According to the environmental conservation rule 2023, the project falls in the “Orange,” indicating it is a slightly harmful project for the environment (MOEFCC 2023).


References

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