Patuakhali power station (RPCL/NORINCO)

From Global Energy Monitor

The Patuakhali power station (RPCL/NORINCO) is a proposal for a 1,320-megawatt (MW) coal-fired power plant in Barisal division, Bangladesh.

There are three different proposals for 1320-MW coal-fired power stations in Patuakhali, by three sets of sponsors, all joint ventures between Bangladeshi and Chinese firms:

Location

The map below shows the location of Londa village, the approximate location of the project, in Kalapara upazali, Patuakhali district, Barisal division.

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Background

In May 2016, Rural Power Company Limited (RPCL) and NORINCO International Cooperation Ltd., a publicly listed subsidiary of China North Industries Corporation (NORINCO), signed a Memo of Understanding for a 1320 MW coal-fired power plant in Patuakhali district. The project would be located at Londa village, where 918 acres of land has been identified. Land acquisition is in progress. The project is targeted for 2022.[1][2]

In September 2016, the project was reported to be moving forward, with approval from the Power Division. It was described as ultra-supercritical. The project will use 915 acres at Kalapara upazila of Patuakhali. The company has sent a land development proposal to the Planning Commission for approval.[3]

In November 2017 it was reported that a joint venture agreement between Bangladesh's Rural Power Company Limited (RPCL) and Chinese state-owned Norinco International Ltd for construction of a 1320 MW coal plant in Patuakhali had been cleared. The power station is planned for 2022-2023.[4][5]

In April 2018, a consortium of Tianjin Electric Power Construction Co. Ltd., China Huadian Engineering Co., Ltd and China Wanbao Engineering Corporation (TEPC-CHEC-CWEC) were awarded the EPC contract for the plant.[6] In October 2018 it was reported that land acquisition was underway.[7] A Power Purchase Agreement (PPA) was signed between the Bangladesh Power Development Board and RNPL on February, 20, 2019.[8]

As of May 2021, about 915 acres of land in the project area has been acquired and some 80 percent land development work has already been done, according to the project sponsors.[8]

Financing

The project cost has been estimated at US$2 billion. Of the total investment, the ratio of equity investment will be 30 percent while the remaining 70 percent would come as loans from the Chinese Ex-Im Bank.[9]

In June 2021, it was reported that the Export-Import Bank of China – along with the Bank of China – will provide a syndicated loan of Tk14,000 crore at a 2.9% interest rate for 14 years' repayment. The RNPL is planned to provide the remaining 30% of projects costs.[10]

Cancellation risk

In August 2020, signalling a potential pivot in Bangladesh away from coal power towards increased reliance on gas-based power from imported liquified natural gas (LNG), Bangladesh’s minister of power, energy and mineral resources, Nasrul Hamid stated that the government is planning to review an array of planned coal plants with the exception of three which are in construction and nearing completion: the Rampal power station, the Matarbari power station and the Payra power station. According to Minister Hamid, "We are reviewing how we can move from coal-based power plants." Patuakhali power station (RPCL/NORINCO) is, therefore, likely to be reviewed by the government which may cause delays to the project or even cancellation.[11]

On November 19, 2020, The Daily Star reported that Bangladesh's power, energy and mineral resources ministry had finalized an energy plan that cancelled all coal plants except five under construction. Patuakhali power station (RPCL/NORINCO) will likely be cancelled as a result. The ministry will soon send the plan to the Prime Minister's Office for review.[12]

Project Details

  • Sponsor: Bangladesh Rural Power-Norinco International Power
  • Parent company: Rural Power Company Limited (RPCL, 50%) and NORINCO International Cooperation Ltd., a publicly listed subsidiary of China North Industries Corporation (NORINCO, 50%)
  • Location: Londa village, Kalapara upazali, Patuakhali district, Barisal division, Bangladesh
  • Coordinates: 22.0277875, 90.2776735 (approximate)
  • Status: Pre-permit development
  • Gross Capacity: 2 x 660 MW
  • Type: Ultra-supercritical
  • Projected in service: 2023
  • Coal Type:
  • Coal Source: Australia, Indonesia[10]
  • Source of financing: Chinese Ex-Im Bank

Articles and resources

References

  1. "MoU Signing of RPCL Patuakhali 1320 MW Coal Based Power Plant," RPCL announcement, May 9, 2016
  2. "Patuakhali/ Barguna/ Chittagong 1320 MW Coal Based Thermal Power Plant," RPCL, accessed May 2017
  3. FHM Humayan Kabir, "RPCL to build 1,320MW coal-fired power plant in Patuakhali," Financial Express, 16 September 2016
  4. "Bangladesh-China plan 1,320-MW coal-based power plant in Patuakhali," Dhaka Tribune, Nov 5, 2017
  5. "Cabinet clears JV formation with Chinese firm," New Age, Nov 7, 2017
  6. "中国港湾 中国电建 中国能建 森源电气等," 蓝箭头, 2018-04-13
  7. "Work of 1,320 MW coal based power plant begins in Patuakhali," Bangladesh Post, October 14, 2018
  8. 8.0 8.1 Likhon, Nazmul (2021-01-08). "Patuakhali coal-fired power plant work progresses fast". Bangladesh Post. Retrieved 2021-05-25.
  9. Shamim Jahangir, "1320MW Plant in Patuakhali: Govt to sign JV deal with Chinese firm," Daily Sun, Apr 3, 2017
  10. 10.0 10.1 "China bank finances Rural Power's coal project". The Business Standard. 2021-01-14. Retrieved 2021-05-25.
  11. Tom Baxter, "Bangladesh may ditch 90% of its planned coal power," China Dialogue, August 27, 2020
  12. Roy, Pinaki (2020-11-19). "Future not coal power". The Daily Star. Retrieved 2020-11-19.

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