NTPC’s Bangla JV Awards EPC Contract to Bhel for $2.4 b
Kolkata: NTPC’s joint venture (JV) utility in Bangladesh has awarded the engineering, procurement and construction (EPC) contract to Indian equipment maker Bharat Heavy Electricals (Bhel) for an estimated value of $2.4 billion along with civil construction.
The contract for the Maitree project involves setting up two units of 650 MW each along with civil construction at Rampal in Bagerhat district. Bhel will subcontract the civil construction and is looking for a partner for this. Bangladesh India Friendship Power Co. (BIFPCL), a 50:50 joint venture between the Bangladesh Power Development Board and NTPC, is in talks with Exim Bank for financing the project at a 70:30 debt-equity ratio. “We hope to commence construction at the project site by July and the first phase of the project — a 650 MW unit is expected to attain commercial operation by the end of three and half years — by December 2019,” said Ujjwal Bhattacharya, managing director, BIFPCL. “We hope to achieve financial closure and would receive board’s approval soon.” The company has appointed Fichtner Consulting Engineers and is in the process of finalising a consultant to help in sourcing coal for the project. It’s likely to need about 8 million tonnes of the fuel annually, all from overseas.
NTPC’s expertise will be used in running the plant, design for which will be based on recommendations by the coal and engineering consultants. Bangaldesh has a total demand of about 7,500 MW that it can barely meet from local sources along with 500 MW from India. It is expecting demand to grow 10-12% every year to 24,000 MW by 2021 and 40,000 MW by 2030. It’s decided to meet at least half this demand from coal-based power. NTPC currently supplies 250 MW to Bangladesh.