NTPC’s Bangla JV Awards EPC Con­tract to Bhel for $2.4 b

The Economic Times - - Companies - De­b­joy.Sengupta @times­group.com

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.

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