Travel  |  Business World  |  Women's World  |  Entertainment

Change Your Life!

Japanese Marubeni proposes for 2nd power plant after AES of US

News
Sports
Chat
Travel
Dhaka Today
Yellow Pages
Higher Education
Ask a Doctor
Weather
Currency Rate
Horoscope
E-Cards
B2K Poll
Comment on the Site
B2K Club

December 20, 2000 

Dhaka--(UNB) – Japanese Marubeni Corporation yesterday placed their final proposal for setting up a second power plant of 450-megawatt capacity at Meghnaghat in private sector.

Sources said the Marubeni proposed to the government a 39 million-dollar financial package, but said for it as per condition they would hand over the 139-million-kilowatt-hour-power-station to the PDB free of cost in the last and 22nd year.

Earlier, the government had signed an agreement with AES of US for setting up a power station of as much capacity at the same site off capital Dhaka.

On the other hand, the government to remove monopoly selected Japanese Marubeni as an initiator to set up power station at Meghnaghat in the second phase.

Now the government and the Marubeni are negotiating an agreement on the project.

Sources said the Marubeni in a meeting with the government yesterday (Tuesday) cited some unrealistic clauses in the agreement signed with the SES. The Japanese pointed out a big loophole relating to providing power free of cost in the agreement on electricity purchase.

Keeping the main structure of the agreement signed between the SES and the government, the Marubeni proposed some changes for what they said making the deal realistic.

However, for the changes the Marubeni offered the financial package of handing over the power station to the PDB keeping its capacity of 450 megawatts in the 22nd year of production when its market price will stand at 31.4 million dollars with depreciation.

At the same time, sources said, the Marubeni offered to pay full rent for 70 acres of land to be given by the Power Development Board (PDB). However, the company will use half the land and the PDB be able to use the rest.

Marubeni said from the 50 percent land, the PDB would get financial benefit to the tune of 1.9 million dollars.

Sources said at the negotiation table yesterday, the Marubeni claimed that there is a losing condition for Bangladesh government in the power purchase agreement between the AES and the PDB.

As per dimmed dispatch clause of the agreement, the Marubeni said, there will be no meter to measure when the AES will give 139-million-kilowatt-electricity free of cost when it will go into production.

The Marubeni negotiators said the AES in 24 hours would be giving same quantity of electricity and as per dimmed dispatch clause it would be considered that the AES gave power even during the period when PDB couldn’t receive it.

They argued that the demand in Bangladesh in the peak hours is 2,600-2,700 megawatts and in the off-peak hours 1,00-1,200 megawatts. “As a result, if the PDB wants to receive power from AES, it will have to low down production of all of its own stations in the off-peak period.”

In support of makeover of the power station in the 22nd year, the Marubeni also argued that the project would not be feasible if 139-million-kilowatt is given free of cost soon after beginning of the 450-megawatt-capacity power station.

Officials said the proposals would be sent to PDB Board of Directors, then to the Energy Ministry and from there to the cabinet.

The Marubeni and the PDB have been negotiating since November 12 and earlier they had two more negotiation meetings.

Send This News to a Friend