Dhaka: A state-run Bangladeshi power generation company has signed a deal with Germany’s Siemens AG to boost its electricity production by more than 20% to help support the country’s economic development. The project will cost $2.8 billion that comprised $2.4 billion of the loan and remaining $400 million will be equity participation of both companies. The managing director of North-West Power Generation Company Limited (NWPGCL) of Bangladesh.
The project would be implemented in three phases and completed by 2021. It aims to produce 3,600 megawatts of electricity. This will be the largest single power project and it will also be the largest single investment from any European country. The project will be set up in Payra of southern Patuakhali district, 320 km from (200 miles) Dhaka and from there power will be transmitted to the capital. To be a middle-income country by 2021 and a developed economy by 2041 the national demand for electricity will be 24,000 MW by 2021 and 60,000 MW by 2041.
At present Bangladesh has only 12.68 trillion cubic feet of gas and it will be exhausted by 2030 if no new gas fields are discovered and the consumption rate remains at the present level, energy officials said. The chief executive officer of Siemens for South Asia said that it would ensure Bangladesh acquired a world-class power plant. At present Bangladesh has the theoretical capacity to produce the power of up to 15,000 megawatts but it produces a maximum of 10,000. It cannot produce to the optimum level of capacity due to a lack of natural gas and the fact that some plants need upgrade work. About 81% people of 160 million population in Bangladesh have access to power.