A key project to upgrade a 150MW gas turbine power plant to a 225MW combined cycle plant in Sylhet is going to be costlier and delayed.
Power, Energy and Mineral Resources Ministry has placed the project’s second revision proposal to the Planning Commission seeking Tk 113.43 crore cost hike and one year time extension, said sources in the ministry.Higher cost of land acquisition and development works and appreciation of US dollar against taka are the main resoans behind the cost hike and delay, according to power division.
‘Conversion of 150MW Sylhet Gas Turbine Power Plant to 225MW Combined Cycle Power Plant’ is designed for efficient use of gas to generate more power using less amount of gas.
The project was first approved in early February 2013 to be implemented during January 2013 to December 2014 period at an estimated cost of Tk 707.53 crore with financial assistance from Islamic Development Bank (IDB).
After a tussle with the financier regarding the project’s evaluated tender, the government first revised the project to implement it with PDB’s own money kept in power maintenance and development fund of Bangladesh Energy Regulation Commission (BERC) instead of IDB’s loan, sources said.
The completion deadline saw two time extensions, first one by two and a half years and later by two years until June this year under the project’s first revision. Power Division now seeks one year time extension up to June next year.
The original project cost saw Tk 89 crore hike in the first revision, which has been proposed to be raised to Tk 910 crore. In the first revised proposal, Tk 80 crore was earmarked for acquiring 4 acres of land, but in the fresh revision proposal Tk 11.10 crore more has been sought for acquire 3.91 acres of land.In addition, land development cost is going up to Tk 173 crore from Tk 39.19 crore while volume of land development work is rising to 31,275 cubic metres from 16,192 cubic metres estimated earlier. Rate schedule of 2014 has also changed.
Cost of public works for fencing wall is going up to Tk 408 crore from Tk 378 crore in line with new rate schedule of PWD.
The volume of public works for constructing officers’ dormitory is rising from 600 square metres to 900 square metres and staff dormitory’s size will increase from 150 square metre to 340 square metres. Cost of the work is shooting up by Tk 234 crore to Tk 449 crore from Tk 215 crore to follow 2018 rate schedule.
Exchange rates of US dollar and Euro against taka were Tk 78.50 and Tk 84.77 respectively when the project was first revised, but the rates have changed Tk 84.12 and Tk 95.16 respectively. The changes in the exchange rates will increase turn-key contract price by Tk 51.74 crore.
If the project is implemented accordingly, the plant’s efficiency and capacity will increase while its generation capacity will rise by 75MW, Planning Commission high ups informed.