The NWPGCL and the CMC will need to provide 30% fund of the total project and mobilize the other 70% from international sources.
Bangladesh-China Power Company (Pvt) Limited (BCPCL) is set to start functioning from next Wednesday (October 15) through its first board meeting for developing the 1,320MW Payra coal-fired power plant.
The project site will be on the bank of the Rabnabad River near Payra maritime port, while the project has an estimated cost of $2bn.
The meeting of the BCPCL, a joint venture of Chinese power company CMC and state-owned North-West Power Generation Company Limited (NWPGCL), would be chaired by Power Division Secretary Monowar Islam, said NWPGCL Managing Director AM Khurshedul Alam yesterday.
“We intend to establish a joint venture with China National Machinery Import and Export Corporation (CMC) to set up a 1,320MW ultra super-critical coal-based power plant at Patuakhali by importing coal,” said Khurshedul, who is also a director of the BCPCL.
On March 19, the NWPGCL and the CMC signed a memorandum of understanding to set up the plant in Patuakhali’s Kalapara upazila.
Bangladesh and China set up the BCPCL, a special purpose company, to implement the project dubbed as Payra power plant. On October 1, the new company was registered with the Office of the Registrar of Joint Stock Companies and Firms.
The BCPCL is a private company limited by shares and incorporated under a joint venture agreement executed on June 9 between the NWPGCL and the CMC.
The six-member BCPCL board consists of three members from Bangladesh including the chairman, while the rest are from China. According to the joint venture agreement, Bangladesh will chair the company for the first five years and China the next three years.
CMC President Wang XuSheng, CMC Vice-President Li GuoHua, and CMC Assistant Vice-President Kang HuBiao will also attend the meeting as board members.
A top official of the NWPGCL said an agreement has been reached with the CMC that the joint venture company’s share will have 50:50 equity ratio between the two companies, while the project will be implemented on a 30:70 equity:debt basis.
That means, the NWPGCL and the CMC will need to provide 30% fund of the total project and mobilize the other 70% from international sources.
The official said the new BCPCL will start functioning by setting up a new office in Dhaka and preparing an organogram to start manpower recruitment.
He said the company would also prepare other documents for appointing an EPC (engineering, procurement and construction) contractor for the proposed power plant and other documents for seeking international funding for the project.
The company would prepare documents for appointing managing director and secretary of company and approval of preliminary expenses, the official added.