3rd June 2019
Engr. Arun Kumar Saha

The Electricity Generation Company Bangladesh (EGCB) has started planning to develop power generation hubs at Munshiganj and Feni. Gas-based power would be generated at Munshiganj, but renewable energy generation hub would be developed at Feni. Engr Arun Kumar Saha, Managing Director, EGCB disclosed it in an exclusive interview with EP Editor Mollah Amzad Hossain. To overcome qualified manpower issues and preventing brain drains, he suggested including a mandatory condition for the students, who are getting admitted to the public universities of Bangladesh, will have to work in Bangladesh after their graduation.

Starting journey as Meghnaghat Power Company Limited in 1996, the company is working since 2004 as Electricity Generation Company Bangladesh (EGCB). How do you evaluate the performance of the company over the period?

As the first power generation company in the public sector, EGCB started working as Meghnaghat Power Company in 1996. It was renamed in 2004 with a vision for expanding the scope of work for developing and operating power generation facilities. Operation started with Installation of gas based simple cycle and combined cycle power plants at Siddhirganj and Haripur sites rented from BPDB. There was no sufficient space for taking up more new projects in these two locations. Consequently, despite being the first generation company, we have fallen behind compared to other generation companies in the context of the generation. In the context of natural gas supply constraint, installation of coal based power plants are the least cost option for power generation. Considering the fact, EGCB started working for land acquisition for installation of 1,320 MW coal power generation plant at Pekua, near the Matarbari coal terminal. The process for selecting of EPC contractor could have been started by now if the land for this was not given to other purpose of greater national interest. We are now planning for a gas-based power generation hub at Munshiganj and a renewable power generation hub at Feni. In over all consideration, the achievement of EGCB is commendable.

EGCB started working on a 335 MW combined cycle power plant at Siddhirganj. But it did not come into commercial operation till now. When the commercial operation would start? What is the financial risk of EGCB due to the delay?

There is no doubt that the EGCB would have been economically benefitted if the plant came into operation on time. If not the entire plant, 217 MW open cycle unit is in operation from May 2018. The full 335 MW combined cycle capacity is expected to come into operation within October 2019.

It needs to be mentioned that initially, 2X150 MW capacity gas turbine power plant project was taken up as a peaking plant with the World Bank’s loan. It was later decided to set up a combined cycle power plant. Initially the government of Bangladesh allocated the additional fund for it and later on World Bank sanctioned additional loan for the conversion. A joint venture of Spanish (Isolux) and Korean company (Samsung) was awarded the contract in 2012. But the Spanish Company, Isolux (lead partner) became bankrupt during the time of simple cycle unit test run. Under these circumstances, we had to convince other partner of JV Samsung for continuing the works. They have successfully completed the COD of Simple cycle and are now working on steam turbine. It is expected to come into operation in October 2019.

The total generation capacity of EGCB now is 840 MW. Of this, you have a high capacity combined cycle power plant. What is your opinion about the performance of 412 MW Haripur power plant?

You are very correct in assessment that Haripur 412 MW combined cycle power plant is one of the most efficient plant of the power system. Till now it is being operated very efficiently. Of course, there was a major problem after commissioning and the operation was suspended for four months. But we could get it repaired by the EPC contractor as it happened within the warranty period. We are now operating the plant with our own manpower.

It needs mentioning that this power plant is very important for the power system. This Plant is operated in Free Governing Mode (FGMO). It supplies power for stability of the system frequency all the time.

You had plan for 300-400 MW coal-based power plant at Munshiganj in EGCB planning. What is the status of it now?

EGCB initially planned for it, but later moved out of it. The process for acquisition of 193 acres of land is at final stage. EGCB is now planning for a gas based power generation hub. There is opportunity for generating large combined cycle power plants here. Around 600-800 MW capacity gas-based power generation units will be constructed there in the first phase. Works for selecting a consultant for detail feasibility study of first phase and also for assessing the total possible capacity of power plant in the available land is now at advanced stage. Sort listing of consultants have been made through inviting EOI. Within a short time, we can engage consultant for feasibility study.

A 1,200-1,300 MW coal-based power plant was planned to be constructed at Pekua, Cox’s Bazar. But the EP learned that the EGCB moved out of it.  It is not possible as Bangladesh Navy installation is there. Have you planned relocation of the plant elsewhere?

EGCB signed MOU to form JV with Mitsui, Japan for this 1,200-1,300 MW capacity coal-based power plant. Consultant was engaged for feasibility study. The process for selecting of EPC contractor could start by now. But for another national project, EGCB had to plan for relocating it. We are now looking for new site to construct the plant.

EGCB has plan for constructing the plant somewhere around Matarbari. We have constituted a committee for site selection. They have started working. We expect to finalize the location soon.

EGCB has plan for solar and wind power plants. Both are planned for construction at Feni. What is the present status?

Please note that our plan for renewable energy generation is much more. We have planned for a renewable energy generation hub at Feni. Around 1,000 acres of land has been acquired for it. At the first phase, a 50 MW solar power plant will be set up there under World Bank loan. Tender seeking EPC contractor would be invited in June 2019. We are expecting to bring it in operation by 2022.

For a second plant of 100 MW capacity, we have already made a short list of interested JV partners. Negotiation with the top listed potential partners would start soon. We have plan for bringing it into operation by 2023. Another MOU has been signed with Saudi Arabian Company ALFANAR for another 100 MW capacity solar plant. Joint Venture agreement would be concluded soon. Feasibility study is being done now. This plant is also expected to come into operation in 2022.

In the first phase, a 10 MW wind Power plant would be set up. EOI has already been evaluated for joint venture. MOU for JV company formation would be signed soon.

Besides all these, we have initiated actions for acquiring 500 acres of additional land in Feni. Our plan is to set up large capacity gas-based power plant there also. Planning works has been initiated. We will proceed as soon as the government approves our plan.

Tiding across different reform processes of power sector operation, several power generation companies have been launched, unbundling the vertically integrated BPDB operation. EGCB is one of these. Do you think this reform has assisted in enhancing efficiency?

You will evaluate this. But even then, we would like to mention power sector in Bangladesh has wide scopes. BPDB alone could not bear entire responsibility on standalone basis. Companies created out of BPDB are now competing with one another. This has facilitated in enhancing efficiency and operation skills. Lots of achievements of companies created out of BPDB are visible now.

Skilled manpower is a major problem in the power sector. You are not out of it. What strategy you are following for creation of skilled manpower and retaining them?

Skilled manpower is being developed in the power sector. But the main challenge is retaining them. We must stop brain drain. Salary and incentives have been increased to a great extent. But still trained manpower cannot be motivated from alluring jobs overseas.

The public universities are providing higher education at a very low cost for students. But graduates are leaving the country without repaying the debt to the nation after working few years in some companies and earning the skills. In my opinion, public universities should introduce a condition in the admission system that graduates would work for a mandatory period of time in the country before going abroad. Those not agreeing to it should not be given admission. I think government may take such decision soon.

Other generation companies through forming JV with foreign companies are developing mega power generation projects. Does EGCB have such plan?

As mentioned earlier, EGCB signed MOU to form JV with Mitsui Japan for constructing coal based power plants at Pekua. We have already mentioned that due to issues with land, we could not proceed. Now we are progressing on plans for working under JV with different companies in power generation in diverse areas. We have already mentioned about it.

Reaching quality power to end users on uninterrupted basis is the main target. What kind of modernization you suggest in power value chain for this?

You must have noticed that necessary updating and modernization of power transmission and distribution could not be done at the same pace with power generation. Success in generation could be achieved through integration of private sector with public sector through appropriate policies. In my opinion, public sector alone can no longer carry out responsibilities of investments in power transmission and distribution on standalone basis. The government must adopt policies for attracting private sector in power transmission and distribution activities. That will expedite the process of supplying quality power on uninterrupted basis to the users.

What will be EGCB’s strategy in future for sustaining as an efficient and profitable concern in future?

Till now EGCB is operating only gas-based power plants. Depletion of own proven gas reserve has led to import of expensive LNG. The generation costs would increase substantially. For least cost option, we want to diversify our generation through coal-based plants. We hope that the land for one such plant would be finalized soon.

On the other hand, the environmental and social impacts are now great global concern. Bangladesh is no exception. EGCB has started working for setting up a renewable power generation hub at Feni. In future our vision is to develop efficient combined cycle power plants using LNG as well.

 

  


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