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Isolux, Samsung strike power deal

The 383MW plant to cost $323m

Star Business Report
The government yesterday signed a deal with a Spanish-Korean joint venture company to produce the cheapest power in the country.
As per the deal, the joint venture between Isolux Ingenieria SA of Spain and Samsung C&T Corporation of South Korea, will build the 383-megawatt gas-based combined cycle power plant in Habiganj. The construction of the plant is tipped to cost $322.96 million.
One kilowatt-hour power to be produced from the gas-based power plant will cost Tk 1.13, which is the cheapest in the country, said Abduhu Ruhullah, chairman of the Power Development Board, the executing agency.
It will run at 53.3 percent efficiency, which is one of the highest in the power sector, he added.
The first unit of the power plant, which will produce 252.26 megawatts of electricity, is expected to be ready in two years, followed by the second unit with a capacity of 131.24mw.
Zahurul Haque, secretary of PDB, Jose Luis Dago Elorza, general manager of Isolux Ingenieria and Sung Ki Na, general manager of Samsung C&T, signed the
agreement in Dhaka yesterday.
This is the first time the state-run PDB is financing any project from its maintenance and development fund, Nasrul Hamid, state minister for power, said at the signing ceremony.
The fund was opened in mid-2011 as per a directive of Bangladesh Energy Regulatory Commission and is powered by monthly deposits from a part of PDB's electricity power sales.
Every month, about Tk 40-50 crore is deposited with the fund and is now said to be holding an amount of Tk 2,000 crore, according to officials.
"Nobody thought even five or six years ago that PDB would be able to construct a power plant with its own funds," said BERC Chairman AR Khan, while urging the authorities to ensure that consumers get power at affordable rates.
Both Hamid and Power Secretary Monowar Islam urged the companies to complete the project by the deadline.
Sung Ki Na said he hopes the joint venture company would be able to construct the power plants within the stipulated time.
The main equipment for the project, located over 14.54 acres of land, will be bought from Germany, Belgium, the USA, Spain and China.