Current Status: Retired

Source: Representational Photo
Bheramara 110 MW HSD Power Plant, also known as Quantum Bheramara Power Plant, is a reciprocating engine-based power plant situated in Bheramara Pourashava under Bheramara Upazila in Kushtia District of Bangladesh (Location: 24.0504, 89.0204). It has been sponsored by Quantum Power Systems Limited (QPSL), a subsidiary of Otobi Group, as a Quick Rental Power Plant (QRPP) for three years. The sponsor declared its Commercial Operation Date (COD) on 31 December 2010, and, as per schedule, the power plant was to retire on 31 December 2013. But The government had granted extensions of 5 years and it was retired in 2018.
Capacity
The power plant's installed (gross) and derated (net) capacity was 110 MW and 105 MW, respectively.
Context
The project involved a 105 MW HFO-based power plant, operating under a 5-year Power Purchase Agreement (PPA) with the Bangladesh Power Development Board (BPDB) as a Rental Power Producer (RPP), responsible for generating and supplying electricity (IDCOL, 2023).
According to the agreement, Quantum was expected to commence commercial operations of the Bheramara plant within four months of signing the contract on February 4, 2010. However, the plant was only launched after a delay of 10 months, resulting in a penalty of $11.4 million or BDT 125.96 crore (on 21 September 2023), of which they have paid $8.2 million or BDT 92.81 crore (on 21 September 2023). After the plant started operating, it consistently failed to meet the minimum power output requirement of 104 MW specified in the contract due to the use of inferior equipment. The contract allowed Quantum to have its plant offline for 876 hours (equivalent to 36 days) each contract year, but it remained inactive for 5,465 hours (or 227 days) between December 2011 and December 2012 (Daily Star, 2010; Daily Star, 2013).
The government has also granted extensions to the contracts of six rental power plants, collectively generating 425MW, for an additional five years in 2013. These extensions were approved by the cabinet committee on public purchase on November 14, 2013. One of these six plants is the 110MW Bheramara diesel-fired plant (Dhaka Tribune, 2013; Dhaka Tribune, 2014). The power plant retired in 2018 (Survey on Power System Master Plan, 2015).
Land Acquisition
Bangladesh Power Development Board (BPDB) was set to provide the required land as per the agreement (IDCOL, n.d.). A land area of 4.8 acres was taken to install this power plant (Measured with Google Earth).
Finance
Quantum Power Systems Limited (QPSL) has sought financial aid from Infrastructure Development Company Limited (IDCOL), and recognizing the significance of the project in addressing the power demand, IDCOL has consented to extend financial assistance through a collaborative financing arrangement (IDCOL, n.d.). IDCOL had provided a Loan amount of BDT 1000 million (IDCOL, 2023).
Sponsor
The borrower of the power plant was Quantum Power Systems Limited (QPSL) and the sponsors were Otobi Limited, Shantou SEZ Gas Turbine Power Plant Company Limited, East Bay Investments Limited,the and Supreme Marketing Company Limited (IDCOL, 2023).
Contractor
Tellhow SCI-Tech Co. Ltd., a Chinese company, served as the EPC contractor for the project. They provided a total of 8 Nigata engines and 5 NKK engines for the project (IDCOL, 2023).
Fuel Supply
No data was found about this.
Power Generation
The expected Commercial Operation Date (COD) of the power plant was 04 June 2010 but it started commercial operation on 31 December 2010 (BPDB 2010). According to the PPA, BPDB is liable to purchase electricity from the power plant for 5 years after Commercial operation date (COD) at a rate of BDT 13.96 (USD 0.1966 when USD 1=BDT 71) per unit (kWh). It could generate 558.90 gWh (until 2013) of electricity at 83% plant load factor (PLF).
Environment
QPSL's power plant project in Bangladesh is categorized as "Red" due to its significant environmental impact. However, Asian Development Bank (ADB) guidelines classify similar projects as "Category B" To meet environmental standards, an Initial Environmental Examination (IEE) report was prepared, following ADB guidelines. Key concerns include SOx emissions, noise, and lube oil pollution. QPSL must follow Bangladesh's national standards or, where unavailable, the IFC's best practices. Public consultations found no land disputes. Most respondents support the project but request that power initially serves the local area before being supplied to other regions. IDCOL prioritizes environmental and social safeguards and welcomes feedback or concerns regarding the project (IDCOL, n.d.).
Criticism
Quantum Power faced delays in starting the Bheramara power plant, leading to an $11.4 million or BDT 125.96 crore (on 21 September, 2023) penalty, of which they paid $8.2 million or BDT 92.81 crore (on 21 September, 2023). The plant consistently failed to meet the contract's 104 MW power requirement due to subpar equipment and was offline for an excessive 227 days. Instead of paying the fine, Quantum obtained court injunctions, preventing the Bangladesh Power Development Board (PDB) from collecting penalties while still requiring power purchases. Despite these issues, Quantum proposed converting the plant to HFO-fired, hoping to save costs, but doubts remain about its profitability, as it generates only 15 MW instead of 104 MW (Daily Star, 2013).
Capacity Charge
BPDB had to pay the sponsor BDT 510.3 crore capacity charge till 2013. No data was found after 2013. Total generation was 558.90 gWh and per unit average cost was 17.50 BDT until 2013.

References
BPDB (2010). ‘Annual Report 2009-2010’. Bangladesh Power Development Board: 1 August 2010
BPDB (2022). ‘Power Sector Progress Report’. Bangladesh Power Development Board: 15 June 2022
Daily Star (2010). "Ministry okays rental power plant changes". The Daily Star: 8 May 2010
Daily Star (2010). "Otobi gets court order against further penalty". The Daily Star: 25 August, 2010
Daily Star (2013). “Failed company vie for renewal”. The Daily Star: 14 November, 2013
Survey on Power System Master Plan (2015). “PART IV POWER BALANCE”. Power Division.
Dhaka Tribune (2013). “Contracts renewed for five rental power plants despite no apparent demand”. Dhaka Tribune: 20 November, 2013.
Dhaka Tribune (2013). “3 rental plants apply for extension”. Dhaka Tribune: 16 February, 2014.
IDCOL (n.d.). “Large & Medium Infrastructure Projects”. Infrastructure Development Company Limited
IDCOL (2023). “Power”. Infrastructure Development Company Limited (accessed on 16 September 2023)