Current Status: Operation
Representational Picture: MAN
Jangalia Dual Fuel Power Plant, also known as Lakdhanavi Cumilla Power Plant, is a reciprocating engine-run power plant situated in Laksham road of Jangalia under Comilla Sadar Upazila in Comilla District of Bangladesh (Location: 23.4301, 91.1699). It is sponsored by Lakdhanavi Bangla Power Limited (LBPL), a subsidiary of Colombo-based Lakdhanavi Limited, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 28 December 2014, and, as per schedule, the power plant will retire on 27 December 2029.
Capacity
The installed (gross) and derated (net) capacity of the power plant is 53.52 MW and 52 MW, respectively.
Context
In 2011, Lakdhanavi Bangla Power Limited (LBPL) entered into a 15-year Power Purchase Agreement with the Bangladesh Power Development Board (BPDB), wherein they are responsible for constructing, owning, and operating a 52.2 MW Dual Fuel (HFO/Gas) power plant and supplying electricity to BPDB.
Lakdhanavi Ltd., the EPC contractor, installed 6 engines from Wartsila, Finland, and generators from Cummins, USA for the project. An amount totaling USD 35 million was secured from Infrastructure Development Company Limited (IDCOL) and four Sri Lankan banks through a syndicated financing arrangement facilitated by NDB Investment Bank (NDBIB), a Sri Lankan Investment Bank (IDCOL 2022).
Under the agreement, PDB is obligated to purchase electricity from the company at a rate of BDT 2.45 per unit (kilowatt hour) for the subsequent 15 years when the electricity is generated using gas. However, when the company generates electricity using oil, PDB is obliged to buy it at BDT 7.10 Tk per unit (kilowatt hour) (DT,2013). The Commercial Operation Date of this power plant was 28 December 2014.
Land Acquisition
The project site is situated within the 22nd ward of the Comilla City Corporation (CCC) and is commonly referred to as Jangalia in the local area. The site is located adjacent to the Power Grid Company of Bangladesh Ltd (PGCB) sub-station and is roughly 3 kilometres away from the Comilla City Corporation (CCC). Additionally, it is about 145 kilometres away from Chittagong City and approximately 105 kilometres from the capital city of Dhaka. The project area covers an approximate land area of 3 acres. This land has been obtained through a leasing arrangement with the Bangladesh Power Development Board (BPDB).
Sponsor
This power plant is sponsored by Lakdhanavi Bangla Power Limited (LBPL).
Contractors
Infra and Engineering Private Limited (IEPL) signed a 15-year Power Purchase Agreement with Bangladesh Power Development Board (BPDB). It is a dual fuel power plant that runs both on Heavy Fuel Oil (HFO) and Domestic Fossil Gas (DFG). 6 engines and generators from Wartsila, Finland and Cummins, USA, respectively. Infrastructure Development Company Limited (IDCOL) has taken the responsibility to develop this power plant .
Finance
The total budget of the power plant has not been disclosed but according to the reports, Infrastructure Development Company Limited (IDCOL) financed USD$ 15 million for the project (IDCOL 2022). NDB Investment Bank Limited (NDBIB), a Sri Lankan Bank, arranged an additional USD 20 million for the project.
Fuel Supply
The needed supply of natural gas and furnace oil will be provided by the Bakhrabad gas field and the Bangladesh Petroleum Corporation (BPC) respectively.
Environment
According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA 1995). Polluting industries, such as power plants, must undergo an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 2017 (MOEFCC 1997). Bangladesh Centre for Advanced Studies (BCAS) conducted the Environmental Impact Assessment (EIA) of the project. According to the EIA Report, the power plant draws around 27.4 cubic meters (27 tonnes) of freshwater from aquifers per day, which means it uses 9,857 tonnes of water annually and 148 thousand tonnes in 15 years of operation period. As per ADB guidelines, smaller power plant ventures such as the 52 MW project undertaken by LBPL are expected to fall under “Category B”. This classification stems from the notion that the environmental consequences of these projects primarily revolve around the site itself. Moreover, within the environmental and social safeguards framework (ESSF) of IDCOL, this Project has been classified as a moderate-risk project (ADB, 2014). According to the environmental conservation rule 2023 the project falls in the “Red” indicating it as a potential harmful project for the environment (MOEFCC 2023).
References
ADB 2014. Initial Environmental Examination – Lakdhanavi Bangla Power Limited. Asian Development Bank. December,2014.
IDCOL 2022. Projects and Programs: Power. Infrastructure Development Company Limited (IDCOL): Undated (accessed on 13 June 2022)
DT 2013. Government pens power purchase deal with Lankan company. Dhaka Tribune. 30 October, 2013.
MOEFCC (2023). “The Environmental Conservation Rules”. Ministry of Environment, Forest and Climate Change (MOEFCC): 5 March 2023
MOLJPA (1995). ‘Bangladesh Environment Conservation Act 1995’. Legislative and Parliamentary Affairs Division, Ministry of Law, Justice and Parliamentary Affairs (MOLJPA): 16 February 1995
MOEFCC (1997). ‘The Environmental Conservation Rules. Ministry of Environment, Forest and Climate Change (MOEFCC)’: 27 August 1997