Current Status: Operation
Source : BPPL
Patenga 50 MW Furnace Oil Power Plant, also known as Baraka Patenga Power Plant, is a reciprocating engine-based power plant situated at Chinese Ghat on the Airport Road in South Patenga under Patenga Upazila in Chattogram District of Bangladesh (Location: 23.7322, 90.4071). It is sponsored by Baraka Patenga Power Limited (BPPL), a subsidiary of Baraka Power Limited (BPL), as a private Independent Power Producer (IPP) for 15 years. The sponsors declared its Commercial Operation Date (COD) on 3 May 2014, and, as per schedule, the power plant is to retire on 2 May 2029.
Capacity
The installed (gross) and derated (net) capacity of the Power Plant is 55.872 MW and 50 MW, respectively.
Context
Baraka Power Limited, a consortium of Bangladeshi residents and Non-Resident Bangladeshis (NRBs), established Baraka Patenga Power Limited (BPPL) with the purpose of executing a 50 MW Heavy Fuel Oil (HFO) fired Independent Power Producer (IPP) plant in Patenga, Chittagong. This project was secured after being awarded by the Bangladesh Power Development Board (BPDB) via a competitive tendering process.
On July 31, 2011, BPPL finalised agreements, signing both the Power Purchase Agreement (PPA) with BPDB and the Implementation Agreement with Ministry of Power, Energy and Mineral Resources (MPEMR). These agreements outlined the commitment to generate and deliver 50 MW of electricity on a Build, Own & Operate (BOO) basis for a 15-year duration (BARAKA, 2023). On May 04, 2014,the power plant commenced its commercial operations marking a significant milestone in its functional timeline. This power plant represents a groundbreaking milestone as the inaugural facility to receive funding from the World Bank through a foreign currency loan under the IPFF (Infrastructure Project Finance Facility) program (BRAC EPL, 2021).
On 31 December, 2020, Baraka Patenga Power obtained approval from the Bangladesh Securities and Exchange Commission (BSEC) to raise BDT 225 crore Tk from the public through its initial public offering (IPO). From the total IPO proceeds of BDT 144.34 crore, a segment will be allocated for investment in two subsidiary power plants—specifically, Karnaphuli Power and Shikalbaha Power—under the company's umbrella. The remaining funds are slated to be utilised for loan repayment and to cover the expenses associated with the IPO process (FE, 2021). As per schedule, the power plant is to retire on 2 May 2029.
Land Acquisition
No information about the land acquisition has been found.
Finance
Total budget of the power plants is not disclosed by the sponsor but United Commercial Bank Limited (UCBL) and Trust Bank Limited (TBL) jointly financed BDT 17,085.56 million (USD 21.98 million) under the Investment Promotion and Financing Facility (IPFF) of Bangladesh Bank which is financed by the World Bank Group (BB 2022). The rest came from local sources like United Commercial Bank Limited (UCBL), Trust Bank Limited (TBL), and BRAC Bank Limited.
Sponsor
It is sponsored by Baraka Patenga Power Limited (BPPL), a subsidiary of Baraka Power Limited (BPL).
Contractors
The Plant has been operating by using 8 Bergen Reciprocating Engines from Rolls-Royce Power Systems from Germany (Rolls-Royce 2011).
Power Generation
The total power generation capacity from this power plant is 50 MW.
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). Adroit Environment Consultants Limited (AECL) conducted the Environmental Impact Assessment (EIA) Report for the project. According to the EIA Report, the power plant uses 77 cubic meters of water (75.61 tonnes) per hour from the aquifers, which means the power plant uses 662.38 thousand tonnes of water annually and 9.94 million tonnes in 15 years of operation period. According to the environmental conservation rule 2023 the project falls in the “Orange” indicating it as a moderate harmful project for the environment (MOEFCC 2023).
References
BB 2022. Successful Projects Under IPFF Financing. Bangladesh Bank (BB): undated (accessed on 13 June 2022)
BARAKA 2023. Baraka Patenga Power Limited. BARAKA 2023.
BRAC EPL 2021. IPO Note Baraka Patenga. BRAC EPL ,13 June , 2021.
FE 2021.Baraka Patenga Power to invest more in electricity generation. Financial Express. 08, February, 2021.
MOEFCC (1997). ‘The Environmental Conservation Rules. Ministry of Environment, Forest and Climate Change (MOEFCC)’: 27 August 1997
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
Rolls-Royce 2011. “Rolls-Royce to Deliver Additional Power in Bangladesh”. Rolls-Royce Power Systems: 31 October 2011