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Patenga 50 MW (Baraka Patenga) HFO Power Plant

  • Jun 28
  • 3 min read

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 51%-owned subsidiary of Baraka Power Limited (BPL), as a private Independent Power Producer (IPP) for 15 years. The power plant started its commercial operation on 4 May 2014, and, as per schedule, the power plant is to retire on 3 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 the 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 3 May 2029.


Land Acquisition

No information about the land acquisition has been found.


Finance

The total project cost was approximately BDT 4,150 million. The World Bank IPFF financing component was USD 21.975 million (BDT 17,08.556 million), with the remainder financed locally by United Commercial Bank Limited (UCBL), Trust Bank Limited (TBL), and BRAC Bank Limited (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 51% subsidiary of Baraka Power Limited (BPL).


Contractors

The Plant operates using 8 Rolls-Royce Bergen B32:40V16 liquid fuel reciprocating engines, each with a generation capacity of 6.984 MW, manufactured by Bergen Engines (Norway), a former Rolls-Royce subsidiary (Rolls-Royce 2011). 


Power Generation

The net (derated) power generation capacity from this power plant is 50 MW, with a gross installed capacity of 55.872 MW from 8 Rolls-Royce Bergen engines. An additional cogeneration STG plant provides 3.20 MW from exhaust heat recovery, bringing total combined capacity to approximately 59.07 MW  (BARAKA, 2023).


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 1997 (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

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