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Feni 114 MW (Feni Lanka) HFO Power Plant

  • Jun 20
  • 5 min read

Current Status: Operation


Feni 114 MW Furnace Oil Power Plant, also known as Feni Lanka Power Plant, is a reciprocating engine-based power plant situated in Kashimpur village of Panchgachia under Feni Sadar Upazila in Feni District of Bangladesh (Location: 23.0096, 91.3485). It is sponsored by Feni Lanka Power Limited (FLPL), a subsidiary of Sri Lankan company Lakdhanavi Limited, as a private Independent Power Producer (IPP) for 15 years. The sponsor declared its Commercial Operation Date (COD) on 24 November 2019 and, as per the schedule, the power plant will retire on 23 November 2034.


Capacity

The installed and net capacity of Feni Furnace Oil Power Plant is 138.68 MW and 114 MW respectively.


Context

Lakdhanavi Limited works as a leading Independent Power Producer (IPP),Engineering and Procurement (EPC) and Operation and Maintenance (O&M) solutions provider for conventional and renewable energy projects. It is based in Sri Lanka and a  subsidiary of LTL Holdings Limited. In 2010, Lakdhanavi initiated its entry into the Bangladeshi market, actively seeking investment opportunities. Presently, the company has successfully commissioned three power plants, all engineered and constructed by Lakdhanavi itself, namely Raj Lanka Power in Natore (52.2 MW), Lakdhanavi Bangla Power in Cumilla (52.2 MW), and Feni Lanka Power in Feni (114 MW), with a combined installed capacity of 218 MW. The company has expanded its global footprint into Nepal, Maldives, and Oman. The most recent addition to its portfolio is located in Feni, situated in the southern region of the Bangladeshi capital, Dhaka. Feni Lanka, a subsidiary of Lakdhanavi LTD which is a private Independent Power Producer (IPP) for 15 years.


In 2016, the Government of Bangladesh decided to implement 10 new Greenfield HFO-fired power plants of 100±15% MW each on a Build, Own and Operate (BOO) basis in 10 different locations and called for international tenders by BPDB. Lakdhanavi secured the project of 114 MW capacity, which was to connect with the 132/33 kV Feni Grid Substation. Upon issuance of the Letter of Intent on 15 May 2017 by BPDB, Lakdhanavi Ltd. incorporated Feni Lanka Power Ltd. (FLPL) as a Special Purpose Vehicle (SPV) for implementation of the project (DFT, 2018). Feni Lanka Power Limited was incorporated on 04 July 2017 in Bangladesh as a public limited liability company under the Companies Act 1994 (FLPLBD, 2023) .Feni Lanka Power Limited signed the Power Purchase Agreement (PPA) and Implementation Agreement (IA) with Bangladesh Power Development Board and the Ministry of Power, Energy and Mineral Resources (MPEMR) for implementing the 114 MW HFO-based IPP power plant in Feni (FE, 2018).Feni Lanka Power Limited operates as an oil-fired power plant, leveraging heavy fuel oil (HFO) for electricity generation. 


The company committed a substantial investment of USD $100 million in Bangladesh. Lakdhanavi Ltd took on the comprehensive responsibility for the entire project life cycle, including engineering, design, procurement, construction, environmental approvals, and logistics. They have signed a power purchase agreement with Bangladeshi authorities, ensuring a stable operation of the Feni 114 MW Furnace Oil Power Plant (DM, 2020). 


Contractors

Infra and Engineering Private Limited (IEPL), the esteemed EPC contractor for the power plant, has used components sourced from international suppliers. The plant's configuration features six 18V50 and one 20V32 reciprocating engines, with the precise engine suppliers remaining undisclosed. Wartsila, a prominent entity from Finland, has been furnishing the control system to ensure optimal operational efficiency. ABB, a distinguished supplier from Finland, contributes seven generators, while MV-Chint from China and HV-ABB from India provide medium voltage and high voltage circuit breakers, respectively. The Main Power Transformer, sourced from Jiangsu Huapeng Transformer Co. Ltd, China, and the Auxiliary Transformer from LTL Transformers (Pvt) Limited.  (FLPLBD, 2023). 


Sponsor

Lakdhanavi Ltd (LAK) served as the primary sponsor for the establishment of a 114 MW thermal power plant in Bangladesh, operating under the Build, Own, and Operate (BOO) model. Having been awarded the Letter of Intent on May 15, 2017, LAK oversaw its fifth power plant venture in Bangladesh. As an independent Sri Lankan company, LAK actively finalized pivotal agreements, including the Power Purchase Agreement (PPA) and Implementation Agreement (IA), with key entities such as the Bangladesh Power Development Board (BPDB) and the Ministry of Power Energy and Mineral Resources (MPEMR). Demonstrating a steadfast commitment to completing construction within an 18-month timeframe, LAK anticipated a total investment of around USD$ 100 million. This funding was expected to be secured through a strategic combination of equity contributions and project loans from international development finance institutions (DN, 2017). 

  

Financiers

The financing for the power plant project was secured through a Private Sector & Trade Finance model. The project loan from the OPEC Fund for International Development was approved on 19 September 2018 and signed on 30 September 2020, and has since been completed. The OPEC Fund contributed US$ 22 million to the project, alongside co-financiers the Islamic Corporation for the Development of the Private Sector (ICD), the Infrastructure Development Company Limited (IDCOL), and the project sponsor. The collaborative financial backing from these institutions played an instrumental role in facilitating the successful implementation of the power plant project (OPEC Fund, 2020).


Fuel 

FLPL and BPC have an agreement for HFO supply. If BPC fails or refuses to deliver, FLPL or its appointed agent can independently procure the fuel. A 114 MW plant operating at an 80% plant factor requires 574.97 metric tons of HFO daily. This results in a total annual fuel requirement of 167,891 metric tons. 


Environment 

According to Section 12 of the Bangladesh Environment Protection Act 1995, Environmental Impact Assessment (EIA) is obligatory for any industry (MOLJPA, 1995). The polluting industries, such as power plants, have to go through an Initial Environmental Examination (IEE) and EIA as directed in the Environmental Conservation Rules 1997  (MOEFCC, 1997). But, till date, no IEE or EIA report has been found of the power plant. 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

 
 
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