Hyundai Engineering will to Build $180 Million Power Plant in Bangladesh

October 7, 2011

South Korea’s Hyundai Engineering Co. and Daewoo International Corporation will sign an accord with Bangladesh’s Ashuganj Power Station Co. to build a 225-megawatt power plant in the South Asian country.

The project will cost 13.61 billion taka ($180 million), Mizanur Rahman, company secretary at Ashuganj Power, said in a phone interview. Standard Chartered Plc will finance 80 percent of the cost, he said. Tough

Bangladesh, where more than half of the 156 million people don’t have access to electricity, plans to spend $10 billion, or 11 percent of its gross domestic product, in a decade to increase generation capacity and attract overseas investment.

The plant is being built in Ashuganj, 90 kilometers (56 miles) north-east of the capital Dhaka, to supply power to the national grid.

The government awarded Wednesday (October 5, 2011) the contract for construction of a 225-megawatt (mw) gas-fired combined cycle power plant project at Ashuganj to South Korean consortium, Hyundai Engineering Co and Daewoo International Corporation.

State-owned Ashuganj Power Station Company Ltd (APSCL) has signed the deal with the South Korean consortium to construct the power plant on a turn-key basis by December, 2013.

The power plant will be built at a cost of Tk 13.61 billion.

"Awarding the 225 mw Ashuganj power plant is a part of our commitment to build base-load power plant under the mid-term plan," Prime Minister's Energy Adviser Dr Tawfiq-e-Elahi Chowdhury said.

The power ministry had earlier approved building of diesel and furnace oil-fired power plants as part of the government's immediate and short-term plan for a quick-fix, for augmenting electricity generation across the country, he said.

"We have not forgotten to install more efficient base-load power plants and diversify the country's energy sources, encourage energy conservation and boost renewable energy use," Mr Elahi said.

This is the 43rd agreement to build a total of 45 power plants to generate around 4500 mw of electricity under the present Awami League-led government, said Power Secretary Md Abul Kalam Azad.

Around 1600 mw of additional electricity has been added to the national grid since taking office of the government in January 2009.

Some 700-800 mw more electricity will be added to the national grid by December 2011, he said.

Executive Senior Vice President of Hyundai Engineering Co Kim Ok Chul, Executive Vice President Daewoo International Corporation Han Chan Kun and APSCL Managing Director signed the deal on behalf of their respective sides to the agreement.

South Korean Ambassador in Bangladesh Cho Tae Young, State Minister for the Ministry of Liberation War Affairs Tajul Islam and Bangladesh Power Development Board (BPDB) Chairman ASM Alamgir Kabir also spoke on the occasion.