PDB seeks Tk 980 cr to install power projects

Dhaka: The Power Development Board has sought around Tk 980 crore from the government to install two more 50MW units at the Karnaphuli Hydropower Station, sources in the power division said.

‘The board sent the “development project proposal” to the division for the installation of the units – 6 and 7 — at a cost of around Tk 980 crore last month to increase generation from the five-unit plant that has a capacity of 230MW,’ said a source.

‘We will send the project proposal next week to the Planning Commission for approval of the executive committee of the National Economic Council,’ he said.

The hydropower station in Kaptai Lake was installed in 1962, with two 40MW units and the 50MW third unit was set up in 1982 and two 50MW units were set up in 1988.

Electricity generation from the plant, however, decreased in recent times because of a decline in the lake’s water level. The power board has taken steps to overhaul Unit 4 and 5 to increase generation.

The power board and the division want to add two new units to the plant as early as possible as the generation of the power plants in the Chittagong region has been affected because of gas shortage and it will not be possible to install new gas-based station in the region.

Although the government took the initiative to set up the sixth and the seventh unit at the plants four to five years ago and almost finalised funds from Japan, Japan pulled out of the funding following a controversy that the units might affect the ethnic minorities in Rangamati.

Thousands of ethnic minority people were severely affected and lost their dwellings when the artificial lake was created for the power plant in the 1960s and fears are there that any additional unit would inundate more areas.

Sources in the Power Division said that the power board had carried out a detailed feasibility study and found no one would be affected if the power units were installed as the existing water rule curve in the lake would increase.

‘The units will only be operated when the water level is suitable. We need the units for the Chittagong region as the region is facing severe gas and power shortage,’ said a source.

Although the power board has recently signed an agreement with a Chinese company to set up a 150MW power plant at Shikalbaha, the plant might be operated with liquid fuel because of gas shortage.
The cost of electricity generation at plants run by liquid fuel is 8 to 10 times higher than that at gas-run plants. The production cost of hydropower, on the other hand, is much less than the cost at gas-run plants.