Orion now seeks land in Maheshkhali to set up 726MW gas-based power plant

After failing to set up a 522-megawatt coal-fired power plant in Munshiganj, Orion Group now wants to build a 726-MW RLNG/natural gas-based combined cycle plant at Maheshkhali Island under Cox’s Bazar district.

Orion proposed that the Maheshkhali power plant would be a substitute for its coal-based one in Gazaria of Munshiganj.

Orion wanted the Bangladesh Power Development Board (BPDB) to be their partner on an equity share basis or by forming a joint venture, but the Board did not agree with the proposal. Rather, the government owned Board said the proposed power plant may be developed on the basis of a build, own and operate (BOO) system.

“Orion may take land at Maheshkhali on a long-term lease, which requires the government decision,” reads a letter sent by Saiful Islam Azad, secretary of the BPDB to the secretary of the energy and mineral resources ministry, recently.

“After obtaining the government’s decision, we may go forward to locate the land and its rents,” said the PDB secretary.

The PDB has acquired 5,600 acres of land in Maheshkhali where a number of power plants will be constructed.

Orion says it needs only 30 acres of land to set up the power plant in Maheshkhali. After getting the land, PDB said Orion has to take opinion on power evacuation from the Power Grid Company of Bangladesh, obtain assurance of gas/RLNG supply by Petrobangla and conduct a feasibility study on the project, said Azad of PDB.

On June 27, 2012 Orion Power Dhaka Limited, a concern of Orion Group, signed a power purchase agreement with the PDB and the government to build a 522 MW coal-fired plant in Munshiganj.

As per the agreement, Orion was supposed to complete the required financial closing date of the project by March 27, 2013 and the required commercial operation date was set on March 27, 2016. But Orion failed to do so.

Later, on September 23, 2019, Orion applied to the power division to extend the project’s financial closing date and commercial operations date, respectively. But they did not apply with required documents and bank guarantee.

Earlier, the government has dropped 10 coal-fired power plant projects, with total generation capacity of 8451 MW, as it seeks to revise the country’s power system master plan (PSMP).