FHM Humayan Kabir

The government has sought funds from Japan to set up a coal-based power unit at Barapukuria in Dinajpur aiming to reduce dependency on natural gas for electricity generation, officials said Monday.

"We've asked Japan for giving us financial support to install a coal-based power unit. We are hopeful they will consider our request," an economic relations division official told the FE.

"As the government wants to reduce dependency on the depleting natural gas reserve for electricity generation, we are trying to mobilize funds from the donors to install coal-based power projects in the future," the official said.

The Power Development Board (PDB) has planned to set up a 125-megawatt (mw) unit, third of its kind, at the existing Barapukuria thermal power plant.

At present, two units at the country's first ever coal-based plant generate total 250mw electricity daily.

A senior power division official said the government had taken a major policy shift to generate power from coal as its traditional source--natural gas-is depleting swiftly due to steep rise in demand each day.

Of the total electricity production, over 81 per cent is generated from the natural gas and only 4.77 per cent from the coal.

Under the power sector master plan (PSMP) 2006, the country would require 9786 mw of power every day by the year 2015 to meet the demands of its growing consumers.

At present the PDB supplies about 3500mw to 4000mw of power daily against the demand for over 5000mw.

The ERD official said as the Japan government in December 2007 had confirmed nearly $200 million fund for setting up a 360mw plant at Haripur, they were hopeful the donor would continue its support to the country's power development projects.

A senior PDB official told the FE that if they do not succeed in mobilizing funds from the donors they would seek it from the government for setting up the proposed 125mw unit at Barapukuria.

"We are preparing a project proposal for the power unit for placing it before the government's highest authority to get approval," he said.

The PDB official said they were also working to set up five coal-based power plants with combined capacity of 2500mw in public-private partnership to reduce the power supply shortfall in the country.

The plants are proposed to be set up one each at Mongla and Chittagong, one at the location of soon-to-be built Padma Bridge and two others at Meghnaghat, he said.