Matarbari Coal-Based Power Project Cost Rises by 15870Cr

The Executive Committee of the National Economic Council (Ecnec) on Tuesday cleared the first revision of the Matarbari 2X600 MW Ultra Supercritical Coal-Based Power Project, raising its cost by Tk15,870 crore.

The approval came from the weekly Ecnec meeting held virtually with Ecnec Chairperson and Prime Minister Sheikh Hasina in the chair, reports UNB.

The prime minister joined the meeting from her official residence Ganabhaban, while others got connected from the NEC conference room.

“The meeting approved ten development projects involving an estimated cost of Tk29,344.27 crore (only additional costs of revised projects counted),” said Planning Minister MA Mannan while briefing reporters after the meeting.

Of the total cost, Tk11,003.30 crore will come from government funds while the rest of Tk18,932.04 crore from foreign sources as loans, he added.

The minister also said of the approved projects, seven are new while three are revised ones.

The cost of the Matarbari project now stands at Tk51,854.88 crore against the original amount of Tk35,984.46.

The project deadline has been extended till December 2026 from June 2023.

Regarding the project, State Minister for Planning Dr Shamsul Alam said the prime minister suggested forming a development authority in Matarbari for the overall management since various development operations are being carried out there centering the coal-fired power plant.

About the additional cost involvement of Tk15,870.42 crore in the Matarbari coal-fired power plant, Planning Commission Member Sharifa Khan said the additional cost would mainly ensure deep seaport facilities there.

Around 98% of the additional cost there would be utilized for ensuring deep seaport facilities, she added.

She also mentioned there is no problem of coordination regarding implementation of the project while the power plant is expected to go into operation in 2024.

According to the project factsheet provided by the Planning Commission, the reasons behind the project’s revision include the rise of costs for the channel, jetty, land development and power plant construction alongside an increment of costs against other civil works like Turbine, Boiler, Coal & Ash Handling and Trial Run.

Besides, the costs against consultancy firm, VAT and import duty, rehabilitation and compensation, rural electrification and township construction and expansion of works are among other reasons.