7.

The Mission:
The National Thermal Power Corporation of India (NTPC) 1 in collaboration with the Bangladesh
Power Development Board (BPDB)2 is in the process of setting up a 1,320 MW coal fired
power plant in Rampal, Bangladesh which is situated approx 14km from the Sundarbans,
the largest remaining mangrove forest in the world. SAHR conducted a fact finding
mission from 5 – 11 April 2015 to examine the impact of the newly emerging coal
power plant in Rampal on the lives and livelihoods of the local people in the area
and the environment. The mission was led by Dr Abdullah Harun Chowdhury,
Professor of Environmental Science of the Khulna University and Sharif Jamil,
Council Member, Waterkeeper Alliance from Bangladesh. External expertise from
India was provided by Sagar Dhara, an Environment Engineer and Nityanand
Jayaraman, a Chennai-based writer and social activist. Deekshya Illangasinghe
represented the SAHR secretariat. SAHR Bureau Members in Bangladesh Khushi
Kabir, Sultana Kamal and Dr Asif Nazrul were advisors to this programme.

 Objectives of the Mission

Given that the Sundarbans is an international heritage site and the project a
product of a bilateral agreement between two South Asian countries, SAHR feels
that it is imperative to pay attention to the ways in which such an agreement might
impact the people and the environment of both countries.

The objectives of the fact-finding mission were to:

1. Examine the status of the proposed power plant including the legal framework
governing its establishment;
2. Examine, if any, environmental and other assessments made regarding the
impact of the power plant:

3. Assess if the proposed power plant violates any laws, policies and guidelines that protect
the Sundarbans;
4.Assess the impact of the project on the human rights of the people dependent on the
Sundarbans;

5. Examine all other information relevant to the mission.

8. Agreement:

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2

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 In August 2010, a “Memorandum of understanding was signed between Bangladesh
Power Development Board (BPDB) and India’s state - owned National Thermal Power
Corporation (NTPC) in which they agreed to implement the project by 2016. On January
29, 2012, the Bangladesh Power Development Board signed an agreement with NTPC to
build the plant. The joint venture company is known as Bangladesh India Friendship
Power Company (BIFPC). The BPDB and the NTPC agreed to implement the project on a
50:50 equity basis. The NTPC will set up and operate the plant. Bangladesh and India will
equally share up to 30 per cent of the equity of this project. The remainder of the equity,
which might be equivalent to USD 1.5 billion, will be taken as bank loan with help from
the NTPC. According to the sources in the Bangladesh Power Division, the joint venture
company will enjoy a 15-year tax holiday.

9. Project Capital Cost Estimate:

Project timetables and cost estimates for the Rampal project have risen repeatedly over the years,
mirroring trends for most thermal power plants in the region in terms of both cost and time over-runs.
Initial reports put capital costs at between US$1.2bn 3 and US$1.5bn,4 with the former probably
excluding interest-funding costs capitalised during construction. As per the latest reports, state officials
say that plant costs will now be US$1.8bn, owing to additional design modifications that include a Flue
Gas Desulphurization System and covered barges for coal transportation, changes aimed to move the
project closer to minimal environmental standards.5 The latest official estimate—of US$1.8bn
—implies a cost per GW of US$1.38bn. Given the history of capital costs and time blowouts for power
plants in general, IEEFA doubts that Rampal can be built for US$1.38bn per GW, especially when the
International Energy Agency puts typical capital costs globally for such projects at US$2-3bn per GW.

10. Financing:

Loan are expected to fund up to 70% of the US$1.5 billion project, while India and Bangladesh will
fund the remaining 30% equally (15%each). However, the Bangladesh Planning Commission
refused approval, saying the project was not complaint with the country’s existing policy nor was
the funding and ownership of the plant clear. This leaves even the 15% Bangladesh stake in the
project uncertain. In 2014-2015 French banks credit Agricola, BNP Paribas, and Societe Generale
said they would not fund the Rampal power station, after sustained public opposition to the project
over its social and environmental effects. In December 2014, the council on ethics of Norway
released its assessment of the country’s government pension fund global’s investment, valued at
US$56 million, in the thermal plant. It recommended the fund exclude the project from its portfolio
“duo to an unacceptable risk of the company contributing to severe environmental damage”. In

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March 2015 the Guardian reported that the Norweigan pension fund would likely pull funding from
the Rampal plant.

In April 2017 the EXIM Bank of India confirmed it is providing a US$1.6 billion loan to Bangladesh –
India Friendship Power Company (BIFPCL) for development of the Rampal coal plant.

11.Environmental Issue And Cumulative Impact:

Coal--fired power plants also spread a toxic menagerie of chemicals into both the air and water,
including arsenic, mercury, lead, nickel, and radium. The water of the Sundarbans and surrounding areas
will be affected by discharging cooling water, effluents from the ships, and leaching water of the coal
from ships. The government says the plant could discharge up to 52,000 tons of sulfur a year, which,
depending on the type of coal burned, could lead to acid rain in the Sundarbans and surrounding
regions. The 40 kilometers from the port to the plant cuts through the Sundarbans and it includes the
river flow path. Coal spilling off the barges may lead to possible water contamination, while
the ships will also cause daily noise pollution possibly putting species at risk, including
dolphins. Just last year, Bangladesh set aside three new areas of the Sundarbans as Wildlife
Reserves for the dolphins.

 Pollutants of Concern:

One study found that one out of every 100 children who drink
groundwater contaminated with arsenic from coal power plant wastes
were at risk of developing cancer. Ecosystems too have been damaged
sometimes severely or permanently by the disposal of coal plant waste.
Much of the heat produced from burning coal is wasted. A typical coal
power plant uses only 33-35% of the coal's heat to produce electricity. The
majority of the heat is released into the atmosphere or absorbed by the
cooling water. Once the 2.2 billion gallons of water have cycled through the
coal-fired power plant, they are released back into the lake, river, or
ocean. This is enough water to support a city of approximately 250,000
people. The discharged water from the coal power plant will pollute the
water systems of the Sundarbans region due to its changed temperature
and velocity, dissolved chemical and other pollutants. This water is hotter
(by up to 20-25°F) than the water that receives it. This "thermal pollution"
can decrease fertility and increase heart rates in fish. Typically, power
plants also add chlorine or other toxic chemicals to their cooling water to

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 decrease algal growth. These chemicals are also discharged back into the
environment.

 Ground water:
The ground water and that of the Poshur would also be polluted by the huge amount

of waste produced due to burning of the coal. Whereas the existence of strict laws to

protect the environment and the wildlife, the government has recently decided to

declare a part of Poshur and Andharmanik rivers sanctuaries for dolphins. The liquid

waste or sludge contains hazardous arsenic, mercury, cadmium and chromium. These

toxic substances can contaminate drinking water supplies and damage vital organs

and the nervous system of people living around the place and the natural resources of

the Sundarbans.
 Fisheries
The fisheries resource of the study area are rich and diversified with mainly brackish

water to minor fresh water fish habitats. The area has a close connection with

mangrove forest providing support to a number of marine and fresh water fishes. The

estimated total fish production of the study area is about 5218.66

M.ton, which comes from both capture fisheries (565.66 M.ton) and

culture fisheries (4653. M.ton). On the other hand, the estimated total

fish production from the project area (project boundary) is about 569.41

M.ton (capture 4.79 M.ton & culture 564.62 M.ton). Acquired land includes

shrimp aquaculture farm, mangrove, intertidal area, and tidal creeks which

are used as, fish habitat. Acquisition of these lands might cause loss of

these habitats. Open water fisheries habitats like rivers (Passur, Maidara),

khals and inter-tidal area may be affected due to dredging, traffic

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 movements, and oil and chemical spilling. Dredging activities may also alter

the habitat of the bottom feeder fish for short period.

 Construction Process:
As the materials and equipment would be transported by river to the project site

during the construction period, the frequencies of the vessels will relatively

increase. If navigational, spillages, noise, speed, lighting, waste disposal

rules regulations are not properly maintained, it may impact the

Sundarbans ecosystem especially Royal Bengal Tiger, deer, crocodile,

dolphins, mangroves etc. Construction work including land filling by

dredging, sand lifting, site clearance and physical construction of plant

setup etc. which may have impacts on open water fish habitats, fish

diversity and hence to some extent on capture fisheries production. During

construction phase, solid waste and wastes water discharged to the river would cause

water pollution. Navigational activities for transporting construction materials

through the Sundarbans and dredging activities would create disturbance to fish

migration. During the dredging operation, fish migration would be disturbed within

the dredging operation area.

13. Recommendation:

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