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Parsons Brinckerhoff Business Management System

Systems Management
Report Template SM-202-F03

EHII - Bangladesh IPP for BPDB


Visit report – June 2010

June 2010

Parsons Brinckerhoff (Middle East) Limited


Legends Headquarters Building
First Floor, Emirates Road
PO Box 4512
Dubai UAE
Telephone +971 4 360 0090
Facsimile +971 4 374 3939

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Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Visit Report – EHII Bangladesh IPP for BPDB (June 2010)

Revision

Reviewed Approved
Rev Date Details
Name Signature Name Signature

A 05/07/2010 Draft Rob Higgo

Prepared by:
Parsons Brinckerhoff (Middle East) Limited

PO Box 4512
Dubai, United Arab Emirates
Tel: +971 4 360 0090
Fax: +971 4 374 3939

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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Contents
Page Number
Executive summary ...............................................................................................................................1

1. Meeting Notes.................................................................................................................................2
1.1 EHII Led Delegation 2
1.2 Bangladesh Power Development Board 2
1.3 Bangladesh Oil, Gas and Mineral Corporation (Petrobangla); 6
1.4 Power Grid Company of Bangladesh (PGC); 7
1.5 Meghnaghat Independent Power Plant 8
2. Power Plant EPC ..........................................................................................................................11
2.1 Alstom 11
3. Conclusion ...................................................................................................................................12
3.1 Site for the proposed IPP 13
3.2 Primary Energy 13
3.3 EPC Contractor 13
3.4 Option 13

List of appendices
Appendix A
Site Possibilities for the Proposed EHII IPP

Appendix B
Meghnaghat IPP – select images

Appendix C
Visit Business Cards

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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Executive summary
Overview

A delegation representing Energy Holdings International Inc. (EHII) visited Dhaka, Bangladesh between
Sunday 20 June 2010 and Wednesday 23 June 2010 inclusive.

The primary purpose of the visit was to commence working with Bangladesh Power Development Board
(BPDB) and establish the team, who would involve itself in the development of the proposed IPP, to
be financed, specified, built and operated by EHII and its Partners.

Successful meetings were held with various stakeholders in Bangladesh, and progress was made in
commencing with the proposed IPP project.

A potential site has been identified as the primary site of choice for the IPP; and the IPP adjacent to this
site was visited by Parsons Brinckerhoff to establish general background on their experiences in
operating an IPP in Bangladesh.

Key Stakeholders Visited

Key Stakeholders visited included:

Advisor to the Honourable Prime Minister of Bangladesh and to the Chairman of BPDB;

Bangladesh Power Development Board (BPDB);

Bangladesh Oil, Gas and Mineral Corporation (Petrobangla);

Power Grid Company of Bangladesh (PGC);

Independent Power Plant (IPP) Unit, BPDB;

Meghnaghat Power Limited.

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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

1. Meeting Notes
1.1 EHII Led Delegation
The following parties formed part of the EHII led delegation to Bangladesh:
1. Mr Fahad Abdullah BuNuhayan; Chairman of Advance Energy;
2. Mr Jalal Al Ghani; Director and Chief Financial Officer of EHII;
3. Mr Muhammad Fuad Abdul Rahman; Manager for Wasatah Capital;
4. Mr Rob Higgo; Director for Power & Water, Parsons Brinckerhoff, Middle East.

1.2 Bangladesh Power Development Board


Meetings were held with BPDB on 21 and 22 June 2010.

1.2.1 Dr. Tawfiq-e-Elahi Chowdhury, Advisor to the Honourable Prime Minister of


Bangladesh and to the Chairman of BPDB. {21st June 2010}

Courtesy meeting, and to obtain Dr Tawfiq’s support for follow-on meetings with BPDB and
others.

General discussion included Bangladesh plans for procuring LNG from Qatar; general gas
shortages in Bangladesh and the perceived need for IPP to be duel-fuel capable as a result
of gas shortages currently being experienced.

Mr Higgo requested support in being able to visit one of the existing IPP’s in Bangladesh,
and Dr Tawfiq referred him to visit Meghnaghat IPP, as this was located in close proximity
to Dhaka.

Dr Tawfiq went on to secure a meeting with the Chairman of BPDB for 22 June 2010.

1.2.2 Chairman: Bangladesh Power Development Board (BPDB). {22nd June 2010}

Those present at the courtesy meeting, but not limited to, include:
Engr. A.S.M. Alamgir Kabir; Chairman.
Engr. Md. Mostafa Kamal; Member (Generation).
Engr. Masum Al-Beruni; Chief Engineer (Planning & Design).

General discussion related to the IPP, with a focus on siteing of the IPP.
Delegation was referred to discuss siteing with the Chief Engineer (Planning & Design).

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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Additional meetings were discussed, and Chairman assisted the delegation in securing the
following meetings, along with his staff present:

Petrobangla;
Power Grid Company;
Head of IPP unit, BPDB;
IPP, being Meghnaghat site.

In general terms, the delegation was referred to discuss IPP related matters (PPA and
related Agreements) with the IPP unit of BPDB;
Transmission and Grid related matters to be discussed with PGC;
Gas provision and fuel supply and planning to be discussed with Pertobangla.

1.2.3 Chief Engineer (Planning & Design); Engr. Masum Al-Beruni. {22nd June 2010}

Primarily discussed siteing of the potential IPP; based on access to fuel, transmission and
water resources.

Several sites identified, as can be seen in Appendix A: Site Possibilities for the Proposed
EHII IPP, which have been superimposed onto the Grid Diagram for Bangladesh.

After some discussion with those present, two sites appeared most likely to be favoured,
those being the site prepared adjacent to the existing Meghnaghat IPP, which is able of
developing and accommodating four new IPP projects in the scale of 450 ME OCGT; and a
site identified in Chittagong, due to its location close to the sea-port and therefore, liquid fuel
to support duel-fuel firing configuration.

The preferred site however, when considering ready infrastructure, transmission grid
strength and water, leaves in reality, only the site at Meghnaghat.

It was also highlighted that a grid strengthening project has been approved, and EPC
contracts placed, for the construction of a 400kV power line to augment the grid system
currently at Meghnaghat site, being 230kV, but not sufficient for additional IPP capacity.

1.2.3.1 Identified Sites

1.2.3.1.1 Meghnaghat site, lat: 23.608782° and lon: 90.596882° with elevation: 0m.

1.2.3.1.2 Chittagong site, lat: 22.297686° and lon: 91.800888° with elevation: 0m.

1.2.3.1.3 Keranigany site, lat: 23.654583° and lon: 90.338867° with elevation: 0m.

1.2.3.1.4 Others; not considered further.

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BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Meghnaghat site
High level statistics (un-proven) on this site:
Fuel (natural gas): Gas line exists; but beware potential gas shortage;
Fuel (HFO): No;
Transmission: Yes at 230kV; but needs augmentation;
o 400kV augmentation approved and EPC contracts placed
Water: Yes, on river;
Access: Yes, road and river;
Site: Rehabilitated land, 10 years old and industrial suited;
Suitability: Excellent.

Chittagong site
High level statistics (un-proven) on this site:
Fuel (natural gas): No;
Fuel (HFO): No;
Transmission: Yes at 132kV; but needs major augmentation; Unsure of how close
transmission network is from the proposed site;
Water: Yes, on river;
Access: Limited, river access; No road;
Site: Virgin; greenfield;
Suitability: Second Choice.

Keranigany site (Dhaka)


High level statistics (un-proven) on this site:
Fuel (natural gas): No;
Fuel (HFO): No;
Transmission: No;
Water: Yes, on river;
Access: Limited, river access; No road;
Site: Virgin; greenfield;
Suitability: Poor.

1.2.4 Director: IPP Cell; Engr. Md. Shamsul Hassan Miah {22nd June 2010}

Following general introduction on the purpose of the EHII visit, the background related to the
proposed IPP and mention of proposed sites, general discussion on requirements related to
the establishment of an IPP in Bangladesh ensued.

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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Mr Miah commenced the meeting by explaining the IPP bid process related to IPP’s in
Bangladesh; All IPP’s are required to follow a competitive bidding process, and currently,
Meghnaghat Phase II1 is out to bid.

When quizzed on pricing, Mr Miah responded with an indicative tariff 0f 2,79c/kWh


(levelised tariff) for the Meghnaghat IPP, based on gas firing, and a 22 year PPA term. It
was further suggested that the gas price was approximately $2.4/Giga-Joule. (1 MCF
approximately 950 btu2)

The delegation then explained the nature of the EHII IPP, and requested feedback on
possible time lines in being able to finalise a Letter of Intent for the IPP. Mr Miah responded
that Meghnaghat took between 90 and 120 days to finalise (signed PA) after a firm offer had
been placed on the table for consideration by the BPDB.

In terms of Grid capacity, Mr Miah confirmed that the Meghnaghat site requires grid
strengthening to evacuate power, and the current 400kV strengthening project is anticipated
to be completed within 2 years. (Keep in mind the current bidding programme for
Meghnaghat 2, which could add a further 300 – 450MW to the grid at Meghnaghat).

With respect to the use by a developer of second hand or refurbished power plant and
equipment, Mr Miah advised that this would not be permitted, due primarily to the PPA
duration (22 years) and the requirement for plant to meet or exceed availability of 90%.

PPA durations are typically 15 years for OCGT power plant; and 22 years for OCGT power
plant.

When considering Primary Fuel, Mr Miah advised that currently, generation capacity was
being affected to the value of approximately 600 – 700MW, due to a shortage in gas supply.
This is being addressed, however, Mr Miah was not prepared to speculate on gas availability
related to IPP’s, and referred the delegation back to the BPDB proper for advice on fuel.

Mr Miah then proposed that the following process should be followed in seeking an
agreement with the BPDB:
Conclude background work and investigation (feasibility study);
Make a proposal to the BPDB, that is priced and contains an indicative tariff;
Obtain government approval (BPDB);
Issue a Letter of Intent (BPDB);
Negotiate and sign a PPA.

1
During an internet search, PB resourced the following information: (The Power Development Board (BPDB)
floated the pre-qualification (PQ) document seeking qualified power developers to install a dual fuel 300 to 450 megawatt
power plant in Meghnaghat on 21 January 2010; it was further reported that the PQ for Meghnaghat 2 has some relaxed
criteria to encourage greater participation of bidders). The BPDB was seeking further clearance of two PQ documents
for Bibiyana-2, a 450 MW project, and Bhola 150 MW power projects.

2
To be verified by EHII

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Visit Report
EHII Bangladesh IPP for BPDB
June 2010

When asked about the recent contracting of rental generation, Mr Miah advised that
approximately 920MW of rental power is being contracted by the BPDB; the indicative tariff
is 11c/kWh, being based on furnace oil; it was added that approximately 50% of rental units
are burning gas as a primary fuel, and that 50% are burning furnace oil.

When discussing the PPA particulars, it was confirmed that Fuel is not considered pass-
through, but that the PPA is based on heat rate. Capacity payment is based on 365 days of
the year, and the variable tariff component applies to power actually generated. (There are
liquidated damages for not meeting availability targets);

Procurement of fuel remains the responsibility of the IPP, who will be required to source,
and procure all fuel required for the IPP.

Mr Miah ended by confirming that the government is concerned by the lack of fuel diversity,
and that as a result, the BPDB are seeking to increase power generation using primary fuels
such as coal, renewable energy and liquid fuels, such as furnace oil (HFO). In the case of
EHII’s proposed IPP, it was Mr Miah’s opinion that the IPP should be duel fuel capable.

When requested to comment on the flexibility of the PPA, and to what extent EHII could
propose alterations to the existing PPA model; Mr Miah stated that there is limited scope for
proposing changes to the PPA.

With regard to a visit to the Meghnaghat IPP, Mr Miah arranged with Engr. Retaul Karcium,
Executive Engineer of the IPP Cell unit, to escort Mr Rob Higgo to the site on 23 June 2010.
For future reference, Engr. Karcium can be contacted on mobile (015 524 05996).

1.3 Bangladesh Oil, Gas and Mineral Corporation (Petrobangla);

nd
1.3.1 Director: Operations and Mines; Dr. Molla Md. Mobirul Hossain. {22 June 2010}

Following general introduction on the purpose of the EHII visit, the background related to the
proposed IPP and mention of proposed sites, general discussion on fuel continued. The
following notes were recorded:

80% of Bangladesh Power is currently generated using natural gas reserves (own);
this is perceived to be a major risk, and Bangladesh authorities are now looking for
fuel diversification to redress this risk. (i.e Oil, Coal or other primary fuels)
Bangladesh is experience a general natural gas shortage, and this is being
transferred to the power sector. Petrobangla are working on increasing gas
production by expanding operations, and increased gas production is expected in
the next two to three years, starting 2012.
Bangladesh is considering augmenting its own gas reserves by importing LNG from
Qatar, and degasifying it in Bangladesh for local consumption.

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BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Recoverable gas reserves in Bangladesh total 12 TCF currently; but there are plans
to expand exploration to expand on these reserves.
Bangladesh have large coal reserves, and it was proposed that this could be a
source of fuel for future power generation.
It was confirmed that an IPP built in Chittagong would not be able to get natural gas
supplied from the existing Bangladesh reserves at this time.
Gas is currently priced at between US$4.00 and US$4.25 per MCF. This is based
on the Japanese Crude Cocktail (JCC) index.
Dr. Hossain estimated that a 450MW IPP would require between 72 and 75 MCF
per day dependent on overall efficiency.

In conclusion, it would appear that the Bangladesh Government, through Petrobangla, are
working to augment gas reserves in the country. Whether this gas will be routed to power
generation or not, is beyond the scope of this report summary. Even with the gas
augmentation, it would seem as though Bangladesh wish to pursue fuel diversification,
however, it is unlikely that they will be able to firstly afford the costs of HFO and other liquid
fuel sources, considering the logistics that would be required in transporting, handling and
storage of the fuel. Environmental impacts would also add to the difficulty of importing such
large HFO and other fuel sources, unless produced locally.

1.4 Power Grid Company of Bangladesh (PGC);

1.4.1 Managing Director; Engr. MD. Ruhul Amin. {22nd June 2010}

Following general introduction on the purpose of the EHII visit, the background related to the
proposed IPP and mention of proposed sites, general discussion on transmission integration
and grid strengthening ensued. The following notes were recorded:

Those present at the courtesy meeting in addition to Mr Amin, but not limited to, include:
Engr. MD. Rafiqul Islam; Deputy General Manager (Design).
Engr. Muhammad Elias; Deputy General Manager (Planning).
Engr. Arun Kumar Saha; Manager System Planning.
Engr. Pranab Kumar Roy; Manager (M.I.S.)

It was confirmed that the 400kV strengthening of the Meghnaghat site had commenced, and
that the EPC contract for the new transmission line had already been placed. In addition to
this strengthening, a new double circuit 400kV transmission line is being planned to link
Meghnaghat to Chittagong, where it is intended to construct a 1300MW Coal fired power
plant.

In terms of siteing, the delegation from PGC confirmed that from a transmission point of
view, that Meghnaghat is a preferred site for the construction of a new IPP. It is both close
to the Dhaka load centre, but will work well considering the grid strengthening underway.

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Visit Report
EHII Bangladesh IPP for BPDB
June 2010

It was further confirmed that the project Developer would be required to construct the
Electrical Special Facilities (High Voltage Switching Yard and Substation) and once
constructed and commissioned, hand it over to PGC to own and operate into the future.

The standard and specifications that would be required to be followed in constructing the
ESF, would be those of the PGC; It was mentioned that the developer should attempt to as
far as possible, reduce the amount of common equipment related to the power plant /
transmission network, so as to create clear boundaries or battery-limits.

1.5 Meghnaghat Independent Power Plant

1.5.1 Plant Manager; Engr. Riaz Uddin. {23rd June 2010}

Meghnaghat IPP is a 450MW IPP, originally built by AES (Allied Energy Systems) Corp, the
US-based producer; it was subsequently sold to British CDC Globeleq, and has since been
acquired by Pendekar Energy, when they purchased the shares held by Globeleq in
Globeleq Bangladesh Ltd. Pendekar Energy (Labuan) Ltd. operates power plants, of which
three are in Bangladesh, one in Pakistan and two fuel oil plants in Sri Lanka. Pendekar
Energy (Labuan) Ltd. was founded in 2005 and is based in Malaysia. Pendekar Energy
(Labuan) Ltd. is a subsidiary of Tanjong Energy Holdings Sdn Bhd.

Mr Uddin welcomed Rob Higgo to the plant, and assured Mr Higgo that he was comfortable
discussing his experiences related to the IPP and relations with BPDB openly; Mr Uddin had
been part of the AES team when constructing the IPP, and had gone on to become the
Plant manager for Meghnaghat IPP.

Summarising the main points discussed, the following is pertinent to consider when
investing in an IPP in Bangladesh:

Payment (by BPDB) is good; no issues, and payment periods of within 30 days are
normal;

Duel Fuel – would be problematic, both in terms of logistics and fuel procurement
within Bangladesh;

Reflecting on the current magnitude of rental power agreements in Bangladesh, Mr


Uddin felt that the cost of this power would result in the government being unable to
pay/honour its long term commitments; which could have a direct knock-on effect
wrt. A new IPP and payment for power;

o Estimates are that the BPDB are paying between 7 and 14 Taka per kWh;
whilst the retail price of electricity is 3 to 4 Taka per unit.

Transmission – currently the grid is not as stable as it should be; however, it is far
better than when Meghnaghat was first commissioned; Frequency swings between

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BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

40Hz and 51Hz are common, and power plant must be designed to operate
within this poor electrical environment; In terms of Voltage levels, the grid
voltage on the 230kV network typically runs at between 190kV and 200kV, also of
concern to the IPP operator.

o In terms of interaction with BPDB and PGN, Mr Uddin finds that the IPP
receives excellent support from the utility, who genuinely go out of their way
to assist the IPP in resolving issues.

Primary Energy (Natural Gas) is in short supply; during peak periods, the IPP does
not receive sufficient gas to generate at full load. This has been the case for some
time, and is expected to improve in future;

Staffing is a problem; It is a problem finding engineering and operating staff with the
required skill set to work on an IPP within the local market, due to the broad nature
of experience and competence required.

o Meghnaghat recruited young engineers, and have invested heavily in their


development at site; these engineers are now trained to deal with a broad
range of site related issues, being multi-skilled;

o The total power plant staff, including management is numbered 44; These
are all Bangladeshi nationals;

In terms of IPP development, Meghnaghat has been the last IPP to be contracted
and built in Bangladesh in 9 years; this is ascribed to the difficult environment
related to the investment, when considering gas supply, and general ability to cut
through “red tape” and bureaucracy in making meaningful progress.

o Many IPP developers have visited Bangladesh; have signed MOU’s but
have failed to conclude an IPP / PPA agreement.

Permitting (day to day) – is an issue, but has improved; General permitting will need
to be closely managed, and the IPP needs a Government Relations Officer or
similar resource / agent to progress permits;

o Example used was that for any specialised repair to plant or equipment
outside of Bangladesh, an export – import permit is required; a fast track
permit will take 14 days, in which time the plant may be out of service
waiting on the repair.

In terms of the actual Meghnaghat Power Plant, some of the salient points include:

Cooling Water for the power plant is taken from the adjacent river; No permitting
issues have been experienced;

o Need to adhere to World bank standards as regards effluent and other


discharge and plant/environmental parameters;

o Average water temperature – 26C; ranges from 20C in winter through


32/33C in summer;

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BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

o Maximum temperature rise is 2C in Bangladesh; outfall discharge is 1km


down stream from the power plant; the discharge channel can be seen on
the Google Earth picture of Meghnaghat contained in Annexure B.

Plant Availability averages 92% plus;

o Two Siemens V94.2 OCGT’s;

o Air-cooled generators from Ansaldo Energia s.p.a. affixed to the OCGT’s;

o Steam turbine supplied by Fuji. (FUJI triple-pressure (HP, IP and LP),


reheat, condensing, down exhaust type steam turbine with a two-pole
generator being totally enclosed and water-to-air-cooled);

o Korean manufactured and erected HRSG. (HHI (Hyundai Heavy Industries)


triple-pressure, natural-circulation Heat Recovery Steam Generators use
supplementary firing).

Gas provided by the authority requires an on-site Compressor Booster Station,


which is operated and maintained by the IPP as part of their equipment;

The power plant runs at base load; and all available power is purchased by BPDB;

Power frequency trip settings – IPP is set to disconnect from the grid at 51.5Hz;
whilst the system setting is 52Hz;

The plant includes full on-line monitoring of steam condensate and other critical
water systems; has a fully functional laboratory (chemist) on site dealing with routine
plant samples; have small electrical and mechanical workshops, water treatment
plant etc. i.e. The IPP is a fully functional, stand alone power plant.

rd
1.5.2 Operations Manager; Mr Sushanta Kumar Paul. {23 June 2010}

Following the meeting with the Plant Manager, Mr Paul kindly escorted Rob Higgo on a tour
and walk-about on the IPP.

The power plant was in excellent visual condition, and as good as any power plant of similar
age in western countries visited by Rob Higgo. House keeping was good, plant cleanliness
good and the overall impression was that the plant is well managed, operated and
maintained.

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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

1.5.3 Visuals of the power plant

Unfortunately, the taking of photographs is forbidden on site. No photographs were taken as


a result, however, in the Annexure B to this report; several photographs from file have been
obtained to give a general pictorial overview of the IPP itself.

2. Power Plant EPC


2.1 Alstom
Following the visit to Bangladesh, and considering development options for the power plant,
PB contacted and established a meeting with Alstom, to discuss the IPP opportunity in
general.

Alstom representative:

Mr Dieter Buck
Senior Business Sales Manager
Email: dieter.buck@power.alstom.com
Tel: +41 56 205 6106
Mobile: +41 173 660 4281

The primary reason that PB have suggested that EHII consider direct discussions with
Alstom, is that Alstom have the capacity to not only manufacture and supply the IPP and
generation plant required to construct the power plant (including the Electrical Special
Facilities), but are also in a position to do this on an EPC “turn-key” basis, providing EHII
with a fully integrated solution for the IPP.

Alstom will be able to specify the power plant, whilst in addition, optimise the major plant
systems to optimise efficiency, particularly in the area of the OCGT, Steam Turbine and
Heat Recovery Steam Generator.

Some aspects to keep in mind include:

Alstom do not manufacture power plant able to burn Heavy Fuel Oil or furnace oil;

o Alstom gas turbines can only fire on diesel fuel or gas;

Considering the state of the network (frequency, voltage and general stability) the
most likely equipment to be specified for robustness would be Class E machines as
opposed to Class F machines. These are smaller machines as opposed to a single
large machine (F Class); increasing operational flexibility for unforseen system
induced problems.
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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

The most likely plant configuration for this project would be a 2-into-1 configuration,
comprising two Gas Turbines each coupled to a Heat Recovery Steam Generator,
whose combined steam would be routed to a single Steam Turbine; producing
approximately 500MW ISO.

Alstom can as part of their turn-key services, construct the Electrical Special
Facilities; this being done by “Alstom Grid”, Alstom’s power network company
acquired on 7 June 2010 through the take-over of Areva T&D’s transmission
business.

Alstom is able to following commissioning and going commercial, offer full


Operating and Maintenance (O&M) services on an on going basis to the IPP.

When discussing Bangladesh specifically, Mr Buck stated that he was familiar with the
country, and had in fact, provided Westmont Power with a proposal some years ago, for a
combined cycle gas fired IPP power plant. Mr Buck was also familiar with the Meghnaghat
IPP, and the proposed site for the new IPP, immediately adjacent to Meghnaghat IPP.

Mr Buck estimated a development time line as follows:

From “Down-payment” or contract signing, 24 – 26 months for first power on the


Open Cycle Gas generators;

For completion of the Combined Cycle power plant, 42 months from contract
signing.

This is based on Alstom providing the power plant on a turn-key basis, and
considering the country being Bangladesh.

It was agreed that Mr Buck would revert to his principals in Switzerland, and would advise
PB and EHII on a high-level, budget priced proposal for consideration in relation to the
proposed EHII IPP for Bangladesh.

3. Conclusion
In general, the prospect for developing an IPP in Bangladesh exists. This is largely
dependent on their being adequate Primary Energy available for the power plant, and at this
time, the primary energy of choice being natural gas.

A second consideration is that the establishment of an IPP in Bangladesh will be subject to


EHII’s ability to cut through government and in general, red tape and bureaucracy
concerned with the establishment of a contract, PPA and IPP in general.

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BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

3.1 Site for the proposed IPP


Meghnaghat is a suitable site, provided that the network expansion continues as has been
advised by BPDB and PGN. During the short visit, other sites were superficially evaluated,
but at this juncture, it is recommended to pursue Meghnaghat as the preferred IPP site for
this proposed project.

3.2 Primary Energy


It is proposed that at this time, EHII concentrate their efforts on unlocking gas as the primary
energy of choice for the IPP.

Duel fuel is a very viable, and feasible option, however, the logistics associated with
procuring, storage and in general, firing on liquid fuel detract from the IPP opportunity itself.
Duel fuel as an option will need rigorous Due Diligence prior to such a decision being made
in this regard.

3.3 EPC Contractor


At this stage of the opportunity, it is suggested that EHII work with Alstom on a negotiated
basis, to derive the most optimised and viable turn-key option for a IPP power plant for
Bangladesh. Alstom are both competent, and believed commercially viable in this regard,
and have the necessary pedigree to deliver.

3.4 Option
Considering the amount of both gas and liquid fuel being burnt in less than efficient power
plants in Bangladesh (such as old OCGT power plants and/or rental equipment), it may be
worth conducting a high level feasibility study related to the opportunity that could exist, by
re-routing the allocation of this fuel to a new, and more efficient, reliable IPP when
constructed in for example, three years time.

Aspects of the study would include existing fuel contracts, and PPA contracts if these exist;
as the assumption may be that these power plants are government owned, and
therefore/possibly over staffed, under maintained, have poor levels of availability and
performance in general and inefficient thermally.

It may be an attractive option therefore for the BPDB to re-allocate gas to a new IPP as a
result.

Page 13
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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Appendix A

Site Possibilities for the Proposed


EHII IPP

Copyright Parsons Brinckerhoff


Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.

PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Faruque
Westmont
Group site

Another Meghnaghat
Site not site
considered

Chittagong
site

Keranigany
site

Copyright Parsons Brinckerhoff


Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.

PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Proposed Meghnaghat IPP site

Copyright Parsons Brinckerhoff


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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Appendix B

Meghnaghat IPP – select images

Copyright Parsons Brinckerhoff


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PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Select Images of the Meghnaghat IPP, Dhaka, Bangladesh

Copyright Parsons Brinckerhoff


Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.

PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Copyright Parsons Brinckerhoff


Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.

PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Appendix C

Visit Business Cards

Copyright Parsons Brinckerhoff


Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.

PARSONS
BRINCKERHOFF
Visit Report
EHII Bangladesh IPP for BPDB
June 2010

Copyright Parsons Brinckerhoff


Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.

PARSONS
BRINCKERHOFF

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