The New Nation - Internet Edition

UNB, Dhaka

The global rise in the installation cost of power plants has been a major concern for the Power Development Board (PDB) as it is struggling to meet the country's growing electricity demand.

In 1998-2000, installation of a one-megawatt plant cost US$ 0.6 million and it shot up to 0.8 million internationally within a decade, according to official sources.

For instance, they said, 450MW Meghnaghat Power plant was installed at a cost of US$ 290 million. Now the cost of installing similar capacity power plants like Bibiyana and Sirajganj is being estimated at US$ 400 million.

The cost of 80MW Tongi peaking power plant was US$ 45 million in 2004. Now a similar capacity power plant is said to cost US$ 65-70 million.

PDB officials said the installation cost of power plant has gone up by 30-40 percent internationally in recent years. They said the booming economies like India, China, Brazil, Russia and some African and Middle East countries have driven up a huge demand for power plants, pushing up the prices of power plant equipment, particularly that of gas turbine.

Besides, the global rise in the steel products has added to the rise in the power plant equipment prices, he said.