The Asian Development Bank (ADB) has assured Bangladesh government of financing at least one mega coal-fired power project at Moheshkhali in Cox’s Bazar, a senior official said.

“The ADB country programme mission primarily agreed to finance a coal-fired power project at Moheshkhali in Cox’s Bazar,” the official told daily sun on Tuesday.

He said the Power Division got ADB’s primary nod after getting assurance from the government that the proposed coal-fired power project would be super critical one.

But the Asian donour agency is yet to finilise the amount of the fund, he said, adding, the size of the funding would be determined following the feasibility study of the power project. The government has already selected 5,000 acres of land to implement a number of power projects to generate 8320MW electricity at Moheshkhali and another 1,500 acres of land at Matarbari. It would be the second loan assurance from the donor agencies to implement the government initiative for setting up coal-fired power plants for 20,000MW electricity by 2030, sources said. The Japanese agency JICA is expected to sign $1.18 billion loan deal with Bangladesh next month to set up a 1200MW coal-fired power project at Matarbari.

In March, 2014, State Minister for Power and Energy Nasrul Hamid visited the proposed coal plant sites at Moheshkhali and Matarbari and said the government would develop the sites as major coal power hubs. He said the government would compensate the local people properly while acquiring lands to implement the clean coal-fired power projects. Of the 5000 acres land at Moheshkhali, the government has a target to implement a series of coal-fired projects having capacity to generate 5,320MW of electricity. Besides, the rest 3000MW of electricity will come from Liquefied Natural Gas (LNG) fired plant, officials concerned said.

Bangladesh Power Development Board and China Hudian Hong Kong power company on April 29, 2014 signed a deal to set up a 1320MW coal-based power plant at Moheshkhali.

Besides, signing another memorandum of understanding with the Malaysian state-owned Tenega Nasional Berhad (TNB) is under process to set up a 1320MW plant there.

Korea’s largest power producer company Korea Electric Power Corporation has shown interest to set up a mega 1320MW coal-fired power plant at the same site.

The government has already allowed eight projects in private sector to Orion Group, S Alam Group and BSRM Group but project implementation is not satisfactory.

Of 19 coal-fired projects, only 1320MW Bangladesh-India Friendship power at Rampal has so far developed the land, officials said.