The two projects have received in-principle approval. The total cost of constructing the two plants could exceed three billion US dollars. The estimated cost of the Matarbari plant has been set at about 1.56 billion dollars.
Bangladesh Power Development Board Chairman Rezaul Karim said the site was selected because the power transmission infrastructure at Matarbari already exists. If foreign financing is not secured, implementing the project with government funding is also being considered.
On the other hand, efforts are underway to secure financing from China's Exim Bank to set up the 1,320 MW second-phase plant at Payra. Due to uncertainty in LNG supply and prices created by the war situation in the Middle East, coal is being considered a relatively stable fuel.
If the two new plants are commissioned, the total installed capacity of coal-based power plants in the country will rise from about 6,690 MW to 9,330 MW. However, experts have advised taking into account environmental risks and the issue of excess power generation capacity in the future.
