Feasibility Report, Modhumoti, Rev. - April-.2015-1

(Revised) Feasibility Report
on
20 MW Korotia - by pass Natural Gas

Operated Power Plant , Tangail .
BANGLADESH.
Project Company : Modhumoti Power Ltd.
Date: APRIL- 2015
1. Executive Summary _________________________________________________________ 4

1.1. Introduction______________________________________________________________ 5
(Revised) Feasibility Report on 20 MW Korotia - by pass Natural Gas Operated Power Plant , Tangail . Bangladesh
Project Company: Modhumoti Power Ltd. . Dt. April-2015 Page 1 of 19
1.2. Results: _________________________________________________________________ 5
1.2.1 Technical Findings: ______________________________________________________ 5
1.2.2 Cost Estimation and financial Analysis: ______________________________________ 6
2. INTRODUCTION __________________________________________________________ 7
2.1 PROJECT BACKGROUND _________________________________________________ 7
2.2 PROJECT OBJECTIVE ____________________________________________________ 7
2.3 PROJECT SPONSER _______________________________________________________ 7
3 DEMAND FORECAST: _______________________________________________________ 8
3.1 The Demand Situation and ________________________________________________ 8
3.2 Consumer Group Analysis: __________________________________________________ 8
3.3 Power Evacuation:__________________________________________________________ 9
3.4 Fuel Supply: _______________________________________________________________ 9
3.4.1 Gas Supply: _______________________________________________________________ 9
3.5 Principles of Project Agreements: _____________________________________________ 9
3.5.1 PPA with PBS’s: __________________________________________________________ 10
3.5.2 GSA with BGSL: __________________________________________________________ 10
3.5.3 LTSA Contract with EPC Contractor: ________________________________________ 10
4. Identification of optimized Technical Plant Concept _______________________________ 10
4.1. Interfaces and Design Conditions for Plant implementation: ______________________ 10
4.1.1 Site Data and Fuel Analysis: _________________________________________________ 10
4.1.1.1. Design condition: __________________________________________________________ 10
4.1.1.2. Fuel Characteristics: _______________________________________________________ 11
4.1.2. Availability of Space: ________________________________________________________ 11
4.1.3. Site Access: ________________________________________________________________ 12
4.1.4.1 Availability of Water: _______________________________________________________ 12
4.1.4.2 Main Cooling System: ______________________________________________________ 12
4.1.4.3 Cooling Water Supply: ___________________________________________________ 12
5.1 Proposed Plant Design and Implementation Concept: _______________________________ 12
5.1. Gas Engine with Exhaust System: _______________________________________________ 12
5.1.1 Air Inlet System: __________________________________________________________ 12
5.1.2 Gas Engine: ______________________________________________________________ 12
6 Project Risks: _______________________________________________________________ 13
7. Project Cost Estimate and Financing Plan: _________________________________________ 14
7.1 Investment and Owner Cost: ________________________________________________ 14
7.1.1 Estimation of Investment Cost: ______________________________________________ 14
7.1.2 Estimation of Owner Cost: ____________________________________________________ 16
8. FINANCIAL ANALYSIS AND TARIFF CALCULATION: ___________________________ 16
8.1 Basic Assumptions for Financial Analysis: _____________________________________ 16
8.1.1 Technical and Plant Performance Parameter: ____________________________________ 16
8.1.2 Construction Period, Commercial Operation Date (COD) __________________________ 16
8.1.3 Plant Capacity: _____________________________________________________________ 16
8.1.4 Plant Load Factor and Salable energy: __________________________________________ 17
8.1.5 Economic Lifetime, Concession Period and Residual Value _________________________ 17
8.1.6 Operation and Maintenance Cost: ______________________________________________ 17
8.1.6.1 Fixed O & M Cost: ________________________________________________________ 17
8.1.6.1.1 Management and Administration of Project Company (RPC) ___________________ 17
8.1.6.1.2 Regular Operation & Maintenance of the Plant: ____________________________ 17
8.1.6.1.3 Long Term Service Agreement: _________________________________________ 17
8.1.6.1.4 Insurance: ___________________________________________________________ 18
8.1.6.2 Variable O & M Cost:____________________________________________________ 18
8.1.6.3 Fuel Cost: ______________________________________________________________ 18
8.2 Tariff Calculation: _________________________________________________________ 18
8.2.1 Base Cases: _________________________________________________________________ 18
8.2.2 Reference Tariff: ____________________________________________________________ 19
COMMENT FROM THE CONSULTANT ON REVISED
FEASIBILITY REPORT:
Feasibility Report for this Power Plant was initially prepared considerable days
before.. ue to some unavoidable reason, the Project execution work has been
delayed. In such long gap of time , change in different Assumed / Concerned
data / parameters has come into being. As such this has become necessary to
prepare a revised Feasibility report accommodating contemporary Government
Policy, Change of Exchange rate, Gas Price , and other related Technical –
Political & Commercial issues.
In view of the above , this Revised Feasibility Report has been prepared.
1. Executive Summary
1.1. Introduction
Modhumoti Power Ltd. (MPL) intends to develop a privately financed ,built , owned &
operated CIPP (CIPP: Commercial Independent Power Producer) project in Korotia ,
Tangail, Bangladesh to improve the reliability of power supply and to provide undisturbed,
reliable and quality power supply to the concerned client(s) . The generated energy will be
purchased by Tangail PBS, PRAN-RFL GROUP and other interested Industrialists, which
(Power) will be supplied to the concerned Industries through the existing Transmission
network of utility to any locations in Bangladesh .
MPL planned to set up 20±10% MW Gas Engine Based Power Plant at Korotia , Tangail,
which will be extended subject to contract with the Private consumer and concerned
authority.. The Operating Fuel will be Natural Gas.
It is possible to complete the project within seven month of signing the PPA (Power
Purchase Agreement), LLA (Land Lease Agreement ) and IA (Implementation Agreement),
and Financial Closing , because plentiful Natural Gas is available in that Region, available
gas pressure at site is 300 PSI , Gas line located at 180 Feet from the Plant Site , the riser
is nearby the project site. The project is 200 M away from the 33 KV line having present
base load of 23 MW. Plant site is located beside Dhaka- Tangail Highway .15 MVA,10MVA
& 10MVA substation at Tangail, Kalihati and Balla respectively are connected with this 33
KV source line. Mirzapur 15MVA, Gorai 15 MVA , Delduar 10MVA including Sakhipur 10
MVA Substations could be interconnected for dispatching power from the proposed Plant
provided the capacity of the Plant is enhanced by another 20 MW.
MPL intends to prepare a Revised Feasibility Study for the development of the project by its
own people. Subject of the Study is to investigate the feasibility of the project on a Techno
Economical basis and to cover the Technical, Financial and Environmental aspects
necessary to judge on the viability of the Project.
1.2. Results:
1.2.1 Technical Findings:
 1.5 - 2 MW capacity Gas engine is available for quick delivery. The equipment to be
transported by road. For 20±10% MW power Plant ,13 nos. Engine could be chosen.
However MPL may consider to go for other brand / capacity gensets provided
those are found efficient and have other Technical-Commercial benefit , and better
environmental friendly.
 The Power Evacuation from Power Plant to PBS site can be chosen as follows:.
 Connection to the 33 KV line which is 200 M away from the Plant site.
 By Expansion of 3.5 KM 33 KV line by REB, will lead to 40 MW. base load of
the line, and as such the Power Plant can go for expansion.
1.2.2 Cost Estimation and financial Analysis:
Assuming the followings:

EPC Cost USD.39 M .
(considering the renowned company’s price)
Owner participation USD. 12 M
Total Start Up Cost USD. 42.8 M
Fuel Cost / KWH. BDT 1.7933
Gas Price USD. 2.4 /GJ at HHV.
The Levelized Tariff should be as follows by considering 15 Years operation @

80% Plant Factor:
Plant Factor For Gas Operated Genset
80% 3.32 Tk/ Kwh

Contemporary Bulk Price Tariff for supply of 30% Power Generation to PBS is BDT.
4.43/KWH., which are subject to change based on change in Different reference values ,
and Government Policy.
2. INTRODUCTION
2.1 PROJECT BACKGROUND
Bangladesh is presently facing acute shortage of power and there are severe load
shedding in the country. This is threatening to the agriculture, industry, commerce as well as
the whole economy. Uninterrupted electricity supply can help in achieving socio-economic
development through expanding opportunity of employments and industrialization. To help
reduction in the present power crisis , Modhumoti Power Ltd. (MPL) is planning to install a
20±10% Gas Engine base Power plant at Korotia by pass , for supplying power to Tangail
PBS and PRAN-RFL GROUP FACTORIES including other Interested industries / clients..
2.2 PROJECT OBJECTIVE
Strong Socio-economic development trend in Tangail causing the perennial requirement

of electricity at very increasing rate day by day. But due to shortage of power supply, at
peak hours, huge load shedding occurs. By installing this power plant the growing demand
of Tangail PBS can be improved and the additional generation will help in developing load
growth thus enhancing the quality of its service to consumers through uninterrupted and
reliable power supply.
2.3 PROJECT SPONSOR
Modhumoti Power Ltd.,, incorporated in Bangladesh on 31.12.94 under the laws of the country to
Finance, Build, Own , Operate & Maintain power generation projects with business philosophy and
principles
The company plans to run the Power Plant with wide experienced ( in Overseas and local
Power Stations) professionals in power Plant Development , Design, Installation , Testing,
Commissioning and Operation and Maintenance having an excellent track record of
experiences. The company hence comes up as dependable Commercial Independent
Power Producers (CIPP) in the country having 100% local ownership, which is considered
as the Forerunner in this Special Power Producing sector.
The Debt part of the project is expected to be contributed by the different Loan financer /
Syndicate loan financing/ Foreign Investor. For further debt requirements Local commercial
bank involvement is considered.
3 DEMAND FORECAST:
3.1 The Demand Situation and Development of Tangail PBS and
PRAN-RFL GROUP / Industrialist
The extent and growth of electricity demand of potential purchasers is crucial for financial
and economic viability of the Korotia , Tangail Power Plant Project. The demand situation of
Tangail PBS is increasing day by day. The load demand and actual consumption at Peak
Hour of Tangail PBS is as follows:
Table 3.1 Present Demand and Actual Availability of load at Peak Hour of Tangail PBS.
PBS Max. Demand Actual Maxm Load Shedding

Availability
MW
Tangail PBS 45 MW 25 MW 20
Table 3.2 Present Demand and Actual Availability of load at Peak Hour of ( Concerned
Factories only) Pran RFL Group.
PBS Max. Demand Actual Maxm Load Shedding

Availability
MW
Pran-RFL Group 35 MW 20 MW 15.
On the above situation it could be noted that by installing the power plant of 20±10% MW at
Tangail, total load shedding of the mentioned area / consumers could be minimized. More
over new new private customers / industrialist will come up to get supply from CIPP since
the power supply will be uninterrupted , and would provide quality power, which will reduce
the production cost, increase production and enhance the life of the costly equipment /
machineries.
3.2 Consumer Group Analysis:

The consumer group analysis aims to identify, whether the envisaged project improves
beside the provision of domestic households also provision of electricity for "productive"
uses, like industrial, commercial and agricultural activities, and use for basic public
infrastructure facilities, e.g. water provision, health centers, primary schools, etc.
Korotia , Tangail Power Station shall be built by MPL for more or less the exclusive supply of
electricity for PBS and PRAN RFL Group including other potential industrialists (who wants
uninterrupted power for their industries) , who currently receive electricity from BPDB / PBS.
The electricity is intended to be sold under direct PPAs by and between MPL and REB,
and MPL and PRAN-RFL GROUP & MPL and Other interested.
3.3 Power Evacuation:

MPL intends to supply power directly to the Tangail PBS through 33 KV transmission Line ,
and to Pran –RFL Group/ other Industries through 33 KV Transmission line by paying
wheeling Charge.
The following options have been considered in initial situation:

1. Connection to the 33 KV line which is 200 M away from the Plant site.
2. By Expansion of 3.5 KM 33 KV line by REB, will lead to 40 MW. base load of the
line, and as such the Power Plant can go for expansion.
3. Pran-RFL Group / Other Industrial Clients will set up 33 KV substation in their
premises.
3.4 Fuel Supply:

Due to availability of Natural Gas , Korotia, Tangail Power Station is planned for
Natural Gas operating System. Primary permission in this respect from authority
has been obtained.
3.4.1 Gas Supply:

It is planned to connect the Power Plant to the gas pipeline grid of Bangladesh. A
gas pipe line is 180 Ft. away form the Power Plant having 300 PSI Gas pressure . In
this respect Gas supply permission has been obtained from Titas Gas Transmission
and Distribution company Ltd (TGT&DCL) . Hence Power Plant shall be connected
with the Natural Gas Line.
3.5 Principles of Project Agreements:
The following agreement should be done for the Project
a) Power Purchase Agreement (PPA) with Tangail PBS

b) Power Purchase Agreement with Pran-RFL Group (PRG) / and or other Industrial /
commercial Clients.
c) Gas Supply Agreement with TGT&DCL
d) LLA (Land Lease Agreement ) with Tangail PBS.
e) IA (Implementation Agreement) with REB
3.5.1 PPA with Tangail PBS:

Korotia ,Tangail Power Station shall be built by MPL for more or less supply of electricity for
Tangail PBS, (30% of the MPL Generation Capacity in line with the Government Policy will
be supplied to Tangail PBS) , which. Receive electricity power supply from BPDB at 33 kV
level at various locations .
It is envisaged that a standard PPA between MPL and PBS shall be developed, which shall
eflect individual issues accordingly , but will be very much simplified with respect to PPA of
the other existing Power Plant. The minimum term shall be 15 years, preferably longer.
Similar PPA will also have to be signed with PRAN-RFL GROUP.
3.5.2 GSA with TGT&DCL:

Korotia , Tangail Power Plant shall be fuelled by natural gas provided by Titas Gas
Transmission and Distribution Company Ltd (TGT&DCL) to the site boundary, where a Gas
Reducing and Metering Station (GRMS) will be installed by PBS.
3.5.3 Operation and Maintenance:

Operation and Maintenance of the Plant will be done by MPL by recruiting the experienced
and Professional Manpower for the Project. Procurement of Major Equipment should be
sourced in such a way so the Power Plant can get Spare parts and high tech. support during
after sales period from exclusive Dealer of Equipment manufacturer who can give 24X7
hrs. service facility to the valued customer in terms of Product and Technical Support. They
also should have very wide professional network through out the country.
4. Identification of optimized Technical Plant Concept
4.1. Interfaces and Design Conditions for Plant implementation:

4.1.1 Site Data and Fuel Analysis:
4.1.1.1. Design condition:
The Plant shall be designed for the following average site conditions.
 ambient air temperature of 450C

 ambient relative humidity of 98%
 Atmospheric pressure of 1012 mbar.
filled up by about in average 15 feet and embanked the site level will be at
equilibrium to the highway passing beside.
4.1.1.2. Fuel Characteristics:

The following tables show the typical fuel analysis of natural gas as available in
Bangladesh:
Fuel Gas Analysis:

Gas Composition (%)
Methane 96.39 % mol
Ethane 2.2 % mol
Propane 0.48 % mol
n-Buten 0.09 % mol
iso-Buten 0.12 % mol
n-Pentane 0.06 % mol
Hexane 0.02 % mol
Heptane 0.02 % mol
Nitrogen 0.37 % mol
Carbon Dioxide 0.25 % mol
Gas Fuel Characteristics:
Density 00C 0.7494 kg/Nm3
Density 150C 0.7101 kg/Nm3
Higher Heating Value ( 1013 mbar/00C) 40,901 KJ/Nm3
Higher Heating Value ( 1013 38,755 KJ/Nm3
mbar/150C)
Lower Heating Value ( 1013 mbar/00C) 36,867 KJ/Nm3

Lower Heating Value ( 1013 34,932 KJ/Nm3
mbar/150C)
Low heating value 49,203 KJ/Kg

Molecular mass 16.75
4.1.2. Availability of Space:
There are about 1.86 acre area owned by Tangail PBS, on which the plant can be installed.
It is assumed that the whole area for the Gas Engine power Plant of approximately about
1.3 acre will have to be filled about by 15 feet to meet with the high way, for creating a safe
operating / working level for the planned power plant.
4.1.3. Site Access:
Land access for the site exists through a turning road from the high way, This turning can be
developed directly from high way
The existing Road can carry a heavy load .
4.1.4.1 Availability of Water:

The water requirement of the plant is relatively small and mainly determined by the portable
water demand and the demand for dematerialized water for washing.
The following table shows the estimated water demand /availability for the project:
For washing Dematerialized water, produce from filtered
well water
Service water System filtered deep well water
Portable water system filtered deep well water
4.1.4.2 Main Cooling System:
The main cooling of the Engine will be done by closed cooling system (Radiator Cooling) as
the environment is dusty, so cooling Tower will not effective for this purpose.
4.1.4.3 Cooling Water Supply:

The possible sources of raw water are as follows:
Ground water from deep tube wells.
The raw water for cooling make up water could be taken from deep tube wells drilled at the
proposed site area.. The well water has to be chlorinated before the sand filters and in the
clear water basin to avoid organic growth within the water systems.
5.1 Proposed Plant Design and Implementation Concept:
5.1. Gas Engine with Exhaust System:
5.1.1 Air Inlet System:
Special attention has to be drawn to the environment of the power plant, when considering
the respective air quality for the design of the air inlet system.
The main filtering equipment, louvers and mist separators need to be installed in the air inlet
system. Furthermore a bird grid is necessary to avoid birds or other big objects entering in
the air inlet filtering system. After that a coarse filter need to be installed before the air
reaches the main filter stage(s) of the air inlet filter system.
5.1.2 Gas Engine:
The Gas engine shall be supplied with contractor’s standard equipment and standard design
of Manufacturer. The investment can be minimized when applying this standard design. The
Gas Engine shall include the following facilities:
"
 Generating Sets: Consists of  Electrical System
o Engine o Main Switchgear
o generator o station Service System
o Base Frame o DC System
o elastic mounting o Earthing System
o Couplings o outdoor Switchyard
o Connections
o Platforms.
 Mechanical Auxiliary System  Automation System
o Auxiliary Module o Operator stations
o Fuel System o Control Panels
o Lubricating Oil System
o Cooling System
o Charge Air System
o Exhaust System
o Station Support System
o Oily Water System Cables & Accessories
o Water Treatment System
o Fir Fighting System
6 Project Risks:
There are different approaches towards the definition, identification and mitigation of project
risks. The following section in general considers pre-completion and post-completion risks
and the following individual categories:
Transportation and Infrastructure Risk
Completion Risk
Cost Overrun Risk
Technology Risk
Project Management Risk
Plant Performance Risk
Market Risk
Operating Risk
Foreign Exchange Risk
Force Majeure
Environmental Risk
Not yet considered are risks resulting from the project financing, like funding risk and
syndication risk, as well as the general legal and political risk categories.
Risks can be handled in five ways:
Controlled or shared, as in a contract
Financed, such as through standby loans
Deemed reduced, as per study results
Avoided altogether, or
Allocated to new party or another to cover, support, or absorb
7. Project Cost Estimate and Financing Plan:
7.1 Investment and Owner Cost:
Due to the availability of sufficient gas as well as high pressure at the gas line at site , the
project has been planned for Gas Operated . The project cost has been according to the gas
based system, which will also include extension of 33 KV line at various location for supply
to 33 KV Grid and supply to Customer, setting up of substations for the customer / (PRAN-
RFL GROUP) . Base cost components of a power plant project typically consists of the
following:
Investment Cost
Owner Cost
7.1.1 Estimation of Investment Cost:
The investment cost estimates for the major items, have been taken from the renowned
company’s prices. Investment cost can be subdivided as follows:
Table 7.1 Investment Cost for the Gas Engine Power Plant:
Item No All prices in m Euro Gas Engine Based Power Plant

01 Off Shore Portion
Gas Engine
Auxiliary System
132 KV switchyard
switchgears USD.30 M
piping
cabling
power house & utility Block
fuel treatment house
transportation
02 On Shore Portion
Supply of local Equipment and BDT. 9 M
Material
02 On Shore Portion
BDT. 295 M
Local Transport
Installation
Civil Works
Basic Project Cost USD. 43.21 M
7.1.2 Estimation of Owner Cost:
The owner cost estimates the project development cost, Project implementation super
vision, initial working capital. The followings are considered in the owner cost:
Item No All prices in M. USD. Gas Engine Based Power

Plant
Land Acquisition
Site Preparation
Development of the project

(Ownership structure, and ( LLA for Land acquisition)
Agreements, Power (10% of the EPC Cost)
Purchase Agreement, Fuel
supply agreement, EPC USD. 12 M
contract etc.)
Insurance
Capital Cost, Local

Machinery
8. FINANCIAL ANALYSIS AND TARIFF CALCULATION:
8.1 Basic Assumptions for Financial Analysis:

The following section summarizes the basic assumptions and input values used for financial
analysis of the project.
8.1.1 Technical and Plant Performance Parameter:

The main technical parameters of the proposed plant are defined as average values to be
applied for the whole concession period.
8.1.2 Construction Period, Commercial Operation Date (COD)

For the implementation of the Project the following construction periods have been
considered:
20±10% Gas Engine base Power plant: 7 months after signing of PPA, LLA and IA, Financial
closing ,whichever comes later.
8.1.3 Plant Capacity:
The dependable capacity of the power plant is the net capacity, which can be made
available for sale to the power purchaser. This net generation capacity does not significantly
change with the ambient condition up to 450C. So the capacity of the power plant will be
almost same throughout the year, rather this may increase to some extent when the ambient
temperature will be remarkably below 450C.
8.1.4 Plant Load Factor and Saleable energy:
The power plant is assumed to be operated as a base load plant with an average Plant Load
Factor of 80% for the entire operation period as the growing demand of Tangail PBS
8.1.5 Economic Lifetime, Concession Period and Residual Value

The expected lifetime of a plant is influenced by the operational mode (base load,
intermediate, or peak), the number of starts, the quality and scheduling of the maintenance
and repair, etc. It is foreseen to take 15 years lifetime period as basis for the EPC contract.
The initial contract period for the project is expected to be 15 years with PBS, and 10 years
with Private customers starting from COD of the plant .
8.1.6 Operation and Maintenance Cost:

Operation and Maintenance costs are defined as fixed O&M and variable O&M cost. The
fixed O&M cost include all those cost items which the plant will incur irrespective whether it
is operated or not, like cost for personnel, staff salary, including spares, PPA consulting
services, insurance, plant upkeep and maintenance, etc.
The variable O&M considers costs, which originate directly from the power production
process, like lube oil and other consumables, maintenance and repair related to operational
hours of the system, etc. This cost is expressed as cost per kWh produced.
8.1.6.1 Fixed O & M Cost:

The total fixed O&M cost is the sum of the four portions as below:
8.1.6.1.1 Management and Administration of Project Company (MPL)

MPL staff will handle all financial matters related to the administration and repayment of
loans and interest, preparation of financial status reports and information, metering, billing
and collection activities, etc. This Owner's administration cost is estimated as follows:
BDT. 280 M / YEAR
8.1.6.1.2 Regular Operation & Maintenance of the Plant:
New employee should be recruited for the operation and maintenance of the plant consisting
of Plant Manager, Operation and Maintenance Managers General Mangers, O & M staff,
administrative staff, security and support staffs like helpers, cleaners, and drivers. This cost
is estimated as follows:
BDT. 37.5 M per year.
8.1.6.1.3 Long Term Service Agreement:

The maintenance of engine base power plant will similar to that of the gas Turbine based
power plant.. LTSA will be selected through International Open Tendering Method.
Expected BDT. 0.857/ KWH..
It is suggested to get the service by own personnel, giving them proper training as well as
reasonably good salary. This will ultimately result less cost than the figure mentioned above.
In addition to that the plant Technical staffs will get trained and become highly skilled.
8.1.6.1.4 Insurance:
In order to avoid any shortcomings in the insurance coverage of the owner, cost for owners
insurance for liability. Property all risk, machine breakdown and loss of revenue through
business interruption is assumed as follows
Bdt. 3.4 M per Year
8.1.6.2 Variable O & M Cost:
The variable cost for O&M (maintenance equipment, consumables, like lube oil
consumption, as well as e.g. chemicals for water analyses, water treatment, gas analyses,
etc.) assuming the annual generation resulting from plant capacity and Plant Load Factor is
estimated as follows:
BDT 0.857/ KWH.
8.1.6.3 Fuel Cost:

As the Power plant is based on Gas Operating system, so gas price is considered at 2.82
Tk/ Sm3
8.2 Tariff Calculation:

The tariff calculation has to consider the financial situation of the project over its entire life.
For this purpose a tariff calculation is prepared based on the following:
Required tariff to achieve a target return on equity,
8.2.1 Base Cases:

. In connection with the available information about the possible project financing, the
characteristics of the financial profiles are as follows:
80/20, or as may be agreed with any Foreign

Debt/Equity Ratio
Financer.
Return on Equity (ROE) 15%
Interest on Debt 12% ( For Foreign Financing: Expected < 3.5%)

Depreciation Straight-line, over
Taxes and Duties Foreign portion: tax free
Rate of Exchange 1USD.= 69.35 Taka, as on 11.02.2010

Average Plant Load Factor 95%
8.2.2 Reference Tariff:
Tariff Considering the 15 years operation on (1) 80% plant Factor ,(2) reference CPI, (3)
Dollar Exchange rate ,(4) Fuel Price, (5) BDT Devaluation , etc., as detailed in PPA
(DRAFT)
PLANT FACTOR TARIFF
4.33 Tk/ Kwh (*1)

80% 16.00 Tk./ Kwh (*2)
 (*1) Contemporary standard (negotiable) Price Tariff for supply of 30%
Power Generation to PBS,.
 (*2) Tariff (based on new policy of FGOB) Expected for PRAN RFL GROUP
.
 Above mentioned Tariffs are subject to change based on change in Different
reference values as mentioned above , as well as change in Government
Policy on the concerned matter.
Note: Natural Gas is the pass-through item. If Gas price increase, then the tariff will be
increased accordingly, which will be calculated on the Net Heat Rate of the Power Plant..
_______________________
(Engr. A.T.Kabir Uddin Ahmed)
TECHNO-FINANCIAL Consultant.
E-mail: star.cartel@yahoo.com
Tel: (+88-02)-8129252
Cell: +88-01750130712

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(Revised) Feasibility Report

20 MW Korotia - by pass Natural Gas

Date: APRIL- 2015

1. Executive Summary _________________________________________________________ 4

1.2.2 Cost Estimation and financial Analysis:

Assuming the followings:

Total Start Up Cost USD. 42.8 M

Fuel Cost / KWH. BDT 1.7933

Gas Price USD. 2.4 /GJ at HHV.

The Levelized Tariff should be as follows by considering 15 Years operation @

Plant Factor For Gas Operated Genset

80% 3.32 Tk/ Kwh

2.2 PROJECT OBJECTIVE

Strong Socio-economic development trend in Tangail causing the perennial requirement

2.3 PROJECT SPONSOR

PBS Max. Demand Actual Maxm Load Shedding

PBS Max. Demand Actual Maxm Load Shedding

3.2 Consumer Group Analysis:

3.3 Power Evacuation:

The following options have been considered in initial situation:

3.4 Fuel Supply:

3.4.1 Gas Supply:

3.5 Principles of Project Agreements:

The following agreement should be done for the Project

a) Power Purchase Agreement (PPA) with Tangail PBS

3.5.1 PPA with Tangail PBS:

Similar PPA will also have to be signed with PRAN-RFL GROUP.

3.5.2 GSA with TGT&DCL:

3.5.3 Operation and Maintenance:

4. Identification of optimized Technical Plant Concept

4.1. Interfaces and Design Conditions for Plant implementation:

4.1.1.1. Design condition:

 ambient air temperature of 450C

4.1.1.2. Fuel Characteristics:

Fuel Gas Analysis:

Lower Heating Value ( 1013 mbar/00C) 36,867 KJ/Nm3

Low heating value 49,203 KJ/Kg

4.1.2. Availability of Space:

The existing Road can carry a heavy load .

4.1.4.1 Availability of Water:

4.1.4.2 Main Cooling System:

4.1.4.3 Cooling Water Supply:

5.1 Proposed Plant Design and Implementation Concept:

5.1. Gas Engine with Exhaust System:

5.1.1 Air Inlet System:

5.1.2 Gas Engine:

Transportation and Infrastructure Risk

Cost Overrun Risk

Project Management Risk

Plant Performance Risk

Foreign Exchange Risk

7. Project Cost Estimate and Financing Plan:

7.1 Investment and Owner Cost:

7.1.1 Estimation of Investment Cost:

Item No All prices in m Euro Gas Engine Based Power Plant

Item No All prices in M. USD. Gas Engine Based Power

Development of the project

Capital Cost, Local