« Back Orders Awarded for Construction of Thermal Power Plant and Port in Bangladesh

The three-party consortium of Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President & CEO: Kuniharu Nakamura), Toshiba Corporation (Head Office: Minato-ku, Tokyo; President & CEO: Satoshi Tsunakawa; hereinafter, “Toshiba”) and IHI Corporation (Head Office: Koto-ku, Tokyo; President & CEO: Tsugio Mitsuoka; hereinafter, “IHI”) signed an EPC¹ contract with Coal Power Generation Company Bangladesh Limited for the construction of a ultra-super critical coal-fired thermal power plant (hereinafter, “the Power Plant”) as well as a deep sea port (hereinafter, the two kinds of construction works will be collectively referred to as “the Project”).

A coal-fired thermal power plant and a deep sea port modeled on Kashima Port in Japan will be constructed at designated sites on Matarbari Island in southeastern Bangladesh under the Project. Using imported coal as fuel, this highly efficient ultra-super critical coal-fired thermal power plant will have generation capacity of 1,200MW (600MW x 2 units) and thereby will constitute more than 10% of the total generation capacity of Bangladesh. The high efficiency ultra-super critical coal fired power plant equipment generates high pressure steam and temperatures that realize improved control of fuel consumption and CO2 emissions, and contributes to reducing environmental impact, which is Japan’s state of the art technology. The first deep sea port in Bangladesh will be constructed adjacent to the Power Plant, contributing to further development of Matarbari’s hinterland. The Project shall be financed under Yen Credit by the Japan International Cooperation Agency (“JICA”), and the total project cost will amount to 500 billion yen, which is the biggest amount ever for a single contract financed by JICA. The construction is scheduled to begin in August 2017, and to be completed in July 2024.

Power shortages have been an issue for Bangladesh as its economy is rapidly growing and correspondingly demand for electric power is expected to rise from the present 9,000MW to as high as 35,000MW in 2030. Currently, power generation with domestic natural gas accounts for around 65% of the country’s total generation capacity, while the government is enhancing generation capacity based on LNG and imported coal to secure more reliable energy resources in the long term.

Shoaling coast makes large vessels to transship cargoes to smaller ones off-shore before entering to any ports in Bangladesh. Once the deep sea port will be constructed, however, it will enable direct approach by deep-draft vessels. So, this port construction is expected to play a key role in the industrial development of the Matarbari area.

Sumitomo Corporation will be responsible for civil work and auxiliary equipment as well as for port construction including dredging works, together with Japanese subcontractors such as Toshiba Plant Systems & Services Corporation and Penta-Ocean Construction Co., Ltd.

Toshiba will supply and install the steam turbines and the generators, while IHI will be in charge of providing and installing the boilers. The Project will feature Japanese technology and know-how, and serve as a typical example of the Japanese government’s Quality Infrastructure Partnership Initiative. Utilizing Japanese funding and technology to meet the urgent need for electric power in Bangladesh, the Project will help drive the country’s industrial and economic development.

Sumitomo Corporation has identified“Six Material Issues to Achieve Sustainable Growth with Society” as a foundation on which to develop medium- and long-term management strategies and conduct individual business initiatives. In line with these Material Issues, the Project is designed to contribute to the development of local communities and industries, as well as to establishing a foundation for comfortable and enriching lifestyles for local residents. Through its involvement in the electric power infrastructure business, Sumitomo Corporation is seeking to provide its stakeholders with the Triple Values: “environmental value” with eco-friendly power generation projects, “societal value” by power infrastructure development, and “economic value” for local communities and the company itself.

Toshiba will reinforce its global thermal power plant business by providing high efficiency ultra-super critical steam turbines and generators and combined cycle power generation systems that contribute to the realization of a low-carbon society and stable electricity supply. A branch office established in Dhaka in 2015 is supporting Toshiba in reinforcing its energy and infrastructure business in Bangladesh.

IHI has a wealth of experience in providing energy-related equipment and environmental facilities, including the world’s highest steam conditions ultra-supercritical boilers all over the world. To realize stable and efficient electricity supply in the global market and countries expecting remarkable economic growth over the coming years, such as Asian countries, IHI will continue to supply power generation equipment and systems, primarily consisting of boilers boasting high efficiency and quality as well as low emissions.

[Reference]
■ Map of Matarbari Region

¹EPC: Engineering, Procurement and Construction

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2024