Wärtsilä awarded four new contracts to alleviate Bangladesh power shortage

Friday, Aug 20, 2010

Wärtsilä, a leading global supplier of decentralised power plant solutions, has received four orders to supply power plants to customers in Bangladesh, adding more than 300 MW of generating capacity to the national grid. The four orders were signed in July and August this year, and their combined value exceeds EUR 100 million.

These latest orders are in addition to contracts for six power plants awarded to Wärtsilä during the second quarter of this year. All are part of the government of Bangladesh's urgent plan established to deal with the power shortage that the country is currently experiencing.

In July, Guangdong Power Engineering Corporation (GPEC), a Chinese contractor working on behalf of the national utility, Bangladesh Power Development Board, ordered Wärtsilä equipment for two power plant projects being developed in Dohazari and Hathazari. The Dohazari plant will be powered by six Wärtsilä 18V46GD gas-diesel engines, producing 102 MW, while the Hathazari plant will run on eleven Wärtsilä 20V32GD gas-diesel engines, producing 98 MW.

The Wärtsilä gas-diesel technology offers a unique degree of fuel flexibility, permitting the engines to run on a variety of fuels, including crude oil, heavy fuel oil, light fuel oil, natural gas, associated gas, or any combination of liquid fuel and gas.

In August, Wärtsilä was contracted to supply a total of eleven Wärtsilä 20V32 engines plus auxiliary equipment for another two power plants to be constructed at Noapora and Northern Katakhali. These two power plants will add almost 100 MW of electrical power to the national grid.

The Noapora order has been placed by Khanjahan Ali Power Co. Ltd, a special purpose IPP (independent power producer) producing and selling power to the national grid. Northern Power Solution Ltd, also a special purpose IPP, is constructing the Northern Katakhali plant.

"The ability of Wärtsilä to supply the appropriate equipment on time with such demanding delivery schedules was a key factor in the award of these valuable contracts," commented Göran Richardsson, Sales Director for Bangladesh, Wärtsilä Power Plants. "The Bangladeshi government is doing everything possible to ensure an adequate and reliable supply of electricity throughout the country, and we are pleased to co-operate in this programme."

Wärtsilä Power Plant's recent chain of orders to Bangladesh - 850 MW in 3 months

In June 2010, Wärtsilä announced two contracts awarded by the independent power producers Summit Naryanganj Power Co. Ltd. and Khulna Power Unit II Ltd. for supplying Wärtsilä engines and auxiliary equipment to their Naryanganj power plant and Khulna Extension power plant projects.

In addition, Wärtsilä received four more contracts from Bangladesh in June. The Jiangsu ETERN Company Ltd., working on behalf of the Bangladesh Power Development Board, is developing two 53.5 MW power plant projects, in Daudkandi and Baghabari, and has ordered Wärtsilä engines and equipment for both sites.

Wärtsilä is also supplying the engines and equipment for another two power plants to be built in Meghnaghat and Shiddhirganj respectively by two IPPs, IEL Consortium & Associates Ltd. and Dutch Bangla Power & Associates Ltd. Each of these power plants will produce an electrical output of 107 MW.  

The urgency of the Bangladesh government's programme to alleviate the country's power shortage means that these ten new power plants are being built on a fast-track schedule, and are expected to be in operation in early 2011, supplying a total of 850 MW to the national grid.

Wärtsilä already has a strong presence in Bangladesh, with more than 1400 MW of power plants installed or under contract, and has the local resources available to provide the necessary service support for its customers.

Source: Wärtsilä