Pagla Quick Rental Power Plant

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In 2009, the Bangladesh Power Development Board (PBDB) awarded approximately 14 rental projects under the "quick" rental program which did not require a formal tender, and were unsolicited proposals. The QRPP projects were supposed to add about 1,000 MW of electricity to the national grid. The 50MW Pagla Quick diesel-run rental plant was developed on a fast-track basis at Pagla about 10 kilometers (six miles) from the capital Dhaka. The plant comprised 105 reciprocating engines, each with 0.5 MW of capacity, which will be replaced after 18 months. The project also included installing a 2.5-kilometer 33-kilovolt underground cable to deliver the power to the Shaympur substation. The diesel-run plant came into operation on November 15, 2010, after signing a contract with the PDB in July 15, 2010. DPA Power Generation International. DPA Power was a consortium comprised of the military-controlled Bangladesh Diesel Plant [Government of Bangladesh], Primordial Energy [Bangladesh] and Germany's Aggretech AG [Germany]. The shareholding of the consortium was not known, but the project was listed as "private" as opposed to "public" by PDB. The total project cost estimated at approximately US $11.8 million. This figure was obtained by a formula which assumed a US $600 per kW of installed capacity to obtain a present value of the asset. The per year value of the asset was then obtained by a payment formula that assumed a 10% discount rate and a 15-year asset life. The per year value was then multiplied by the number of years in the rental contract to obtain the final investment figure. This amount was PDB was to purchase electricity from the plant for the next three years at a rate of Tk 13.96 per kilowatt hour (per unit).