Siranjganj Power Company

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Sembcorp Utilities Pte Ltd (SCU or the sponsor), a wholly owned subsidiary of Sembcorp Industries Limited (SCI or the parent company), a leading energy, water and marine group with operations across six continents worldwide, proposes to set up of a greenfield combined cycle power project with net generation capacity of 413.8 MW in Sirajganj District of Rajshahi division in Bangladesh (the “project”). The project company Sembcorp Sirajganj Power Company Ltd has already been incorporated and has initiated the process of changing its name to ‘Sembcorp North-West Power Company Ltd’ (or the company). The power plant will operate on natural gas as its primary fuel and is also designed to operate on High Speed Diesel (HSD) for short period of time as the back-up fuel in case of interruption in gas supply. The project site is located about 135 km north-west of Dhaka on the western bank of the River Jamuna. The project site falls under the Saidabad Union of Sirajganj Sadar Upazilla (sub-district) of Sirajganj District. The project has been designated by the Government of Bangladesh (GOB) as a “Public, Private Partnership” project with 29% of the equity interest to be subscribed and owned by North West Power Generation Company Limited (NWPGCL), a state-owned power generation utility which is wholly owned by Bangladesh Power Development Board (BPDB). SCU will have 71% equity in the company, Sembcorp North-West Power Company Ltd along with NWPGCL which will have 29% equity. IFC is considering extending an A loan of up to US$110 million to the company.The project (Sirajganj 4 or S4) will be sited at the Saidabad power generation complex owned by NWPGCL. This complex was developed in 2007 by in-filling “char land” (i.e. sandy, unconsolidated land that has emerged adjacent to the river through the gradual accumulation of sediment, on the Brahmaputra-Jamuna floodplain). The entire complex area has been built up approximately 4 meters above the surrounding floodplain and is part of the overall GOB’s power sector master plan aimed at increasing energy generation to meet the growing power needs in the country.Within the Saidabad power generation complex, NWPGCL currently owns and operates (since July 2014) a 225 MW dual fuel Combined Cycle Power Plant (“CCPP”) (Sirajganj 1 or S1). NWPGCL is developing an additional dual fuel 225 MW CCPP plant (Sirajganj 2 or S2) and their future development plans include an additional 225 MW dual fuel CCPP plant (Sirajganj 3 or S3) that will be developed between S1 and S4 projects. The total area of Saidabad power generation complex is 69.69 acres (28.2 ha) out of which the land requirement for the project (S4) is estimated to be approximately 23.6 acres, including area required for all utilities. This land will be provided by BPDB pursuant to a Land Lease Agreement (LLA). In addition, about 19.3 acres of land will be required temporarily for a construction laydown area and construction workers accommodation.The electricity generated will be sold under a 22 year Power Purchase Agreement (PPA) with BPDB. The company will enter into a Gas Supply Agreement (GSA) with Pashchimanchal Gas Company Ltd. (PGCL), a subsidiary of state-owned Petrobangla and a Fuel Supply Agreement (FSA) with state-owned Bangladesh Petroleum Corporation (BPC). The obligations of the Government of Bangladesh (‘GoB’) entities under the Power Purchase Agreement (PPA), Gas Supply Agreement (GSA), Fuel Supply Agreement (FSA), Land Lease Agreement (LLA) and the Shareholders Agreement will be guaranteed under an Implementation Agreement to be executed between the company, the GOB (represented by the Ministry of Power, Energy and Mineral Resources) and Power Grid Company of Bangladesh Ltd. Jamuna River, flowing on the eastern part of the project site at a distance of about 1.2 km, will fulfill the water requirements for the project. A 230 kV switch yard/sub-station will also be constructed at the site as part of the project and will be connected to the existing 230 kV substation of PGCB for power evacuation from the project. The project will comprise of a main power block consisting of one dual fuel gas turbine (GT), one steam turbine (ST), one heat recovery steam generator (HRSG) and bypass and exhaust stacks. Black start and emergency diesel generators will be provided to provide black start and safe shutdown capabilities. The plant will be constructed to have a minimum combined cycle output capacity of 413.8 MW (net) with natural gas as fuel and 333.0 MW with HSD as fuel. The simple cycle output capacity will be 282 MW (net) with natural gas as fuel and 236.8 MW with HSD as fuel. The plant efficiency is expected to be 33.71% under simple cycle operations and 49.46% under combined cycle operations. The associated facilities for the project include transmission line (project will have its own switch yard within the project site and same will be connected with the 230 kV substation of PGCB, which is located adjacent to the Saidabad power generation complex boundary), regulating and metering station (RMS) which will be constructed within the site for fuel gas compression and conditioning, gas pipeline of about 1.6 km from Gas Transmission Company Limited (GTCL) valve station to the RMS, water pipeline of about 4 km length from River Jamuna to the project site and a dedicated approach road of about 1.5 km connecting the Saidabad power generation complex with the national highway which already exists. The construction shall be executed on turnkey basis by a consortium comprising of SEPCOIII, SDC (wholly owned subsidiary of Sembcorp Industries) and SEMBPEC (new established entity of SCU). SEPCOIII shall be responsible for integration of individual works starting from design phase till completion of execution/plant commissioning. The construction timeframe is expected to span over 24-30 months and during which the peak labour requirement is expected to be around 1500-2000. The labour camp will be located outside the power generation complex and has been identified as an area of 8.37 acres located between the main highway and Punorbason village fence line. The nearest receptors include Bara Shimul Panchosona village Bara Shimul Village located and Punorbason village located about 400- 800 mts from the project site boundary.