Jica interested in financing overhaul of two Karnaphuli hydro station units
Procurement complications stalled the overhaul project for seven years
The Japan International Cooperation Agency (Jica) has expressed interest in financing the overhaul of two risk-prone units at the Karnaphuli Hydroelectric Power Station, Bangladesh's only hydropower plant, after the project remained stalled for more than seven years due to procurement complications.
The delay reduced generation capacity and raised operational safety concerns, officials said.
Officials of the Bangladesh Power Development Board (BPDB) and the power station said work is underway to prepare a project proposal with Jica support for the complete overhaul of Units 4 and 5. Since the middle of last year, several Jica delegations have visited the plant and collected technical and financial information.
Engineer Md Mahmud Hasan, manager of the power station, told TBS, "The two units require complete overhauling."
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According to plant documents, the scheduled overhaul period for the two units expired years ago. Unit 4 was last overhauled in June 2010, and Unit 5 in April 2011. Officials said each unit typically requires a complete overhaul after 10 years of operation.
Due to mechanical problems, the two units cannot currently operate at full capacity. Although each unit has a generation capacity of 50MW, they are now producing up to 40MW each, reducing the plant's overall generation capacity by around 20MW, power station officials said.
Units operating amid safety concerns
Officials at the power station said cracks developed in the metallic structure holding the generators of the two units, forcing engineers to continue operations with regular monitoring and temporary repairs.
The structures are inspected every week and welding work is carried out when necessary. The units also have to be shut down occasionally for maintenance work. Officials said the structural weakness had previously caused major mechanical complications.
Two officials at the plant said a specialist team from Japanese company Toshiba inspected the two units between 23 February and 7 March 2024 and warned about operational risks if the units continued running without major overhaul.
Despite the concerns, the units have remained in operation through temporary repairs due to electricity demand, officials said.
Seven years of tender complications
According to officials, the initiative to overhaul the two units was first taken in 2018, when Toshiba carried out a technical assessment of the units.
Later in 2019, the tender process began under the Direct Procurement Method (DPM), but was cancelled due to a lack of competition.
Subsequently, international tenders were invited three times under the Open Tendering Method (OTM) in December 2019, May 2021 and January 2022.
However, officials said participation remained limited as the units were built using Toshiba technology and no company other than Toshiba's representative in Bangladesh could meet the tender conditions. Following objections from local contractors, those tender processes were also cancelled, leaving the project stalled.
Strategic importance
Engineers at the power station said Jica's interest is linked to financing for renewable energy projects, as the Kaptai plant remains Bangladesh's only hydropower facility.
They said generation costs at the plant are extremely low and can sometimes fall below Tk1 per unit because there are no fuel costs involved.
Officials said the new project proposal aims to bring not only the generators but also the turbine sections of the two units under the overhaul programme.
Although the project cost was estimated at more than Tk100 crore in 2018, officials said the cost could rise significantly under current market conditions.
Daisy Parveen, director of BPDB's Project Planning Department, told TBS, "Jica expressed interest in financing the overhaul of the two units during mission meetings. A team from our side has already visited the power station. Work is underway to prepare a detailed project proposal outlining the required works."
Located in Kaptai of Rangamati, the Karnaphuli Hydroelectric Power Station began operations in 1962 and currently has a total installed capacity of 230MW through five units.
