Why Jica wants to finance Kaptai hydropower overhaul

The Japan International Cooperation Agency has expressed interest in financing the overhaul of two risk-prone units at the Karnafuli Hydro Power Station in Kaptai upazila of Rangamati.

Engineers at the power station said Jica’s interest is linked to financing for renewable energy projects, as the 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 the Bangladesh Power Development Board’s Project Planning Department, told The Business Standard, “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, Rangamati, the Karnafuli station began operations in 1962 and currently has a total installed capacity of 230MW through five units.