Azsalaam Coal-fired Power Project

The Azsalaam power project is a 1.32GW coal-fired power generation facility under construction in the Chittagong district of Bangladesh.

The project is being developed on a built, own and operate (BOO) basis of through a joint venture between S. Alam Group and China’s Shandong Power Construction Number Three Company. The coal-fired power plant will be operated by the joint venture for a period of 25 years as part of the BOO contract.

The total investment on the project is estimated to be approximately £2.03bn ($2.48bn).While the preliminary works were started in September 2018, the main civil construction works on the project were started in January 2019.

The foundation pouring for the unit one turbine, along with the hoisting of the last roof girder of the turbine-generator (TG) building took place in January 2021.

At full capacity, the Azsalaam coal-fired power project is expected to generate up to 10 billion kWh of electricity a year.

Location and site details

The Azsalaam coal-fired power project site is located on the banks of the Bay of Bengal, approximately 70km south of the Chittagong port city in the Banskoli sub-district of the Chittagong district, Bangladesh.

Azsalaam power plant make-up

The Azsalaam thermal power plant will be equipped with two super-critical, coal-fired units of 660MW capacity each. Each unit will comprise a super-critical boiler, turbine and generator, along with the balance of plant (BOP) facilities for the entire power station.

The  plant will use sea water for cooling and will also house sea water desulphurisation facility.

The other infrastructure facilities for the project includes a coal jetty, coal conveying system with two dry coal sheds, apart from the chimney and electricity transmission infrastructure.

The project also involves the construction of a temporary wharf, and approximately 7.8km of concrete asphalt road.

Project financing

The Azsalaam coal-fired power project is being financed through £1.43bn ($1.75bn) loan from the China Development Bank, the Bank of China, and the China Construction Bank.

Contractors involved

Sinohydro Foundation Engineering Company was contracted for the construction of the coal conveying system for the project in September 2020. The company was also previously contracted for the construction of the temporary wharf, roads, PHC pipeline, along with pile foundations.

Hebei Electric Power Equipment Company was contracted to supply 168 medium voltage switchgears along with power monitoring and management system in July 2019.

Shandong Sanjian, a subsidiary of PowerChina Group, was awarded an engineering, procurement and construction (EPC) contract for the project in July 2015.

Beijing Bavi Company was subcontracted for the supply of boilers and associated equipment in 2017, while Dongfang Electric Group was subcontracted for the supply of turbines, generators, and associated ancillaries in 2017.

Hebei Institute of Engineering and Design was contracted for the survey and design of the Azsalaam coal-fired power project in November 2016.

Qingdao Hongrui Power Engineering Consulting Company was engaged for the preparation of the feasibility study report for the main plant, while Zebec Marine Consultants & Services was engaged for the feasibility study of the Jetty for the coal-fired power project.

Centre for Environmental and Geographic Information Services (CEGIS) Bangladesh was engaged for the environmental study of the Azsalaam power project.

Azsalaam coal-fired power project background

The Azsalaam coal-fired project was officially unveiled by the governments of Bangladesh and China in October 2016.

The project forms part of the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor of China’s Belt and Road Initiative (BRI).