For the first time, the government is going to set up a waste-based 50-megawatt (MW) power plant in the private sector.
Local Government Division will place the proposal at the meeting of the cabinet committee on purchase on Sunday.
The LGRD ministry, after scrutinising the proposals of six companies, has recommended awarding the job to the lowest bidder Management Environment Finance SEL, Italy.
The government will purchase electricity from the company for 12.50 cents or Tk 8.75 per kilowatt. The agreement between the government and the company will be for 20 years and the company will run it on Build Own Operate (BOO) basis.
After signing the agreement, the company will implement the project with its own finance. Within three years it will implement the project. In 20 years, the government will have to pay the company Tk 6, 882 crore.
The plant will be set up on a piece of land within the area of Dhaka City Corporation (DCC) and waste generated within the DCC will be used by the plant.
The LGRD proposal said Dhaka city produces about 5,000 tonnes of waste every day. As the waste could not be managed properly, it has been polluting environment, especially land, water and air.
Electricity and organic fertilizer are produced from such waste in different countries. If Bangladesh goes for generating power from the waste on the one hand it will reduce power crunch and on the other the waste will get properly managed