ANNUAL REPORT - egcb.com.bd

1 ANNUAL REPORT2016-2017 Electricity Generation Company of Bangladesh LimitedEGCB(An Enterprise of Bangladesh Power Development Board)ISO 9001:2008 Certified Companyweb : USEDBAS Bangladesh Accounting StandardsBERC Bangladesh Energy Regulatory CommissionBFRS Bangladesh Financial Reporting StandardsBPDB Bangladesh Power Development Board COD Commercial Operation DateDC Deputy CommissionerDG Director General DPP Development Project Proposal/ProformaEGCB Ltd. Electricity Generation Company of Bangladesh Limited FE Foreign ExchangeGSA Gas Supply Agreement GTG Gas Turbine Generator HFO Heavy Fuel OilHGPI Hot Gas Path Inspection IDA International Development AgencyIEB Institute of Engineers, BangladeshLA Loan Agreement LLA Land Lease Agreement LNG Liquefied Natural GasLTSA Long Term Service AgreementMkWh Million Kilo Watt HourMPEMR Ministry of Power, Energy and Mineral Resources MW Mega WattNLDC National Load Dispatch CenterNm3 Normal Cubic MeterNOA Notification of AwardO&M Operation and MaintenancePA Project AidPPA Power Purchase AgreementPSMP Power System Master PlanRDPP Revised Development Project Proposal/ProformaRE Renewable Energy TGTDC Tital Gas Transmission and Distribution Company Subsidiary Loan Agreement STG Steam Turbine Generator EGCBEGCB REPORT022016-201701 I NOTICE OF THE 20TH AGM 05 02 I CHAIRMAN S MESSAGE 0603 I FROM THE DESK OF MANAGING DIRECTOR 08 04 I VISION AND MISSION 1005 I COMPANY INFORMATION 11 06 I BOARD OF DIRECTORS 13 07 I BOARD COMMITTEES 14 08 I LIST OF CHAIRMANS AND MANAGING DIRECTORS 1509 I MANAGEMENT 16

2 10 I DIRECTORS PROFILE 1711 I POWER PLANTS OF EGCB LTD 23 12 I PROJECTS OF EGCB LTD 30 13 I BOARD OF DIRECTORS REPORT 38 14 I AUDITORS REPORT & AUDITED FINANCIAL STATEMENTS 5915 I EVENTS AND UPDATES 113 TABLE OF CONTENTSEGCBEGCB REPORT032016-201719th AGM 2015-16 EGCBEGCB REPORT042016-2017 EGCBE lectricity Generation Company of Bangladesh Limited(An Enterprise of Bangladesh Power Development Board)Unique Heights (Level 15 & 16), 117 Kazi Nazrul Islam Avenue, Eskaton Garden, Dhaka - 1217 Tel : +88-02-55138633-36, Fax : +88-02-55138637, Email : Web : of the 20th ANNUAL General Meeting The 20th ANNUAL General Meeting of EGCB Ltd. will be held on Monday the 27th day of November 2017 at PM at Board Room, BPDB, Biddut Bhaban (Level-15), 1 Abdul Gani Road, Dhaka-1000 to transact the following business:AGENDA1. To receive, consider and adopt the audited Accounts for the year ended 30 June 2017 and the Auditors REPORT thereon.

3 2. To receive, consider and adopt the Board of Directors REPORT for the year ended 30 June 2017. 3. To declare dividend for the year ended 30 June To elect Directors of the To appoint Auditors for the Financial Year 2017-2018 and to x their To transact any other business with the permission of the order of the Board Kazi Nazrul IslamCompany Secretary Note Members entitled to attend and vote at the ANNUAL General Meeting may appoint a Proxy to attend in his/her stead. The Proxy Form, duly completed and stamped, must be deposited at the company s registered of ce not later than 48 hours before the meeting. EGCBEGCB REPORT052016-2017No. Date: 09-11-2017 CHAIRMAN SMESSAGEEGCBEGCB REPORT062016-2017 Electricity Generation Company of Bangladesh Limited (EGCB) is committed to produce quality electricity and to satisfy all the stakeholders and the communities as well.

4 On the eve of the 20th ANNUAL General Meeting (AGM), it is my great pleasure to mention that EGCB has successfully completed the FY 2016-2017. I am optimistic about continuous success of EGCB. The Company, since inception, has been successfully operating the power plants and it has good track record of project implementation. We had some complex issues regarding the implementation of the Siddhirganj 335 MW Combined Cycle Power Plant project. However, successful negotiation with Isolux and Samsung C&T has been done, and the project has been taken over by the Samsung C&T as a sole EPC contractor. New EPC contractor has started their work and we hope that the simple cycle part will come in operation very soon. EGCB has a plan to add around 5,000 MW of electricity to the national grid through coal, liquid fuel, wind, solar and LNG based power plants by 2030.

5 Towards this end, the Company has taken steps to establish Ultra Supercritical Coal-Based power plant at Pekua, Cox s Bazar; Solar & Wind-Based Power Plant at Sonagazi,Feni; 500 MW Dual fuel power plant in Feni and Munshiganj, and 100 MW liquid fuel power plant at Haripur, Narayanganj. On this grand occasion, I would like to express my sincere gratefulness to Honorable Prime Minister Sheikh Hasina, Government of the People s Republic of Bangladesh for her dynamic and prolific leadership and pioneering role for the power sector. I express my sincere thanks to the Hon ble Advisor to the Prime Minister for Power, Energy and Mineral Resources Affairs Dr. Tawfiq-e-Elahi Chowdhury, BB and Hon ble Minister of State, Ministry of Power, Energy and Mineral Resources Mr. Nasrul Hamid, MP, for their valuable contribution and suggestions to achieve the goal of the company and power sector as a whole.

6 Members of the Board of Directors and officials of EGCB deserve special thanks for their relentless wish every success of the 20th ANNUAL General Meeting of EGCB. Dr. Ahmad KaikausChairman, EGCB LtdandSecretary, Power Division Minister of Power, Energy and Mineral ResourcesEGCBEGCB REPORT072016-2017 Electricity Generation Company of Bangladesh Limited (EGCB) is committed to produce quality electricity and to satisfy all the stakeholders and the communities as well. On the eve of the 20th ANNUAL General Meeting (AGM), it is my great pleasure to mention that EGCB has successfully completed the FY 2016-2017. I am optimistic about continuous success of EGCB. The Company, since inception, has been successfully operating the power plants and it has good track record of project implementation. We had some complex issues regarding the implementation of the Siddhirganj 335 MW Combined Cycle Power Plant project.

7 However, successful negotiation with Isolux and Samsung C&T has been done, and the project has been taken over by the Samsung C&T as a sole EPC contractor. New EPC contractor has started their work and we hope that the simple cycle part will come in operation very soon. EGCB has a plan to add around 5,000 MW of electricity to the national grid through coal, liquid fuel, wind, solar and LNG based power plants by 2030. Towards this end, the Company has taken steps to establish Ultra Supercritical Coal-Based power plant at Pekua, Cox s Bazar; Solar & Wind-Based Power Plant at Sonagazi,Feni; 500 MW Dual fuel power plant in Feni and Munshiganj, and 100 MW liquid fuel power plant at Haripur, Narayanganj. On this grand occasion, I would like to express my sincere gratefulness to Honorable Prime Minister Sheikh Hasina, Government of the People s Republic of Bangladesh for her dynamic and prolific leadership and pioneering role for the power sector.

8 I express my sincere thanks to the Hon ble Advisor to the Prime Minister for Power, Energy and Mineral Resources Affairs Dr. Tawfiq-e-Elahi Chowdhury, BB and Hon ble Minister of State, Ministry of Power, Energy and Mineral Resources Mr. Nasrul Hamid, MP, for their valuable contribution and suggestions to achieve the goal of the company and power sector as a whole. Members of the Board of Directors and officials of EGCB deserve special thanks for their relentless wish every success of the 20th ANNUAL General Meeting of EGCB. Dr. Ahmad KaikausChairman, EGCB LtdandSecretary, Power Division Minister of Power, Energy and Mineral ResourcesEGCBEGCB REPORT082016-2017 FROM THE DESK OFMANAGING DIRECTOR Electricity Generation Company of Bangladesh Limited is holding its 20th ANNUAL General Meeting and publishing the ANNUAL REPORT for the financial year 2016-2017.

9 The REPORT covers the technical, financial and managerial activities and the relevant significant information of the Company. I am pleased to share with you the highlights of the Company's performance during the year company has regained its financial position by achieving profit during this year. I would like to inform you that it has been operating two power plants at Siddhirganj and Haripur, having capacity of 2x120 MW gas turbine & 412 MW combined cycle respectively. Both the power plants could be maintained at more than 95% availability factor during this period. Siddhirganj 335 MW combined cycle power plant project faced implementation problem during this period which could be resolved under the able support and guidance of the Board of Directors in general and the Company Chairman, Dr. Ahmed Kaikaus in particular. Supplementary Contract has been signed with Samsung C&T as sole contractor after successful negotiation with Isolux and Samsung C&T.

10 Work is now going on in full swing. Commissioning of the 217MW simple cycle is expected by December, 2017 & Combined Cycle by June, 2018. The company is also implementing a 100 MW Liquid Fuel Based Power Plant at Haripur which is expected to be commissioned by November 2018. Moreover, in Pekua, Cox s Bazar, EGCBL is acquiring 1560 acres of land to implement 2x650 MW or more capacity Ultra Super-critical Coal Based Power Plant in 1st phase and similar 2x650 MW or more capacity in the 2nd phase. EGCB is in the process of forming a joint venture with Mitsui & Co. Ltd., Japan for the implementation of the 1st phase. The company has also plan to implement two units of 450 MW LNG based Combined Cycle Power Plant at this place. In Sonagazi, Feni the company has acquired 1000 acres of land to install around 300 MW Renewable Energy (Solar & Wind) based Power Plant.