November 11, 2024
Policy Brief
Cancel Amin Bazar 42.5 MW WTE Power Plant
Key Findings
The proposed 42.5-megawatt Waste-to-Energy (WTE) plant in Aminbazar will need 30 acres of land in the capital, Dhaka, and is expected to commence in 2026. The construction cost will be approximately BDT 5,661 crore (USD 481.3 million). In 2021, China Machinery Engineering Corporation won ownership of the project for 25 years without a tender. It has already applied for a loan of 100 million USD from the New Development Bank for the project. The project is on ADB's list of proposed projects.The key findings of this
study are:
▪ About 8330.7 thousand tons of greenhouse gases will emit from the WTE plant in the next 25 years which can pose a severe threat to the environment and climate change.
▪ Dhaka’s solid waste contains a high moisture content, making it challenging to generate significant heat. Methane gas emission will increase due to the use of low-calorie waste, which is a clear violation of Bangladesh's international commitments.
▪ The government faces significant economic challenges as it will have to pay BDT 25.56 (USD 0.2178) per unit (according to 30 June 2024) to purchase electricity, while currently, the average production cost of electricity is BDT 12.13 (USD 0.1033). The government has to pay extra money for each unit of electricity from this power plant, which will create additional pressure on the
overall economy and the people of the country.
▪ No environmental, social or economic assessment was conducted prior to execution of the power purchase agreement for the project.
▪ The power plant will emit more greenhouse gas (GHGs) than coal-based power plants. Additionally, the emission of harmful substances such as sulfur dioxide, nitrogen oxide, carbon mono-oxide, particulate matter, dioxins, and heavy metals leads to chest ailments including respiratory issues. It enhances other health problems among the local residents.
▪ A waste-free urban system needs to be created that will drive behavioral, structural, and infrastructural improvements.
▪ The management system should be improved so that 100% of urban waste can be collected. The biodegradable portions of organic waste have to be converted into organic fertilizer, and plastic wastes need to be recycled.
▪ New Development Bank financing for the project should be
canceled.
▪ Penalties for failing to provide sufficient quantity of waste; no such conditions shall be placed in any other projects, including this project.