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Although some reputed companies are involved in the ongoing tendering process of the Sirajganj 450 megawatt power project, the power ministry is considering a third re-tender, thus delaying its implementation by at least another six months.

While the government has put high emphasis on strengthening the power sector, the decision for re-tendering is being considered in the light of appointing an Asian Development Bank (ADB) consultant to ensure transparency and competence.

The ministry raised the idea of cancelling the ongoing tender at a discussion with the ADB, which has already agreed to provide a consultant for the Sirajganj and the Meghnaghat-3 power projects.

Sources said as the current tender for the Sirajganj project has only passed the bidder selection level, the ADB consultant could easily take over to ensure transparency.

“This will be frustrating for the bidders each of which spent $20,000 to buy bidding documents,” said an official, adding, “This is a waste of time.”

The government has so far made no significant progress in any new power tender. There has been no meaningful reshuffling of manpower in the power ministry, Power Cell and the Power Development Board (PDB), which were technically crippled by the previous alliance government. As a result, the authorities have not yet demonstrated any new direction or commitment to the bidders or the public, said a PDB official.

Eight bidders were initially qualified in the second re-tender of the Sirajganj project floated by the Power Cell of the power ministry late last year. These are AES of the USA, Marubeni of Japan, Summit-Globelaq (Bangladesh-UK), GMR of India, Essar of India, YTL of Malaysia, Orion-Delta Consortium (local Orion group venture), and Manning Power of Ireland.

Of them, GMR, AES, YTL, Summit-Globelaq and Manning purchased bidding documents in December and sought various clarifications from the Power Cell. However, lacking in technical expertise, the Power Cell failed to make these clarifications till date and has shifted the bid submission date from April 16 to May 16.

“We are waiting for a decision from the ministry on this matter,” said a top Power Cell source when asked if the cell is working on responding to the bidders’ queries. “We cannot say if the project will go for re-tendering again until we get the ministry’s decision,” he added requesting not to be named.

The Power Cell has not even cancelled the contract of its technical director whose level of competence and fairness has been questioned over the last two years. “On the contrary, the two-year contract of the technical director is likely to be extended again by May,” said a source. The technical director is supposed to provide all clarifications to the bidders.

“There are five bidders awaiting the Power Cell’s response. Of them, we can safely say that AES, Summit-Globelaq, YTL and GMR are the competent ones we would like to have in any given power bids,” he said, adding, “So, re-tendering the Sirajganj bid is simply pointless.”

The tenders for the Sirajganj project have seen a series of bad decisions in the past. The first tender failed to attract enough bidders while the second tender in 2003-04 lacked competition but bagged an offer from the local Summit Power. The World Bank and the ADB were ready to finance Summit Power.

However, in early 2004, the then prime minister Khaleda Zia cancelled the tender at its final stage without any explicit reason and sent it for re-tendering. But under the influence of Hawa Bhaban and with incompetent manpower handling technical issues, the Power Cell could not launch the third tender until late 2006.

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