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10 low-tariff small power schemes get govt nod


Posted on Tuesday, July 3rd, 2007 at 3:48 am
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The caretaker government’s purchase committee yesterday approved awarding of contracts for 10 small power projects with a total production capacity of around 200 MW at a better tariff rate than that in a previously cancelled bid.

Installation of these gas-fired plants is supposed to be completed with power generation starting within 15 months of signing of the agreement with the Power Cell of the power ministry, cell sources said.

“But given the situation, we are negotiating with them to have the plants completed, and run within a shorter time,” said an official.

Tariff offers by these plants are also much better than those found in the previous tender (cancelled in April). The previous tender for nine plants with 190 MW capacity drew tariff offers ranging between Tk 2.48 per kilowatt hour (or one unit) and Tk 3 while the present offers range between Tk 2.28 and Tk 2.49 per unit.

Four of these plants will be set up by Summit Power, which is already operating some small power plants and a 110 MW barge-mount plant. The four plants of Summit will generate 100 MW. Of these, three 30 MW plants will be set up in Comilla, Narayanganj and Gazipur (power tariff for each of these plants is Tk 2.38 per unit) and one 10 MW plant in Sirajganj (Tk 2.49 per unit).

Saiham Power Ltd will set up four plants with their production capacity totalling 70 MW. Of these, three 20 MW plants will be set up in Feni, Tangail and Narsingdi (Tk 2.28 per unit power tariff) and one 10 MW plant in Feni (Tk 2.47 per unit).

Regent Textiles will set up a 20 MW plant in Barabkundu of Chittagong (tariff Tk 2.32 per unit) and Energy Pac a 10 MW plant in Habiganj (Tk 2.48 per unit).

Finance Adviser Mirza Azizul Islam, who presided over the purchase body meeting, said the newly approved schemes will save around Tk 450 crore.

The Power Cell is also expected to float within this month fresh Prequalification Documents for selection of qualified bidders for the 450 MW Sirajganj and 450 MW Meghnaghat-3 power projects. The Asian Development Bank (ADB) is providing technical expertise to prepare these documents and evaluate the tenders.

Both these projects have remained in limbo for several years due to dubious role of the previous BNP-led ruling alliance leadership.

The Power Cell had been trying to award small power project tenders for two years. Due to serious political interference, the cell’s pre-selection of small power project bidders remained questionable for long.

In April, the government cancelled the Power Cell’s two-year-old tender for small power projects having a total of 190 MW capacity on grounds of lack of transparency, and asked it to retender the scheme.

Under instructions of the power ministry, the Power Cell however once again floated a tender restricting it to 33 companies that were pre-qualified during the alliance government’s tenure.

Some of these companies are non-existent. Some were selected on the basis of their proximity to highly controversial Hawa Bhaban. For instance, these include Orion Power Company Ltd of scamster Obaidul Karim.

“But the ones which have been selected and approved have reputation as good entrepreneurs,” said an official.

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This entry was posted on Tuesday, July 3rd, 2007 at 3:48 am and is filed under Bangla, Bangladesh, Bangladesh Economy, Bangladesh News, Daily Bangladesh News, Economy, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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