The Electricity Generation Company Bangladesh (EGCB) has decided to scrap halfway the feasibility study and land acquisition for a power generation project in Cox's Bazar, insiders said on Wednesday.
A Switzerland-based consultant has demanded bills for carrying out the feasibility study and other work under the 1,200-megawatt (MW) power plant project, they said.
For the consultancy purpose, the EGCB had set aside Tk 244 million under a Tk 5.16 billion project to "acquire land, conduct rehabilitation work, assess environmental impact and carry out feasibility study for setting up the 600X2MW ultra-super critical power plant in Cox's Bazar."
Insiders said the EGCB has so far spent nearly Tk 10 million on payment of salary, honorarium, and other logistics.
Besides, it has made available over Tk 1.52 billion to the deputy commissioner's office in June 2017 for the payment to the owners of the lands against acquisition at Pekua in the resort town.
Following the EGCB application for scrapping the project without completing the entire work, the Planning Commission (PC) has expressed its reservations about it.
The Commission has recommended the Power Division review the matter and take necessary action against the implementing authority for its misdeeds and mismanagement, they said.
The ECNEC, the government's highest economic policy-making body, approved the project in March 2016 involving Tk 5.16 billion.
The project was scheduled to end in June 2017. But the company failed to complete the project in time.
Following the EGCB's request, the Power Division extended its execution deadline by one more year to June 2018.
But the company has recently requested the Commission to scrap the project.
Accordingly, the Commission organised a Project Evaluation Committee (PEC) meeting where its members recommended the Power Division look into the incident and take necessary action against the project executing agency, officials said.
The evaluation committee has also decided to place it before the ECNEC meeting for its decision on the matter, insiders said.
Meanwhile, the committee decided that it will no longer allow spending public funds after June 2018, the completion deadline. The EGCB will have to pay bills and other costs from its own resources after the project deadline.
The committee has also recommended that the power division should find out the volume of wastage of government's funds and take actions against the project executing agency's irresponsible action and poor capacity.
The committee argued that if the land earmarked for the proposed power plant is handed over to any other public agency, the EGCB could shift the site to some other places beside the current project site and could continue the feasibility study and land acquisition.
EGCB managing director Arun Kumar Saha said since the government's top level had decided to hand over the Pekua site to another agency, they were forced to scrap their feasibility study and land acquisition project leaving the project at midpoint.
"Now, we will take up another fresh project to acquire the land for setting up the coal-fired power plant," he told the FE.
When asked why it was delayed to scrap the project, Mr Saha said they had got the government's decision on land transfer at the eleventh hour.
"Our people lack knowledge of cancelling a project and this caused the delay," he added.
As the project tenure expired in June 2018, the company had sought extension of the deadline for completing the formalities of cancellation, Mr Saha said.
Asked if it was his agency's failure, he said, "I don't think it's our failure. Since the government's high-up has decided to set up something else there, we have vacated the site." "Only some man hours and a tiny amount of money have been wasted--nothing else."
He said less than Tk 10 million has been spent on the salary and honorarium.
Since the consultant has sought some bills for its work, his agency will pay it after scrutinising its demand, Mr Shaha said.
Even more, the money that has been deposited with the DC office will be withdrawn soon following the due process, he added.
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