Bids for five oil-fired rental power plants approved

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FE Report
The cabinet committee on government purchase Wednesday approved bids for setting up five oil-fired rental power plants (RPPs) by private entrepreneurs to generate 330 megawatts of electricity.
The committee headed by Finance Minister AMA Muhith also endorsed import of 2.10 million tonnes of fuel both refined and crude from different countries for the next year.
The cabinet committee stamped the seal of approval to the high-cost fuel-run power plant projects to meet the soaring electricity demand across the country.
Of the total number of plants, the two - Bheramara 100 mw and Thakurgaon 50 mw - would be diesel-fired and the remaining Barisal 50 mw, Jamalpur 30 mw and Noapara 100 mw plants would be furnace oil-run.
The diesel-fired power plants must initiate electricity generation within 120 days of signing agreements, while the furnace oil-run power plants within 270 days of signing the respective agreements.
In default there will be a penalty of US$500 per day.
The state-owned Bangladesh Petroleum Corporation (BPC) would import 700,000 tonnes of crude oil from Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates (UAE) and 600,000 tonnes from the Saudi Arabian Oil Company (SAOC) of Saudi Arabia.
The BPC would import 90,000 tonnes of diesel from the Philippines National Oil Company (PNOC) and 60,000 tonnes of diesel from the Egyptian company MIDOR during January-June period in 2010.
It would also import 920,000 tonnes of diesel and 130,000 tonnes of jet fuel from the Kuwait Petroleum Corporation (KPC) for the year 2010.
The premium rate for diesel was approved at $ 3.9 per barrel, while $ 4.9 per barrel for jet fuel.
Of the bid winners for renral power plants Rahim Afrooz bagged two power plants -- Thakurgaon 50 mw and Jamalpur 30 mw - quoting electricity tariff of Tk 13.74 per unit (1,000 kWh) and Tk 7.49 respectively.
Otobi alone won Noapara 100 mw power plant and the tariff rate would be Tk 7.29 per unit, while the Otobi along with its joint venture partner SEZ Gas Turbine was selected for Bheramara 100 mw against the tariff rate of Tk 12.58 per unit.
Coastal Saba Power Ltd bagged the Barisal 50 mw furnace oil-run power plants quoting the tariff rate at Tk 7.14 per unit.
The state-owned Power Development Board (PDB) would purchase electricity from the private entrepreneurs at the quoted prices.
PDB would purchase electricity from the diesel-run power plants for three years, while from the furnace-oil ones for five years.