A 150-megawatt power generation project was required to be revised for the third time by raising the cost nearly 200 per cent due to failure of the project executing agencies to complete the work in time, officials said Friday.
Government officials said the Bangladesh Power Development Board (BPRD) sought revision of the Sylhet 150mw power plant project seeking Tk 6.75 billion extra, 197 per cent higher than the original estimation of Tk 3.42 billion.
The state-owned power development board already spent 12 years for the project and now it sought extension of the period until the end of the current financial year (FY) 2013-2014, apart from the additional amount of money.
The BPDB had undertaken the project in the FY 2002 with financing from the public exchequer. But more than a decade had elapsed since then. Still the work could not be completed.
"Initially we lost some years due to complexities in the tender process. We completed installation of the power generator a year ago. But we have to adjust the cost upward due to fluctuation of the local currency against the US dollar," a senior BPDB official told the FE.
"We will be able to complete the entire work by the current fiscal," he told the FE requesting for anonymity.
Another BPDB official said the Sylhet 150MW power plant project was first revised by the Executive Committee of the National Economic Council (ECNEC) in 2004 raising the project cost to Tk 4.07 billion.
Earlier in April, 2001 the ECNEC approved the combined cycle power plant project at a cost of Tk 3.42 billion in a view to completing it by 2004.
For the second time, the ECNEC revised it in 2010 raising the cost by Tk 4.72 billion to Tk 8.78 billion from the first revised amount. The BPDB recently sent a proposal to the Planning Commission again for seeking a revision of the cost to Tk 10.18 billion, higher by 197 per cent than the original estimation.
A government official said tender-related inefficiency of the BPDB and ill-motives of some government officials concerned had delayed the project implementation leading to the unusual hike in the cost.
He said if the BPDB and the related ministry remained committed to installing the plant in a transparent way, the government then might not need to spend the 200 per cent additional amount of money of the taxpayers.
In 2002 the BPDB invited tender and selected the Bharat Heavy Electricals Limited (BHEL) for the job, as it was the lone bidder for the project. The then government's cabinet committee on public purchase approved the BHEL offer in 2004, the project cost increased and the revised DPP was approved by setting the estimated cost at Tk 4.07 billion the same year.
But the then caretaker government rejected the BHEL's tender due to the solicited offer. The BPDB again invited tender in 2006 and the BHEL became the only bidder and it quoted the project cost at Tk 4.95 billion. So, the government again did not accept it.
At last the BPDB invited tender and selected the M/S Shanghai Electric Group Company Ltd in November 2010 which quoted the cost at Tk 7.05 billion for setting up the plant.
A BPDB official said the 150mw plant had been set up more than a year ago. "Now we need to adjust costs of some components of the project, which will require additional funds and time."
"So we sought revision of the project for the third time from the Planning Commission," he added.