Govt allows setting up power plants on unsolicited proposals

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M Azizur Rahman
The government has allowed building power plants by local and foreign firms on unsolicited proposals avoiding tendering process in an unprecedented move to face the country's worst-ever power crisis, officials said.
No prior experience by private firms would be required for building the power plants under a newly amended policy to enhance private participation in power sector, a senior power ministry official told the FE Wednesday.
He said private companies would now be able to set up power plants anywhere across the country after attaining licence from the energy regulator if their proposals become technically viable.
The state-owned power entities would be able to purchase electricity from power plants at a benchmark tariff rate to be fixed by the Bangladesh Energy Regulatory Commission (BERC), the official added.
The private firms would also have their liberty to sell electricity to any large private consumers at a negotiated rate with the parties concerned.
They would be allowed to run their plants with any fuel like furnace oil, coal, imported gas, wind, solar power, hydro power, waste and liquefied natural gas.
But the fuel must be arranged by the private sector concerned and the government would extend all necessary support to arrange or facilitate importing necessary fuel.
The energy regulatory commission will fix up benchmark electricity tariff in accordance with the kinds of fuel and locations of the power plant, said officials.
The government will provide necessary land to private sector for building the plants.
"We have amended the policy to woo the private entrepreneurs to invest in the power sector heavily," Power Secretary Md Abul Kalam Azad told the FE.
He said the power ministry has already attained a good number of proposals from private sector for setting up power plants under the new policy.
"It will help ease nagging energy crisis in the country," he added.
Experts, however, said the government decision to stamp its seal of approval to unsolicited proposals from the private sector avoiding tender process, however, exposes its handicap to resolve the current electricity crisis through all available means.
The power ministry has already asked the state-owned electricity distribution agencies to select suitable locations for setting up power plants by the private sector under the new policy.
"We have already identified two places - Keraniganj and Shyampur - for setting up two power plants by private sector having the generation capacity of 100 megawatt (mw) each," Managing Director of Dhaka Power Distribution Company Ltd (DPDC) Ataul Masud said.
Another 50-mw plant would be built by private sector near Amin Bazar, he added.
"It is a very good decision by the government," said Saifuzzaman Chowdhury a potential private sector entrepreneur for setting up such power plants.