Bidders to set up 10 SPPs approved

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M Azizur Rahman
The cabinet committee on government purchase Monday approved proposals of five lowest bidders to set up ten small power plants (SPPs) at separate locations to generate over 200 megawatts (MW) of electricity across the country.
Summit Power has obtained the government approval to install four power plants having a total generation capacity of 100 MW. Of them three plants will each produce 30 MW and the rest one will generate 10 MW.
Asian-Entech Power Corporation got three, while the remaining three SPPs were awarded to Regent Textile Mills Ltd, Energypac-Confidence Ltd and Saiham Power.
"The selected bidders will install the power plants on build, own and operate (BOO) basis," Finance and Planning Adviser AB Mirza Azizul Islam told reporters after the purchase committee meeting.
They have been selected through re-tendering among the 37 pre-qualified bidders.
The re-tendering will help the government save more than Tk 4.11 billion on account of electricity purchase from the companies, the finance adviser, who chaired the meeting, told the newsmen.
"The previous tender was scrapped due to lack of transparency and higher rate quoted by the bidders," he said.
As per the decision of the purchase committee the Summit Power will install three 30 MW capacity SPPs at Jangalia in Comilla, Rupganj in Narayanganj and Maona in Gazipur and sell electricity at Tk 2.38 per kilowatt hour (per unit), Tk 2.38 per unit and Tk 2.39 per unit to the government from the power plants respectively.
Summit power will sell electricity at Tk 2.49 per unit after installing a 10 MW SPP at Ullapara in Sirajganj.
Asian-Entech Power Corporation has been awarded the contract for installation of three power plants with generation capacity of 20 MW each at Tangail, Narsingdi and Feni.
The company will sell electricity at Tk 2.28 per unit, Tk 2.28 per and Tk 2.28 per unit respectively from the three power plants.
Regent Textile Mills Ltd, which will install one 20 MW SPP at Barabkunda in Chittagong, will sell electricity at Tk 2.32 per unit.
Energypac-Confidence has been selected to install a 10 MW SPP at Habiganj. It will sell electricity at Tk 2.49 per unit to the government.
Saiham Power will sell electricity at Tk 2.47 per unit after installing a 10 MW power plant at Mohipal in Feni
When contacted, Summit Power Chairman Muhammad Aziz Khan expressed his gratitude to the government for completing the selection process quickly in a transparent manner.
Talking about the funding arrangement for installation of the four new SPPs the Summit Power chairman hoped to generate the required money from inside the country.
The company, listed on the country's bourses, will raise fund from the stock markets and take loans from two separate local financial institutions, he said.
"We might issue rights share at 1:1 to raise fund from the stock market soon for financing the installations," Aziz Khan clarified.
He hoped that his company, having experience of generating electricity from three existing SPPs, would be able to run the new plants efficiently.
Currently, the Summit Power is generating over 105 MW of electricity from three of its existing power plants.
Sources said the SPP project was initiated by the previous government in 2004.