Complete groundwork for implementing integrated power sector projects: WB

FE Team | Published: July 03, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The World Bank has asked Bangladesh government to complete the ground works including preparation of the development project proforma (DPP) and tender documents for implementing three integrated energy and power sector projects to be financed by the global lender.
The Washington-based donor recently in a letter to the Economic Relations Division (ERD) requested it to take the necessary steps so that the implementing agencies can float tender immediately after the fund is confirmed for the projects, official sources said.
As per instruction, the ERD last week asked the power and energy divisions to complete the necessary preliminary works for the three projects.
The World Bank (WB) last year assured the government to provide funds worth US$275 million for implementing three integrated energy and power sector projects including setting up a 300-megawatt (MW) capacity Siddhirganj peaking power plant, a 60 kilometre-long gas transmission line and an 11-km-long 230kv power transmission line.
An ERD official told the FE, "A WB mission visited Dhaka in May and reviewed the reform undertaken in Bangladesh's energy and power sectors. The mission expressed satisfaction over the reforms so far executed by the government."
The official said the negotiations for the proposed loan of the WB is likely to be completed by November this year and the agreement is expected to be signed in December this year.
"The WB requested to prepare the tender documents with the help of a consultant of the Power Cell as soon as possible and send those to the Bank's office for approval after which, the government agencies will be allowed to complete the tendering process before the loan agreement is signed," an ERD official said.
According to ERD sources, total cost of those three integrated energy and power sector projects would be around $400 million. Out of the cost, the WB will provide $275 million and the remaining fund will be mobilized by the Bangladesh government from its internal sources.
The newly formed state-owned Electricity Generation Company Limited (EGCB) will set up the 300MW Siddhirganj power plant, the Gas Transmission Company Limited (GTCL) will lay the 60-km long and 30-inch diameter gas transmission line from Bakhrabad to Siddhirganj to supply gas to the proposed power station at Siddhirganj and the Power Grid Company Limited (PGCB) will install the 11-km long 230kv power transmission line from Siddhirganj to Maniknagar for supplying power to the Dhaka city from the power station.
If the programme goes on smoothly, the country would get another 300MW power within early 2010, he hopped.