Purchase body may approve 10 SPPs

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Tender proposals of the selected bidders for the proposed 10 small power plants (SPPs) are likely to get the approval of the Advisors Committee on Public Purchase next week, reports UNB.
According to official sources, the Power Division Monday sent the tender proposals to the Cabinet Division to place those in the next meeting of the Advisory Committee on Public Purchase, known as the Cabinet Purchase Committee (CPC).
The meeting is expected to be held next week.
An official at the Power Cell, which is implementing the SPP project said, if CPC approves the proposals, then the sponsors will be invited to sign agreements, and they will have to install their respective plants within 15 months of signing the deals.
Earlier, the Power Cell picked up 10 bidders for the proposed 10 SPPs, as their tariff offers were found to be the lowest. The proposed 10 plants, each having 10-30 mw capacity, will be set up in 10 locations across the country.
Among the bidders, Summit Group was selected for four SPPs, while Asian-Entech Power Corporation Ltd (AEPCL) chosen for three SPPs as the lowest responsive bidders.
Regent Textile Mills, Saiham Power and Energypac-Confidence Power Venture were chosen for one project each, as their financial offers were found lowest.
Summit got a 10-mw project to be set up in Sirajganj, and 30-mw plants to be installed at Jangalia in Comilla, Rupganj in Narayanganj and Maona in Gazipur.
AEPCL was selected for three 20-mw projects in Feni, Tangail and Narsingdi. Saiham was selected for a 10-mw plant to be set up at Mohipal in Feni, while Regent Textile a 20-mw plant to be set up at Barakunda in Chittagong, and Energypac-Confidence Power Venture a 10-mw plant to be installed in Habiganj.
The private investors will set up the 10 SPPs, while the government will purchase electricity from the proposed plants for the next 15 years.
However, this is a re-tendering for the SPP projects, as the Caretaker Government last month cancelled the first tender process on charge of corruption and irregularities. In the re-tender, the government received much lower prices, which would help save about Tk 7.17 billion (717 crore) in the next 15 years, experts said.
Initiated by the BNP-led alliance government in 2004, the SPP project saw changes for at least six times in the last three years, and tenders were cancelled on two occasions.