Re-tendering, delay in evaluation bane to power sector development

FE Team | Published: November 05, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Despite frantic efforts, the caretaker government could not get rid of the re-tendering hazard in awarding power plant projects, reports UNB.
According to official sources, after assuming office, the post-1/11 caretaker government had to go for re-tendering in at least a dozen small, medium and large-sized power plants that ultimately turned out to be the main reason behind the slow-pace in power sector development.
The projects, for which the government had to go for re-tenders include 450 MW Sirajganj power plant and seven rental power plants - 50 MW Fenchuganj, 20MW Bogra, 80MW Shahjibazar, 20 MW Kumargaon, 20 MW Feni, 20 MW Barabkunda and 50 MW Shikalbaha.
Some 10 small power plants, which were also re-tendered are 30 MW Jangalia, 30 MW Maona, 30 MW Rupganj, 20 MW Feni, 20 MW Barabkunda, 10 MW Habiganj, 10 MW Sirajganj, 20 MW Barabkunda, 20 MW Tangail, 20 MW Narsingdi.
After re-tendering on two/three occasions, some of these projects are now being implemented far behind their schedule.
The delay in evaluation is also another reason for excessive delay in the implementation process of power plants.
In this case, the industry insiders mentioned the name of 100 MW Sylhet power plant, which was first tendered in 2002 and its fourth time tender was received in July 2007. But after receiving the tender for the project, three months have passed, but its final evaluation is yet to be completed.
Only recently, the government decided to cancel the tender of 450 MW Meghnaghat plant and 150 MW Chandpur plant as the bidders were finally found non-compliant with the government's terms and conditions.
The re-tendering of power projects remained a big hindrance to appointing international firms, either to install the plants or awarding projects to implement those as per schedule.
The experts in the country's power sector also blamed the re-tendering issue for stalling the power sector's growth.
There is lot of instances of more than five-time re-tendering of a single project to select a bidder.
The post-1/11 caretaker government, since assuming office, has focused on maintaining transparency and fairness in dealing with the tender process, but they could not bring the power sector out of peril.