Agreements on small IPPs from this week
Saturday, 6 October 2007
S M Jahangir
The relevant government agencies are expected to start signing agreements with the selected bidders from this week in phases on the installation of 10 small power units under private initiative.
"The draft of the contract documents will get clearance from the Ministry of Law within the next couple of days… and contracts will be signed separately with the bidders shortly after receiving those," a senior Power Division Official told the FE.
The respective power agencies sent the letters of intention to the bidders about two weeks after the Cabinet Committee on Government Purchase had approved their offers in early July 2007.
The Committee accepted the bids for instilling such small independent power projects (IPPS) on build, own and operate (BOO) basis in 10 different locations of the country.
The combined generation capacity of the 10 proposed IPPs is 200 megawatts (MW), according the offers.
According to officials, each of selected bidders has to sign two agreements for installation of the small power units, having generation capacity between 10 megawatt (MW) and 30MW.
On the one hand, the selected bidders have to sign deals with the power distribution companies for selling electricity and, on the other, they will also be required to sign agreements separately with gas distribution companies to purchase natural gas for running the power plants, they noted.
After signing of the agreements, the proposed projects will need at least 15 months time to start power generation, the official noted.
Among the bidders, the Summit Power has been selected for setting up three units, each having generation capacity of 30MW, in Comilla, Narayanganj and Gazipur while it has offered to install another 10MW-plant at Ullapara in Sirajganj.
Asian-Entech Power Corporation Ltd (AEPCL) will set up three plants with 20MW of capacity each in Feni, Tangail and Narsingdi, official sources said.
Regent Textile Mills Ltd has won the bid for setting up a 20 MW at Barabkunda in Chittagong while the Energypac-Confidence has been selected for installing a 10 MW unit in Habiganj.
Besides, the Purchase Committee has accepted the offers of the Saiham Power for installing a 10 MW power plant at Mohipal in Feni.
All the bidders had been selected through re-tendering among the 37 pre-qualified bidders, which helped the government save more than Tk 4.11 billion on account of electricity purchase from the companies from their previous offers, official sources said.
Earlier, the purchase committee cancelled the previous offers for installation of such power projects on ground of lack of transparency in the tendering process coupled with high rate quoted by the bidders.
Meanwhile, the government adopted a policy on setting up small IPPs under the private sector nearly three years ago to help reduce the country's prevailing power shortfall.
The move to install the small IPPs is one of the government's medium-term strategies for meeting the country's ever-growing power demand, officials said.
The relevant government agencies are expected to start signing agreements with the selected bidders from this week in phases on the installation of 10 small power units under private initiative.
"The draft of the contract documents will get clearance from the Ministry of Law within the next couple of days… and contracts will be signed separately with the bidders shortly after receiving those," a senior Power Division Official told the FE.
The respective power agencies sent the letters of intention to the bidders about two weeks after the Cabinet Committee on Government Purchase had approved their offers in early July 2007.
The Committee accepted the bids for instilling such small independent power projects (IPPS) on build, own and operate (BOO) basis in 10 different locations of the country.
The combined generation capacity of the 10 proposed IPPs is 200 megawatts (MW), according the offers.
According to officials, each of selected bidders has to sign two agreements for installation of the small power units, having generation capacity between 10 megawatt (MW) and 30MW.
On the one hand, the selected bidders have to sign deals with the power distribution companies for selling electricity and, on the other, they will also be required to sign agreements separately with gas distribution companies to purchase natural gas for running the power plants, they noted.
After signing of the agreements, the proposed projects will need at least 15 months time to start power generation, the official noted.
Among the bidders, the Summit Power has been selected for setting up three units, each having generation capacity of 30MW, in Comilla, Narayanganj and Gazipur while it has offered to install another 10MW-plant at Ullapara in Sirajganj.
Asian-Entech Power Corporation Ltd (AEPCL) will set up three plants with 20MW of capacity each in Feni, Tangail and Narsingdi, official sources said.
Regent Textile Mills Ltd has won the bid for setting up a 20 MW at Barabkunda in Chittagong while the Energypac-Confidence has been selected for installing a 10 MW unit in Habiganj.
Besides, the Purchase Committee has accepted the offers of the Saiham Power for installing a 10 MW power plant at Mohipal in Feni.
All the bidders had been selected through re-tendering among the 37 pre-qualified bidders, which helped the government save more than Tk 4.11 billion on account of electricity purchase from the companies from their previous offers, official sources said.
Earlier, the purchase committee cancelled the previous offers for installation of such power projects on ground of lack of transparency in the tendering process coupled with high rate quoted by the bidders.
Meanwhile, the government adopted a policy on setting up small IPPs under the private sector nearly three years ago to help reduce the country's prevailing power shortfall.
The move to install the small IPPs is one of the government's medium-term strategies for meeting the country's ever-growing power demand, officials said.