Bidding firms see red over extra terms and conditions

Both local and foreign firms participated in the bidding to install the 7.4 megawatt (mw) solar power plant at Kaptai have expressed their grievances over unnecessary terms and conditions that have discouraged participation of large firms.
A bidder said that the authorities concerned have added such terms and conditions that have barred many world renowned renewable energy firms from participating in the bidding.
An official at Bangladesh Power Development Board (BPDB) said the bidding terms and conditions were set by a foreign consultancy firm assigned by the Asian Development Bank (ADB), the financier of the project.
He said no BPDB official has been engaged in ascertaining the requirements for the bidding.
According to the bidding papers available to the FE, a bidder must have ten years' experience in installing solar power plants outside his country and it must also have capacity of installing at least 10 megawatt solar power plants.
Currently there is no company in Bangladesh with experience of installing 10 megawatt solar power plants.
A local bidder said in a pre-bid meeting there were objections from the bidders to the BPDB against inclusion of excess terms and conditions.
He said, "I have partnered with a foreign company to participate in the bidding but my partner, being informed about the terms and conditions, wrote me that it is ridiculous and nowhere in the world exists such practice exists."
He said, "When I approached other foreign firms, they also rejected my proposal saying the bidding conditions are unusual and too many."    
Another bidder who was in the pre-bid meeting said there are so many large international solar power plant companies in the world but most of them do not have ten years' experience.
He said the requirements in the burgeoning renewable energy industry may not get many bidders, so the authority may have to select a company from a small number of bidders.
He suspects that as per the bidding conditions it appears that the process is meant for indirectly favouring a particular party.
Yet another bidder said, "This is a new industry in Bangladesh and we have met almost all financial and infrastructure requirements in the bidding except ten years' experience and ten megawatt installing capacity."
He said the 7.4 megawatt project is likely to cost more than Tk 3.5 billion. Apart from installing the plant itself, a large amount of money will be required for setting up substations and transmission lines.
Another official in the renewable energy division under the BPDB said the ADB has assigned a Germany-based consultancy firm which prepared the bidding documents and requirements.
He said in many cases local parties undertake joint ventures with foreigners but after some days they alone do the job even without having adequate experience.
He said, "I personally think that the requirements are too many and currently a good number of large companies are there in the world without having ten years' experience in installing solar power plants."