Deadline for submitting pre-qualification documents extended
FE Report | Sunday, 8 March 2009
The power ministry has extended the deadline for submission of pre-qualification documents for installing the 450 megawatts (MW) gas-fired Bibiyana power plant by one and a half months, official sources said Saturday.
The new deadline for submission of pre-qualification documents by the interested sponsors is now April 23 next. The current deadline expires today (Sunday).
"We have extended the deadline mainly for non-availability of guarantee from the World Bank to fund the project," a senior power ministry official told the FE.
He said the multilateral donor agency is yet to respond positively towards funding the Bibiyana power plant project.
"If the WB does not come up with financial support implementation of this big power plant project will be impossible," he feared.
A number of international companies, including the local Summit Power Ltd, are the aspirants to install this power plant, the official said.
The power ministry last year had floated international tender to install the Bibiyana 450MW power plant in northeastern region.
It later scrapped the tender as the lone responsive bidder -- the Malaysian Powertek consortium -- offered higher electricity tariff compared to the country's existing rates charged by big power plants.
The WB last year had promised to provide US$300 million to the bid winner to facilitate installation of the power plant project.
The plant located near the Chevron operated Bibiyana gas field will consume gas around 80 million cubic feet per day (mmcfd) to generate 450MW of electricity.
The plant will be implemented on a build, own and operate (BOO) basis under a 22-year implementation agreement.
After evaluating pre-qualification documents the Power Cell, an independent entity under the power ministry, will seek request for proposal (RfP) from the pre-qualified entrepreneurs with technical and financial disclosures.
Technical capacities of the potential entrepreneurs will be judged first before opening of their financial offers.
The country's overall electricity generation is now hovering around 3,500 MW against the demand for over 5,000 MW.
The future prospect of producing electricity by using natural gas also looks uncertain as the current gas production is at least 250mmcfd short of the overall demand.
The new deadline for submission of pre-qualification documents by the interested sponsors is now April 23 next. The current deadline expires today (Sunday).
"We have extended the deadline mainly for non-availability of guarantee from the World Bank to fund the project," a senior power ministry official told the FE.
He said the multilateral donor agency is yet to respond positively towards funding the Bibiyana power plant project.
"If the WB does not come up with financial support implementation of this big power plant project will be impossible," he feared.
A number of international companies, including the local Summit Power Ltd, are the aspirants to install this power plant, the official said.
The power ministry last year had floated international tender to install the Bibiyana 450MW power plant in northeastern region.
It later scrapped the tender as the lone responsive bidder -- the Malaysian Powertek consortium -- offered higher electricity tariff compared to the country's existing rates charged by big power plants.
The WB last year had promised to provide US$300 million to the bid winner to facilitate installation of the power plant project.
The plant located near the Chevron operated Bibiyana gas field will consume gas around 80 million cubic feet per day (mmcfd) to generate 450MW of electricity.
The plant will be implemented on a build, own and operate (BOO) basis under a 22-year implementation agreement.
After evaluating pre-qualification documents the Power Cell, an independent entity under the power ministry, will seek request for proposal (RfP) from the pre-qualified entrepreneurs with technical and financial disclosures.
Technical capacities of the potential entrepreneurs will be judged first before opening of their financial offers.
The country's overall electricity generation is now hovering around 3,500 MW against the demand for over 5,000 MW.
The future prospect of producing electricity by using natural gas also looks uncertain as the current gas production is at least 250mmcfd short of the overall demand.