Deal with selected bidders soon
Saturday, 21 July 2007
SM Jahangir
The government will soon sign agreements with the selected bidders to pave the way for installing 10 small power units in the private sector.
The state-run power distributing agencies have already issued letter of intent (LoI) in this connection to the selected bidders, official sources said.
"LoIs were issued last week to five lowest bidders for installation of small independent power projects (IPPs) on build, own and operate (BOO) basis, setting a maximum of one-month time limit for signing agreements," a senior Power Division official said.
The official further said: "Such agreements are expected to be signed within the next couple of weeks."
Authorities served the LOIs to the respective bidders about two weeks ago after the cabinet committee on government purchase approved the offers for setting up small IPPS at 10 separate locations in the country.
Total generation capacity of the proposed IPPs is 200 megawatts (MW).
Among the selected small IPPs, the Summit Power has quoted the electricity selling prices at Tk 2.38 per kilowatt hour (per unit) from its 30MW plants to be set up in Comilla and Narayanganj and that of Tk 2.39 per unit for another 30MW unit in Gazipur.
It has also offered Tk 2.49 for selling per unit of electricity after installing a 10MW IPP at Ullapara in Sirajganj.
Asian-Entech Power Corporation has been awarded the contract for installation of three power plants as the company offered to sell electricity at Tk 2.28 per unit for its three units in Tangail, Narsingdi and Feni.
Regent Textile Mills Ltd has quoted the selling price of electricity at Tk 2.32 per unit for its 20 MW unit to be set up at Barabkunda in Chittagong.
Energypac-Confidence has been selected to install a 10 MW plant at Habiganj and the company has offered to sell electricity at Tk 2.49 per unit to the government.
Saiham Power will sell electricity at Tk 2.47 per unit after installing a 10 MW power plant at Mohipal in Feni.
All the bidders have been selected through re-tendering among the 37 pre-qualified bidders. This has helped the government save more than Tk 4.11 billion on account of electricity purchase from the companies compared with the previous offers, official sources said.
Earlier, the purchase committee cancelled the previous offers for installation of IPPs on ground of lack of transparency in the tendering process and higher rate quoted by the bidders.
More than two years ago, the government adopted a policy on installation of small IPPs under the private sector to help reduce the country's prevailing power shortfall.
"The move to install the small IPPs is one of the government's medium-term strategy for meeting the country's ever-growing power demand," said an official.
After signing of the agreements, the proposed IPPs will require at least 15 months to go into production, the official mentioned.
The government will soon sign agreements with the selected bidders to pave the way for installing 10 small power units in the private sector.
The state-run power distributing agencies have already issued letter of intent (LoI) in this connection to the selected bidders, official sources said.
"LoIs were issued last week to five lowest bidders for installation of small independent power projects (IPPs) on build, own and operate (BOO) basis, setting a maximum of one-month time limit for signing agreements," a senior Power Division official said.
The official further said: "Such agreements are expected to be signed within the next couple of weeks."
Authorities served the LOIs to the respective bidders about two weeks ago after the cabinet committee on government purchase approved the offers for setting up small IPPS at 10 separate locations in the country.
Total generation capacity of the proposed IPPs is 200 megawatts (MW).
Among the selected small IPPs, the Summit Power has quoted the electricity selling prices at Tk 2.38 per kilowatt hour (per unit) from its 30MW plants to be set up in Comilla and Narayanganj and that of Tk 2.39 per unit for another 30MW unit in Gazipur.
It has also offered Tk 2.49 for selling per unit of electricity after installing a 10MW IPP at Ullapara in Sirajganj.
Asian-Entech Power Corporation has been awarded the contract for installation of three power plants as the company offered to sell electricity at Tk 2.28 per unit for its three units in Tangail, Narsingdi and Feni.
Regent Textile Mills Ltd has quoted the selling price of electricity at Tk 2.32 per unit for its 20 MW unit to be set up at Barabkunda in Chittagong.
Energypac-Confidence has been selected to install a 10 MW plant at Habiganj and the company has offered to sell electricity at Tk 2.49 per unit to the government.
Saiham Power will sell electricity at Tk 2.47 per unit after installing a 10 MW power plant at Mohipal in Feni.
All the bidders have been selected through re-tendering among the 37 pre-qualified bidders. This has helped the government save more than Tk 4.11 billion on account of electricity purchase from the companies compared with the previous offers, official sources said.
Earlier, the purchase committee cancelled the previous offers for installation of IPPs on ground of lack of transparency in the tendering process and higher rate quoted by the bidders.
More than two years ago, the government adopted a policy on installation of small IPPs under the private sector to help reduce the country's prevailing power shortfall.
"The move to install the small IPPs is one of the government's medium-term strategy for meeting the country's ever-growing power demand," said an official.
After signing of the agreements, the proposed IPPs will require at least 15 months to go into production, the official mentioned.