Delay, fund crisis plague large power plants implementation
Saturday, 7 January 2012
FHM Humayan Kabir
The government was busy installing small and costly power plants instead of base-load and long-lasting planned stations in its last three years' tenure causing extra pressure on the country's fiscal management, officials and experts have said.
Officials said the dozens of planned furnace oil- or diesel-based power stations have already come into operation, while nearly 15 ongoing larger trifling power generation schemes had been struggling in their implementation stage for years.
The state-owned generation companies have undertaken 13 big power stations to install 3210-megawatt (mw) combined-capacity electricity, most of which have been delayed due to the implementation inefficiency of the agencies and crisis of funds.
Besides, under a joint venture and private sector investment, the government has also taken up some 3700mw combined-capacity five larger power generation projects which are also progressing slowly.
"Over the last three years, we've laid our maximum efforts on the small oil-based power stations for quick recovery from the ongoing crisis. We have tried to give the struggling people spaces to breathe. Now we are putting in our efforts into the base-load plants," a senior Power Division official said.
Differing with the slow move, Chairman of the Power Development Board (PDB) ASM Alamgir Kabir said they were always working to complete the planned base-load larger power stations under their mid- and long-term programmes.
"But reality is that it usually takes two to three years to complete feasibility study, tender process and fund mobilisation work before selecting contractors for setting up the big plants. So, our planned power stations are taking a few years to complete the construction work," he told the FE.
A Power Division official said the proposed nearly 4600mw combined- capacity dozens of costly furnace oil- or diesel-based rental and small power stations had already been installed and some of them would start production within next few months.
The government is purchasing electricity from those oil-based plants at Tk 7.0 to Tk 14 per kilowatt-hour (Kwh) which has hiked average electricity price for the consumers to Tk 5.44 per Kwh in last fiscal 2010-11 from Tk 3.24 per Kwh in 2009-10 fiscal, he told the FE.
The official said though the Executive Committee of the National Economic Council (ECNEC) has already approved more than 12 big power plant schemes, having total nearly 1300mw capacity, those were yet to begin production.
The struggling power generation schemes include Siddhirganj 450mw, Bheramara 360mw, Sikalbaha 225mw, Bhola 225mw, and Barapukuria 250mw schemes.
"We have tried to remove the barriers over the last couple of years. Some of those projects have already overcome the setbacks as we have selected contractors for starting execution works," the Power Division official added.
Besides, the much-delayed Sylhet 150mw, Chandpur 150mw, Sirajganj 150mw and Khulna 150mw plants have already missed their deadline of power production and added additional cost to their installation, he said.
The ECNEC in 2001 approved the Sylhet 150mw power generation project at a cost of about Tk 3.50 billion which has now escalated to Tk 8.79 billion due to implementation delay.
Similarly, the Chandpur 150mw project has also been approved by the ECNEC in 2001, the project cost of which has soared to Tk 12.01 billion due to the same reason.
After the elapse of four years from starting tender process, the Khulna 150mw and the Sirajganj 150mw dual-fuel (gas and furnace oil) power stations have also failed to generate electricity, although the lender Asian Development Bank (ADB) has confirmed funds for them four years ago.
Another large ECNEC-approved 360mw power station in Bheramara has also faced a big blow as its fund provider the Japanese government is now unwilling to disburse the confirmed money due to inadequate gas supply to the proposed plant site.
The Siddhirganj 450mw power plant, undertaken in 2009 by the EGCB, has also been put on hold due to a row between the fund provider World Bank and the Power Division.
To encourage private sector investment initiatives, the Power Division last year has awarded contract to an independent power producer (IPP) Summit Power and its consortium for building each of 341mw capacity gas-based power stations at Bibiyana-1, Bibiyana-2 and Meghnaghat-3.
In December last year, PDB also awarded contracts to two private sector firms for installing total 1100mw capacity coal-based power stations.
The government was busy installing small and costly power plants instead of base-load and long-lasting planned stations in its last three years' tenure causing extra pressure on the country's fiscal management, officials and experts have said.
Officials said the dozens of planned furnace oil- or diesel-based power stations have already come into operation, while nearly 15 ongoing larger trifling power generation schemes had been struggling in their implementation stage for years.
The state-owned generation companies have undertaken 13 big power stations to install 3210-megawatt (mw) combined-capacity electricity, most of which have been delayed due to the implementation inefficiency of the agencies and crisis of funds.
Besides, under a joint venture and private sector investment, the government has also taken up some 3700mw combined-capacity five larger power generation projects which are also progressing slowly.
"Over the last three years, we've laid our maximum efforts on the small oil-based power stations for quick recovery from the ongoing crisis. We have tried to give the struggling people spaces to breathe. Now we are putting in our efforts into the base-load plants," a senior Power Division official said.
Differing with the slow move, Chairman of the Power Development Board (PDB) ASM Alamgir Kabir said they were always working to complete the planned base-load larger power stations under their mid- and long-term programmes.
"But reality is that it usually takes two to three years to complete feasibility study, tender process and fund mobilisation work before selecting contractors for setting up the big plants. So, our planned power stations are taking a few years to complete the construction work," he told the FE.
A Power Division official said the proposed nearly 4600mw combined- capacity dozens of costly furnace oil- or diesel-based rental and small power stations had already been installed and some of them would start production within next few months.
The government is purchasing electricity from those oil-based plants at Tk 7.0 to Tk 14 per kilowatt-hour (Kwh) which has hiked average electricity price for the consumers to Tk 5.44 per Kwh in last fiscal 2010-11 from Tk 3.24 per Kwh in 2009-10 fiscal, he told the FE.
The official said though the Executive Committee of the National Economic Council (ECNEC) has already approved more than 12 big power plant schemes, having total nearly 1300mw capacity, those were yet to begin production.
The struggling power generation schemes include Siddhirganj 450mw, Bheramara 360mw, Sikalbaha 225mw, Bhola 225mw, and Barapukuria 250mw schemes.
"We have tried to remove the barriers over the last couple of years. Some of those projects have already overcome the setbacks as we have selected contractors for starting execution works," the Power Division official added.
Besides, the much-delayed Sylhet 150mw, Chandpur 150mw, Sirajganj 150mw and Khulna 150mw plants have already missed their deadline of power production and added additional cost to their installation, he said.
The ECNEC in 2001 approved the Sylhet 150mw power generation project at a cost of about Tk 3.50 billion which has now escalated to Tk 8.79 billion due to implementation delay.
Similarly, the Chandpur 150mw project has also been approved by the ECNEC in 2001, the project cost of which has soared to Tk 12.01 billion due to the same reason.
After the elapse of four years from starting tender process, the Khulna 150mw and the Sirajganj 150mw dual-fuel (gas and furnace oil) power stations have also failed to generate electricity, although the lender Asian Development Bank (ADB) has confirmed funds for them four years ago.
Another large ECNEC-approved 360mw power station in Bheramara has also faced a big blow as its fund provider the Japanese government is now unwilling to disburse the confirmed money due to inadequate gas supply to the proposed plant site.
The Siddhirganj 450mw power plant, undertaken in 2009 by the EGCB, has also been put on hold due to a row between the fund provider World Bank and the Power Division.
To encourage private sector investment initiatives, the Power Division last year has awarded contract to an independent power producer (IPP) Summit Power and its consortium for building each of 341mw capacity gas-based power stations at Bibiyana-1, Bibiyana-2 and Meghnaghat-3.
In December last year, PDB also awarded contracts to two private sector firms for installing total 1100mw capacity coal-based power stations.