Direct purchase allowed in setting up power plant
Wednesday, 21 April 2010
Different agencies under the power ministry will now be able to go for direct purchase of equipment for setting up power plants as the Cabinet Committee on Economic Affairs Tuesday approved a proposal in this regard, reports UNB.
Finance Minister AMA Muhith, who presided over an emergency meeting of the committee at the Planning Commission, told reporters that considering the severe power crisis, the power ministry was given the authority to go for direct purchase.
This means the procurement agencies under the power ministry can award contract to any company or contractor for setting up power plants without any bidding process.
Sources said the power ministry originally moved a proposal seeking exemption from following the Public Procurement Regulations (PPR) in awarding contracts for setting up power plants.
The PPA does not allow any public purchase without tender for the sake of transparency and competition.
"But the committee passed a resolution that would allow the PDB and other agencies under the power ministry to go for direct purchase," a senior official at the Cabinet Division said.
He also mentioned that a provision of the PPA allows such direct purchase without tender on emergency ground.
Meanwhile, the government Tuesday signed an initial agreement with a foreign private company to install 200 megawatt (MW) rental power plant by July 30 this year.
As per the agreement, Aggreko International, a Scottish company headquartered in Glasgow, will set up two furnace oil-fired generation units having a total capacity of 200 MW, in Ghorasal and Khulna. The individual capacities of each plant will be decided later.
After installation, the state-owned Power Development Board (PDB) will purchase electricity from the plants for the national grid.
Finance Minister AMA Muhith, who presided over an emergency meeting of the committee at the Planning Commission, told reporters that considering the severe power crisis, the power ministry was given the authority to go for direct purchase.
This means the procurement agencies under the power ministry can award contract to any company or contractor for setting up power plants without any bidding process.
Sources said the power ministry originally moved a proposal seeking exemption from following the Public Procurement Regulations (PPR) in awarding contracts for setting up power plants.
The PPA does not allow any public purchase without tender for the sake of transparency and competition.
"But the committee passed a resolution that would allow the PDB and other agencies under the power ministry to go for direct purchase," a senior official at the Cabinet Division said.
He also mentioned that a provision of the PPA allows such direct purchase without tender on emergency ground.
Meanwhile, the government Tuesday signed an initial agreement with a foreign private company to install 200 megawatt (MW) rental power plant by July 30 this year.
As per the agreement, Aggreko International, a Scottish company headquartered in Glasgow, will set up two furnace oil-fired generation units having a total capacity of 200 MW, in Ghorasal and Khulna. The individual capacities of each plant will be decided later.
After installation, the state-owned Power Development Board (PDB) will purchase electricity from the plants for the national grid.