ECNEC okays revised 150 mw Khulna power plant
Wednesday, 23 March 2011
FE Report
The ECNEC Tuesday approved revision of the 150 megawatt (MW) power generation project in Khulna, increasing its estimated cost to Tk 15.42 billion. The Executing Committee of the National Economic Council (ECNEC) in a meeting approved the cost escalation of the much-delayed Khulna power plant project by Tk 7.39 billion from its original estimated cost of Tk 8.03 billion. Presided over by Prime Minister Sheikh Hasina, the ECNEC meeting approved 11 projects at the total cost of Tk 29.40 billion, along with the Tk 15.42 billion Khulna project. Delay in implementation of the power generation project has almost doubled its estimated cost from the previous estimation of Tk 8.03 billion in 2006, as the executing agency failed to start main work in four years, officials said. An official of the Planning Commission said earlier that they had extended time twice to the state-owned North West Power Generation Company Ltd (NWPGCL) for completing the scheme. But NWPGCL has failed, and the cost has ultimately swelled to double of the preliminary estimation, the official said. Following acute power crisis across the country, the BNP-backed government approved the Khulna peaking power plant project in September 2006 at a cost of Tk 8.03 billion. The plant was scheduled to be completed by June 2009. A Power Division official said the power generation project was delayed mainly due to deferment of the Asian Development Bank (ADB) to approve the NWPGCL-selected bidder. The ADB is financing US$ 70.52 million in the project. "The NWPGCL selected a contractor, and sent the proposal to the ADB Dhaka office in October 2009 for getting approval. But the ADB endorsed it in December 2009," the official said. "Then the company sent the financial offer to the ADB in March 2010, and it took nine months to endorse the proposal," he said. "This delay by the lender forced us to go for extension of time for the project and revision of its estimated cost for the third time. The NWPGCL selected ISOLUX-Ingenieria SA-Initec Energia SA of Spain for building the 150 MW peaking power station in Khulna. Until June 2010, the NWPGCL spent Tk 43.75 million, only 0.54 per cent of the total cost during the last four years. Installation work of the plant is yet to be started. The ECNEC approved 10 other projects including setting up of Jhenidah Textile Engineering College at a cost of Tk 770 million, installation of solar system at 165 border outposts of the Border Guards of Bangladesh (BGB) at Tk 290 million, and the Cox's Bazar-Teknaf marine drive road (revised) project at Tk 1.69 billion.
The ECNEC Tuesday approved revision of the 150 megawatt (MW) power generation project in Khulna, increasing its estimated cost to Tk 15.42 billion. The Executing Committee of the National Economic Council (ECNEC) in a meeting approved the cost escalation of the much-delayed Khulna power plant project by Tk 7.39 billion from its original estimated cost of Tk 8.03 billion. Presided over by Prime Minister Sheikh Hasina, the ECNEC meeting approved 11 projects at the total cost of Tk 29.40 billion, along with the Tk 15.42 billion Khulna project. Delay in implementation of the power generation project has almost doubled its estimated cost from the previous estimation of Tk 8.03 billion in 2006, as the executing agency failed to start main work in four years, officials said. An official of the Planning Commission said earlier that they had extended time twice to the state-owned North West Power Generation Company Ltd (NWPGCL) for completing the scheme. But NWPGCL has failed, and the cost has ultimately swelled to double of the preliminary estimation, the official said. Following acute power crisis across the country, the BNP-backed government approved the Khulna peaking power plant project in September 2006 at a cost of Tk 8.03 billion. The plant was scheduled to be completed by June 2009. A Power Division official said the power generation project was delayed mainly due to deferment of the Asian Development Bank (ADB) to approve the NWPGCL-selected bidder. The ADB is financing US$ 70.52 million in the project. "The NWPGCL selected a contractor, and sent the proposal to the ADB Dhaka office in October 2009 for getting approval. But the ADB endorsed it in December 2009," the official said. "Then the company sent the financial offer to the ADB in March 2010, and it took nine months to endorse the proposal," he said. "This delay by the lender forced us to go for extension of time for the project and revision of its estimated cost for the third time. The NWPGCL selected ISOLUX-Ingenieria SA-Initec Energia SA of Spain for building the 150 MW peaking power station in Khulna. Until June 2010, the NWPGCL spent Tk 43.75 million, only 0.54 per cent of the total cost during the last four years. Installation work of the plant is yet to be started. The ECNEC approved 10 other projects including setting up of Jhenidah Textile Engineering College at a cost of Tk 770 million, installation of solar system at 165 border outposts of the Border Guards of Bangladesh (BGB) at Tk 290 million, and the Cox's Bazar-Teknaf marine drive road (revised) project at Tk 1.69 billion.