For DPDC, foreign tour a must

Dhaka Power Distribution Company Limited (DPDC) will spend Tk 145 million as fees for a consultant to supervise nine electricity substation installation and rehab work, people knowledge of the matter say.
The electricity provider in the capital city has proposed to spend a total of Tk 270 million funds for consultancy services for its distribution system upgrade, they said.
Besides, it would send 40 people to Europe and the USA spending Tk 1.1 million for each person to get firsthand knowledge of how to handle the substations and smart power distribution system.
Not only that, the power provider would also purchase 11 vehicles spending Tk 31.31 million to supervise the nine substation installation and rehab work, which all are situated in Dhaka city, the people familiar with the project told the FE.
For registrations fees and fuel costs, it will also spend Tk 8.60 million for
All these unnecessary costs are proposed for the "Construction of substation and rehabilitation, installation of capacitor banks and development of smart grid system under the DPDC area project", the insiders said.
The French development partner AFD-supported DPDC's Tk 14.54 billion project is likely to be placed before the Executive Committee of the National Economic Council (ECNEC) today (Tuesday) for getting approval.
Under the project, the DPDC had proposed to build two 132/33kv and four 33/11kv new substations, renovation of three existing ones, replacement of 33kv Gas Insulated Switchgear (GIS) with the existing Air Insulated Switchgear (AIS) system; and introduction of smart grid system on pilot basis.
A senior DPDC official told the FE that the project would improve the quality of power supply to the customers in the capital and adjacent areas.
They will also be able to connect some 0.115 million fresh customers with their distribution systems after implementing the project, he said.
"Our current average power factor at the tariff points are 0.85 to 0.9 But as per the Bangladesh Energy Regulatory Commission's guideline, the power factor will have to be improved to 0.95. This project will help us upgrade the power factor," the DPDC official said.
The project insiders said the DPDC has proposed to appoint three types of consultants for supervising and consulting the projects.
It will engage the capacitor bank consultant spending Tk 65 million; a consultant for implementation and supervision of smart grid at Tk 145 million and another consultant for evaluation and audit for smart grid at Tk 37.97 million cost.
The DPDC has proposed to spend Tk 9.6 million for the consultants for environmental and other survey work; and Tk 2.26 million for paying honorarium.
In addition, the DPDC has set aside Tk 9.75 million for paying VAT for the consultants.
Meanwhile, the state-run power distributor would purchase one luxury car, four double-cabin pick-ups and six motor bikes for supervising the installation of six new substations and rehabilitation of three old ones.
"Although the government has discouraged foreign tours for civil servants in an attempt to save taxpayers' money during the coronavirus pandemic, the project authority has earmarked Tk 43.82 million for foreign training," said an civil servant familiar with this project.
According to the project proposal, the DPDC would send 40 people to Europe and USA spending Tk 1.1 million.
Officials involved with the project said the DPDC proposed to spend Tk 7.71 billion, 53 per cent of the total Tk 14.54 billion cost for purchasing the substations and necessary equipment.
The remaining 47 per cent of the amount would spend on the related work, including the purchases and spending, said an official.
It has proposed the project to implement by June 2023.
When asked, a Planning Commission (PC) official said they would place the proposal in the next ECNEC meeting for approval.
The Project Evaluation Committee at the PC had already cut some unnecessary costs for the projects and accordingly it had been readied for placing before the ECNEC, he told the FE.

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