Govt approves RFP for bidders to set up large power plant
Monday, 8 February 2010
The ministry of power has finally decided to issue the request for proposal (RFP) in favour of qualified bidders to set up one of the country's largest power plants -- 450 megawatts combined cycle Bibiyana unit, reports UNB.
The Power Cell, a technical wing of the power ministry, will soon invite four qualified bidders to submit their respective technical and financial offers for the project.
Industry insiders consider the government decision as a major development in the power sector as no large power plant was set up in the last eight years.
In most cases, the government process was found to have been stuck up in tender invitation and cancellation only.
Now the government is moving forward with a huge plan of generating 7,000-megawatt electricity within the next five years as part of its election pledge.
However, the move for setting up the Bibiyana Power Plant had first been initiated by the previous BNP government in 2005. It had planned to set up the plant at a nearby location in Bibiyana gasfield in Sylhet region.
Later, the last army-backed caretaker government invited tender for the project. But the tender was cancelled by the same government as only one bidder had submitted offer for the project.
The Power Cell prepared the RFP in consultation with the International Finance Corporation (IFC), a commercial arm of the World Bank, responsible for financing private sponsor projects.
Earlier, the Power Cell had invited prequalification (PQ) tender for the project and received proposals from eight international bidders for the Bibiyana project in April last year.
From the eight bidders, the Power Cell picked up four firms as qualified bidders for the Bibiyana plant.
Now the four qualified bidders will be asked to submit their technical and financial proposals through the RFP.
Among the four bidders, finally one will be selected to be awarded the contract to implement it as an independent power producer (IPP) project private.
The selected sponsor will install the Bibiyana power plant on build-own-operate (BOO) basis and the government will purchase electricity from the project for about 22 years' time.
As per the project design, the government will supply gas and provide land for the independent power producer (IPP) project while private investor will install the plant at its own cost.
A similar capacity project - 450-megawatt Meghnaghat Combined Cycle Power Plant - was earlier awarded by the Awami League government to a private sponsor, US-based AES Corporation.
But the project was implemented by the previous BNP government and it went into operation in 2002.
The Power Cell, a technical wing of the power ministry, will soon invite four qualified bidders to submit their respective technical and financial offers for the project.
Industry insiders consider the government decision as a major development in the power sector as no large power plant was set up in the last eight years.
In most cases, the government process was found to have been stuck up in tender invitation and cancellation only.
Now the government is moving forward with a huge plan of generating 7,000-megawatt electricity within the next five years as part of its election pledge.
However, the move for setting up the Bibiyana Power Plant had first been initiated by the previous BNP government in 2005. It had planned to set up the plant at a nearby location in Bibiyana gasfield in Sylhet region.
Later, the last army-backed caretaker government invited tender for the project. But the tender was cancelled by the same government as only one bidder had submitted offer for the project.
The Power Cell prepared the RFP in consultation with the International Finance Corporation (IFC), a commercial arm of the World Bank, responsible for financing private sponsor projects.
Earlier, the Power Cell had invited prequalification (PQ) tender for the project and received proposals from eight international bidders for the Bibiyana project in April last year.
From the eight bidders, the Power Cell picked up four firms as qualified bidders for the Bibiyana plant.
Now the four qualified bidders will be asked to submit their technical and financial proposals through the RFP.
Among the four bidders, finally one will be selected to be awarded the contract to implement it as an independent power producer (IPP) project private.
The selected sponsor will install the Bibiyana power plant on build-own-operate (BOO) basis and the government will purchase electricity from the project for about 22 years' time.
As per the project design, the government will supply gas and provide land for the independent power producer (IPP) project while private investor will install the plant at its own cost.
A similar capacity project - 450-megawatt Meghnaghat Combined Cycle Power Plant - was earlier awarded by the Awami League government to a private sponsor, US-based AES Corporation.
But the project was implemented by the previous BNP government and it went into operation in 2002.