Govt signs deals with selected bidders to set up 10 SPPs
Friday, 12 October 2007
M Azizur Rahman
The government signed Thursday agreements with all the selected bidders to set up ten independent small power plants (SPPs) for augmenting electricity supply across the country.
"The relevant government agencies of the power and energy sectors signed the agreements with five separate private entrepreneurs at a simple ceremony at the state-owned Power Cell office in the city to build the power plants in ten different locations," a senior Power Cell official told the FE Thursday.
He said the plants to be set up on build, own and operate (BOO) basis would be able to generate around 200 megawatts (MW) of electricity across the country.
The private entrepreneurs that signed the agreements included - Summit Power Ltd, Asian-Entech Power Corporation, Regent Textile Mills Ltd, Energypac-Confidence Ltd and Saiham Power.
Among the entrepreneurs, Summit Power Ltd will install four SPPs having the total generation capacity of around 110 MW, Asian-Entech Power Corporation will set up three SPPs having the total generation capacity of 60 MW.
Regent Textile Mills Ltd, Energypac-Confidence Ltd and Saiham Power will generate one SPP each having the electricity generation capacity of 10 MW each.
All the entrepreneurs, earlier selected by the purchase committee, signed bilateral agreements with each of the state-owned power and energy sector entities including Power Cell, Bangladesh Power Development Board (BPDB), Rural Electrification Board (REB), Titas Gas Transmission and Distribution Company Ltd (TGTDCL), Bakhrabad Gas Systems Ltd (BGSL), Jalalabad Gas Transmission and Distribution Company Ltd (JGTDCL) and Pashchimanchal Gas Company Ltd (PGCL) - for ensuring smooth supply of electricity and availability of natural gas.
The agreements include Power Purchase Agreements (PPA), Implementation Agreements (IA), Gas Supply Agreements (GSA) and Land Lease Agreements (LLA).
All the ten SPPs will be gas-fired and before signing these agreements the respective state-owned gas distribution companies have assured of supplying gas to the power plants.
Sources said among the new entrepreneurs Summit Power Ltd is the lone company that has experience in generating electricity.
The company is now generating around 105 MW of electricity from three separate SPPs and supplying those to the national grid.
Power sector sources said the SPP project was initiated by the previous BNP-led alliance government in 2004 and in the last three years, changes were made in the project at least six times and tenders cancelled on two occasions.
The private entrepreneurs, that signed Thursday's agreements with the state-owned power and energy entities, were selected as the lowest bidders following the re-tendering of the project by the incumbent caretaker government in April 2007.
The cabinet purchase committee approved these SPPs several months ago.
When contacted Summit Group Chairman Muhammed Aziz Khan expressed his confidence to initiate generating electricity within the stipulated timeframe of 15 months.
"We have already completed equipment purchase agreements with two separate companies of Finland and Germany," he told the FE Thursday.
The government signed Thursday agreements with all the selected bidders to set up ten independent small power plants (SPPs) for augmenting electricity supply across the country.
"The relevant government agencies of the power and energy sectors signed the agreements with five separate private entrepreneurs at a simple ceremony at the state-owned Power Cell office in the city to build the power plants in ten different locations," a senior Power Cell official told the FE Thursday.
He said the plants to be set up on build, own and operate (BOO) basis would be able to generate around 200 megawatts (MW) of electricity across the country.
The private entrepreneurs that signed the agreements included - Summit Power Ltd, Asian-Entech Power Corporation, Regent Textile Mills Ltd, Energypac-Confidence Ltd and Saiham Power.
Among the entrepreneurs, Summit Power Ltd will install four SPPs having the total generation capacity of around 110 MW, Asian-Entech Power Corporation will set up three SPPs having the total generation capacity of 60 MW.
Regent Textile Mills Ltd, Energypac-Confidence Ltd and Saiham Power will generate one SPP each having the electricity generation capacity of 10 MW each.
All the entrepreneurs, earlier selected by the purchase committee, signed bilateral agreements with each of the state-owned power and energy sector entities including Power Cell, Bangladesh Power Development Board (BPDB), Rural Electrification Board (REB), Titas Gas Transmission and Distribution Company Ltd (TGTDCL), Bakhrabad Gas Systems Ltd (BGSL), Jalalabad Gas Transmission and Distribution Company Ltd (JGTDCL) and Pashchimanchal Gas Company Ltd (PGCL) - for ensuring smooth supply of electricity and availability of natural gas.
The agreements include Power Purchase Agreements (PPA), Implementation Agreements (IA), Gas Supply Agreements (GSA) and Land Lease Agreements (LLA).
All the ten SPPs will be gas-fired and before signing these agreements the respective state-owned gas distribution companies have assured of supplying gas to the power plants.
Sources said among the new entrepreneurs Summit Power Ltd is the lone company that has experience in generating electricity.
The company is now generating around 105 MW of electricity from three separate SPPs and supplying those to the national grid.
Power sector sources said the SPP project was initiated by the previous BNP-led alliance government in 2004 and in the last three years, changes were made in the project at least six times and tenders cancelled on two occasions.
The private entrepreneurs, that signed Thursday's agreements with the state-owned power and energy entities, were selected as the lowest bidders following the re-tendering of the project by the incumbent caretaker government in April 2007.
The cabinet purchase committee approved these SPPs several months ago.
When contacted Summit Group Chairman Muhammed Aziz Khan expressed his confidence to initiate generating electricity within the stipulated timeframe of 15 months.
"We have already completed equipment purchase agreements with two separate companies of Finland and Germany," he told the FE Thursday.