Govt to sign deals with sponsors after Eid to set up 10 small power plants
Thursday, 11 October 2007
The government is likely to sign deals with private sponsors in the third week of the current month to set up 10 small power plants across the country, reports UNB.
The private-sector sponsors will set up the plants, each having 10-30 MW capacity, at 10 separate locations on build-own-operate (BOO) basis.
Among the projects, local Summit Group will set up four plants -- a 10-MW plant at Ullapara in Sirajganj, three each 30MW plants at Jangalia in Comilla and Rupganj in Narayanganj and Maona in Gazipur.
Asian-Entech Power Corporation Ltd (AEPCL) will set up three plants, each 20-MW capacity, in Feni, Tangail and Narsingdi.
Saiham Textile will set up a 10-MW plant at Mohipal in Feni and Regent Textile will install a 20-MW Barabkunda plant in Chittagong.
Energypac-Confidence Power Venture will set up a 10-MW plant in Habiganj.
The state-owned Power Development Board (PDB) will purchase electricity at different rates from the projects for the next 15 years.
The Power Ministry had selected 10 private sponsors through the bidding process a few months back for the proposed plants.
The Cabinet Purchase Committee had also approved the private sponsors' bids for the projects in July last and then the deed-documents were vetted by the Law Ministry, the Commerce Ministry and National Board of Revenue (NBR).
"We've already got the draft agreements vetted by the law and other relevant ministries and now we're preparing to invite the sponsors after the Eid vacation to sign the deals," said a Power Ministry official.
Sources said four kinds of agreements -- land lease agreement (LLA), power purchase agreement (PPA), implementation agreement (IA) and gas sales agreement (GSA) -- would be signed with each of the 10 private sponsors of the projects.
The sponsors will have to sign the first three agreements with the Power Development Board (PDB), while the last one will be signed with Petrobangla.
The proposed 10 power plants will have a total of 200 MW of capacity which will add to the national grid by mid next year.
As per terms and conditions, private entrepreneurs will have to install and start commercial productions from their respective plants within eight months from the date of signing the deals.
The private-sector sponsors will set up the plants, each having 10-30 MW capacity, at 10 separate locations on build-own-operate (BOO) basis.
Among the projects, local Summit Group will set up four plants -- a 10-MW plant at Ullapara in Sirajganj, three each 30MW plants at Jangalia in Comilla and Rupganj in Narayanganj and Maona in Gazipur.
Asian-Entech Power Corporation Ltd (AEPCL) will set up three plants, each 20-MW capacity, in Feni, Tangail and Narsingdi.
Saiham Textile will set up a 10-MW plant at Mohipal in Feni and Regent Textile will install a 20-MW Barabkunda plant in Chittagong.
Energypac-Confidence Power Venture will set up a 10-MW plant in Habiganj.
The state-owned Power Development Board (PDB) will purchase electricity at different rates from the projects for the next 15 years.
The Power Ministry had selected 10 private sponsors through the bidding process a few months back for the proposed plants.
The Cabinet Purchase Committee had also approved the private sponsors' bids for the projects in July last and then the deed-documents were vetted by the Law Ministry, the Commerce Ministry and National Board of Revenue (NBR).
"We've already got the draft agreements vetted by the law and other relevant ministries and now we're preparing to invite the sponsors after the Eid vacation to sign the deals," said a Power Ministry official.
Sources said four kinds of agreements -- land lease agreement (LLA), power purchase agreement (PPA), implementation agreement (IA) and gas sales agreement (GSA) -- would be signed with each of the 10 private sponsors of the projects.
The sponsors will have to sign the first three agreements with the Power Development Board (PDB), while the last one will be signed with Petrobangla.
The proposed 10 power plants will have a total of 200 MW of capacity which will add to the national grid by mid next year.
As per terms and conditions, private entrepreneurs will have to install and start commercial productions from their respective plants within eight months from the date of signing the deals.