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Lengthy bidding process delays solar-powered IPP

Thursday, 30 May 2013


Shamsul Huda The planned 3.0 megawatt (MW) solar independent power producer (IPP) project is getting delayed as the authorities are yet to complete the bidding process, officials said. The solar power-run IPP, first of its kind, will be built near Sharisabari sub-grid zone in Jamalpur district and implemented by state-run Bangladesh Power Development Board (BPDB). The officials said that if commissioned, it is expected to cut carbon emission while providing an alternative source of power. One bidder said the selection process is taking more time than required and he feared that the selection process would be 'engineered' to favour of one particular company among the rivals. "We were given only two weeks before the last date of submission for technical and financial proposals. But almost three months have passed since the last date of submission of bids", he said. He said eight bidders have submitted their proposals -- both technical and financial -- to the BPDB authority but selection is still pending. A BPDP official said the board has already primarily selected the desired companies from eight parties on the basis of technical proposals. He said they are now waiting for the green signal from the power ministry to open the financial proposal only for those who were selected on the basis of technical merit. Another official at the BPDB's renewable energy division said, "We are maintaining full transparency in evaluation and assessment process." He said once a party is selected, it has to invest around Tk 1.0 billion for the solar-based IPP plant to be constructed on build operate and own (BOO) basis. The BPDB director Md Shafique Uddin said, "We have already selected the qualified parties on the basis of their technical proposals." "We will open the financial offer assessing the financial capability because it will require huge money to implement such a big project," he added. He defended the delay for the interest of transparency. A bidder requesting anonymity said the BPDB is taking 'too much time" as he suspects that there could be manipulation in the overall process of evaluatioan. The solar IPP plant was initiated by the government under its green power project in 2010. Mr. Shafique said the government will purchase the solar power from the IPP and estimates per unit costs would be between Tk 25 and Tk 30. He said though they have primarily selected few companies, they are still assessing their capacity and the higher authority is looking after the whole process. Soon after the green signal from the higher authority, the financial proposal would be opened, which can take some time, another BPDB official said.