Tender next month for merchant power plants
FHM Humayan Kabir | Saturday, 26 March 2011
FHM Humayan Kabir
The government will invite tender from the merchant power producers by the middle of next month with an aim to allow private entrepreneurs to generate power and sell it to the consumers directly, officials said Thursday. "We have almost finalised the bid document. By the middle of next month, we will seek 'expression of interest' from the private entrepreneurs," Power Cell Director General Mahbub Sarwar-E-Kainat said. "The Power Division has directed us to invite tender from the aspirants. So we will seek bids and evaluate those to allow the private entrepreneurs to go ahead with the installation of power stations," he told the FE. Mr. Kainat said, "We are hopeful that many businessmen will participate in the bidding for setting up the power plants and selling electricity both to the government and private consumers directly." The government has already formulated a merchant power plant policy for facilitating the entry of private enterprises to electricity business, especially in direct sale of electric power to the consumers from their plants, officials said. The merchant power plant owners will be able to sell up to 70 per cent of their total electricity generation to the consumers directly. The rest 30 per cent of power generated by such plants will be purchased by the government under a 15-year deal. Breaking the government monopoly in electricity business, the new policy will offer operational freedom to the private sponsors to make their own arrangements for fuel supplies and to select their own customers, a senior Power Division official said. He added under the merchant power plant policy, the government will not have to struggle for arranging fuel for the power plants, amid the mounting energy crisis, especially of natural gas. "There is a large potential of commercial power business in Bangladesh as many private entrepreneurs want to set up plants for marketing it directly to consumers in view of the rising demand for energy in Bangladesh," Mr. Kainat said. The Power Division official said they are expecting some 3000-megwatt of electricity generation within next three years, once the policy is updated. Bangladesh is an energy-hungry country, where the annual electricity demand growth is nearly 10 per cent. The government can supply nearly 4000mw of power against the demand for more than 5500mw a day. The Power Cell chief Mr. Kainat said as the demand is increasing every year, allowing the private sector in the power business will facilitate better supply arrangements for the growing number of consumers. The government will allow the private sector to set up coal- or, oil-based plants to help reduce the pressure on the country's available natural gas resources. The private investors will sell power to any consumer including the industries and they will be allowed to use the state-owned power transmission and distribution systems by paying wheeling charges to market their electricity for the consumers. The merchant power producers can also sell electricity to the industries directly through a dedicated line.
The government will invite tender from the merchant power producers by the middle of next month with an aim to allow private entrepreneurs to generate power and sell it to the consumers directly, officials said Thursday. "We have almost finalised the bid document. By the middle of next month, we will seek 'expression of interest' from the private entrepreneurs," Power Cell Director General Mahbub Sarwar-E-Kainat said. "The Power Division has directed us to invite tender from the aspirants. So we will seek bids and evaluate those to allow the private entrepreneurs to go ahead with the installation of power stations," he told the FE. Mr. Kainat said, "We are hopeful that many businessmen will participate in the bidding for setting up the power plants and selling electricity both to the government and private consumers directly." The government has already formulated a merchant power plant policy for facilitating the entry of private enterprises to electricity business, especially in direct sale of electric power to the consumers from their plants, officials said. The merchant power plant owners will be able to sell up to 70 per cent of their total electricity generation to the consumers directly. The rest 30 per cent of power generated by such plants will be purchased by the government under a 15-year deal. Breaking the government monopoly in electricity business, the new policy will offer operational freedom to the private sponsors to make their own arrangements for fuel supplies and to select their own customers, a senior Power Division official said. He added under the merchant power plant policy, the government will not have to struggle for arranging fuel for the power plants, amid the mounting energy crisis, especially of natural gas. "There is a large potential of commercial power business in Bangladesh as many private entrepreneurs want to set up plants for marketing it directly to consumers in view of the rising demand for energy in Bangladesh," Mr. Kainat said. The Power Division official said they are expecting some 3000-megwatt of electricity generation within next three years, once the policy is updated. Bangladesh is an energy-hungry country, where the annual electricity demand growth is nearly 10 per cent. The government can supply nearly 4000mw of power against the demand for more than 5500mw a day. The Power Cell chief Mr. Kainat said as the demand is increasing every year, allowing the private sector in the power business will facilitate better supply arrangements for the growing number of consumers. The government will allow the private sector to set up coal- or, oil-based plants to help reduce the pressure on the country's available natural gas resources. The private investors will sell power to any consumer including the industries and they will be allowed to use the state-owned power transmission and distribution systems by paying wheeling charges to market their electricity for the consumers. The merchant power producers can also sell electricity to the industries directly through a dedicated line.