Tri-nation consortium lone bidder for 450MW Bibiyana power plant
FE Report | Friday, 25 July 2008
The government found a single bidder for the 450 megawatt (MW) Bibiyana power plant that indicates a monopolistic situation in absence of any competition in the selection process, officials said.
'We received a bid from the consortium of the Powertek Berhad of Malaysia, the Siemens Project Ventures GmbH of Germany and the Korean power company Kepco,' Power Cell director general (DG)
Mohammad Abdul told the FE Thursday on closure of the bid submission schedule.
Two other foreign companies -US-based Chevron and AES - which earlier qualified for taking part in the competition, however, did not submit bid to compete for installation of the much-talked-about power plant.
The AES in a letter to the Power Cell informed that it decided not to participate in the bidding due to the current market condition, a senior energy division official said.
However, Chevron did not give any reason for not participating in the bidding.
The local Summit Industrial and Mercantile Corporation Ltd (SIMCL) could not get any scope for bidding despite repeated pleas to the power division to re-consider the decision of disqualifying the company.
The SIMCL was the only company that could not come out successful for taking part in the bidding that closed Thursday.
Failing to become a competitor for the Bibiyana power plant, the SIMCL recently served a legal notice to the power cell demanding justice in this regard.
If Powertek finally becomes successful, it will be the single largest power producer in Bangladesh as its parent company Tanjong Public Limited Company already owns three big power plants--Haripur 360mw, Meghnaghat 450mw and NEPC 110 MW power plants.
The Bibiyana power plant is one of the two big power plant projects the incumbent government has moved to implement after assuming office in January, 2007.
The 450 MW Bibiyana power plant will be implemented on a build, own and operate (BOO) basis and pursuant to a 22-year implementation agreement.
The estimated cost of installing the Bibiyana plant would be more than $300 million that will consume natural gas of around 80 million cubic feet per day (mmcfd) to generate 450MW electricity.
The government will ensure the necessary infrastructures like land and natural gas connection to each of the project sites.
Several road shows at home and abroad especially in Dubai and Singapore were organised by the ministry concerned to lure interested sponsors to set up the power plant.
The Bibiyana plant will be set up adjacent to the US oil giant Chevron-operated Bibiyana gas field near Sylhet.
The energy division has already provided the gas supply guarantee for implementation of the plant.
'Evaluation of the bid offer would be completed by next week,' the Power Cell DG said.
'We received a bid from the consortium of the Powertek Berhad of Malaysia, the Siemens Project Ventures GmbH of Germany and the Korean power company Kepco,' Power Cell director general (DG)
Mohammad Abdul told the FE Thursday on closure of the bid submission schedule.
Two other foreign companies -US-based Chevron and AES - which earlier qualified for taking part in the competition, however, did not submit bid to compete for installation of the much-talked-about power plant.
The AES in a letter to the Power Cell informed that it decided not to participate in the bidding due to the current market condition, a senior energy division official said.
However, Chevron did not give any reason for not participating in the bidding.
The local Summit Industrial and Mercantile Corporation Ltd (SIMCL) could not get any scope for bidding despite repeated pleas to the power division to re-consider the decision of disqualifying the company.
The SIMCL was the only company that could not come out successful for taking part in the bidding that closed Thursday.
Failing to become a competitor for the Bibiyana power plant, the SIMCL recently served a legal notice to the power cell demanding justice in this regard.
If Powertek finally becomes successful, it will be the single largest power producer in Bangladesh as its parent company Tanjong Public Limited Company already owns three big power plants--Haripur 360mw, Meghnaghat 450mw and NEPC 110 MW power plants.
The Bibiyana power plant is one of the two big power plant projects the incumbent government has moved to implement after assuming office in January, 2007.
The 450 MW Bibiyana power plant will be implemented on a build, own and operate (BOO) basis and pursuant to a 22-year implementation agreement.
The estimated cost of installing the Bibiyana plant would be more than $300 million that will consume natural gas of around 80 million cubic feet per day (mmcfd) to generate 450MW electricity.
The government will ensure the necessary infrastructures like land and natural gas connection to each of the project sites.
Several road shows at home and abroad especially in Dubai and Singapore were organised by the ministry concerned to lure interested sponsors to set up the power plant.
The Bibiyana plant will be set up adjacent to the US oil giant Chevron-operated Bibiyana gas field near Sylhet.
The energy division has already provided the gas supply guarantee for implementation of the plant.
'Evaluation of the bid offer would be completed by next week,' the Power Cell DG said.