Deals signed with 10 IPPs to generate 200MW by 2008
Courtesy New Age 12/10/07
The government and six local companies on Thursday signed agreements for setting up 10 small independent power plants that are expected to generate 200 MW of electricity by 2008.
The Power Division, two power and four gas agencies and the six selected private companies signed the implementation, power purchase, gas sales and land lease agreements for setting up the plants on the build-own-operate basis.
The parties in August initialled the agreements to set up three 30 MW power plants at Rupganj in Narayanganj, Mauna in Gazipur and Jangalia in Comilla, four 20 MW plants at Narsingdi, Tangail, Feni and Barabkunda in
The council of adviser’s purchase committee in July approved the selection of the Summit Industrial and Mercantile Corporation for the installation of the Jangalia and Rupganj plants, Summit Power Ltd for the Gazipur and Sirajganj plants, Asian Entech Power Corporation for the Feni, Tangail and Narsingdi plants, Regent Textiles for the Barabkunda plant, the Energypac-Confidence Power Venture for the Habiganj plant, and Saiham Power for the Mahipal plant.
The Power Development Board on Thursday signed power purchase agreements with six power plants from which it will buy 90 MW of electricity for 15 years and the Rural Electrification Board signed agreements with four plants from which it will buy 110 MW.
All the selected companies, however, can increase the capacity of the plants by 10 per cent as the tender specifications have allowed them to do so.
The selected companies will install the plants within 15 months from the date of signing the deals.
The Summit Industrial and Mercantile Corporation has been selected as the lowest bid because its price for power will be Tk 2.38 per unit for the Jangalia and Rupganj plants, and Summit Power for its power price of Tk 2.388646 per unit for the Mauna plant and Tk 2.292824 for the Ullapara plant.
Summit Uttaranchal Power Company Ltd and Summit Purbanchol Power Company Ltd, two recently formed subsidiaries of Summit Power Ltd which is owned by the Summit Industrial and Mercantile Corporation, will set up four power plants.
Asian Entech has asked Tk 2.28 for per unit of power for the Feni, Tangail and Narsingdi plants, Regent Textiles Tk 2.32 per unit for the Barabkunda plant, Energypac Tk 2.48 for the Habiganj plant and Saiham Power Tk 2.47 for the Mahipal plant.
Power officials expressed satisfaction at the signing of the agreements for setting up the power plants within six months. The tender process was started after scrapping the earlier tenders which were floated by the previous BNP-Jamaat government.
‘It is a great achievement as we have completed the tender procedures and signed agreements for setting up so many power plants in such a short time,’ Power Cell’s director, Md Abdul Jalil, told New Age on Thursday.
Power Division officials, who requested the Cabinet Division and all the concerned ministries along with the law ministry to expedite the process of approval, also expressed satisfaction at the signing of the agreements in such a short time.
The Power Cell in April invited tenders for the small power plants and by June completed evaluation and selection of the companies.
It has been estimated that by selecting the offers of the six companies in the current bidding process, the government will save Tk 411 crore in 15 years as it has been asked to pay much lower prices this time than those in the previous bids.
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