Power div to revive 3 power plants

Dhaka: The Power Division has taken steps to revive three long-term rental power plant projects, suspended because of gas shortage, by relocating their sites to areas where gas is available.

The division in August postponed the tender and implementation process of three rental power plant projects out of five as Petrobangla informed that it wouldn’t be possible for them to supply gas at the selected sites at Shikalbaha, Barabkunda and Feni which are under Bakhrabad gas systems.

The division last week asked the Power Development Board to discuss again with Petrobangla about the availability of gas in areas other than Bakhrabad gas system for the three plants that would be set up on build-own-operate basis for 15 years.

Petrobangla finds it difficult to ensure supply of gas to new power plants in the Chittagong belt as gas pressure at Bakhrabad Gas Systems has reduced because of a declining gas production at Sangu field. The low pressure in the system doesn’t allow injecting additional gas to the system from other areas.

‘If Petrobangla informs us that there are other places with sufficient gas, we will relocate our sites for setting up three rental power plants,’ said an official of the division.

The Power Development Board in the second week of August selected four companies for the installation of five rental power plants and sent a proposal to the power division for government approval.

The council of advisers’ purchase committee has already approved PDB proposal to award contract to Youth Spinning Mills for an 80MW plant at Shahjibazar and Desh Energy for a 10MW plant at Kumargaon.

The PDB also selected Bengal Electrical for setting up a 50MW plant at Shikalbaha for its lowest offer to sell electricity for about Tk 2.03 a unit, Desh Energy for a 20MW plant at Barabkunda for an offer of Tk 2.25 and Hosaf Group for a 20MW plant at Feni for an offer of Tk 2.11 a unit.

When asked whether the Public Procurement Regulations 2003 allows relocation of sites of any tendered project, a high official of the division claimed that there was no bar to relocating any tendered power project.

There have been allegations that the bidder selected for setting up Shikalbaha power plant would set up the 50MW plant that was being removed from Siddhirganj power plant.

PDB sources said the company had informed the board that it had bought the 40-year-old 50MW Siddhirganj plant that had recently been dismantled after the board had declared it obsolete under pressure of the Asian Development Bank.

The company said it wanted to refurbish Siddhirganj plant and set it up at Shikalbaha. ‘It is very unusual for the power board to accept an offer of a company that wanted to set up a power plant which it declared obsolete,’ observed a power board source.

The Asian Development Bank set a condition that the plant had to be dismantled to get fund for the 240MW power plant at the same site.

Power secretary M Fouzul Kabir Khan, however, told New Age on Wednesday that they had not yet decided to award the contract for setting up Shikalbaha power plant to the selected bidder that wanted to set up a 40-year-old power unit.

‘First we are looking for the possible sites where gas is available. Then we will scrutinise the tender process in ascertaining technical grounds the tender evaluation committee approved setting up an alleged 40-year-old power unit. Afterwards we will take a decision on whether the bid will be accepted or not,’ he said.

In total, the division aims to generate around 230MW of power from long-term rental power plants by 2008.