100MW Plant at Keraniganj
Saturday, 10 July 2010

The government has signed contract with a local firm to purchase 100 megawatts (MW) of power under the quick rental plan.

State-run Bangladesh Power Development Board (BPDB) will buy each kilowatt hour (kWh) of power at Taka 7.785 from the furnace oil-run plant, to be set at Keraniganj, on the outskirts of Dhaka.

According to a BPDB spokesperson, the plant, run by Power Pac Holdings Ltd, will be installed and ready within six to nine months.

The deal was signed between the BPDB secretary and a representative from the contractor at the Bidyut Bhaban on Thursday afternoon, Saiful Islam of the BPDB public relations department told bdnews24.com on Friday.

Earlier on May 26, the cabinet purchase committee approved the company's proposal, since it had offered the lowest price during negotiation with the government body executing the quick rental plan.

The proposal was sent to the purchase committee after the initial contracts were signed.

According to the fast-track plan, contracts of rental plants will be awarded to qualified firms without tender in order to shorten the lengthy tender evaluation process and start power generation in a relatively a shorter time.

The government aims to add around 1000MW of power by this year under the plan, though with the costlier power. Government subsidies will also increase as it sells power at on average Tk 3.66 per unit.

Most of the country's power plants are run on gas; currently, however, the country is facing a nagging gas crisis too.

The energy-starved country is currently facing a shortfall in power production of around 1200-1800MW everyday.

Prime minister Sheikh Hasina, in March, modified the procurement policy so that high cost rental deals could be accommodated as an emergency measure.

The unsolicited deals are being handled by a high-powered committee headed by power secretary Abul Kalam Azad.

The committee also includes representatives from Bangladesh Power Development Board, the National Board of Revenue, law ministry, power ministry and the prime minister's office.

Power generation on Thursday stood at 4110MW during the peak hours against a maximum demand of 5500MW, according to BPDB.

Source: bdnews24.com

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