In line with the recommendation of the Bangladesh Power Development Board (BPDB), the government is set to award seven furnace oil-fired power plants, having the generation capacity of 100 megawatts each, to different sponsors soon, officials said.
The state-run BPDB has finally selected the sponsors to build the power plants in different places to increase the country's overall electricity generation.
"We have completed evaluation and sent a proposal to Power Division under the Ministry of Power, Energy and Mineral Resources (MoPEMR) for final approval," BPDB Chairman Khaled Mahmood told the FE Tuesday.
He said of the sponsors, Confidence Group has been selected for two power plants to be built in Rangpur and Bogra while Energis
Power Corporation, Energy Prima, Doreen Power, Energy Pac and Sri Lankan Lakhdhanavi have been selected for one power plant each in Bagerhat, Choumohoni, Chandpur, Takurgaon and Feni respectively.
Mr Mahmood said the BPDB sought opinion from Power Division over opening the financial offers of three more power plants that were put on offer in tender along with the seven power plants.
These three power plants are expected to be built in Jamalpur, Shantahar and Modonganj.
Among the selected sponsors for the seven power plants, Energis Power Corporation might bag another 100-MW plant as it has been technically qualified for one plant in Shantahar, officials said.
"We want to ink a deal with the sponsors as early as possible," said the BPDB chief.
The BPDB floated the tender in June to generate around 1,000 megawatts (MW) of electricity in total having the generation capacity of 100MW each.
This is BPDB's first tendering to implement oil-fired power plant projects after 2011.
Over the past five years, it awarded around a couple of dozen oil-fired power plants including those of rental and quick rental ones under special act bypassing tender, officials said. The BPDB had to make several amendments to the initial criteria and extend the bid submission deadline twice to what it said accommodate the interested parties to participate in the bidding, keeping the 'disputed' provisions unchanged.
The initial deadline for bid submission was June 29 which was extended to July 28 and the latest one ended on August 7.
The new power plants would be set up under the country's IPP (independent power producer) policy. The sponsors would be entitled to directly import furnace oil to run their power plants, the officials said.
The government has already waived import duty for private companies and also offered 9 per cent service charge on import.
The BPDB aims at getting the power plants in place within 18 months of inking deals to have around 1,000MW electricity in total.
Currently, private companies supply electricity from 30 oil-fired plants and public sector utilities supply electricity from 17 similar plants.
These 47 oil-fired power plants have a combined capacity of generating approximately 3,550 megawatts of electricity that accounts for around 30 per cent of their total installed generation capacity.