Govt invites PQ tenders on 4 IPPs next week

M Azizur Rahman

The government is set to invite international tenders next week for building four large independent power plants (IPPs) to generate around 875-megawatts (mw) of electricity, officials said Wednesday.

Power secretary Md Abul Kalam Azad Wednesday said international pre-qualification (PQ) tenders for the plants - Bibiyana 450-mw second unit, Bhola 225-mw second unit, Savar 100-mw peaking power plant and Kaliakoir 100-mw peaking power plant - would be floated within the next working week.

He said the state-owned Power Development Board (PDB) has been asked to float tenders by February 28.

Of the four proposed power plants, Bibiyana 450-mw and Bhola 225-mw plants would be gas-fired, while Savar 100-mw peaking plant and Kaliakoir 100-mw peaking plant would be dual-fuel, run by natural gas or furnace oil.

The power plants will be implemented on a build, own and operate (BOO) basis in pursuant to a 22-year implementation agreement, a senior power ministry official said. The PDB would lease necessary land and purchase electricity from the selected sponsors.

These four power plants are among the 11 power and energy projects the government presented before the global firms for investment during the recently held three overseas road-shows in New York, London and Singapore.

During the road-shows the government high officials sought foreign investments worth US$7.0 billion to implement all these projects, which include setting up several coal-fired power plants, installation of a liquefied natural gas (LNG) terminal with a yearly capacity of 3.5 million tones, and four renewable energy projects to generate 110-mw of electricity.

The PDB has already floated tender to implement one of these projects - Meghnaghat 450-mw dual-fuel power plant. The plant will be run by furnace oil until natural gas supply becomes available for it.

Interested sponsors must have to submit their applications along with qualification statements by March 23 for the Meghnaghat plant, and it would be awarded to the bid winner by this September, the tender document stated.

The energy ministry is working to float tender for building the country's first-ever LNG terminal by June, while tender for building four coal-based power plants to generate around 2000-2600-mw of electricity would be floated by July, said a top ministry official.

The coal-based power plants, having the generation capacity of at least 500-mw each, would be built near the country's sea-shore and river banks in Chittagong, Mongla, Meghnaghat and Jazira. Initially the plants would be run by imported coal, until the local coal production reaches at a satisfactory level.

The PDB projected that the country would require $9.5 billion to streamline the ailing power sector by 2014. Out of the total investments, $7.0 billion will be required for electricity generation, $1.0 billion for transmission and $1.5 billion for distribution, PDB chairman ASM Alamgir Kabir said.

Augmenting electricity generation is among the key agendas the incumbent government took on priority basis. It pledged to increase electricity generation to 5000-mw by 2011, and to 7000-mw by 2013.

The country's electricity generation is now hovering around 3700-mw against the demand for over 5500-mw during the peak hours.