7 furnace oil-based power plants okayed

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Anisul Islam Noor :
The government has finalised a plan to set up seven furnace oil based power plants having the generation capacity of 100 MW each, officials said.
In line with this plan the Bangladesh Power Development Board (BPDB) has recommended to the government to approve seven furnace oil-fired power plants.
“We have completed evaluation and sent a proposal to Power Division under the Ministry of Power, Energy and Mineral Resources for final approval,” said BPDB Chairman Khaled Mahmood yesterday.
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, Chowmohani, Chandpur, Thakurgaon and Feni respectively.
Khaled Mahmood said that 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, Santahar and Madonganj.
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 at Santahar, 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.
In the past five years, it awarded around dozen oil-fired power plants, including those of rental and quick rental ones as special cases by-passing tender, officials said.
The BPDB had to make several amendments to the initial criteria and extended the bid submission deadline twice to 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 nine per cent service charge on import.
The BPDB aims at getting the power plants 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.
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