News Desk :
Desh Energy has been selected to build, own and operate a 15MW plant as an independent power producer (IPP) under the Speedy Supply of Power and Energy (Special Provision) Act-2010 bypassing international tendering process at meeting held on April 28th.
The tariff for the project has been set at 12.1 cents
BDT per kilowatt hour with a contract term of 15 years.
Despite nearly 50% over capacity in the power sector, the government awarded this contract because Noakhali’s Hatia Island lacks connectivity to the national grid and there is no space for solar projects.
Although the conditions that necessitated the Speedy Supply of Power and Energy Act of 2010 doesn’t apply today, Bangladesh Power Development Board has been awarding projects without tenders at higher rates.
Noteworthy is a case that was filed by Energis Power Corporation in 2017 when LOIs were not issued by BPDB after the company won two 115 MW IPP projects in Shantahar and Bagerhat through international tenders held in August 2016.
According to BPDB and Ministry’s own internal documentation, Energis was the lowest qualified bidder having met all the requirements of the international tenders. The rate for both the projects were around 10 cents BDT/ kilowatt hour.
However, Cabinet Committee of Purchase, declined to approve the projects when it was directed by the Supreme Court to consider the proposals on the grounds that there was no local demand for power in the exact two locations (even though both proposed power stations connected to the national grid) 4 years after Energis was declared the lowest qualified bidder by BPDB.
The two IPP tenders in Shantahar and Bagerhat were part of a package of 10. The other LOIs were issued in 2017. Subsequently, 8 other IPP projects were awarded without tenders with some being in close proximity to Energis’s proposed locations.
In fact a 200 MW diesel power project was awarded at double the tariff of those offered by Energis resulting in 1000s of crores taka worth of excess payment by BPDB over 15 years.
Desh Energy has been selected to build, own and operate a 15MW plant as an independent power producer (IPP) under the Speedy Supply of Power and Energy (Special Provision) Act-2010 bypassing international tendering process at meeting held on April 28th.
The tariff for the project has been set at 12.1 cents
BDT per kilowatt hour with a contract term of 15 years.
Despite nearly 50% over capacity in the power sector, the government awarded this contract because Noakhali’s Hatia Island lacks connectivity to the national grid and there is no space for solar projects.
Although the conditions that necessitated the Speedy Supply of Power and Energy Act of 2010 doesn’t apply today, Bangladesh Power Development Board has been awarding projects without tenders at higher rates.
Noteworthy is a case that was filed by Energis Power Corporation in 2017 when LOIs were not issued by BPDB after the company won two 115 MW IPP projects in Shantahar and Bagerhat through international tenders held in August 2016.
According to BPDB and Ministry’s own internal documentation, Energis was the lowest qualified bidder having met all the requirements of the international tenders. The rate for both the projects were around 10 cents BDT/ kilowatt hour.
However, Cabinet Committee of Purchase, declined to approve the projects when it was directed by the Supreme Court to consider the proposals on the grounds that there was no local demand for power in the exact two locations (even though both proposed power stations connected to the national grid) 4 years after Energis was declared the lowest qualified bidder by BPDB.
The two IPP tenders in Shantahar and Bagerhat were part of a package of 10. The other LOIs were issued in 2017. Subsequently, 8 other IPP projects were awarded without tenders with some being in close proximity to Energis’s proposed locations.
In fact a 200 MW diesel power project was awarded at double the tariff of those offered by Energis resulting in 1000s of crores taka worth of excess payment by BPDB over 15 years.
