Shelve unsolicited contract for Bhola power plant

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REPORTS in a national daily Monday said that the government has decided to award an unsolicited contract to an Indian electricity company for setting up a medium-size power plant in Bhola island, to be fuelled by gas or imported petroleum, will be a case of revenue wastage like other much-criticized quick rental power plants. To fill the estimated demand of 39,000MW by 2030 the government has already undertaken several projects like the quick rental, eco-friendly solar energy, coal-fired, gas-fuelled or thermo electricity generation plants but the demand-supply imbalance is widening and it is resulting in power shortage in industries. Awarding contracts to the company to set up a new power plant in the largest island without following due procedure is not legally justified and contradictory to the protection of national interests.As per the report, the power plant would get gas from Shahbazpur Gas Field or on imported petroleum, though the gas field is currently unable to supply enough gas to run a new 200-megawatt power plant built in last year. The China-built Bhola power plant is currently producing and supplying 50 to 60-megawatt power to the national grid due to dearth of gas supply.The Bhola plant requires about 30 million cubic feet per day gas. Bangladesh Petroleum Exploration Company had discovered the Shahbazpur Gas Field in Bhola in 1994 but it remained largely unutilized as the island is not connected to the national gas grid.The Indian company had tried to hammer out a deal on a power project since 2014 and last year the company moved to set up a new dual fuel 220MW plant in Bhola. The PDB has recommended awarding the new power plant under the special act for speedy implementation of power and energy projects to bypass the open tendering process.The country’s present daily demand is close to 8000MW, while it now generates 7600MW. While the country’s gas reserve is phasing out quickly and environmental awareness draws the central attention of global talk, petroleum-fuelled power plant in the island is not environmentally welcoming and unfeasible. The most imperative query is why the government is so curious to award the company by skipping procedural steps? We fear that the Bhola power plant would be a cost overrun, low-quality plant. The biggest question is that why can’t the government go for renewable energy and generate electricity by using the waters of the bay.

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