UNB, Dhaka :
After its ‘failure’ to implement the country’s first-ever waste-based power plant project at Keraniganj on the outskirts of the capital city of Dhaka on its own initiative , the government has now decided to go for executing it on the IPP basis.
Official sources said the government revoked the move to implement the project on public initiative about 4-5 months back as it did not find any suitable bidder, and instead decided to execute it under the Independent Power Producer (IPP) mode.
“Overstating cost quoted by the bidders was the main reason behind the cancellation of the project on public initiative,” said a top official of the Power Ministry.
Official sources said the Power Ministry had moved to implement the project on a pilot basis following a huge interest by State Minister for Power and Energy Nasrul Hamid who is an elected member of parliament from the locality.
On many occasions, he mentioned that he wanted to implement the project as part of his plan to build his constituency as a modern locality.
When tender was floated by state-owned Power Development Board (PDB) last year to pick an engineering, procurement and construction (EPC) contractor for the project, four companies submitted their respective bids for the 1 MW grid-connected waste-based power plant.
But in the evaluation, a Chinese company – Yamato Technologies Pte Ltd – was technically responsive. But when its financial offer was opened, it was found that the cost is much beyond the estimation.
A PDB official, who was involved in the tender process, said the Chinese firm offered about Tk 200 crore for such a (1 MW) project while the government’s estimation was below Tk 100 crore.
He said when the firm’s offer was sent to the Power Ministry, it cancelled the tender process finding such a huge cost and asked the PDB to move for implementing the project under the private sector.
After its ‘failure’ to implement the country’s first-ever waste-based power plant project at Keraniganj on the outskirts of the capital city of Dhaka on its own initiative , the government has now decided to go for executing it on the IPP basis.
Official sources said the government revoked the move to implement the project on public initiative about 4-5 months back as it did not find any suitable bidder, and instead decided to execute it under the Independent Power Producer (IPP) mode.
“Overstating cost quoted by the bidders was the main reason behind the cancellation of the project on public initiative,” said a top official of the Power Ministry.
Official sources said the Power Ministry had moved to implement the project on a pilot basis following a huge interest by State Minister for Power and Energy Nasrul Hamid who is an elected member of parliament from the locality.
On many occasions, he mentioned that he wanted to implement the project as part of his plan to build his constituency as a modern locality.
When tender was floated by state-owned Power Development Board (PDB) last year to pick an engineering, procurement and construction (EPC) contractor for the project, four companies submitted their respective bids for the 1 MW grid-connected waste-based power plant.
But in the evaluation, a Chinese company – Yamato Technologies Pte Ltd – was technically responsive. But when its financial offer was opened, it was found that the cost is much beyond the estimation.
A PDB official, who was involved in the tender process, said the Chinese firm offered about Tk 200 crore for such a (1 MW) project while the government’s estimation was below Tk 100 crore.
He said when the firm’s offer was sent to the Power Ministry, it cancelled the tender process finding such a huge cost and asked the PDB to move for implementing the project under the private sector.
