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Old September 21st, 2007, 08:14 PM   #1
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Power and Energy Sector News and Discussions

Final Deals Now Ready to Install 10 SPPs in Bangladesh

Final deals are now ready to be signed to install 10 small power plants in the country, under a crash course for dealing with electricity shortages amid growing demand, reports UNB.

The private-sector sponsors will set up the plants, each having 10-30 MW capacity, at ten separate locations across the country on Build-Own-Operate (BOO) basis.

The government will purchase electricity at different rates from the projects for next 15 years.

The Cabinet Purchase Committee approved the private sponsors'' bids for the projects in July and then the deed-documents were sent to the Law Ministry, the Commerce Ministry and to the National Board of Revenue (NBR) for necessary vetting.

An official of the Power Ministry told UNB that the law and commerce ministries and the NBR all cleared the deed-documents with positive notes.

"We have got back the draft agreements with relevant ministries'' approval… Now we are likely to invite the sponsors soon to sign the final agreements to move forward implementing the projects," he said.

Sources said four instruments of separate agreements would be signed with each of the ten sponsors of the projects.

These are Land Lease Agreement (LLA), Power Purchase Agreement (PPA), Implementation Agreement and Gas Sales Agreement (GSA).

The sponsors will have to sign the first three agreements with the Power Development Board (PDB) while the last one will be signed with Petrobangla.

The proposed 10 power plants will have a total capacity of producing 200 megawatts of power, which will add up to the national grid by middle of next year.

As per terms and conditions, the private entrepreneurs will have to install and start commercial production from their respective plants within eight months of the signing of the agreements.

Among the projects, Local Summit Group will set up four plants. Of these, a 10-MW plant will be set up at Ullapara in Sirajganj and its tariff was fixed at Tk 2.48 per kilowatt-hour or per unit.

Summit ''s other three plants, each having 30-MW capacity, will be installed at Jangalia in Comilla and Rupganj in Narayanganj and Maona in Gazipur. Tariffs for the plants were agreed at Tk 2.38 per unit.

Asian-Entech Power Corporation Ltd (AEPCL) will set up three plants of 20-MW capacity each at Feni, Tangail and Narsingdi, and their tariff rate is Tk 2.28.

Saiham Textile will set up a 10-MW plant at Mohipal in Feni with tariff rate at Tk 2.47 per unit while Regent Textile install a 20-MW Barabkunda plant in Chittagong with tariff rate fixed at Tk 2.32 per unit.

Energypac-Confidence Power Venture will set up a 10-MW Habiganj plant with tariff rate at Tk 2.48 per unit.

The private sponsors were selected through a re-tendering process as the caretaker government last May cancelled the first tender process on charge of corruption and irregularities.

http://www.energybangla.com/article_det.asp?aId=721
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Old September 21st, 2007, 08:15 PM   #2
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Power Situation Improves Significantly
Load shedding drops to 200MW from 1200MW


The Power Development Board (PDB) has made a significant improvement in power supply in the last two months mainly by improving day-to-day management where officials and technical experts are encouraged to take independent decisions, sources said.

Moreover, the government's successful implementation of load management and staggering holidays at industrial zones, improvement in gas supply to power plants, and high emphasis on bill collection also have significant contributions in this regard. Now the margin of load shedding has dropped from 1,200MW to a mere 100-200MW.

The country experienced load shedding by a massive margin of maximum 2,000MW a day last year.

Against an official maximum demand of 4,240MW, the PDB is now supplying more than 4,100MW of power from 100 different power units of 27 power plants by improving plant efficiency.

The same number of plants was providing the nation with maximum 2,800MW of power last year.

Since then, only one additional power unit of 70MW--the Mymensingh Power Plant--came into operation two months ago.

Currently, 12 power units remain shut down for maintenance work. If all these units start operation, the country's power production could be as high as 4,600MW, which is more than the official demand.

In addition to increased power production, revenue collection by the PDB and Dhaka Electric Supply Authority (Desa) has also shot up significantly.

Sources said PDB's revenue collection has shot up to Tk 5,000 crore in the calendar year, while its bill collection ratio has shot up to 110 percent from its previous 80-85 percent.

PDB's biggest single client Desa's payment to PDB for purchase of power has exceeded Tk 100 crore a month.

"Desa's bill collection ratio has also significantly gone up. Fearing arrest by the joint forces, many large power consumers that had deliberately defaulted on bills of hundreds of crores of taka are now paying off their arrears," said an official.

The PDB's overall systems loss has also improved by 2.5 percent in the last nine months. Whereas the systems loss was 17.5 percent in January, it quickly came down to 15 percent after the change of government.

"This alone has saved PDB power worth Tk 110 crore in the last nine months," the official added.

"It doesn't mean PDB's problems are over. It means that even within limitations, professionals can do a better job if they are properly given the responsibility.

"There can be a major power blackout or grid failure and there is still load shedding. To ensure a safe power supply, we must have at least 10 percent additional capacity above the demand as a reserve margin."

While the official power demand is shown at 4,250MW, unofficially this demand stands at maximum 5,200MW. But this additional demand is underplayed by not accommodating the full power demand of the Rural Electrification Board (REB) that doubled its distribution network during 2001-06 period.

"These improvements have been possible because the PDB has become active in the last several months," said he.

In recent years, the PDB became an organisation devoid of leadership and proper decisions.

This was because the Prime Minister's Office (PMO) and the power ministry dictated many technical decisions and imposed many business decisions on the PDB.

As a result, the PDB chiefs took no decision that could "offend" the powerful ones who were only interested to bag various power deals. Some of these powerful ones included Harris Chowdhury, the then political secretary to the PM.

"The past PDB chairmen used to forward files to the ministry regarding a decision that he alone could take on a single day. There are records that PDB spent more than a month on a decision that could have been taken instantly," a source pointed out.

Such indecisiveness also affected various gas sector bodies. Consequently, both power generation and gas supplies became acutely problematic. As gas is the main source of power generation, poor gas supply had caused many power plants to produce less power, while a number of power plants were generating less power because of technical difficulties.

The power ministry now encourages the PDB to work independently. The power secretary has given a clear directive that technical decisions will be taken by technical people.

Subsequently, the PDB chief motivates all technical hands to take decisions. Many decisions are even taken during phone conversations with technical hands.

"He tells them that he would back them always. Now that's the assurance a leader should give to his subordinates. Earlier, this simple practice was a forgotten norm in the PDB," he noted.

This encourages technicians to take professional decisions, which, in the recent past, came as orders from higher authorities.

PDB records show that on Tuesday it produced 4,013MW and on Monday 4,130MW of power. Throughout August, PDB's power production hovered around 3,800MW.

The PDB broke its 4,000MW barrier on September 15 for the first time in Bangladesh's history.

"In the past decisions like load management were taken, but they were not implemented. This time, load management or staggering holidays in industrial zones were successfully implemented, thanks to the government's political will. After all, result of all good decisions depend on their proper implementation," observed an official.

http://www.thedailystar.net/story.php?nid=4977
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Old September 21st, 2007, 08:20 PM   #3
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I must say that I was very impressed with the load shedding situation when I visited Bangladesh a few months back. I experienced load shedding may be 3 times in 3 weeks. Perhaps it's worse in some parts of Dhaka than others. I stayed entirely at Banani DOHS, Gulshan and Uttara. I don't know how it is in Old Dhaka. May be a local Dhakaiya can tell us. Pretty much everyone has small generators anyways.
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Old September 22nd, 2007, 10:57 PM   #4
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Thumbs up

Quote:
Originally Posted by Tmac View Post
Power Situation Improves Significantly
Load shedding drops to 200MW from 1200MW


http://www.thedailystar.net/story.php?nid=4977
Tmac, what does this tell us? This tells us that people in Bangladesh aren't dumb or incompetent and if the government is determined to follow through to produce some desired results, they can do it.
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Old September 23rd, 2007, 12:44 AM   #5
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Its seasonal too. More in summer than.

Last edited by meghnarmajhi; September 23rd, 2007 at 01:41 AM.
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Old September 23rd, 2007, 03:49 AM   #6
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Originally Posted by meghnarmajhi View Post
Its seasonal too. More in summer than.
I don't think the seasonal drop in demand has kicked in yet as the average temperature remains in the high 80s (touching 90) and extended holidays are not until Eid time.

Here's a praise for the PBD in The Daily Star's editorial:

http://www.thedailystar.net/story.php?nid=5042
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Old September 26th, 2007, 08:27 PM   #7
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Malaysian firm to set up 50MW power plant in Adamjee EPZ

Garisan Etika Bangladesh Ltd is going to set up a 50MW power plant in the Adamjee Export Processing Zone (EPZ) to ease the power crisis of the EPZ and surrounding area.

The 41 million dollar project will start operation within the next 15 months.

An agreement to this effect was signed between Bangladesh Export Processing Zones Authority (Bepza) and Garisan Etika Bangladesh Ltd yesterday.

AZM Azizur Rahman, general manager (Investment Promotion) of Bepza, and Mohd Tuffile Nawab Din, chairman of Garisan Etika Bangladesh Ltd, signed the lease agreement on behalf of their respective organisations.

Among others, Abdul Malek Bin Abdul Aziz, Malaysian High Commissioner, Brig General Ashraf Abdullah Yussuf, Bepza executive chairman, were present.

http://www.thedailystar.net/story.php?nid=5585
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Old October 3rd, 2007, 09:39 AM   #8
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2 cos to set up rental power plants
Youth Spinning Mills to generate 80MW, Desh Energy 10MW


The council of advisers’ purchase committee on Tuesday approved a power division proposal to award contracts to two private companies for the installation of two rental plants with a total capacity of 90MW.

The committee, headed by the finance adviser, Mirza Azizul Islam, however, set two conditions that the agreements would need to include the issues of fuel efficiency of the power plant and a cap on the scalable portion of the power price.

The division placed the proposal to award a contract to the Youth Spinning Mills to set up an 80MW plant at Shahjibazar on a build-own-operate scheme and to the joint venture of the Desh Energy and the Cambridge Energy Waste Management Limited for the installation of a 10MW plant at Kumargaon.

The committee approved the price offers of the companies for the installation of the plants.

The Power Development Board has recently selected the Youth Spinning Mills and the Desh Energy to set up the proposed plants with offers of Tk 2.26 and Tk 2.36 for a unit of electricity respectively.

The board will buy power for 15 years from the plants that will start operation by 2008. The companies will set up readymade second hand power plants.

Sources attending the committee meeting said some of the members wanted to know from the power division officials whether they had any criteria of the fuel efficiency of the plants or how much gas the plants could consume.

As the power plants will be second hand, they are likely to consume more gas to generate power, the committee observed.

It also wanted to know whether the power price, which would vary in the case of increase in gas price or import of spare parts, would have any cap.

As the power officials said such issues were not included, the committee asked the power division to include the issues in the agreements with the selected companies.

The previous BNP-led, four-party government initially took initiatives to set up seven rental power plants with 260MW capacity on an emergency basis to tackle power crisis, but the interim government re-tendered six power plants scrapping earlier tender procedure and gave go-ahead to a 20MW plant at Bogra.

The power division, however, suspended the tender procedure of three power plants for lack of gas at the plant sites and approved setting up two power plants at Shahjibazar and Kumargaon. The power board will re-tender for the 50MW plant at Fenchuganj.

http://www.newagebd.com/busi.html
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Old October 4th, 2007, 06:55 PM   #9
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Energy division to see feasibility of petrochemical complex

The Energy and Mineral Resources Division has decided to conduct a feasibility study to set up a petrochemical complex to separate chemical components from natural gas for industrial use.

The division officials said they would appoint a consultant to carry out the study to set up the complex at Ashuganj, the gas transmission hub of the country.

The division’s planning wing, Hydrocarbon Unit, which is functioning in the form of a project, ‘Strengthening of the Hydrocarbon Unit (Phase II), has drafted tender documents for the appointment of the consultant and submitted the documents to the division, they said.

‘The Petrobangla is now scrutinising the ‘request for proposal’ documents (tender documents). After Petrobangla gives its opinion, bids will be invited for the appointment of the consultant,’ said a high division official on Wednesday.

The energy officials said the major components of Bangladesh’s natural gas are methane, ethane, propane, butane, n-butane, high-nitrogen and carbon dioxide.

They said the gas, supplied to domestic and industrial consumers, power plants and fertiliser factories, also contains these components, although methane should be the only necessary component for such consumers.

‘We want to set up a petrochemical complex which will separate the components of gas that are burnt unnecessarily,’ the energy secretary, AMM Nasir Uddin, told New Age on Wednesday.

He said the components such as ethane could be used for other purposes in chemical industries.

Gas is now piped from fields to processing plants for dehydration, separation of oil components and adjustment of pressure suiting the transmission line.

Petrobangla’s companies such as the Sylhet Gas Fields Limited have a number of molecular sieve turbo expander plants and NGL fractionation plants for condensate associated with the gas pumped out from different fields.

http://www.newagebd.com/busi.html
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Old October 8th, 2007, 08:06 PM   #10
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Govt set to invite tenders for 2 large power plants

The government is set to invite international tenders for setting up two large power plants, each having 450MW capacity, in the private sector.

According to official sources, the tender for 450MW Sirajganj combined cycle plant will be floated this week while that for 450MW Meghnaghat phase-III plant will be invited next week.

Power Cell, the Power Ministry's reform implementing wing, will invite the tenders for both the plants. Earlier, the Power Cell invited tender for another large plant -- 450 MW Bibiyana power plant project.

The previous BNP-led alliance government took up the three base-load projects in a move to resolve the country's nagging power crisis.

But the present caretaker government that inherited the power crisis moved fast to expedite the tender invitation process.

A Power Ministry official told UNB that initially the Power Cell would invite interested international bidders to participate in the pre-qualification (PQ) process.

On completion of the PQ process, the final tender will be floated asking the responsive and qualified bidders to submit the financial and technical offers for the projects.

Under the project, the private firms will be allowed to set up the power plants on build-own-operate (BOO) basis and the government will purchase electricity from the projects.

The Asian Development Bank (ADB) has promised to finance the private sponsor to install the Sirajganj and Meghnaghat-III plants while the World Bank is keen to finance the Bibiyana project.

Industry insiders said that such big projects need more than three years' time for implementation after tendering.

“Even if the projects are given special care, those are unlikely to come into operation before 2010,” said an executive of a private power company.

http://www.thedailystar.net/story.php?nid=7241
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Old October 16th, 2007, 07:46 PM   #11
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Summit to set up four power plants totalling 110-MW

Summit Uttaranchol Power Co Ltd and Summit Purbanchol Power Co Ltd, the subsidiaries of Summit Power Limited, signed power purchase agreements (PPAs), implementation agreements (IAs), gas supply agreements (GSAs) and land lease agreements (LLAs) with Power Cell, Bangladesh Power Development Board (BPDB), Rural Electrification Board (REB), Titas Gas Transmission and Distribution Co Ltd, Bakhrabad Gas Systems Ltd and Pashchimanchal Gas Co Ltd.

Summit Purbanchol Managing Director Tauhidul Islam, Summit Uttaranchol Director Md Latif Khan and Power Cell DG, PDB secretary, REB secretary and high officials of the gas companies signed the contracts on behalf of their respective organisations in the city recently.

Summit Group Director Jafar Ummed Khan, Summit Power Ltd Senior Executive Director Mirza Khairuzzaman, Executive Director (Planning and Dev) ANM Tariqur Rashid, Management Trainee Faisal K Khan and high officials of the companies were also present on the occasion.

The subsidiaries of Summit Power Ltd are going to set up four power plants with a total capacity of 110 megawatt. Summit Uttaranchol Power Co Ltd will implement one 11-MW gas-fired power plant at Ullapara in Sirajganj and one 33-MW gas-fired power plant at Maona in Gazipur and Summit Purbanchol Power will implement one 33-MW gas-fired power plant at Rupganj in Narayanganj and another 33-MW gas-fired power plant at Jangalia in Comilla on 'Build, Own and Operate' (BOO) basis.

Summit Power Ltd has successfully established three power plants for sale of electricity to Rural Electrification Board (REB) on the same basis at Savar, Narsingdi and Comilla. The generation of electricity started in 2001 from three power plants, each with a capacity of 11 MW.

The company took initiatives and signed project agreement with the REB and the government on June 28, 2005 to expand its Narshingdi plant by additional 24.30 MW and Comilla power plant by 13.5 MW and started their commercial operations on November 14, 2006 and December 16, 2006 respectively.

The company also signed project agreements with REB and the government on February 20, 2006 to expand its Savar plant by additional 33.75 MW.

http://www.thefinancialexpress-bd.co...&news_id=14265
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Old October 22nd, 2007, 01:07 AM   #12
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International tender for 8 rental power plants by Oct 25

The Power Cell under the Ministry of Power will receive international tender by October 25 for setting up eight rental power plants on a first track basis to tackle power crisis in the next summer.

The projects are 50 MW Shahjibazar plant, 50 MW Kumarigaon plant and 50 MW Fenchuganj plant in Sylhet, 50 MW Ashuganj plant, 20 MW Bogra plant, 30 MW Bhola plant, 40 MW Khulna plant and 20 MW Bheramara plant.

Of the plants, the 40 MW Khulna and 20 MW Bheramara projects will be liquid fuel-based while the rest will be gas-based. The total capacity of the plants will be about 310 MW.

As per terms and conditions of the projects, the bidders will have to install the plants within four months of signing of the contracts.

The government will purchase electricity from the plants for the next three years.

The Power Cell, a reform implementation wing of the Power Ministry, will receive the tender as responsible body. Earlier, the Power Cell invited interested international bidders to submit Express of Interests (EoIs).

A total of 17 international firms submitted EoIs to vie for the eight projects.

Three firms from the USA, two from the UK, and one each from Singapore, Ukraine, the UAE, India and Malaysia have submitted EoIs directly. Five local firms submitted their EoIs on behalf of their principals in India, Russia and Ukraine.

Later, the Power Cell issued Request for Proposal (RfP) letter to the 17 firms asking them to submit their respective technical and financial offers.

The industry insiders are, however, critical of the rental power plant project as they raised questions about the move.

They said these rental power plants might be suicidal for the power sector and hamper the caretaker government's efforts to buy electricity from the captive power plants set up by local entrepreneurs.

They said the tariff of the proposed plants would be relatively higher than that of the land-based power plants.

In 1997, the then government installed three barge-mounted power plants to tackle the power crisis and their tariff was very high, even above Tk 5.30 per unit in some cases.

The Power Development Board (PDB) has to incur a loss of about Tk 1,300 crore a year for purchasing electricity at higher rates from those power plants. This loss will increase if more barge-mounted power plants are installed, they observed.

When the caretaker government has been trying to purchase electricity from the captive power plants installed by local entrepreneurs to serve their industries, the move to install rental power plants may discourage the captive power producers to sell their electricity to the national grid.

The power sector experts said the government could easily get more than 500 MW from the captive plants before the next summer if they allow them to extend their existing capacity by installing some new generation machines.

Earlier, the government had invited tender to install seven rental power plants. But the state-owned Petrobangla refused to supply gas to three of them because of shortage in gas production, forcing three of the plants to roll back.

http://www.thedailystar.net/story.php?nid=8381
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Old October 22nd, 2007, 11:32 PM   #13
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Australia, Bangladesh jointly to set up 50 mw power plant in Ishwardi EPZ

Monticore Technology Ltd, an Australia-Bangladesh jointly owned company, will set up a 50MW power generation plant in Ishwardi EPZ to solve the power crisis of the EPZ and its surrounding area.

The company will install the power plant on 3,752.32 square metres area within the zone. The plant will start providing the service within 15 months.

The power plant involving $45million will provide uninterrupted power supply to the operating enterprises at Ishwardi EPZ and its adjacent area during peak and off peak hours. It will meet the present requirement of the EPZ and also its future needs.

After fulfilment of the requirement of the investors, they may sell their excess power to the Power Development Board (PDB) and the Rural Electrification Board (Reb) or any other organisation in their own arrangement.

Thirty-two Bangladeshis will get employment opportunity in this company.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and M/s Monticore Technology Ltd at BEPZA complex yesterday.

Prasanta Bhushan Barua, member (Investment Promotion) of BEPZA, and Amyn Hudda, managing director of M/s Monticore Technology Ltd, signed the agreement on behalf of their respective organisations.

http://www.thedailystar.net/story.php?nid=8513
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Old October 25th, 2007, 08:16 PM   #14
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5 firms offer to set up rental power plants

The Power Cell yesterday received 13 bids from five companies for installing rental power plants, totalling 250MW power generation capacity, at seven locations for three years, competent sources said.

Although the Cell sought bids for the installation of rental power plants in eight locations with total generation of 300MW to ease the country's power crisis before the next irrigation period, no bid was turned in for the eighth location.

The Cell would announce the names of qualified bidders by the third week of November after evaluating the bids for their financial and technical aspects. The rental plants can be installed within 120 days of awarding the contract, said official sources.

"The price offers that we received range between US 2 cents to 5 cents for each kilowatt-hour. Considering that the power from the rental plants are costlier than [that generated by] conventional independent power projects (IPPs), the price offers are excellent," said a source adding, "Some price offers are as low as that of the IPPs."

He, however, added that the low price offers were not the only factor that is considered for awarding the rental power contracts.

As per the government plan, gas-fired rental plants will be installed in Fenchuganj (50MW), Kumargaon (50MW), Shahjibazar (50MW), Ashuganj (50MW), Bogra (20MW) and Bhola (20 to 30MW). The petroleum-fired plants would be set up in Bheramara (20MW) and Khulna (40MW). The Power Cell short-listed 17 companies, local and foreign, who were asked to submit their bids yesterday.

However, in the tender that closed yesterday, there was no offer for Fenchuganj.

The companies that participated in the bid were Aggreko (Singapore), Alstom Power Rentals (USA), Kaltimex Energy (Indonesia), Energy Prima (Bangladesh) and a Bangladeshi consortium led by Green Power.

Energy Prima turned out to be the lone bidder for Shahjibazar and Kumargaon plants and it was the lowest bidder out of the three bidders for the Bogra plant, sources said.

The Bangladeshi consortium led by Green Power submitted the lowest offer in Ashuganj, although it did not mention in its offer whether the company had generators in ready stock.

Among the foreign companies, Alsthom was the lone bidder for Bheramara while Kaltimex quoted the lowest price among three bidders for Bhola. Aggreko quoted the lowest price between two bidders for Khulna.

Whether all these offers are valid will be known after the Power Cell completes the bid evaluation process.

"Rental power plants are emergency and temporary solutions. Our objective is to ease the power crisis in the next summer so that farmers can carry out irrigation. If we stick to just the low price offers without weighing whether the bidder is actually capable of installing the plant, we might fail in our objective," said the source.

Referring to the two recently failed power projects (Meghnaghat-2 and Chandpur 150MW), he said the government would not take any decision that would lead to failure again.

Earlier in September, the chief adviser of the caretaker government approved the rental power plant project proposed by the power ministry. The Power Cell finalised the Requests for Proposal (RFP) for the rental power plants and listed 17 potential bidders.

The rental power schemes demand each bidder to have its own power generator. The government has been trying to sign rental power contracts for the last three years without any positive results.

The past elected government had tried to award dozens of rental power schemes to party men with 15-year tender term ignoring the fact that almost none of those bidders ever had any experience in power sector.

http://www.thedailystar.net/story.php?nid=8981
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Old October 25th, 2007, 08:18 PM   #15
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it's great to see that the government is actually taking care of the power issues. I hope all of these power plants get going soon.
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Old November 10th, 2007, 11:17 PM   #16
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Govt now plans power for 60pc population by 2010

To achieve the goals of "Power for All by 2020", the government should diversify energy sources and build new power plants, improve transparency in tender and ensure reasonable tariffs, speakers told a roundtable yesterday.

At the roundtable held at Dhaka Chamber of Commerce and Industry (DCCI) auditorium, the speakers said the inaction to develop new power plants during the last several years has made it very difficult for the nation to achieve the goal of power for all by 2020. Consequently, the government is now over-burdened with a large number of new power projects.

Jointly organised by DCCI and The Daily Star, the roundtable said that on the one hand, global oil price hike is threatening Bangladesh's energy security. And on the other hand, Bangladesh is now left with only 8 trillion cubic feet (tcf) of gas -- which implies that a gas supply shortfall will start to take effect from 2014 unless new gas wells are discovered. Therefore, the country must resolve its debate over how to mine coal and instead focus on using coal for its power generation.

As chief guest of the roundtable, Dr M Fouzul Kabir Khan, power division secretary, said to facilitate and achieve the goal of power for all by 2020, the government has set a new goal -- connect 60 percent of the population to the power grid by 2010.
The constitution makes it mandatory for the government to provide access to power to all its people, he added.

Rental power plants with a capacity of 300 megawatt (MW) will bring immediate relief to consumers and industries. This electricity as well as 200 MW more from small power plants will be available by March 2008, "...so, the situation will be slightly better in the coming summer," the secretary said.

By December 2008, the process for generating an additional 1350 MW electricity from three large power plants at Bibiyana, Sirajganj and Meghnaghat will be completed
.

He said the power and energy supply scenario in Chittagong is so pitiful that an "industrial disaster" is looming over the port city. This is why the government is considering setting up of an import-based coal-fired power plant in Chittagong.

"Power for All by 2020" is a national goal declared in 2000 by the government of Bangladesh. The policy vision predicted that till 2005, the country would need $ 5 to 6 billion of investment for power generation and an additional 15000 MW power generation would be needed by 2020, said Mahfuz Anam, editor of The Daily Star, who moderated the round table discussion.

Seven years passed since then, but the country did not see such investment in the sector. The current production capacity of 4200 MW cannot meet the country's demand of 5200 MW, he added.

The country could boost its GDP growth from 6.5 to 10 percent if the demand for power supply could be met, DCCI president Hossain Khaled said. He also pointed out the high "system loss" of some 20 to 25 percent or Tk 1200 crore every year and named corruption as the single largest contributor to the power shortage, asking for a systemic change.

"We try our best to deal with corruption and [solve] all day-to-day problems with consumers," replied Brig Gen Nazmul Hasan, chairman of Dhaka Electric Supply Authority (Desa), which serves over 10 lakh customers in the capital.

Loss in collection of electric bills has been reduced to 13.7 percent in December 2006 and the collection is expected to go up every month, Hasan said adding that not all cases could be resolved due to legal proceedings pending with the High Court.

But even 100 percent bill collection could not prevent losses because the tariff system does not allow to cover the production cost and "causes an average loss of 32 Paisa per Kilowatt-hour", according to Mohammad Khizir Khan, chairman of Power Development Board (PDB).

Last year the PDB incurred a loss of Tk 1,100 crore and "a tariff rationalization is necessary to run the PDB properly," Khan said.

As of today, the production of electricity is heavily dependent on gas. The power sector consumes 40 percent of the gas extracted in the country. "The planning of future power plants should not depend on gas only. Or else, we will cause a gas shortage for other sectors," warned Muktadir Ali, director of Petrobangla.

The other sectors that rely on gas are fertilizer manufacturers (18 percent), industry (14 percent), companies producing captive power (12 percent), domestic usage (12 percent), production of compressed natural gas (CNG) for vehicles (2.5 percent) and tea estates and commercial consumers, the Petrobangla director said adding that the gas supply shortfall will begin from 2014 unless new discoveries are made.

Noting that the country has 3,000 million tons of coal, Muktadir said, "We should not depend on gas only. As an alternative, we should rely on coal."

Tawhidul Islam of Summit Power noted that huge investment is required every year to set up new power generation plants and distribution systems to deliver power to all. "Each year, we need to invest Tk 1600 crore alone in transmission and distribution."

Meghnaghat Globeleq Power plant manager Reazuddin Ahmed also put emphasis on diversifying the basic energy resources and use of coal. Since the installation of large power plants requires at least three years, the authorities now may start developing the plant sites to reduce the project implementation time.

Nazrul Islam, chief of financing agency IIFC was critical of the role of PDB as the "single buyer" of all power. He said allowing multiple buyers would ensure that the tendering processes are not slow or inefficient.

A representative from Centre for Policy Dialogue pointed out that last year, the country lost about 2 percent of its GDP due to power supply shortfall.

Associate Professor Syed Munir Khasru of Institute of Business Administration, University of Dhaka, pointed out that there is a lack of confidence among the bidders about transparency of power tenders. This has to be restored by punishing the corrupt quarters that had foiled past power tenders.

Asaduzzaman Khan of Bangladesh Institute of Development Studies (BIDS) said, "Coal must be tapped. Leaving coal underground is equivalent to not having any coal. If mining coal using open pit method is environmentally damaging, then let us take the appropriate measures and then tap the resource.”


http://www.thedailystar.net/story.php?nid=11109
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Old November 11th, 2007, 11:29 PM   #17
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Quote:
Originally Posted by Banglabir View Post
Govt now plans power for 60pc population by 2010
pretty ambitious plan. I like that!
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Old December 3rd, 2007, 04:39 AM   #18
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Summit Power Subsidiary Signs Contract for Ullapara Power Plant
power sector
EB Report , published 2/12/2007

Summit Uttaranchol Power Company Limited –- a subsidiary company of Summit Power Limited -- signed a Contract with M/s. GE Jenbacher GmbH & Co OHG, Achenseestraße 1-3, 6200 Jenbach, Austria ("GE Jenbacher") for Supply, Delivery, Erection Supervision and commissioning of 4 numbers JGS 620 GS. NL Generating Sets and ancillary equipment.

The signatories were Mr. Eugen Laner, Sales & Service Director, GE Energy; and Wolfgang Berger, Sales Leader, GE Energy; and Muhammed Aziz Khan, Chairman of Summit Power Ltd. The signing was done recently in London for purchase of 11MW power plant to be set up at Ullapara in Sirajganj. The project will be implemented within one year. This is part of 110MW power plants that Summit Power Ltd is implementing, of which 33MW each in Narayanganj, Comilla and Gazipur and 11MW in Sirajganj.

Summit has also applied to bid for 450MW Bibiyana project in association with GE Energy. GE is one of the largest companies in the world. This is the first time such a company has bid for projects in Bangladesh. Summit is acting as the Lead Partner in the Bibiyana project.

Summit is the first company to set up IPP in Bangladesh and until now the only local company in private electricity business.

http://www.energybangla.com/article_det.asp?aId=839
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Old December 4th, 2007, 07:38 PM   #19
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Five companies qualify to submit final bid for Bibiyana plant

Five firms have come out as pre-qualified bidders to stake a claim to the proposed 450-mw Bibiyana Power Plant project on completion of the evaluation of their pre-qualification (PQ) bids, reports UNB.

The five pre-qualified bidders are Korea Electric Power Corporation of South Korea, AES Corporation of the US, Chevron Corporation of the US, the consortium of Powertek Berhad of Malaysia and Siemens Project Ventures GmbH of Germany, and the consortium of Summit Industrial Mercantile Corporation Limited of Bangladesh and GE Energy LLC of the US.

Power Cell, the reform implementation wing of the Power Ministry, Tuesday announced the PQ-assessment results, after scrutinising the initial offers of a total of six PQ bidders.

Now, the five pre-qualified bidders will be asked to submit the financial and technical offers to the government for final bidding under the Request for Proposal (RfP) format, which is expected to take place in the first quarter of the next year.

Among the six aspirants, the Malaysia-based YTL Power International failed to qualify in the pre-qualification round of bidding, as its statement was found "non-compliant with the pre-qualification criteria", the Power Cell said in a release.

However, the first three of the five pre-qualified bidders - Korea Electric, AES Corporation and Chevron Corporation - were fully pre-qualified, while the consortium of Powertek-Siemens and the consortium of Summit-GE have been conditionally selected for the next round.

The Power Cell said, the consortium of Powertek-Siemens and the consortium of Summit-GE have conditionally qualified, pending their submission within 45 days of the revised financial statements compliant with the International Accounting Standard (IAS).

"The submission of IAS financial statement was a requirement of the qualification package to allow the government to verify the financial strength of the applicants," the Power Cell also said.

A seven-member tender-evaluation committee, headed by Power Cell Director General Abdul Jalil, conducted the PQ evaluation.

As per the bidding proposal, the finally winning private sponsor will have to implement the Bibiyana Power project on Build-Own-Operate (BOO) basis as independent power producer (IPP) in accordance with the Private Sector Power Generation Policy 2004.

The state-owned Power Development Board (PDB) will purchase electricity from the plant for about 22 years.

http://www.thefinancialexpress-bd.co...&news_id=19151
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Old December 17th, 2007, 08:10 PM   #20
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Russia keen to set up small power plants in Chittagong

The Russian ambassador to Bangladesh, GP Trotsenko, called on the acting mayor of the Chittagong City Corporation, M Manjur Alam, at the latter’s office Monday. During the meeting, they discussed bilateral issues and mutual interests of Bangladesh and Russia, a CCC press release said. Trotsenko described Chittagong as an excellent destination for investment and expressed Russia’s keen interest to invest in different prospective medium and small industries, particularly in constructing small power plants. He said Russia was ready to extend whole-hearted cooperation to Bangladeshi businessmen and entrepreneurs for expanding economic ties and forging a strong bond between the young generations of the two countries through reducing gap in the area of information and communication. Russian consul general in Chittagong Oleg N Avdeev, CCC secretary AKM Khairul Alam and CCC ward commissioners Saleh Ahmed, M Giasuddin, MA Malek and Jobaida Narges were present at the meeting, the press release
added.

http://www.newagebd.com/busi.html
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