Vol. 5 Num 1022 Tue. April 17, 2007  
Front Page

Purchase Body Meet
Proposal on awarding IPP contracts sent back

The advisory council committee on purchase yesterday sent back a Power Division proposal on awarding contracts for setting up Independent Power Plants (IPP), as it found that the firms were not selected competitively.

The committee also asked for detailed information in the summary of the proposal.

"We have asked the Power Division to revise the proposal," Finance Adviser Mirza Azizul Islam told the press after the meeting.

Sources said the committee observed that the firms were short-listed in a way which shows absence of competition in the bidding process.

The Power Division placed the power-price quoted by the nine 'selected' bidders, which would set up these plants with their own investment.

The committee also asked the Power Division to include issues such as the tenure of the contract of power purchase and what the power-price would be in case of fluctuation of gas price, in the summary, sources said. The proposal would be placed again before the purchase committee in its next meeting, they added.

Nine firms were short-listed for setting up nine IPPs with a generation capacity between 10MW and 30MW of electricity.

These were -- Summit Power Ltd for a 30MW plant at Jangania, Comilla, United International and Neptune Commercial for a 30MW plant at Mawna, Summit Industrial and Mercantile Corporation for a 30MW plant at Rupganj, Rafique Power Generation and Engineering Consortium for a 20MW plant in Feni, Regent Textile Mills for a 20MW plant at Barabkunda, Saiham Power Ltd for a 10MW plant in Habiganj, Youth Spinning Mills for a 20MW plant at Tangail, Comilla Spinning Mills for a 20MW plant at Narsingdi, and Energypac Confidence Power Venture for a 10MW plant at Sirajganj.

Although the nine companies were short-listed from 18 firms that took part in the bidding, they failed to provide sufficient documents required as per the tender specifications, sources said.