The government wants to sign Gas Sales Agreements (GSAs) concerning seven small power contracts by February 28 so that the contractors can install and supply 260 megawatt power within this year. The seven rental contracts are being pursued by Hosaf, Ornate, GBB, Summit and United groups.

If the deviations from tenders are accepted, the power sector will suffer in the long run, and also some of the contractors would get undue benefits, the sources pointed out.

For instance, the immediate past alliance government's favourite Hosaf group is being allowed a gross deviation for its 50 MW Nowapara (Sikalbaha) power plant. As per the original tender, Hosaf is supposed to set up a barge-mount plant there. But it is now being allowed to build a land-based power plant.

The government is also accepting the same deviation for the 50 MW Fenchuganj power plant to be installed by Ornate Services Ltd, which is owned by a close relative of a very powerful minister of the past alliance government.

A barge-mount plant is movable, while an immobile land-based plant demands land allocation and land lease agreement (LLA). This means the small power plant is going to block precious power plant site and prevent installation of bigger projects.

"The fact is Bangladesh does not have many land sites along with appropriate infrastructure where one can install power plants. It is utterly foolish to allow installation of some 50 MW plants on rental terms when we need to set up much bigger plants very soon," said an expert.

Hosaf is also being allowed to have a rental contract for five years instead of three years, keeping the power tariff the same. Power Development Board (PDB) experts say a rental contract for five years should be able to give a lower price quote than that of a three-year contract. Hosaf is availing this undue benefit both in its Feni and Barabkundu power projects (20 MW each).

The authorities are also giving Hosaf and GBB huge additional time to commission Barabkundu and Bogra projects after signing of the GSA with them. Both have sought 60 days in addition to their original 90 days for project implementation.

Moreover, the United Group that is setting up an 80 MW plant in Shahjibazar sought 30 days' additional time after signing of the GSA. "This should have been enough to cancel their contracts," said a PDB official.

"But they gave the argument that implementation time for Feni and Kumargaon power projects was 150 days, and they should also be allowed the same," the official added.

The government therefore is now considering fixing the project implementation time to 150 days, giving them 60 days' additional time.

The PDB Board on February 19 held a meeting and discussed the deviations.

On the issue of allowing land-based plants instead of barge-mount ones, the board admitted that this was a deviation. "But it will take about a year if this is re-tendered. Considering the severe power crisis of present times, the government may take a decision on this matter," the board said.

The government in December last aimed at completing all the agreements by the middle of last month to add 260 MW power by June-July this year. But this bid went slow due to problems related to low gas pressure at the power project sites.

Headed by Power Adviser Tapan Chowdhury, the power ministry on February 19 held a meeting and decided to ask Petrobangla to ensure appropriate high pressure gas supplies to the power projects.

"This 260 MW venture is nothing when you consider that the country is facing about 2,200 MW load shedding and there is no viable large power project in the pipeline. The alliance government did the blunder and this government should not just brood over some bad ideas like power rental," said an expert.

"It is time the government scrap these half-baked and largely politically favoured deals and move on to real power projects," he added. "We have implemented large projects ahead of time in the late nineties and it is possible to do so if the policymakers have that kind of commitment."