Friday, 27 April, 2018

Power Division starts parleys

Published on: 5:54 pm - Monday | July 17, 2017

Power generation proposals

The Power Division has initiated negotiations, with a team headed by power secretary Dr Ahmad Kaikus, over the unsolicited proposals for generating power based on furnace oil and diesel. The target is to start production before the national elections, scheduled to be held towards the end of 2018.

“We are already behind the schedule we had targeted to award the proposals. We hope we will be able to finalise the price and everything else as soon as possible,” disclosed an official of the Power Cell, a department of the Bangladesh Power Development Board (BPDB).

Sources said the negotiations committee yesterday met representatives of some companies to finalise the deals. The companies have proposed some projects that are based on furnace oil.

The committee called Summit Group, United Enterprise, Confidence Power, Orion Group and Midland Power.

On Saturday, however, the government committee held a meeting with those companies that had proposed the diesel-based barge-mounted power plants, which are the costliest. These are Acorn Power, Desh Energy and the US-based APR. The representatives of the largest power generation company that charges high prices for diesel-based power, AGGREKO Power, were not present at the meeting as its local officials were out of the country.

Referring to the annual report of the BPDB, an official said some companies that were invited for the negotiations astonished the officials. Desh Energy has been the worst-performing company, for instance. As per the annual report, Desh Energy sold diesel-based power to the government at Tk. 28.11 in the 2015–16 fiscal year and at Tk. 25.95 in FY 2014–15, but RZ Power generated power based on diesel at Tk. 21.69 in 2015–16.

Last week, Prime Minister Sheikh Hasina approved the generation of 3,000 MW of fuel-based power before the national elections. Following the PM’s approval, it has been decided that diesel- and furnace oil-based rental and quick rental power plants, capable of producing 1,000MW–1,500MW of power, would be set up by independent power producers (IPPs). Moreover, 500-MW furnace oil-based power plants would be set up by government-owned power generation companies.

Another 1,000-MW furnace oil-based power plant would be awarded through open tender. The BPDB would arrange all steps to implement these projects.


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