The New Nation - Internet Edition

UNB, Dhaka

Only two international bidders are likely to submit their final bids for the proposed 450MW Bibiyana Power Plant, a priority project of the government, Tuesday (July 15).

Power Cell, a reform implementation wing of Power Ministry, invited the international tender setting the July-15 deadline for the bidders to submit their respective financial and technical offers to set up the plant.

Primarily, four bidders-US-based AES Corporation and Chevron, Malaysia-based Powertek Barhad and South Korea-based Kepco were selected under the prequalification (PQ) process for the project, according to official sources.

But Kepco later pulled itself out of the bidding race and joined hand with Powertek under a joint-venture initiative.

Sources said AES Corporation verbally communicated the Power Cell that it has lost its interest to submit the final bid for the project because of some "unfair practices" by the tender-inviting agency.

No official was available to confirm its position about the project.

After this stance by AES Corporation, the developer of the country's largest 450MW power plant, the industry insiders apprehend that only two bidders-Powertek and Chevron-may finally submit bids.

However, the Power Cell is expected to receive bids from the three firms-AES, Chevron and Powertek. As per the bidding proposal, the firm that will win the final bid will have to implement the Bibiyana Power Project on build-own-operate (BOO) basis as an independent power producer (IPP) in line 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.

Earlier, the Power Ministry had initiated the move for setting up three large-scale IPP projects: Bibiyana plant.

But, a Power Ministry source said they are giving priority to Bibiyana among the three projects, as natural gas is available there for it.

Bibiyana power plant will be set up at a location closed to the existing Bibiyana gas field in Habiganj. The Bibiyana Field has abundant surplus natural gas, which, for lack of infrastructure, will remain unutilised, industry insiders believe.

Bibiyana is the first large-scale power project for which the caretaker government initiated the physical move for implementing it to resolve the country's chronic power crisis.

The World Bank has made a commitment to finance the project, while its private-sector window, the International Finance Corporation (IFC), has been working as an adviser to assist the Power Cell in dealing with the tender process.

The Asian Development Bank (ADB) has promised to finance the private sponsor to install the Sirajganj and Meghnaghat-III plants.

According to the industry insiders, 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.