The New Nation - Internet Edition

Chittagong Correspondent

The government is likely to sign a deal with Royse Power, a Hong Kong-based company, for setting up a 50-megawatt power plant here in the port city.

Officials concerned said that they would start evaluating the tenders from today (Sunday) and hopefully it would finish within a week.

The evaluation report would initially go to Power Development Board (PDB) and then to the advisory body for final approval. "If it gets nod from the purchasing committee of the advisory board, the deal will be signed within a month," a senior official of the Power Cell said.

The company reportedly offered cheapest rate for the power generated among the six contenders from home and abroad.

According to the informed sources Royse Power wished charging Taka 8.77 for each unit of power while the American Company proposed Taka 18.63.

The Power Development Board (PDB) is currently buying each unit of power over Taka 10 from furnace-oil run Khulna Power Plant.

Earlier, the government in a bid to address generation shortfall here in the port city approved a 50-megawatt private power plant. Once commissioned, it will be the first privately chartered power plant.

The Power Cell, an agency for electricity under the Ministry of Power, Energy and Mineral Resources, on September 2 floated international tender in this connection.

Six companies - Elestom Power, America, Agrico International, England, Royse Power, Hong Kong and local companies - Energy Limited, Golden Horizon and Precision Energy Limited participated in the bidding.

Power Development Board (PDB) is supposed to purchase electricity from the plant initially for three years under the lease agreement to be signed with the successful bidder. The lessee will invest for the installation, operation and maintenance of the power plant.

The bidding papers were distributed until October 15 and Thursday (October 16) was the closing date for dropping the quotations.