The New Nation - Internet Edition

Staff Reporter

Non-banking financial institution Infrastructure Development Company Limited (IDCOL) has pledged to provide Tk 300 crore to the bidder to install rental power projects to add 530 MW electricity to the National Grid.

"We are committed to provide the money to build the backbone of infrastructure, electricity but the proposal should be very specific and time-bound," Islam Sharif, CEO of IDCOL told newsmen on Tuesday.

The NBFI would provide another Tk 700 crore in foreign currency if needed, he said.

According to the Power Development Board (PDB) the government needed Tk 2,100 crore to implement the 530 MW rental power project.

The IDCOL is playing a key role in bridging the funding gap for constructing medium and large-scale infrastructure and setting up renewable energy projects in Bangladesh.

The company, in less than three years, has the market leader in private sector energy and infrastructure financing in Bangladesh.

PDB has received 63 bids for installation of eight rental power plants which is scheduleg to be go into operation by next year. The PDB has set a target to sign contracts with selected bidders by November 31.

"The cost of these projects is too high as the selected bidders will have to install diesel-run plants. They need huge amount of money, however, the IDCOL's proposal is good that will help us to implement the projects," Alamgir Kabir, Chairman of PDB said.

According to a estimate by the PDB both local companies and joint ventures are among the bidders for four diesel-run and four furnace-oil-based plants, whose electricity would be costlier than that from other traditional one.

For diesel-based plants, six companies and joint ventures submitted bids for Bheramara 100MW plant, eight for Katakhali 50 MW, six for Thakurgaon 50 MW and seven for Saidpur 50 MW. PDB received 36 bids for furnace oil-based plants - 11 for Noapara 100 MW, four for Madanganj 100 MW, seven for Jamalpur 30 MW and 14 for Barisal 50 MW.

The bidders include local companies like Asian Entech, Shasha Denim, Energy Prima, Summit Power, Confidence Cement, Barkatullah Electrodynamics Limited, Rahimafrooz, Regent Textile, Shahjibazar Power Company, Navana, Powertech and Sinha Fashion.

Foreign companies such as Agreeko, NEPC, CAT rental power and Karkey Karakeniz Elektrik Uretin formed joint ventures and are bidding for more than one plant.

The IDCOL has sanctioned a term loan amounting Tk 500 million out of Tk 1,280 million syndicated term loan facility to be raised for Barakatullah Electro Dynamics Ltd. (BEDL).

The IDCOL is mandated to act as the lead arranger for this 51 MW rental power plant project, to be constructed at Fenchuganj, Sylhet.