Sumitomo Corpn to get Matarbari power plant job
The technical evaluation committee (Tec) of Matarbari 1200 MW ultra super critical power project has recommended Sumitomo Corporation as the lowest competitive bidder for the construction of the plant at Matarbari in Cox's Bazar that would use imported coal.
The state-owned Coal Power Generation Company Bangladesh Limited (CPGCBL) opened the bid documents in February last and found that Marubeni quoted around $3.9 billion while the Sumitomo bided $4.2 billion for the job, but as per the evaluation report, "80 deviation has been found in Marubeni's submission which finally increase the cost of the power plant from US $300 million to US $400 million, said a member of the bid evaluation team.
Two Japanese firms? Sumitomo Corporation and Marubeni Corporation have technically qualified for setting up the country's first super critical power projects having the capacity to generate 1,200MW of electricity at Matarbari in Cox's Bazar.
The two firms submitted both technical and financial offers in two-envelop tender process. The CPGCBL authority first opened the technical offers of the two firms. Later, the financial offers were opened.
CPGCBL will implement the project at a cost of Tk 35,984 crore with Tk 28,939 crore financing from Japan International Cooperation Agency (JICA). The rest of the cost will come from government funds, however, as per agreement only Japanese companies were eligible to submit document here.
In February 1, two short-listed Japanese bidders submitted tender documents for the implementation of 1,200 MW coal-based power plant at Matarbari in Cox's Bazar. The two Japanese bidders-Marubeni and Sumitomo-had been shortlisted, following their submission of expression of interest (EoI).
CPGCBL will borrow $3.7 billion from JICA, at an annual interest rate of 0.1 per cent over 30 years, with a 10-year moratorium period. The remaining money will come from government funds.
"Evaluation of those tenders is not over yet. We have sent the report to the JICA and we will start the pre-contract negotiation with the company after their approval. Later, it will be sent for vetting but if JICA disagrees with the evaluation committee then it will take more time to settle the issue," the official said.
He said, "This power plant will be made after considering environmental issues. There is a description in the submitted proposal as to what will be done to keep the environment safe. The committee investigated the issues and found Marubini did not address 80 quarries related with the environment and technical issues."
Matarbari power project is a top priority government scheme implemented by the CPGCBL with funding from the Japan International Cooperation Agency (JICA). But uncertainty cast over its implementation following the aspirant Japanese bidders' reluctance to submit bid following the terrorist attack on the Holey Artisan Bakery at Gulshan on 1 July that killed 22 people, including seven Japanese nationals.
The government is building the Matarbari coal-fired power plant to ease the electricity shortage in the country. The project also includes a deep-sea port near the plant for handling coal imported for the plant. Officials said Japan has been funding the project line with its South Asian strategic plan titled "Bay of Bengal Industrial Growth Belt (BIG-B)." Japanese Prime Minister Shinzo Abe announced the funding during his Dhaka visit in 2014.