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Offer for 438 MW power plant at Raozan likely to get Cabinet body nod next week

Published : Thursday, 11 August, 2022 at 12:00 AM  Count : 623
Nurul Amin

CHATTOGRAM, Aug 10: The lowest tender for construction of the 438 MW combined Cycle Power Plant at Raozan is expected to be approved by the Cabinet Committee on Government Purchase (CCGP) next week.
Meanwhile, the Power Development Board (PDB) had completed the evaluations of six foreign tenders submitted for construction of the 438 MW combined Cycle Power Plant at Raozan.
Munshi Bashir Ahmed, Project Director, told the Daily Observer that lowest tender for the plant had been recommended for approval.
According to PDB sources, seven foreign tenders were submitted in January last for the Raozan project.
Of them, six firms responded to the PDB tenders and submitted their finacial and technical offers.
PDB authorities have already completed the evaluations. The selected offers have been submitted to the Ministry which have been approved in the meantime. The tenders belong to China, Egypt, Spain and India.
According to the Power, Energy and Mineral Resources Ministry sources, the International retenders were invited on September 21 last. The last date for selling tenders was November 8 while the date of submission was November 9.
The Bangladesh Power Development Board (BPDB) had earlier cancelled all the previous tenders due to dispute developed for appointment of the lowest bidder.
According to Ministry sources, earlier one Chinese firm Sepco had been selected as a contractor as it offer was the lowest. As usual, the Notification of Award (NoA) had been issued for signing an agreement within August. But the selected firm did not come forward for signing an agreement.
The sources further said that the firm had advocated for enhancement of the tender value for increase of the rate of construction materials following the C-19 Pandemic. But, it is not possible for the Ministry to enhance the bid value, sources said.
Later on, the Ministry cancelled the tender and decided to invite retender for the plant.
The government earlier had taken a decision to set up one 438 MW Combined Cycle Power plant in Raozan at the site of existing two 420 MW capacity power plants.
The Bangladesh Power Development Board (PDB) is going to build the power plant at a cost of Taka 2,087 crore. The new 438 MW gas-fired combined cycle power plant will be built on the PDB's own land adjacent to the existing Raozan 420 MW thermal power plant.
Meanwhile, the proposal for appointment of a contractor had been approved in the Cabinet Committee on Government Purchase (CCGP) on May 19 in 2021.
After completion of the preliminary work, a tender was called for the appointment of EPC (Engineering, Procurement and Construction) contractor of the project on December 31, 2019. The tender was accepted on August 28 in 2020. At the end of the review, Sepco China was selected as the lowest bidder. Sepco China, Chinese company had been selected as the lowest bidder for EPC Contractor at a cost of Rs 1.8 billion.
The new project will use gas as fuel amounting to 100 million cubic feet.
Meanwhile, both the existing two units of Chinese generators are facing manifold problems from the very beginning.
The first unit of Raozan 210 MW Thermal Power Station was set up in 1990 at a cost of Taka 664 crores with the technical and financial assistance of a Chinese firm CMEC which went into operation on July in 1993 last.
The second unit of Raozan 210 MW Power Station was set up by the Chinese firm CMEC in July 1994 at a cost of Taka 538 crores which went into operation on September 1997 last.
Since its inception the first unit faced mechanical faults for about 500 times while the second unit faced 300 times.
It takes at least 72 hours to resume generation if any unit is suspended for mechanical faults.
Meanwhile, none of the two units, were able to run in full capacity to generate 210 MW since its inception.
PDB sources said that both two existing units of Raozan would be closed down with the commissioning of the new plant on December 2023 next.

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