Chinese Firm Gets 150-mw Sylhet Power Plant Deal

The cabinet committee on purchase yesterday approved a proposal of the power division to set up a 150 megawatt (MW) simple cycle gas turbine power plant at Kumargaon in Sylhet at a cost of Tk 704.52 crore (equivalent to US$ 101.5 million) to meet the growing demand of electricity in the eastern region of Bangladesh.

The decision, awarding the work to Chinese company M/S Shanghai Electric Group Company Ltd as lowest bidder, was taken at a meeting of the committee held at the cabinet division with the finance minister Abul Maal Abdul Muhith in the chair.

According to the tender proposal, the Chinese firm will supply and install the simple-cycle gas-turbine plant on a turnkey basis within 540 days from the signing of contract for the Power Development Board (PDB).

Muhith later told reporters that the committee approved the proposal for setting up the 150 MW plant in Kumargaon for reducing load shedding and generation loss of power in Sylhet area.

"We have selected M/S Shanghai Electric Group Company Limited of China as a lowest bidder to set up the new power station," he said.

The meeting also approved another proposal of the power division to amend the contract of joint venture of SNC-Lavalin International Inc of Canada and SMEC International Private Limited of Australia for management and supervision of implementation of the Siddhirganj Peaking power plant contract package No. S-33. The plant involved Tk 21.73 crore.

The committee also approved another proposal of the works ministry to construct of 360 residential flats, each having 1,336 square feet of floor space, for government officials.

Thursday's cabinet committee meeting was attended by agriculture minister Matia Chowdhury, planning minister AK Khandker, food minister Dr. Abdur Razzak, commerce minister Faruk Khan, communications minister Syed Abul Hossain as well as senior officials concerned.

UNB adds: Official sources said that the 150-MW simple-cycle plant is the first power project that has been approved by the Awami League-led grand alliance government since it assumed office 8 months ago.

However, Communications Minister Syed Abul Hossain's business company-SACO - is believed to be the local agent of the China-based Shanghai Electric that obtained the contract for the huge power plant.

A total of four companies had submitted bids for the project, and among them, Shanghai became lowest responsive bidder offering Tk 704.51 to be the project cost (which consists of Euro 39.87 million plus US$ 47 million plus Tk 202 million). It quoted the gas turbine's net capacity to be 142.250 MW.

The other bidders were China Chengda Engineering, Indian Bharat Heavy Electricals Limited (BHEL) and JV Gammon-Sadalmi Ltd.

The work for constructing two multi-storied buildings at Mirpur Section-2 as part of a project for building 360 flats was awarded to a lowest bidder at a cost of Tk 32.98 crore.