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150MW Peaking Power Plant

Chinese companies rule Sirajganj tender

Sharier Khan
Eight companies including five from China yesterday submitted technical and financial bids for installing a 150 megawatt peaking power plant in Sirajganj under the newly formed North West Power Generation Company (NWPGC).
The Chinese companies are Shandong Electric, China National Electric Equipment Corporation (CNEEC), Sinohydro, Shanghai Electric Co, and CMC. The three other companies are Spanish Cobra and Isolux and Indian Bhel.
An influential ruling party man who is trying to influence different power tenders being staged by different government agencies is representing most of the Chinese companies.
The same person is also representing an Indo-Gennan power company in one of the recent tender processes.
This is the second tender floated by the NWPGC that floated the first tender for another 150 mw peaking power project in Khulna in which the same set of Chinese companies submitted theirbidson June 30.
Cobra and Isolux had also submitted their bids in that tender.
Sources say the NWPGC will take six weeks
to two months time for technical evaluation of the bids and then open the financial bids submitted by the companies. ,
The NWPGC has not yet completed the technical evaluation of the bids for its first tender for the Khulna power project although it was expected to be completed by mid-August.
fhe sources add it is expected to issue clarifications to the bidders soon to pave the way for the completion of the evaluation.
Meanwhile, the Electricity Generation Company of Bangladesh (EGCB) continues to go slow with its tender for the Siddhirganj 300 mw power project under the World Bank financing. The technical evaluation of the tender floated back in April.
Eight companies had participated in this tender including four Chinese and one IndoGerman companies represented by the same ruling party man.
Sources say the EGCB was under pressure from the beginning to award the contract to the Indo-German company Gammons that sought a read-out price of $186.59 million guaranteeing 283 mw power generation using two pieces of Italian Ansaldo equipment.
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There are several shortcomings in the bid documents of Gammons which actually disqualifies its bid, sources say.
Meanwhile, a letter from the World Bank in July informed the EGCB of a decision that German power plant equipment manufacturer Siemens has restrained from participating in World Bank Group financed projects till December 31,2010.
The WB against an allegation of corruption is now investigating Siemens. All the Chinese power companies bidding in the Siddhirganj tender use Siemens equipment.
This letter made the EGCB go slow with the tender until the power ministry asked it to complete the evaluation process.
lite sources say the EGCB and WB officials held a meeting on August 25 in which the WB emphasised on speeding up the process.
"Now the EGCB is in die process of seeking clarification from Gammons soon." says a source.