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Shanghai gets Sylhet power job

Purchase body okays bid despite flawed tender documents

Staff Correspondent
The cabinet purchase committee yesterday approved a Tk 704 crore bid for setting up a 150-megawatt combined cycle power plant in Sylhet by China's Shanghai Electric Company (SEC).
The committee made the approval at a meeting at the Cabinet Division of the Secretariat with Finance Minister AMA Muhithin the chair.
The SEC bagged the deal despite submitting flawed bid documents. Besides, some vital machinery offered by the company is not backed up with proper performance guarantee.
An influential ruling party man is working as the local representative of the Chinese company.
Mentioning the reason for ignoring such irregularities, a top source at the Power Development Board (PDB) earlier told The Daily Star," We have okayed this bid because it's the sixth tender and we can not afford to waste any more time on this project.”
All previous five tenders fell flat following influence of powerful lobbies.
PDB made its recommendation in early July for awarding the deal to the SEC.
The tender floated on October 26 last year for this project had flaws from the beginning as the power ministry on December 12 abruptly changed a bid criterion allowing any power company with overseas experience of installing "any type" of power plant to participate in the bidding.
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The original bid criterion set by the PDB was that the power company must have the experience of installing gas turbine power plants. The change in this criterion compromised the quality of bids.
Four companies submitted bids offering project cost of around $100 million but they all failed to comply with the terms and conditions of the tender.
The evaluation committee found that all bid proposals lack supporting documents and fall under the Rejection Clause of the tender. Under the Public Procurement Rules, there is no scope for evaluating the bids that do not comply with the Rejection Clause.
S SEC showed Barapukuria coal-fired 250-megawatt power plant as one of its accomplishments. This plant was actually built by a Chinese consortium led by CMC along with SEC and SEEC.
The SEC offered a gas booster compressor from Shanghai Fiorentini China, which has no experience of supplying such equipment. But interestingly, the SEC submitted performance certificate issued by end-users mentioning that the gas booster has been supplied by Pietro-Fiorentini in Italy, not by Shanghai Fiorentini.
Gas booster had been a major issue for the Harbin's Tongi 80-megawatt power plant that tripped dozens of times alone because of installation of a wrong gas booster by that company.
The plant tripped more than 100 times in the first two
years of operation since March 2005.
The purchase committee also approved a Tk 33 crore housing project under the Public Works Department for government staff. A total of 360 flats of 1,336 square feet each will be constructed under the project at Mirpur section-2.
The committee also renewed a Tk 23 crore contract with an Australian-Canadian joint venture company for operation and maintenance of Siddhirganj power plant.
The committee approved another project worth Tk 66 crore for rehabilitation of a 37.5 kilometre rail track at Faujdarhat.