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Bibiyana-3 power plant okayed

Agreement signed for Siddhirganj plant

Staff Correspondent
The cabinet committee on purchase yesterday approved Bibiyana-3 gas-fired power plant project with a capacity of bet ween 300 MW and450MW.
The committee gave the approval at its meeting at the Cabinet Division, with Finance Minister AMA Muhith in the chair.
It also gave nod to purchase 88 air-conditioned buses under an Indian credit of $1 billion, and appoint consultant for design review and supervision of Moghbazar-Mouchak flyover project at a contract value ofTk 13.25 crore.
Six companies contested the bid to set up the public sector power plant at Bibiyana in Habiganj. Of them, consortium of Marubeni Corporation and Hyundai Engineering and Construction Co Ltd won the bid as they became the only responsive bidder.
The Power Division proposal said bids by five Chinese companies were declared technically non-responsive as part of their bids fell under the rejection clause of the tender document.
Japan Bank for International Cooperation will finance the Tk2,923 crore scheme under buyer's credit.
A Cabinet Division official said the communications ministry had planned to buy 100 buses, but the purchase committee approved buying 88 buses as the price of the vehicles has increased.
Indian company Ashok Leyland Limited will supply the buses at a cost of $6.09 million.
The cabinet body also endorsed a proposal to import 3.9 lakh metric tonnes of Muriate of Potash (MOP) fertiliser from Belarusian Potash Company at a cost ofTk 1,878 crore. DEAL SIGNED TO BUILD 335-MW SIDDHIRGANJ PLANT A joint venture consortium of Isolux Ingenieria SA and Samsung C&T Corporation yesterday inked an agreement with Electricity Generation Company of Bangladesh Ltd (EGCB) to build a335-megawatt power plant in Siddhirganj.
The project will cost $339.18 million. Of the amount, the World Bank (WB) will provide $196 million and the government will finance the rest.
Jose Garrido, managing director of Isolux Ingenieria SA, Sungki Na, general manager of Samsung C&T Corporation, and Kazi Nazrul Islam, company secretary of EGCB, signed the deal on behalf of their respective sides at the Bidyut Bhaban in the capital.
The consortium will have to set up the gas-fired combined cycle power plant within the next 30 months. It will import the machinery from American energy giant General Electrics.
Speaking as the chief guest at the agreement signing ceremony, Finance Minister AMA Muhith said the present government has increased the power generation capacity of the country.
Around 31 percent of the country's total electricity demand is now met by rental and quick rental power plants, he mentioned adding, the government will lessen it to seven percent by 2016 through setting up such big power plants.
The EGCB, an enterprise of Bangladesh Power Development Board, presently generates 210MW and plans to increase it to 1000MW within the next 2.5 years, said Md Abul KalamAzad, secretary of Power Division.
Ellen Goldstein, country director of WB, said this project is one of the least cost power solutions in the country and it would produce 50 percent more electricity by consuming less gas.
She said the country has made a tremendous progress in power generation and has reduced the system loss up to 13 percent by practicing better management.
Prime Minister's Energy Adviser Tawfiq-e-Elahi Chowdhury, State Minister for Power Muhammad Enamul Huq, and Spanish Ambassador to Bangladesh Luis Tejada Chacon, spoke at the function.