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Singapore firm gets power contract without tender

Star Business Report
After scrapping a two-year-old private power contract with an Indian company to build a 370-megawatt dual fuel power plant in Sirajganj, the government has arbitrarily decided to award the job to a Singaporean company without any tender.
The Prime Minister's Office (PMO) has recently approved the power ministry's proposal to award the contract on the basis of unsolicited negotiation to Sembcorp Industries of Singapore under a special law aimed at fast increasingenergy and power supply.
The law was originally enacted to speed up rental power contracts and overcome the country 's power crisis as fast as possible
This is the first instance of placing a large power project under the act to bypass legal requirements of a government contract.
The PMO also approved shifting tht power project to the North-West Powei Generation Company from the Power Cel' of the power ministry which was originally spearheading the scheme.
As per the proposal, Sembcorp wil implement the project at the price origi nally offered by Indian company Lanco.
Lanco had offered a 22-year levelisec tariff of $3.99 cents forgas-fired power anc $16.96 cents forfiiel oil-fired power.
However, the company refrained fforr depositing the mandatory $13 million a; performance security deposit (PSD) anc resorted to various delay tactics.
Sembcorp, locally represented by ar influential political lobby, in June this yeai proposed that it would pay the PSD anc implement the project as per the agree ment with Lanco.
The power cell on September 1 terminated the deal with Lanco and recommended in favour of the Sembcorp deal.
Sembcorp claimed to have developed and operated power plants totalling 7,200mw capacity.
The Asian Development Bank, Singapore's financier Clifford Capital and some other financers have expressed interest to fund the Sirajganj project, if Sembcorp is awarded the job.
"There was little sense of urgency from the part of the government to push ahead with this project for the last two years. But now suddenly they have become so serious that they opted for an unsolicited deal instead of going for a retender," said a power division official.