Bangla to go ahead with 450-MW Bheramara Power Project

Dhaka: The government has decided in principle to invite private sector investors, non-resident Bangla-deshis and banks to submit ‘expression of interest’ for participating in a public-private joint venture to set up a 450-MW power plant.

With power and energy adviser Tapan Chowdhury in the chair, a power division meeting on Wednesday decided that local investors, NRBs and banks could form consortiums and submit their expression of interests for setting up the plant jointly with Power Development Board or any other power agency.

After evaluation, one of the consortiums will be selected for installation of the plant that might cost Tk 3000 crore and replace either the proposed 450MW Bheramara or the 450MW Meghnaghat-II power plant projects.

Industrial and Infrastructure Development Finance Company Limited chairman Matiul Islam, Metropolitan Chamber of Commerce and Industry president Latifur Rahman, Dhaka Stock Exchange president Abdullah Bokhari and representatives from Federation of Bangladesh Chambers of Commerce and Industry, Dhaka Chamber of Commerce and Industry, Bangladesh Bank and Investment Corporation of Bangladesh were present at the meeting.

The meeting decided that the IIDFC, a development financial institution promoted by 10 public and private banks, three insurance companies and Investment Corporation of Bangladesh, would draft the ‘expression of interest’ by a week and the power division would convene another meeting on December 31 to discuss on the draft.

‘After finalising the EoI, the consortiums will be invited to participate in the public-private joint venture,’ Tapan told New Age after the meeting.
He explained that they had taken such initiative for public-private joint venture after a host of local entrepreneurs, banks and NRBs expressed interest in investing in the power sector.

‘We want to reduce dependency on independent power producers, mostly run by the foreign companies, and to engage our local entrepreneurs in setting up large power plants,’ he said.

He said that the joint-venture would also involve investors through capital market.

Power secretary M Fouzul Kabir Khan told New Age that the ‘expression of interest’ would specify the criteria for selection of a consortium. ‘The financial and technical capabilities of the consortiums and the power tariff fixed by them will be considered during evaluation,’ he said.
He said that the PDB or any other power agency would provide land that would be considered as equity while it may also involve some fund, provided by the government, as equity.

Tapan said that the joint-venture will work independently and the government would not interfere in its activities.

When asked, whether the Public Procurement Regulations 2003 or the private power generation policy supported such joint venture, Tapan said the joint venture would be formed under the existing rules.

The government had taken initiative to set up the proposed 450MW Meghnaghat-II power plant as independent power plant and the immediate past BNP-led government awarded a contract to controversial BON Consortium, led by Orion Group, for setting up the plant.

The interim government cancelled the contract after the consortium allegedly breached the contract.
Japan Bank of International Cooperation has expressed interest in providing loan for setting up the 450MW Bheramara plant.