Cabinet Committee on Purchase is set to consider a proposal for a 150 MW power plant in Syedpur to Chinese bidder Dongfang Electric International Corporation in its scheduled meeting on Wednesday.
According to official sources, the state-owned Power Development Board (PDB) has selected the Dongfang Electric as its engineering, procurement and construction (EPC) contractor to install the plant on ECA (export credit agency) financing.
Under the ECA financing, the bidder has to arrange the required fund to implement the project at its own cost like supplier`s credit financing.
After implementation, the government will repay the loan including its interests, reports UNB.
Normally, such credit is very costly one as the financier charges higher interest rate compared with other financing modalities.
Official sources said the Dongfang was selected at a contract value of $68.485 million. However, including taxes, the cost stood at Tk 5.93 billion.
PDB officials said the power plant will be a high speed diesel-based one to be installed at Syedpur replacing the existing 20 MW power plant there.
They also informed that the PDB had to invite tender twice to find a suitable bidder for the project as all the 11 bidders were disqualified in the first-time tender.
In the second tender, according to a Power Division document, some 10 bidders submitted their proposals of which Dongfang Electric came out to be the qualified bidder offering the lowest per kilowatt hour (each unit) generation cost.
