BPDB's tender floating for 10 grid-connected solar plants faces setback

State-owned Bangladesh Power Development Board (BPDB) has failed to float an open tender for setting up 10 grid-connected solar power plants in the private sector, despite a top-level decision by the Power Division as part of renewable energy promotion.

"The officials concerned have not been able to complete their preparations to float the tender, even though the decision is being given the utmost priority by the interim government," said a source requesting anonymity.

Earlier, the Power Division directed the BPDB to float the tender for the development of 10 grid-connected solar power plants in the private sector, each with a capacity of 50 megawatts (MW), totalling 500 MW.

Sources said the move came against the backdrop of the interim government's decision to not sign any further contracts under the Quick Enhancement of Power and Energy Supply Act (Special Provision) Act, 2010.

As a result, the future of 34 proposed private-sector grid-connected solar power plant projects, for which the BPDB had previously issued Letters of Intent (LoI) under the previous Awami League government, has become uncertain.

BPDB had selected these firms through the process of "unsolicited offer" under the Quick Enhancement of Power and Energy Supply Act (Special Provision) Act, 2010.

Under this law, the government can award the contract of a project to any private firm without a tender process.

Energy experts have criticised this special act as the root cause of all corruption and irregularities in the power and energy sector during the Awami League tenure.

They alleged that many underqualified private companies were awarded power plant projects, significantly increasing costs and contributing to an annual sector loss of Tk 70,000 crore.

As a result, after the fall of the Awami League government in a mass uprising, the Prof Muhammad Yunus-led interim government assumed office and decided to suspend the law and not sign any further contracts under this act.

The interim government's Energy Adviser Dr Muhammad Fouzul Kabir Khan announced the decision soon after assuming office in the power and energy ministry, saying that all future projects will be implemented through an open tender process.

This decision, however, put the private sponsors, who pursued the 34 solar projects, in great difficulty as they had already spent huge amounts of money to procure land and secure the LoI.

In such a situation, they expressed their interest in getting these projects through a competitive bidding process and securing the contract through open tender.

"We have decided to initially float a tender for setting up a good number of location-wise 50 MW solar projects. It will help those who have already procured land to get the project through a competitive bidding process," Power Division Senior Secretary Habibur Rahman told UNB about 10 days ago.

He said the government is trying to implement solar power projects as part of renewable energy promotion.

The private sponsors will set up the plants at their own cost and the BPDB will purchase electricity from the private plants for a specific period of time.

"The BPDB will soon float the tender for a number of grid-connected solar projects, each of 50 MW capacity. Mostly, those locations will be selected where power evacuation facilities are available with grid substations," said the secretary.

He, however, did not provide details of the locations.

A senior BPDB official mentioned that mainly the Independent Power Producer (IPP) Cell-1 has been working on preparing the tender document and site selection.

Despite repeated calls over the mobile phone, IPP Cell-1 Director Shamsuzzoha Kabir did not respond to queries in this regard.