Patuakhali RNPL power plant faces allegations over late tender acceptance

The coal supply tender process for the RPCL-Norinco International Power Limited (RNPL) Patuakhali 1320 MW Power Plant, which began over two and a half years ago, has become controversial after two tenders were accepted past the official deadline on 20 March.

Engineer Md Selim Bhuiyan, managing director of RNPL, told media that the tenders were accepted despite being late, referring to them as "late tenders." 

He stated that the issue would be addressed in an upcoming board meeting.

The acceptance of late tenders has raised concerns among other participants in the process, with some suggesting that the decision might have been made to favour one particular company. 

A board meeting was convened to validate the late tenders, raising further questions about the transparency of the process.

According to Clause 37 of the tender documents, "Any tender received by the purchaser after the deadline for submission of tenders as stated under ITT Sub-Clause 36.1, shall be declared late, rejected, and returned unopened to the tenderer."

Speaking to The Business Standard, the RNPL managing director confirmed that four companies submitted tenders on time, while two were late.

He explained that the tenders are under review, and the board will make the final decision. 

He denied any accusations of bias, stating that there was no intention to favour any particular company.

In response to media inquiries, Muhammad Fouzul Kabir Khan, adviser to the Ministry of Power, Energy, and Mineral Resources, stated that he was not directly involved in the day-to-day operations at the enterprise level. 

"If irregularities occur, the media will report them, and I will investigate," he added.

The RNPL power plant, which uses advanced Ultra Supercritical technology, began test production of its first unit (660 MW) on 18 January this year. While it was initially scheduled to enter commercial production this month, mechanical issues have delayed this. The second unit is expected to start production in June.

Located on 921 acres of land along the Rabnabad River near Payra Sea Port, the plant is being developed at a cost of approximately Tk27,000 crore. The project is a joint venture between Bangladesh's Rural Power Company Limited (RPCL) and China's state-owned Norinco International Power Company Ltd, with both companies holding equal ownership.

Tender process delays

After multiple tender extensions and two calls for tenders, a re-tender was issued on 3 February this year, although the process had not been completed. 

The deadline for submission was set for 6 March, but authorities extended it by another two weeks due to a change in the coal price index.

The final submission deadline was 20 March, until 12pm. PT Sumber Global Energy Tbk, Liannex Corporation (5) Pte Ltd, Yongtai Energy Pte Ltd, and AVRA International DMCC submitted tenders on time. 

However, after the deadline passed, United Group and Sena Kalyan Sangstha sought to submit their tenders. Furthermore, United Group's tender lacked the necessary company seal. After objections from other participants, both companies were excluded from the final list of accepted tenders.

The tender process, which began in November 2022, faced delays throughout, and a single-company tender was issued in November 2023. Despite 11 companies purchasing the documents, only Singapore's Yongtai Energy Pte Ltd submitted a bid.

In response, the RNPL board decided on 20 January to restart the tender process, following instructions from the Ministry of Power, Energy & Mineral Resources. 

The board also allowed joint venture companies to participate, despite the Public Procurement Regulations (PPR) 2008 prohibiting joint ventures. 

Regarding the matter, Iftekharuzzaman, executive director at Transparency International Bangladesh told TBS, "This is a clear violation of procurement policies. Allowing tenders to be accepted after the deadline to favour someone is unacceptable. 

He added, "It shows that while authoritarian rule may have fallen, the practices have not. The interim government cannot avoid responsibility for this."