BPDB likely to invite tender for setting up 10 grid-connected solar power plants

The Bangladesh Power Development Board (BPDB) is preparing to float tenders for the development of 10 grid-connected solar power plants in the private sector, each with a capacity of 50 MW, totalling 500 MW.

According to official sources, the move came against the backdrop of the interim government's decision not to sign any further contract under the Enhancement of Power and Energy Supply Act (Special) 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 Speedy Enhancement of Power and Energy Supply Act (Special) Act, 2010.

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

The energy experts criticized 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, Dr Muhammad Yunus led the interim government and decided to suspend the law and not to sign any further contract under the Speedy Enhancement of Power and Energy Supply Act (Special) Act, 2010.

Interim government's Energy Advisor Dr Muhammad Fouzul Kabir Khan announced the decision soon after assuming his office in the Power and Energy Ministry and said 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 trouble as they had already spent a huge amount of money to procure land and also to get the LoI.

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

"We've 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," senior secretary to the Power Division Habibur Rahman told UNB.

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-tied solar projects, each 50-MW capacity. Mostly those locations will be selected where power evacuation facilities are available with grid substations," said the power secretary.

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