MATARBARI POWER PLANT

Companies quote over $1b above estimated cost

Manjurul Ahsan | Published: 00:45, Mar 23,2017 | Updated: 16:51, Mar 23,2017

 
 

Two shortlisted Japanese companies have quoted $1.1 billion and $1.4 billion more than the estimated cost for the construction of a 1,200MW coal-fired power plant and other infrastructures at Matarbari in Cox’s Bazar.
The state-run Coal Power Generation Company Bangladesh Limited on Wednesday opened the financial proposals of Marubeni Corporation Sumitomo Corporation that quoted about $3.9 billion and $4.2 billion respectively for the job, said officials.
The government, however, estimated the cost of the engineering, procurement and construction contract of the project at $2.8 billion or approximately Tk 22,400 crore and the entire project cost at $4.6 billion or approximately Tk 36,800 crore, they said.
They said that the additional cost for engineering, procurement and construction contract would increase the total project cost to $5.8bn-$6.3bn.
Japan International Cooperation Agency would provide a major chunk of the project cost.
The power generation company would award the contract on completion of evaluation of the two financial proposals. In the past week, both the shortlisted companies were declared technically responsive.
The contract comprises construction of a jetty and coal handling facilities for coal import, coal storage, power plant, township development, rural electrification and construction of transmission facilities and road communication, they said.
‘We have opened the financial proposals of the two shortlisted companies today,’ power company managing director Md Abul Quasem told New Age on Wednesday.
‘We are planning to sign the contract by June,’ he said.
In the financial proposals, Marubeni wanted about $2.1 billion, ¥143.63 billion and Tk 37.389 billion for the contract while Sumitomo wanted about $2.59 billion, ¥92.32 billion and Tk 55.17 billion.
On January 31, the two companies submitted bids, technical and financial proposals, for the contract although they were scheduled for July 24, 2016 to submit the bids.
The power generation company extended the bid submission deadlines on four occasions as officials of the companies were scared to visit Bangladesh after July 1, 2016 Gulshan café attack in which seven Japanese along with 22 others were killed.
The first unit of the 1,200MW power plant with 600MW capacity would be commissioned by December 2022 and the other by June 2023. 

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