2 firms fail to add 160MW rental power in time
Once again, the Power Development Board (PDB) failed to increase generation as planned, because of two local contractors' failure to commercially launch their costly rental power plants by the June 4 deadline.
If the companies were successful in meeting the deadline, they could have added 160 megawatts of power generated from diesel, at a time when regular load shedding is angering World Cup football fans, because they are not being able to watch their preferred matches on TV.
Quantum Power Systems Ltd of furniture giant Otobi, and RZ Power Ltd of battery leader Rahimafrooz were served notices of default by PDB.
Both companies signed three-year contracts with the board on February 4. Those were the first two rental power deals penned by the incumbent Awami League-led government.
Neither of the two companies has prior experience of setting up any commercial power plant. In the past, PDB had similar experience with rookie power companies that had been awarded costly rental power contracts.
Quantum and RZ will now have to pay penalties to PDB at the rate of 500 US dollars per megawatt per day of the delay. In the past however, none of the local rental power companies paid the penalties properly after failing to fulfil contractual obligations.
They rather resorted to courts, and obtained injunctions against the penalties.
Quantum Power was awarded with a 110MW power project in Bheramara, while RZ Power got a 50MW plant in Thakurgaon.
On June 1, anticipating the delay, RZ Power formally informed PDB that it will need two to three weeks more beyond the June 4 deadline to commercially launch its plant.
RZ explained that it was purchasing transformers from an Indian manufacturer, and the equipment were supposed to reach Bangladesh by late May. But the manufacturer could not supply the equipment before early June. So RZ will need 15 to 20 additional days to launch the plant.
On the other hand, Quantum Power did not forewarn PDB about any delay, and it has yet to respond to the board's notice of default.
"Our project is being delayed because of security threats from three different groups of criminals," said Animesh Kundu, chief of Quantum Power and Otobi, explaining the company's official position about the delay in implementing the project in Bheramara.
According to Kundu, the three groups have been asking for money, and threatening the people working at the site. Because of the threats, 10 Chinese technicians of the project refused to work in three shifts. But in order to meet the deadline, all work must be carried out in three shifts instead of the present two.
"Honestly, at this rate, we will need three more months to complete the project," Kundu said.
The contracts gave the companies 120 days each to implement the rental power projects -- which should be easy to install and dismantle. However, the Bheramara plant is being set up like a conventional power plant, which is more complicated and time consuming to install.
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