A tender proposal of Tk145 crore on setting up of 14 petroleum storage tanks in Mongla Port area is likely to be considered by the Cabinet Purchase Committee in its any meeting.
Once the tanks are built, the storage capacity of the state-owned Bangladesh Petroleum Corporation (BPC) will increase by 100,000 tonnes against its present storage capacity of 1.2 million tonnes.
BPC Chairman Yunusur Rahman said the storage tanks would also provide an alternative fuel storage arrangement alongside its existing storage in Patenga in Chittagong port areas.
He said BPC has selected a firm for the project and its proposal was forwarded to the Energy Ministry three months ago for the Cabinet Purchase Committee’s approval.
Yunus, however, would not give details of the tender proposals.
Officials said the growing demand for petroleum fuel, particularly for the liquid fuel-based rental and quick power plants, has heavily pushed up the requirement for more fuel storage spaces.
In the last few years, the annual consumption of petroleum fuel has increased to 5.5 million in 2014 from 3.2 million in 2009 following the installation of 2,200 MW rental and quick rental power plants where BPC is responsible for their fuel supply.
According to Energy Ministry officials, the BPC has selected the proposal of a local joint-venture firm among three qualified bidders for awarding the contract to build up the fuel reservoirs.
Of the firms, Maxwell Engineering Limited-Pipeliners Limited became the first lowest bidder offering a cost of Tk155.98 crore for the construction of the 14 fuel tankers while MBEL-CPCL (JV) emerged as the second lowest bidder with its offer of Tk159.31 crore as cost.
Local firm Dipon Gas Company was the third lowest bidder offering a cost at Tk192.50 crore.
Officials said all the tender offers were above the approved project cost of Tk144.89 crore as per revised development project profile (RDPP).
But, the officials claimed that the Maxwell had finally agreed to slash its offer to Tk 145crore from its original offer of Tk155.98 crore through negotiations.
