The Hyundai E&C company Ltd has decided to leave the Marubeni–Hyundai consortium, which was awarded the job to construct the 400MW gas-fired power plant at Habiganj’s Bibiyana, with the South Korean energy firm reportedly planning on shifting its business to other locations, especially in Venezuela.
The Bangladesh Power Development Board (BPDB) has recently sent a proposal from Japanese energy firm Marubeni Corporation – saying it wanted to take total scope of the project as Hyundai desired to leave the consortium – to the Cabinet Committee on Public Purchase for its consent, a BPDB official told the Dhaka Tribune.
Last July, Hyundai E&C won a plant construction project worth approximately $4.8bn in Venezuela, where it is expected to shift its focus on.
The BPDB has already agreed to give initial permission to the proposal if different conditions are fulfilled including a new performance guarantee from Marubeni.
The Japan-based firm, Marubeni, has reportedly agreed to provide a new performance guarantee while the BPDB can return the performance guarantee of the Marubeni-Hyundai consortium. According to the proposal, the engineering planning contract (EPC) agreement between BPDB and Marubeni-Hyundai consortium will now be identified as the EPC agreement between BPDB and Marubeni.
Although the Bibiyana 3 plant was approved in May 2012, the construction is yet to begin in the absence of an EPC as the two members of the consortium did not sign a loan agreement.
Power Division Secretary Monowar Islam said the Japan Bank for International Cooperation – which will finance the Tk2,923 crore plant under buyer’s credit – has agreed to give loan to the Marubeni Corporation.
