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Cabinet nods to 50 rural power substations

  • Published at 06:37 am May 20th, 2013
Cabinet nods to 50 rural power substations


Rural Electrification Board (REB) will build 50 new substations and upgrade 30 existing ones under 33 Palli Biddyut Samitys (PBSs) in four divisions of the country with an estimated cost of Tk4.16bn, an official said.

“The proposals for the four JICA-funded projects were approved in the meeting of cabinet committee on public purchase,” said joint secretary of the cabinet division Nurul Karim on Sunday after the meeting.

REB has taken a high interest loan from JICA (Japan International Cooperation Agency) for the work, according to project document.

REB will enhance the capacity of 30 existing substations under 19 PBSs from 5mva to 10mva, at an estimated cost of $18.2m. JICA will finance the project in Rajshahi, Rangpur, Khulna and Barisal divisions in the next fiscal, the project proposal said.

The power division awarded the contract to the lowest bidder, Energypac Consortium, which was approved at the cabinet committee meeting.

Energypac, a leading power engineering company in Bangladesh, has bid $13.4m, while the nearest bidder, CCC China asked for $20.5m.

The PBS proposals also include the construction of 23 new substations in Rajshahi zone at a cost of Tk1.13bn, 12 substations in Rangpur and 15 substations in Khulna and Barisal zones, costing about Tk708m and Tk720m respectively.

Energypac and Siemens Limited, India were awarded the construction contracts. This was also approved by the cabinet committee.

Under another proposal, the committee approved Energypac as the construction company for substations in eleven urban areas.

The areas are Cox’s Bazar Kalatali, Hatazari, Sarail Biswa Road in Brahmanharia, Sultanpur in Feni, three areas of Commilla, Khagrachharhi, Dighinala and Salkania.

The cost of this project was increased by 5.2 percent to Tk650m, as per the proposal.

The cabinet committee also approved a proposal to procure a dredger from India to maintain navigability of Mongla seaport to facilitate movement of bigger vessels.

Two Indian firms – Timblo Drydocks and Modest Infrastructure – participated in the bids to supply the dredger under the Indian $1bn credit line to Bangladesh. Only Indian firms have been allowed to participate in the tender as per the credit’s terms.

Timblo emerged as the lowest bidder. The cost of the dredger would be Tk676m, about 10 percent less than the estimated expenditure. Competitive bidding and devaluation of dollar against Taka have helped reduce the expenditure.