The power division is taking an initiative without issuing a solicited work order despite the High Court ruling on supply of coal to Patuakhali'sRNPL (RPCL-NORINCO) through Direct Purchase Method (DPM).
Despite Yangthai Energy being deemed financially and technically qualified in the fourth round of the Open Tender Process (OTM) tender for supply of coal to the power plant, the power department is taking this initiative without issuing a solicited work order.
However, the Singapore-based company has filed a writ petition in the High Court and obtained a verdict in its favor. There has been widespread criticism in the relevant circles about the purchase of coal through the DPM, ignoring the verdict.
Power, Energy and Mineral Resources Advisor Muhammad FauzulKabir Khan said, "We have to run the power plant. A Singapore-based company has obtained a court ruling. I know.
Even then, when asked why coal will be purchased through the DPM, he said, "The secretary can speak better on the issue of spot purchase. I assure you that whatever happens will be done in accordance with the law."
However, there have been allegations regarding coal supply, and the ministry is taking various steps to purchase coal through the DPM process in the interest of a Singapore-based company called Jinhe Global Commodity Supply Chain.
On November 24, a Singapore-based company called Jinhe Global Commodity Supply Chain sent a letter to FaozulKabir, advisor to the Ministry of Power, Energy and Mineral Resources, offering to supply coal directly from the mine.
Despite Yangthai Energy being deemed financially and technically qualified in the fourth round of the Open Tender Process (OTM) tender for supply of coal to the power plant, the power department is
taking this initiative without issuing a solicited work order
It stated that it was interested in supplying coal at existing coal price (based on the price of coal supplied by Yangthai Energy). Then, on January 4, the advisor instructed the secretary of the concerned department to look into the matter.
However, the local representative of this Singapore-based company, RedsunAgrosim (BD) Limited, has no experience in coal supply. Even after the court verdict, Yangthai Energy, which offered an affordable price, did not give a purchase order for coal supply, complicating the process for the syndicate, which has closed the power plant.
A review of recent letters exchanged between RNPL, the Power Department and the BPDB shows that the Managing Director of RNPL wrote a letter to the Secretary of the Power Division in a tactful manner, asking a special company to procure coal through direct procurement.
In that letter, it was stated that the power plant would be shut down if coal could not be procured quickly. The letter, signed by RNPL Managing Director AHM Rashed, stated that three types of methods can be followed for coal procurement.
First, coal can be procured through mine selection following the direct procurement method, second, coal stored in Matarbari as an interim measure to start the power plant and third, coal can be purchased following the Limited Tendering Method (LTM) method.
Experts say that the remaining two alternative methods mentioned are not at all realistic decisions for operating power plants in Bangladesh.
The RNPL authorities approved several decisions to purchase coal in the company's 68th board meeting on December 10 to start the power plant. Approval of coal procurement on an emergency basis through variation orders from the EPC contractor consortium (TEPCO-CHEC-CWEC) until the power plant is put into commercial production
According to PPR experts, after various stages of evaluation through competitive international open tender, financially and technically qualified companies are selected. Without following this, hastily inviting such tenders, allowing a related company to supply coal directly through spot purchase/DPM method, or using EPC contractor to procure coal will increase syndicate manipulation.
