The government on Tuesday approved a proposal to dig five gas wells in Bhola at an estimated cost of Tk 907.29 crore to boost domestic gas production, reduce reliance on imported fuel and strengthen national energy security.
It also endorsed several large-scale power distribution projects aimed at modernising and expanding electricity infrastructure in the Dhaka and Mymensingh divisions.
The approvals came at a meeting of the Advisers Council Committee on Government Purchaseat the Cabinet Division Conference Room of the Bangladesh Secretariat with Finance Adviser Dr Salehuddin Ahmed in the chair.
The committee approved the proposal from the Energy and Mineral Resources Division to drill five new gas wells in Bhola.
These include Shahbazpur-5, Shahbazpur-7, Bhola North-3 and Bhola North-4 and Shahbazpur North East-1.
The wells will be drilled through an international tender process using a one-stage, two-envelope procurement method on a turn-key basis.
Bangladesh to drill 3 new gas wells as govt clears Tk 1,136cr exploration plan
Following technical and financial evaluation, Sinopec International Petroleum Service Corporation of China was recommended as the responsive bidder.
It is also expected to support industrial growth and ensure a more stable gas supply for power generation and other economic activities.
In the same meeting, the committee reviewed and approved four major power distribution procurement proposals under a special revised project titled “Modernisation and Capacity Enhancement of BPDB Power Distribution System (Dhaka–Mymensingh Division).”
The project include construction and augmentation of 12 air-insulated 33/11 kV substations on a turn-key basis, six substations at a cost of Tk 130.00 crore, another six substations costing Tk 113.82 crore.
Two other approved proposals are construction and augmentation of 14 gas-insulated 33/11 kV substations, seven substations at an estimated cost of Tk 220.90 crore, seven more substations costing Tk 207.91 crore.
The committee noted that the power distribution projects would help meet rising electricity demand, reduce system losses, improve grid reliability and ensure a better quality of power supply across the Dhaka–Mymensingh division.