Tenure of five rental power plants extended by two years

Originally posted in The Financial Express on 23 March 2022

The government of Bangladesh has approved separate proposals for extending the timeframe by two years of five rental power plants from the date of effectiveness.

The approval came from the 10th meeting of the Cabinet Committee on Government Purchase (CCGP) this year held on Wednesday virtually with Finance Minister AHM Mustafa Kamal in the chair, report UNB and BSS.

Briefing reporters after the meeting, the finance minister said that the meeting approved a total of 11 proposals including seven proposals in the power sector and one in the energy sector.

As per the proposals, the government will pay a total of Tk 52.059 billion to purchase electricity from the plants during the contract period.

The finance minister said these plants were approved on a ‘no electricity, no payment’ basis.

Joining the briefing virtually, Cabinet Division Additional Secretary Md Zillur Rahman Chowdhury said that the fresh tenure for all the five rental power plants has been extended by two years although the proposal for extending the tenure was five years.

Zillur said it was discussed in the meeting that the country is likely to get another 3,000 MW of power within the next 1 to 3 years for which perhaps there would be no necessity of such rental power plants in future.

He informed that the negotiated tariff for these rental power plants would be 3.40 US cents or Tk 16.4077 for kilowatt-hour electricity which was previously Tk 17.5293.