3 power plants likely to get contract extension

Shamim Jahangir

20 February, 2019 12:00 AM printer

Despite acute gas crisis, the government is likely to allow extension of three small gas-fired power plants having a combined capacity to generate 33MW of electricity.

The government allowed the three power plants Asuganj, Madhabdi and Chandina for 15 years period subject to extension of the term contract on the basis of mutual agreement. The deal was expired on September 1, 2018.

According to sources, the government is now going to extend the tenure for another five year period. In May 13, 2015, the local power sponsored ‘Summit Power Limited’ proposed to extend the 11MW plants at Asuganj, Madhabdi and Chandina with existing terms and condition for 15 years period. It proposed per unit levelised tariff at Tk 3.099. After tariff negotiation, the government will set per unit at Tk 2.60 instead of existing tariff Tk 2.76 now.

“We have set lower tariffs for extension of the power plants,” said REB chairman Moin Uddin while talking to the Daily Sun yesterday. He added that the power plants will able to supply reliable electricity to the national grid.

According to BPDB sources, it has unable to generate more than 500MW-800MW of electricity due to gas crisis.

The Petrobangla had also a decision to stop gas supply in small power plants to ensure operation of the gas-based large power plants, sources said.

Besides, the industrial units at Ashulia are facing gas crisis due to poor pressure in gas supply.