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Govt extends tenure of another rental plant

The approval comes following extension of contracts for four plants last week under unsolicited deals

  • Staff Correspondent
  • 6 January, 2022 12:00 AM
  • Print news

The agreement to purchase power from a 40 megawatt gas-fired rental power plant in Bhola has been extended for four more years.

A meeting of the Cabinet Committee on Government Purchase (CCGP) with Finance Minister AHM Mustafa Kamal in the chair on Wednesday approved a proposal of Bangladesh Power Development Board (BPDB) in this regard.

The approval came following extension of contracts for another four plants last week under unsolicited deals.

Power Purchase Agreement with private firm Venture Energy Resources Ltd. has been extended for another four years to get electricity from the existing 40 megawatt gas-fired rental power plants in Bhola, said additional secretary at Cabinet Division Shamsul Arefin.

Bangladesh Power Development Board (BPDB) will have to spend Tk 3.81 billion during the extended contract period.

However, the power tariff has been lowered to 3.3970 US cents (Tk 2.72) from 3.49 US cents (Tk 2.79) per kilowatt hour (unit).

The lower tariff will save Tk 498.8 million in next four years, Arefin said.

The CCGP also cleared a procurement proposal to set up a 70MW grid-connected solar power plant at Ishwardi, Pabna as part of the government’s going-green power policy.

The grid-tied solar power plant will be set up by the consortium of Daehan Green Energy Co. Ltd, HI Korea Co. Ltd and Pabna Solar Power Ltd.

The BPDB will purchase electricity from the plant at 10.15 US cents (equivalent to Tk 8.12) per kilowatt hour involving a cost of Tk 18.43 billion under a contract period of 20 years.

Another proposal of BPDB was approved to purchase electricity from a 50 MW grid-tied solar power plant which will be set up by the consortium of Total Eren S.A., France, Norwegian Renewables Group AS, Norway and Urban Services Ltd, Bangladesh.

The BPDB will purchase electricity from the plant at the same rate of 10.15 US cents (equivalent to Tk 8.12) per kilowatt hour over the contract period of 20 years involving a cost of Tk 13.15 billion.

A proposal of Bangladesh Rural Electrification Board (BREB) received approval of the Cabinet Committee on Purchase to procure 32,400 SPC poles from the Joint Venture of Castle Construction Co. Ltd. and Poles and Concrete Ltd. Dhaka at a cost of Tk 315.9 billion. The committee also approved a proposal of the Bangladesh Chemical Industries Corporation to import 30,000 metric tons of bulk granular urea fertiliser from Distribution Limited, UAE at a cost of Tk 2.47 billion.

Another similar proposal of the same entity to import 30,000 MT of bulk fertiliser at Tk 2.47 billion from Muntajat of Qatar received approval of the committee.

The BCIC’s another proposal to import 25,000 MT of rock phosphate from Gentrade, UAE, at Tk 814.9 million was approved.

The committee approved two separate proposals of the Bangladesh Agriculture Development Corporation to import 40,000 MT of DAP fertiliser at Tk 3.09 billion and 30,000 MT of MOP fertiliser at Tk 1.53 bilion.

Each metric tonne of DAP will cost $900 and MOP $593.75 considering the US dollar rate at Tk 85.50 against taka.