Contracts of rental power plants renewed

The government has renewed the contracts for four rental power plants by up to three years to maintain a steady supply of electricity.  

The decision came at yesterday's meeting of the cabinet committee on purchase chaired by Finance Minister AMA Muhith.

The tenure of the three rental power plants run by Energy Prima was extended by three years and that of Venture Energy Resource by two years.

This is the second extension for Energy Prima's three plants. Their tenures were first extended for three years in 2011, which expired in August last year. The company applied for another renewal but for five years this time.

If the agreement is not renewed, it will hamper production of 100MW of electricity.

If new companies get new work order, it will take at least nine months to come into commercial operation. Their tariff rates will also be higher, according to the proposals.

Venture Energy Resources also got the extension for the second time. It had applied for an extension for 10 years.

Bangladesh will have to buy power from these gas-based power plants to ensure a smooth supply of power to the national grid until the coal-based power plants get ready in 2018. Apart from the contract renewals, the tariff for the extended period was also approved.

The government renegotiated the tariff with one of Energy Prima's plants.

Its plant in Shahjibazar will now charge Tk 2.9870 for a unit, down from Tk 3.7338 a unit, a move which will help the country save Tk 5.53 crore over the next three years.

The tariffs of the other two plants -- at Kumargaon and Bogra -- will stay the same at Tk 2.8934 and Tk 2.7168 respectively for a kilo-watt hour. Venture Energy's plant will also continue to charge the same as before: Tk 3.4849 a unit.

Energy Prima's plant in Bogra produces 20MW, Kumargaon 50MW plant and Shahjibazar 50MW; Venture Energy Resource's plant in Bhola generates 34.5MW.

Alsa at yesterday's meeting, the purchase committee also approved four proposals related to upgrading the Dhaka-Chittagong highway into four lanes.

It also gave approval to the import of 30,000 tonnes of phosphoric acid at $476.90 a tonne. Proton Trading and Desh Trading will import the acid.

The committee also approved a proposal to appoint Fitchner of Germany and UDS of South Africa as consultant under a project to supply prepaid metres for electricity consumers in Comilla and Mymensingh zones. The consultant will charge Tk 10.77 crore. The project is funded by German donor agency KfW.