Cabinet committee approves contract extension of 4 rental power plants

Some 11 proposals including extension of four rental power plants and import of 200,000 metric tonnes of rice from Myanmar received the nod of the Cabinet Committee on Government Purchase (CCGP) today (September 7, 2022).

Agriculture Minister Mohammad Abdur Razzaque presided over the meeting due to non-availability of Finance Minister AHM Mustafa Kamal.

According to official sources, rental plants are 100MW Julda, Chattagram, plant of Acorn Infrastructure Services Ltd, 50MW Katakhali, Rajshahi power plant of Northern Power Solutions Ltd, 100MW Keraniganj plant of PowerPac Mutiara Keraniganj Power Plant Ltd, and 50MW Amnura, Chapainababganj plant of Sinha Power Generation Company Ltd.

They said the four HFO-based power plants received the approval for two- year extension of their contracts under which the state-owned Bangladesh Power Development Board (BPDB) will purchase electricity for next two years.

"But contracts will be extended under a new term and condition-No Power, No Payment-basis. The operators will not get any capacity payment as per new condition," said a senior official at the Power Division.

He also informed that as a result of the new condition, the new tariff will be applicable in purchasing electricity.

"The sponsors of the rental plants will get only fuel cost plus a minimum operation and maintenance expense", he added.

 The CCGP approved a Food Ministry's approval to import 200,000MT of while rice (Atop) from Myanmar under a G2G contract.

The entire consignment will cost a total of USD 90.1 million while each ton will cost USD 465.50, said a top official of the Food Ministry.

The Cabinet committee also approved proposals on import of a total of 115,000 metric tonnes of fertilisers.

However, the price of the fertiliser was not learnt as there was no briefing from the Cabinet Division about the outcomes of the CCGP meeting.