Four of the much-hyped rental power plants have been given a new lease of life while a new plant gets the all-clear from the government for Chattogram.
A virtual meeting of the cabinet committee on government purchases, chaired by Finance Minister AHM Mustafa Kamal, on Wednesday gave the seal of approval for renewal of the tenures of the four and the setting up of the new power plant.
Of the four rentals, a 53-megawatt gas-fired rental power plant in Ashuganj, Brahmanbaria, sponsored by United Energy Ltd, has been given tenure extension for five years, officials said.
A handsome sum of Tk 4.51 billion will be spent from the public exchequer to buy electricity from the plant.
The Kumargaon 50-megawatt gas-based rental power plant, located in Sylhet Sadar upazila, got a one-year extension until December next year. From this one of the private plants government will purchase power at an aggregate cost of Tk 865 million. Energy Prima Ltd company owns this power plant.
Another gas-propelled 50mw rental power plant of Energy Prima Ltd, located in Fenchuganj, Sylhet, is also given tenure extension, for three years. The extension will cost the exchequer Tk 2.786 billion.
Energy Prima Ltd's another 20mw gas-driven plant, situated in Bogra district, also gets renewal for three more years. The government will buy electricity from the plant at Tk 1.06 billion.
Besides, a consortium of Confidence Power Holdings Ltd, GE Capital US Holding Inc, Confidence Power Ltd and Electropac Industries Ltd gets the go-ahead to set up a big-budget gas-or regasified liquefied natural gas (RLNG)-based 660-megawatt power plant in Mirsharai upazila of Chattogram.
Over a period of 22 years, the government will buy electricity worth Tk 691.52 billion from this major power plant-located in an area where a sprawling economic zone is being set up.
Asked about the necessity of tenure extension of the power plants, Mr Kamal said rental power will be bought on a 'no-electricity, no-pay basis'.
The tenures of many rental power plants have already passed off and they have already realised capital costs and all other things. "We do not have to pay extra charge for their operations. Only electricity price has to be given" says the minister.
He feels that Bangladesh will have to have some more power plants to meet demand as the government has stopped giving approval to new coal-fired power plants to keep the commitment to saving the planet from the impacts of climate change.
Already eight such power plants which were in the pipeline were cancelled, the minister says.
Replying to a query he said the ministry of finance has yet to receive any proposal for electricity-price hike.
To a query on a vital economic indicator like people's purchasing power he says the government has taken various steps to enhance people's affordability. "I believe people are in good position and able to afford (higher electricity price)."
A slew of rental and quick-rental power plants of private sponsors were hired years back to meet exigencies on-again, off-again power supply for outages under pressure of burgeoning demand. The undertaking was adopted by making an indemnity law.
The meeting also approved import of 50,000 tonnes of wheat from India, procurement of oral pills, and some variation proposals of the ministry of shipping.
syful-islam@outlook.com
