Cabinet body approves extension of two more pvt power plant deals

Cabinet Purchase Committee approved Tuesday the extension of power purchase agreement (PPA) of two more power plants in the private sector, reports UNB.

The committee, at a meeting with Finance Minister AMA Muhith in the  chair, gave its nod to the proposals of the Power Division for extending the deal of 110 MW NEPC barge-mounted power plant (BMPP) at Haripur in Narayanganj for one year while that of 53 MW Ashuganj United Power Ltd in Ashuganj power station for five years.

Under the extended deal, the government will purchase eelectricity from 53 MW Ashuganj United Power Plant at Tk 3.28 per unit (per kilowatt hour), down from earlier tariff of Tk 5.20 per unit.

The NEPC's new power tariff was set at Tk 15.85, down from earlier tariff of Tk 18 per unit.

The government earlier extended deals of a good number of private power plants, most of which are costly rental power plants set up for 3-5 years tenure with a view to addressing the nagging power crisis on short-term basis.

These include Desh Energy's 100 MW plant; RZ Power's 50 MW plant; UK-based Aggreko Power's 55 MW plant; Energies Power's 55 MW plant; Quantam Power's 110 MW plant; Khulna Power of United Group's 110 MW plant; and Precession Energy's 55 MW plant.

Official sources said that 110 MW NEPC power plant is the country's  first generation private power plant which was set up in 1998 on a first track basis for a 15 years contract.