PDB sued over fine slapping

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FE Report
A rental power company has sought legal protection against payment of fine slapped by state-owned Bangladesh Power Development Board (BPDB) for delay in installation of power units, officials said.
The High Court (HC) has asked the BPDB to show appropriate causes of slapping fine by November 9 next in response to a case filed by Energy Prima consortium, led by local Hosaf Group, a senior BPDB official told the FE.
He said the BPDB fined the company US$ 2.73 million as it failed to initiate electricity generation commercially from its plant within the timeframe as mutually agreed upon under a contract signed between the BPDB and the Energy Prime consortium.
"We will fight it in the court. We are now taking necessary preparations in this regard," the BPDB official said.
He said the BPDB also fined two more rental companies -- British Aggreko International and joint venture of local GBB Power Ltd and Indonesia-based Kaltimex Energy -- for defaulting supply of electricity to the national grid in stipulated time.
Aggreko International was fined $425,000 and the GBB's joint venture $640,000 for their failure in supplying electricity commercially in due time.
"We will adjust the penalties with the electricity bills of the respective companies," the BPDB official said.
The rental power sponsors were arguing that the government took time in providing land resulting in the delay of initiating electricity generations.
The caretaker government took the initiative to install rental power plants after taking office in January 2007 to mitigate the nagging electricity crisis across the country.
The BPDB signed power purchase agreements (PPA) with five rental power plant sponsors on January 16, 2008.
As per the PPA the rental power sponsors were given 120 days for initiating electricity from the rental power plants.
They also pledged to pay a penalty of $500 per megawatt every day for delay in supplying electricity.
According to the BPDB, Aggreko initiated supply of electricity on June 12, 2008, the GBB joint venture started commercial electricity generation from its Bogra plant on June 17, 2008 and Energy Prima consortium commenced electricity supply from its Kumargaon plant on July 23, 2008.