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Deal extension of 2 rental power plants set to get nod

Saturday, 1 March 2014


The Cabinet Purchase Committee is set to consider in its Sunday’s meeting a number of proposals, including the extension of power purchase deals with two rental and quick rental power plants.
The two power plants are DPA Power Generation’s 50 MW diesel-fired quick rental plant at Pagla in Narayanganj and Max Power’s 78.5 MW rental power plant at Ghorasal.
Official sources said Max Power’s 3-year power purchase agreement (PPA) with the state-owned Power Development Board’s expires on May 26 this year while DPA’s 3-year agreement already expired in November last year.
The PDB has been purchasing each unit of electricity from the Max Power’s gas-fired 78.5 MW plant at Tk 5.41 per unit against about Tk 2 per unit (each kilowatt hour) of the gas-fired state-owned power plant’s production cost.
On the other hand, the Bangladesh Army-operated DPA’s diesel-fired 50 MW plant was selling electricity at Tk 13.96 per unit to the PDB, according to a news agency.