Govt to renew contract soon

The government is set to renew the contract with India for open import of 250-megawatt power that costs over Tk 6.33 billion for six months.
Bangladesh imports a total of 500 megawatts of electricity from the neighbouring country-half of it from open market and as much from government power entity. The open import is much costlier.       
Officials said the cabinet committee on public purchase will endorse the proposal for extension of tenure of the deal for six months at its meeting next week.
Dhaka signed a memorandum of understanding (MoU) with New Delhi on January 11, 2010 for the import of power and mutual cooperation between the two neighbours in the sector.
The import of 500 megawatts of power began on October 05, 2013 under a power-purchase agreement (PPA) following the signing of the accord.
Out of the total amount, the country imports 250 MWs of power from open market through PTC India Ltd. The duration of open-market import expires on January 31.
As such, to get the deal duration extended by another six months, Bangladesh Power Development Board (BPDB) sent a proposal to the power division on October 03, 2016.
As per the MoU, the Indian government started supplying 500 megawatts of power from its unallocated quota through NTPC Vidyut Vyapar Nigam Ltd (NVVN).
The present average price of power from India (for 250 MWs) is Tk 2.78 per kilowatt -hour (pkwh).
On the other hand, the import cost of another 250 MWs of power from open market of India is much higher at Tk 6.2601 pkwh.  
The import of 250 MWs of power from India is being done through PTC India Ltd under a limited number of tenders.
"We have sent a proposal to the power division to get the nod from the cabinet committee on public purchase for renewing the duration for six months more for importing power from India through PTC under PPA," a high official of the BPDB told the FE.
An official of the cabinet division told the FE that they would place the proposal before the meeting of the cabinet committee on public purchase next week for approval.
The PTC India Ltd (PTC), established in April 1999, is the leading provider of power- trading solutions in India. It is an Indian government initiative of public-private partnership (PPP) with a primary focus on developing a commercially vibrant power market in the country.
    talhabinhabib@yahoo.com