PDB seeks additional Tk 1.0b to pay some arrears
Sunday, 16 December 2007
Shakhawat Hossain
The Power Development Board (PDB) has sought Tk 1.00 billion additional financing from the Ministry of Finance (MoF) to pay some of its arrears owed to the gas companies, sources said.
The required fund is in addition to Tk 1.00 billion already allocated to the state-run power supplier by the MoF in September this year.
The PDB cleared its arrears to Khulna Power Company Limited, SI Meghnaghat and SI Haripur Power Company Limited for the month of August with that money, sources added.
According to a PDB letter, it needs the additional amount on an emergency basis to pay arrears for the months of September and October of the current fiscal.
As the PDB is selling electricity as per government regulated prices, its current arrears to private power producers, gas companies and oil companies swelled to Tk 8.43 billion.
It is facing liquidity crisis following increase in power generation cost and high amount of arrears outstanding with the consumers, added the PDB letter that was sent to MoF last month.
Sources said the MoF has already sought approval from Finance and Planning Adviser Mirza Azizul Islam to bail out the PDB from crisis.
The MoF pointed out that the PDB was facing financial losses due to non-adjustment of power tariff for long although the power generation cost his increased substantially because of price hike of gas, oil and other charges.
Besides, the PDB wants the money badly to follow the government instructions stipulating that arrears to the gas companies should not exceed three months.
The Power Development Board (PDB) has sought Tk 1.00 billion additional financing from the Ministry of Finance (MoF) to pay some of its arrears owed to the gas companies, sources said.
The required fund is in addition to Tk 1.00 billion already allocated to the state-run power supplier by the MoF in September this year.
The PDB cleared its arrears to Khulna Power Company Limited, SI Meghnaghat and SI Haripur Power Company Limited for the month of August with that money, sources added.
According to a PDB letter, it needs the additional amount on an emergency basis to pay arrears for the months of September and October of the current fiscal.
As the PDB is selling electricity as per government regulated prices, its current arrears to private power producers, gas companies and oil companies swelled to Tk 8.43 billion.
It is facing liquidity crisis following increase in power generation cost and high amount of arrears outstanding with the consumers, added the PDB letter that was sent to MoF last month.
Sources said the MoF has already sought approval from Finance and Planning Adviser Mirza Azizul Islam to bail out the PDB from crisis.
The MoF pointed out that the PDB was facing financial losses due to non-adjustment of power tariff for long although the power generation cost his increased substantially because of price hike of gas, oil and other charges.
Besides, the PDB wants the money badly to follow the government instructions stipulating that arrears to the gas companies should not exceed three months.