PDB wants Tk 424m more to pay rental power plant bills
S M Jahangir | Tuesday, 22 July 2008
The government is to require almost doubling the allocation of subsidy for the Power Development Board (PDB) to facilitate the latter's payment of electricity bills owed to private rental power units, sources said.
The state-run power entity PDB has sought Tk 424.30 million more as subsidy from the finance ministry for payment of monthly bills against the purchase of electricity from seven rental power units as per agreements.
"The PDB has appealed to the Finance Division, seeking the additional financial support to the existing allocated amount of Tk 500 million for the payment of bills owed to rental power producers," a finance ministry source said.
In its appeal, the PDB has said it would require the additional financial support for helping ensure its payment of bills against the purchase of electricity from the rental power units on a monthly basis, said the source.
According to sources, the PDB needs the financial support to offset the losses on account of selling electricity at much lower than its purchase rates.
The PDB, according to the sources, will require to pay the IPP (international power producer) bills in foreign currency on a monthly basis under the purchase deals that it signed earlier with rental power producers.
On January 15, the PDB signed contracts with six rental power units while process is under way to sign a power purchase deal with one more private company.
Under the contracts, the government will have to purchase electricity from the rental power units for a period of three years, official sources said.
The rental power units are: Kumargaon 50mw (megawatt), Khulna 40mw, Fenchuganj 50mw, Borga 20mw, Bhola 35mw and the proposed Ashuganj power project.
Of them, Kumargaon, Khulna and Bogra rental units have already started supplying electricity while the process of installing Fenchuganj, Bhola and Shahajibazar is going on, sources said, adding that the PDB was expected to sign the power purchase deal with the Ashuganj project shortly.
Under the contracts, the PDB will purchase electricity at 4.148 cents per unit from the Kumargaon project while the rates have been fixed at 19.77 cents, 3.607 cents for Khulna and Bogra projects respectively.
The purchase rate of electricity has been fixed at 4.517 cents per unit for Shahajibazar unit while the rates are 4.65 cents for Fenchuganj unit and 5.198 cents per unit for Bhola units, they mentioned.
Against the backdrop of the county's prevailing power crisis, the government had earlier decided to purchase electricity from the rental power units at comparatively high prices in order to cope with its electricity shortfall in short term.
The state-run power entity PDB has sought Tk 424.30 million more as subsidy from the finance ministry for payment of monthly bills against the purchase of electricity from seven rental power units as per agreements.
"The PDB has appealed to the Finance Division, seeking the additional financial support to the existing allocated amount of Tk 500 million for the payment of bills owed to rental power producers," a finance ministry source said.
In its appeal, the PDB has said it would require the additional financial support for helping ensure its payment of bills against the purchase of electricity from the rental power units on a monthly basis, said the source.
According to sources, the PDB needs the financial support to offset the losses on account of selling electricity at much lower than its purchase rates.
The PDB, according to the sources, will require to pay the IPP (international power producer) bills in foreign currency on a monthly basis under the purchase deals that it signed earlier with rental power producers.
On January 15, the PDB signed contracts with six rental power units while process is under way to sign a power purchase deal with one more private company.
Under the contracts, the government will have to purchase electricity from the rental power units for a period of three years, official sources said.
The rental power units are: Kumargaon 50mw (megawatt), Khulna 40mw, Fenchuganj 50mw, Borga 20mw, Bhola 35mw and the proposed Ashuganj power project.
Of them, Kumargaon, Khulna and Bogra rental units have already started supplying electricity while the process of installing Fenchuganj, Bhola and Shahajibazar is going on, sources said, adding that the PDB was expected to sign the power purchase deal with the Ashuganj project shortly.
Under the contracts, the PDB will purchase electricity at 4.148 cents per unit from the Kumargaon project while the rates have been fixed at 19.77 cents, 3.607 cents for Khulna and Bogra projects respectively.
The purchase rate of electricity has been fixed at 4.517 cents per unit for Shahajibazar unit while the rates are 4.65 cents for Fenchuganj unit and 5.198 cents per unit for Bhola units, they mentioned.
Against the backdrop of the county's prevailing power crisis, the government had earlier decided to purchase electricity from the rental power units at comparatively high prices in order to cope with its electricity shortfall in short term.