Gas, power sale-purchase proposal okayed

Following the approval, Westmont authorities expect commissioning of the peaking power plant from the third week of December this year.

Officials said the private-sector power producer's proposal was a favourable one as there is no need of government guarantee, neither any provision for mandatory payments if no purchase of electricity from the company is made.

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"Since there is no mandatory provision of purchasing any minimum amount of electricity from the plant, the purchase committee allowed the sale of gas to it at the same tariffs that apply to PDB," a senior official told the UNB.

The power-purchase tariffs of the Baghabari plant will also be less than the rates taken by other independent power producers (IPPs).

The Westmont offer for per unit electricity is Tk 2.79, which is lower than prices offered by other IPPs, industry sources said. The purchase rate is even lower than the price charged by another Westmont plant, which sells electricity at Tk 3.20 per unit.

"All these features encouraged the purchase committee to give the go-ahead, agreeing to sell gas at the same price as Bangladesh Power Development Board," said the senior official.

After the endorsement, Westmont management expects to press the plant into operation in the shortest possible time.

"Earlier we had a plan to begin operation within six months of the approval. Now we expect to start operation from December 17 this year," Tazul Islam Faruk of Westmont told the UNB after the approval.

The committee, meanwhile, also approved a procurement proposal for fuel oils worth Tk 414 crore.

The planned imports include 6 lakh barrels of petrol and octane, and 12.6 lakh barrels of diesel, official sources said.