Rental power plants: Five get 2yr extensions

The government yesterday handed two-year tenure extensions to five high-cost quick rental companies on condition that they will not be paid when they are not supplying electricity.

In a meeting, the cabinet committee on purchase approved the tenure extension of five fuel-based private companies that will sell the government power at Tk 16.40 per kWh. The rate was Tk 17.52 per kWh earlier.

 "We've given them conditions -- no electricity, no pay," said Finance Minister AHM Mosatafa Kamal, who presided over the meeting.

"They were given approval first under the condition that they will be paid even if they do not supply. This time we'll pay only for the power they supply," he said at a briefing after the meeting.

Asked about the reason for extending the tenures even though the country has surplus production, he said the public sector power plants are yet to attain full power generation capacity.

"To be self-reliant, these power plants need to increase their production by another 3,000 MW," he said, adding that these plants would require another one or two years to do so.

That is why the government extended the tenure by two years although the private companies had asked for a five-year extension, said the finance minister.

Earlier Nasrul Hamid, state minister for power, energy and mineral resources, said the 30 to 40 percent reserved capacity is aimed at meeting power demand during peak hours and emergencies.

"Otherwise, we will not be able to ensure uninterrupted electricity supply across the country," he said.

The developed countries such as the US and Japan maintain a 100 per cent additional capacity, he added.

The five plants are: 40-MW Khulna Power Company in Noapara of Jashore, 115-MW Khulna Power Company Unit-II Ltd in Goalpara of Khulna, 100-MW Dutch Bangla Power and Associates Ltd in Siddhirganj of Narayanganj, 100-MW of Orion Power Meghnaghat Ltd in Meghnaghat of Narayanganj and 102-MW Summit Narayanganj Power Ltd in Madanganj of Narayanganj.

Yesterday, the purchase committee also approved import of 33.6 lakh MMBtu LNG. The government will buy it from Vitol Asia of Singapore at $36.7 per MMBtu.

The committee also approved import of 50,000 tonnes of wheat from Swiss Singapore Overseas Enterprize. It will buy wheat at $409.97 per tonne.