Another gas-fired rental power plant's contract extended for 4 years

The government has decided to extend the tenure of another gas-fired rental power plant for 4 more years.

The Cabinet Committee on Public Purchase (CCPP) in a meeting on Wednesday approved a proposal of state-owned Bangladesh Power Development Board (BPDB) in this regard, reports UNB.

Nine other proposals from entities under different ministries received the approval.

Four similar rental power plants’ contracts were extended by the same committee for different tenures last week.

Purchase of electricity from grid-tied solar power plants to be set up by private firms, procurement of SPC poles for electricity expansion project, and purchase of fertiliser were among the proposals received approval in the CCPP's latest meeting.

Finance Minister AHM Mustafa Kamal presided over the virtual meeting while members of the committee attended it.

As per the latest proposal placed by the Power Division, the BPDB’s Power Purchase Agreement (PPA) with  private firm Venture Energy Resources Ltd. will extend for another 4 years to get electricity from the existing 40 MW gas-fired rental power plant in Bhola.

For this purchase, the BPDB will have to spend Tk 380.90 crore during the extended contract period.

However, the power tariff has been lowered to 3.3970 US cents (Tk 2.7176) from 3.49 US Cents (Tk 2.79) per kilowatt hour (each unit) which will save Tk 49.88 crore in next 4 years, said additional secretary of the Cabinet Division Shamsul Arefin while briefing about the outcomes of the CCPA meeting.

A proposal of Bangladesh Rural Electrification Board (BREB) received the approval of the cabinet purchase committee to procure 32,400 SPC poles from the Joint Venture of (1) Caslte Construction Co. Ltd. and (2) Poles and Concrete Ltd. Dhaka at a cost of Tk 31.59 crore.

The committee approved a BPDB proposal to purchase electricity from a 70 MW grid-tied solar power plant to be set up by the Consortium of (1) Daehan Green Energy Co. Ltd; (2) HI korea Co. Ltd and (3) Pabna Solar Power Ltd at Ishwardi upazila of Pabna district.

The BPDB will purchase electricity from the plant at 10.15 US Cents (equivalent to Tk 8.12) per kilowatt hour for which will involve a cost of Tk 1,843.20 crore over the contract period of 20 years.

Another proposal of the BPDB received approval for purchasing electricity from a 50 MW grid-tied solar power plant to be set up by the Consortium of (1) Total Eren S.A., France; (2) Norwegian Renewables Group AS, Norway and (3) Urban Services Ltd, Bangladesh.

The BPDB will purchase electricity from the plant at the same rate of 10.15 US Cents (equivalent to Tk 8.12) per kilowatt hour over the contract period of 20 years involving a cost of Tk 1,315.20 crore.

The committee approved a proposal of the Bangladesh Chemical Industries Corporation (BCIC) to import 30,000 metric tons (MT) of bulk granular urea fertiliser from Distribution Limited, UAE at a cost of Tk 246.77 crore while another similar proposal of the same entity to import 30,000 MT of bulk fertiliser at Tk 246.77 from Muntajat of Qatar received the nod of the committee.

The BCIC’s another proposal to import 25,000 MTS of rock phosphate from Gentrade, UAE, at Tk81.49 crore received the approval of the committee.

The committee approved two separate proposals of the Bangladesh Agriculture Development Corporation (BADC) to import 40,000 MT of DAP fertiliser at Tk 309.06 crore and 30,000 MT of MOP fertiliser at Tk 152.92 crore.

Each metric ton of DAP will cost at $900 and MOP at $593.75 considering US dollar rate at Tk 85.50.