Persuasion on to renew agreement of a costly rental power plant
Dhaka, July 4 (UNB) - Despite opposition from the state-owned Power Development Board (PDB), persuasion is on for renewing the agreement of a high cost rental power generation unit in Khulna.
According to official sources, the 3-year contract to buy electricity of Khulna Rental Power Plant expired on June 11 last. Despite the expiry, the plant continued its operation without any renewal of the contract.
The 40 MW diesel-fired generation unit of the Khulna Rental Power plant was set up by Aggreko International in June in 2008 during the Army-backed caretaker government for a 3-year term.
The power tariff of the plant is the highest, more than Tk 22 per unit, as against average production cost of the PDB plants of below Tk 3.
A number of rental and quick rental power plants were set up during the present government. But all these plants’ power tariff is relatively lower than that of Khulna.
Sources said when the 3-year power purchase agreement expired on June 11, most of the PDB officials expressed their opinions not to extend or renew the agreement considering the substantially high price of electricity.
Aggreko International pleaded with the government to extend the power purchase agreement for another 2 years. Considering the ensuing Holy month of Ramadan, some officials in the Power Ministry suggested extension of the agreement for a maximum period of 3 months. On expiry of the agreement, operation of the plant was suspended.
“But surprisingly the operation of the plant was resumed recently pending decision of the sponsors’ application. “We don’t know how it happened,” said an official requesting anonymity.
He also claimed that there is a policy decision not to renew or extend tenure of any rental power plant after expiry of its agreement. But a strong political lobby has been engaged to pursue the policymakers to extend the agreement of the costly power plant for one or two years.
According to official sources, the 3-year contract to buy electricity of Khulna Rental Power Plant expired on June 11 last. Despite the expiry, the plant continued its operation without any renewal of the contract.
The 40 MW diesel-fired generation unit of the Khulna Rental Power plant was set up by Aggreko International in June in 2008 during the Army-backed caretaker government for a 3-year term.
The power tariff of the plant is the highest, more than Tk 22 per unit, as against average production cost of the PDB plants of below Tk 3.
A number of rental and quick rental power plants were set up during the present government. But all these plants’ power tariff is relatively lower than that of Khulna.
Sources said when the 3-year power purchase agreement expired on June 11, most of the PDB officials expressed their opinions not to extend or renew the agreement considering the substantially high price of electricity.
Aggreko International pleaded with the government to extend the power purchase agreement for another 2 years. Considering the ensuing Holy month of Ramadan, some officials in the Power Ministry suggested extension of the agreement for a maximum period of 3 months. On expiry of the agreement, operation of the plant was suspended.
“But surprisingly the operation of the plant was resumed recently pending decision of the sponsors’ application. “We don’t know how it happened,” said an official requesting anonymity.
He also claimed that there is a policy decision not to renew or extend tenure of any rental power plant after expiry of its agreement. But a strong political lobby has been engaged to pursue the policymakers to extend the agreement of the costly power plant for one or two years.
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