2 more rental power plants likely to get extension

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UNB, Dhaka :
Two more gas-fired rental power plants are likely to get another extension by two years as the Power Division has moved proposals before the Cabinet Committee on Public Purchase for its approval.
The Cabinet committee may okay the proposals when it sits on Wednesday

next. The two plants are Kumargaon 50 MW in Sylhet and Shahjibazar 50 MW in Habiganj. Both the plants are owned by Energy Prima Ltd, a local business house.
Few months ago, the government extended similar deals of a number of rental and quick rental power plants whose power purchase rates are higher compared to other independent power producer (PPP) plants.
Officials said if the plants of Energy Prima get approval of the Cabinet body, it will be third extension of their contracts with the government to purchase electricity by state-owned Power Development Board (PDB).
Of the two gas-fired power plants, Kumargaon started commercial operation on July 23in 2008 while Shajibazar began it commercial operation onNovember 13of the same year under a three-year deal for each, according to Power Division documents obtained by UNB.
On expiry of the deals, each of them again got six years’ extension on two occasions-each time by three years – with the extension period being already expired.
Again Energy Prima moved its proposals for extension of the power purchase agreement (PPA) with the government by another five years for each of the plants keeping its tariff unchanged. But a proposal processing committee of the Power Division recommended extending the existing deals with a little slide in the existing tariff.
Sources said the committee proposed US Cents 3.2739 per kilowatt hour (Tk 2.6191 per unit) for Kumargaon plant against its exiting tariff of US Cents 3.61 9 (equivalent to Tk 2.89).
It also proposed US Cents 3.3908 per kilowatt hour (Tk 2.7126 per unit) for Shajibazar plant against its existing tariff of US Cents 3.7332 (equivalent to Tk 2.7126 per unit).
Officials said once the extension proposals are approved by the Cabinet body, the government has to pay about Tk 195 crore in the next two years for purchasing electricity from the Kumargaon plant and about Tk 204 crore from the Shahjibazar plant.

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