Anisul Islam Noor :
Bangladesh Energy Regulatory Commission gave decision to release Tk 1,184 crore to Bangladesh-China Power Company Limited from Electricity Maintenance Fund, sources said.
Enegy experts and the Power sector insiders have criticized the BERC’s decision that the government fund would be used by a private company while BPDB’s power plants were setting idle for maintenance.
Electricity generation cost in the power plant of BPDB is much lower than the joint venture company, they said.
On March 15, the Power Division of Power, Energy and Mineral Resources Ministry wrote to the BERC to direct the BPDB to release Tk 1,184 crore in favour of the joint venture company, the sources said.
On March 27, the Commission issued a letter to the Power Division Secretary giving its nod to provide the money after amending the guidelines for utilisation of the fund, said officials.
In line with the Ministry’s desire, the commission already gave its consent to provide the money in equity for Bangladesh-China Power Company Limited, BERC Chairman Monowar Islam said.
The company is a 50/50 joint venture of North-West Power Generation Company Limited (NWPGCL), an enterprise of the Bangladesh Power Development Board (BPDB) and China National Machinery Import and Export Corporation.
Earlier, the NWPGCL requested the Power Division to help it obtain the fund, they said.
Though it is a private company, BERC has recommended to release the fund in favour of the joint venture.
In a bid to justify the decision, the BERC has also decided
to amend the guidelines for utilization of the fund. The fund was created to help increase BPDB’s capacity for low cost power generation and maintenance of its power plants to reduce the overall power supply cost, sources said.
Before disbursement of the money, it will require amendment to the guidelines for the fund’s utilisation, BERC Chairman Monowar Islam said.
In February 2011, the Commission created the fund with 5.17 per cent of bulk power tariff for increasing BPDB’s capacity in low cost power generation as well as for proper maintenance of power plants.
BCPCL, created under a government policy to facilitate private entrepreneurs to sell bulk electricity from its power plants to the BPDB, will use the fund for financial closure for its 1,320MW Coal-Fired Power project, they said.
‘It would be a breach of the guidelines for utilisation of the fund as only the BPDB is entitled to use the fund,’ said Shamsul Alam, an Electrical Engineer and Energy Adviser, Consumers Association of Bangladesh.
He added that it went against the fundamental spirit of the fund created by the commission itself for increasing low-cost power generation capacity of the PDB.
Shamsul Alam termed the government move a state-backed massive ‘plundering.’
However, BERC Chairman claimed that the decision was no violation of the guidelines as the NWPGCL owned 50 per cent share of the joint venture company and Coal-Fired Power Plants were one of the least cost options in the area.
A Power Board official said that it would be suicidal to use the fund for a private company which would charge 16 per cent profit (rate of return) while selling electricity to the Board.
BCPCL is implementing the project to construct a 1,320MW coal-fired power plant at Payra of Kalapara in Patuakhali.
The project cost has been estimated at Tk 19,840 crore with a debt equity ratio of 80:20. EXIM Bank of China will give Tk 15,872 crore under a credit agreement to be signed soon.The 50 per cent of the equity for each of the joint venture parties would pay Tk 1,984 crore.
Bangladesh Energy Regulatory Commission gave decision to release Tk 1,184 crore to Bangladesh-China Power Company Limited from Electricity Maintenance Fund, sources said.
Enegy experts and the Power sector insiders have criticized the BERC’s decision that the government fund would be used by a private company while BPDB’s power plants were setting idle for maintenance.
Electricity generation cost in the power plant of BPDB is much lower than the joint venture company, they said.
On March 15, the Power Division of Power, Energy and Mineral Resources Ministry wrote to the BERC to direct the BPDB to release Tk 1,184 crore in favour of the joint venture company, the sources said.
On March 27, the Commission issued a letter to the Power Division Secretary giving its nod to provide the money after amending the guidelines for utilisation of the fund, said officials.
In line with the Ministry’s desire, the commission already gave its consent to provide the money in equity for Bangladesh-China Power Company Limited, BERC Chairman Monowar Islam said.
The company is a 50/50 joint venture of North-West Power Generation Company Limited (NWPGCL), an enterprise of the Bangladesh Power Development Board (BPDB) and China National Machinery Import and Export Corporation.
Earlier, the NWPGCL requested the Power Division to help it obtain the fund, they said.
Though it is a private company, BERC has recommended to release the fund in favour of the joint venture.
In a bid to justify the decision, the BERC has also decided
to amend the guidelines for utilization of the fund. The fund was created to help increase BPDB’s capacity for low cost power generation and maintenance of its power plants to reduce the overall power supply cost, sources said.
Before disbursement of the money, it will require amendment to the guidelines for the fund’s utilisation, BERC Chairman Monowar Islam said.
In February 2011, the Commission created the fund with 5.17 per cent of bulk power tariff for increasing BPDB’s capacity in low cost power generation as well as for proper maintenance of power plants.
BCPCL, created under a government policy to facilitate private entrepreneurs to sell bulk electricity from its power plants to the BPDB, will use the fund for financial closure for its 1,320MW Coal-Fired Power project, they said.
‘It would be a breach of the guidelines for utilisation of the fund as only the BPDB is entitled to use the fund,’ said Shamsul Alam, an Electrical Engineer and Energy Adviser, Consumers Association of Bangladesh.
He added that it went against the fundamental spirit of the fund created by the commission itself for increasing low-cost power generation capacity of the PDB.
Shamsul Alam termed the government move a state-backed massive ‘plundering.’
However, BERC Chairman claimed that the decision was no violation of the guidelines as the NWPGCL owned 50 per cent share of the joint venture company and Coal-Fired Power Plants were one of the least cost options in the area.
A Power Board official said that it would be suicidal to use the fund for a private company which would charge 16 per cent profit (rate of return) while selling electricity to the Board.
BCPCL is implementing the project to construct a 1,320MW coal-fired power plant at Payra of Kalapara in Patuakhali.
The project cost has been estimated at Tk 19,840 crore with a debt equity ratio of 80:20. EXIM Bank of China will give Tk 15,872 crore under a credit agreement to be signed soon.The 50 per cent of the equity for each of the joint venture parties would pay Tk 1,984 crore.
