Deals on installation of two IPP power plants signed

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Deals on installation of two IPP power plants signed
Electricity subsidy to be Tk 90b unless tariff raised: BPDB
Staff Correspondent

The government has signed deals on installation of two power plants under Independent Power Producer (IPP) model with capacity of generating 216MW of electricity.

The 108MW Gabtoli power plant and 108MW Basila power plant, the 46th and the 47th power plants during the tenure of the present Awami League government, will start generating electricity within a year, official said.

The Bangladesh Power Development Board (BPDB) will purchase electricity from these plants for the next 15 years at Tk 6.93 per unit. The BPDB signed the deals yesterday under the Speedy Power Supply Act.

Md Azizul Islam, secretary of BPDB and MP Aslamul Huq, managing director of Dhaka West Power Company Limited and Dhaka North Power Company Limited signed separate deals at Bidhyut Bhaban on Wednesday.

BPDB chairman ASM Alamgir Kabir, Power Division additional secretary Tapos Kumar Roy and senior officials of the power division were present at the signing ceremony. Chairman ASM Alamgir Kabir said the BPDB requires Tk 40 billion subsidy during the current fiscal year.

“If the Bangladesh Energy Regulatory Commission (BERC) does not increase the power tariff, then the electricity subsidy would stand at Tk 90 billion in the next fiscal,” he feared.

A total of 13 rental and quick rental power plants have already started generating electricity with a total generation capacity of around 1,000MW of electricity. Two more power plants will come into generation soon, official of BPDB said.

However, the BPDB cancelled deals with two local power generation companies as it failed to start installation work in time.

Earlier, the Ministry of Finance expressed concern over power subsidy as power purchase from private power plants is so costly in accordance with state-owned gas fired power plants.

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