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Four rental power plants have been given tenure extension on Wednesday while one new power plant has also been given go-ahead for setting up in Chattogram.
A virtual meeting of the cabinet committee on government purchase, chaired by finance minister AHM Mustafa Kamal, gave the approvals.
Of them, a 53 MW gas-based rental power plant in Ashuganj, Brahmanbaria, sponsored by United Energy Ltd, has been extended for five years. Tk 4.51 billion will be spent to buy electricity from the plant.
The Kumargaon 50 megawatt gas-based rental power plant, located in Sylhet sadar upazila, gets a tenure extension of one year, until December next year, from where the government will buy electricity at a cost of Tk 865 billion. The Energy Prima Ltd owns the power plant.
Another gas-based 50MW rental power plant of Energy Prima Ltd in Fenchuganj, Sylhet gets a tenure extension of three years. The extension will cost the exchequer Tk 2.786 billion for buying electricity.
The Energy Prima Ltd’s another 20 MW gas-based rental power plant in Bogra district has also been extended for there more years. The government will buy electricity from the plant at Tk 1.06 billion.
Besides, a consortium of Confidence Power Holdings Ltd, GE Capital US Holding Inc, Confidence Power Ltd, and Electropac Industries Ltd has been given the go-ahead to set up a gas or regasified liquified natural gas (RLNG) based 660 MW power plant at Mirsharai upazila in Chattogram.
In a 22-year period, the government will buy electricity worth Tk 691.52 billion from the power plant.
Asked about the necessity of tenure extension of the power plant, Mr Kamal said rental power will be bought on no electricity, no pay basis.
The tenure of many rental power plants have already passed and they have realised capital costs and all other things. “We won’t have to pay extra charges for their operations. Only electricity price will be paid,” said the minister.
The minister said Bangladesh will have to set up some more power plants to meet demand as the government has stopped giving approval to new coal-based power plants in line with its commitment to saving the planet from the impacts of climate change.
Eight such power plants have already been cancelled which were in the pipeline, said Mr Kamal.
Replying to a query he said, the ministry of finance has yet to receive a proposal for the price hike of electricity.
On people’s purchase power he said, the government has taken various steps to enhance people’s affordability. “I believe, people are in a good position and able to afford (electricity at a high price).”