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Bangladesh: Cabinet body approves extension of deals with 4 rental power plants

DHAKA, 30 December 2021, (TON): The Cabinet Committee on Public Purchase (CCPP) approved five proposals of the Power Division-Four for extension of contracts with four gas-based rental power plants and one for setting up a new independent power producer (IPP) plant.

Another seven proposals of different departments under different ministries also received approval from the CCPP.

Besides, the Cabinet Committee on Economic Affairs (CCEA) gave nod to another proposal of the Power Division for signing an unsolicited contract for the operation and maintenance of a public sector power plant.

Finance Minister AHM Mustafa Kamal presided over the consecutive meetings of the two cabinet bodies where their respective members were present.

The four rental power plants which got the cabinet body approval are 50MW Kumargaon power plant, 50MW Fenchuganj plant, 20MW Bogra power plant, and 53MW Ashuganj power plant.

About the approvals, the finance minister said the state-owned Bangladesh Power Development Board (BPDB) will purchase electricity from them on “No Power, No Payment” basis for which the government will have no obligation to buy power from the plants.

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