The Cabinet Purchase Committee approved on 2 march proposals of the Power Division to extend contracts with two more rental power plants to purchase electricity for next five years.
These two power projects are Max Power Ltd’s 78.5 MW plant at Ghorasal in Narsingdi and DPA Power Generation’s 50 MW plant at Pagla in Narayanganj.
After the cabinet body’s nod, the government will need to pay a total of Tk 44.08 billion to the two private power companies in next five years of which the DPA Power will get Tk 35.02 billion while the Max Power will get Tk 9.06 billion for sale of electricity at 80 per cent plant factor.
Under the approved proposal, the DPA Power’s tariff was raised to Tk 19.99 per unit from the existing Tk 13.96 per unit while Max Power’s tariff was lowered to Tk 3.29 per unit, a 39.15 per cent cut over the existing tariff.
At present, the state-owned PDB purchase each unit of electricity from the Max Power’s gas-fired 78.5 MW plant at Tk 5.41 per unit while at Tk 13.96 per unit from the Bangladesh Army-operated DPA’s diesel-fired 50 MW plant.
Earlier, the government extended the agreement of a number of rental and quick rental power plants last year.