Govt extends electricity procurement timeframe for 3 power plants

The Cabinet Committee on Government Purchase (CCGP) today extended the timeframe for procuring electricity from three gas-based power plants by five more years operated by Summit Power Limited.

The approval came from its seventh meeting this year held today at the Cabinet Division Conference Room of Bangladesh Secretariat here with Finance Minister Abul Hassan Mahmood Ali in the chair, reports BSS.

Briefing reporters after the meeting, Cabinet Division Secretary (coordination and reforms) Md ahmudul Hossain Khan said that the day's meeting approved a total of three proposals.

He said following a proposal from the Power Division, the CCGP meeting extended the timeframe for these three gas-based power plants by another five years from the date of expiry on November 22, 2023.

Mahmudul said the tariff for these three power plants would be lower this time as it would be Taka 6.04 per unit for which around Taka 6.81 crore would be saved in this fresh five-year tenure. These power plants would be operated under a "No Electricity, No Payment" basis while there will be only an operational charge, he added.

The minister informed that the CCGP meeting also approved a proposal from the Energy and Mineral Resources Division for signing the fifth supplementary agreement with EPC contractor China Petroleum Pipeline Engineering Co Ltd (CPPEC) for procuring tugboat with sufficient capacity, pilotage and availing ancillary services for successfully completing the testing and commissioning work under the project for "Installation of single point mooring (SPM) with double pipeline" being implemented by the Eastern Refinery Limited (ERL).

The meeting also approved a cost variation proposal from the Ministry of Railways.