Eyes hard-term overseas loan
The government plans to set up seven power plants partly with hard-term loans from abroad to lessen pressure on the foreign exchange reserve.
The plants of a total of 1,455 megawatt capacity will cost Tk 10,230 crore, with Tk 6,770 crore or $900 million coming from overseas as supplier’s credit, according to a proposal by the Power Division.
A supplier’s credit is extended to a buyer by a seller or supplier. It has a higher interest rate than soft loans and is required to be repaid within eight to 12 years.
The proposal has been sent to the cabinet committee on economic affairs this month for approval. The Power Division will also take opinion from the government’s hard term loan committee.
The projects will be implemented through inviting open tenders. The successful bidders will collect foreign credit from the international market, stated the proposal.
Power Division officials said they have issued work orders since February last year to build 41 power plants with a total capacity of 4,504 MW. Of them, 14 units have already gone into production.
These plants will cost about Tk 38,510 crore, of which around Tk 28,000 crore or $3.97 billion will be spent from the country’s foreign reserve, they added.
This surely is going to put pressure on the foreign exchange reserve, pointed out the proposal adding, the pressure would mount after work orders are issued for the new projects.
The production ratio of the existing public and private sector power plants is 53:47. After commissioning of the new plants, the ratio will be 45:55, the proposal mentioned.
It also argued more power plants should be set up in public sector soon to reduce dependency on the private sector.
The proposed power plants are Shahjibazar 300 MW Combined Cycle Power Plant, Bibiyana III 450 MW Combined Cycle Power Plant, Barapukuria Coal Fired 250 MW Thermal Power III unit, Conversion of Baghabari 150 MW
Gas Turbine Power Plant to Combined Cycle, Conversion of Shahjibazar
150 MW Gas Turbine Power Plant to Combined Cycle, Dohar 100 MW HFO Based Power Plant and Chapainawabganj 100 MW HFO Based Power Plant.
-With The Daily Star input
