DHAKA: Three more coal-fired power plants will be awarded to Orion group at an exorbitant high rate. This will incur loss of the government to the tune of Tk 2,041 crore annually.
Earlier, three power plants were awarded to this inexperienced local company. The rate mentioned in the new agreements to be signed shortly by Power Development Board (PDB) is much higher than the previous three plants.
Power Division joint secretary Anwar Hossain told banglanews that letter has been sent to Orion and the deal will be inked when they will give date.
PDB will purchase per unit electricity at the rate of Tk 3.82 from earlier contracted units while in the upcoming new deal the rate will be per unit Tk 5.79.
The 15-year duration agreement PDB will incur loss of Tk 2,041 crore.
The previous three units will produce 1,088 Megawatts (MW) (two units 283 MW each and 522 MW of Mongla).
On the other hand, the upcoming three plants will have the capacity of producing 1199 MW power (Dhaka 282 MW, 635 MW and 282 MW of Chittagong). The tariff of each unit has been fixed at Tk 5.79 which means that excess of Tk 1.97 will have to be paid per unit.
The coal based new three power plants will annually produce 1035.93 crore units of electricity. Accordingly, the new three plants will cost more Tk 2041 crore in comparison to previous three.
The Independent Power cell-1 source of PDB informed that the PDB under the previous agreement will purchase from Orion group’s Dhaka plant produced 283 MW at the rate Tk 4.49 per unit, Chittagong plant produced 283 MW at the rate of 4.50 and 522 MW from Mawa station at the rate of 4.61 per unit. The average price stands at Tk 3.82 per unit.
The agreement in waiting will make the power costlier as PDB will have to purchase Dhaka plant produced 282 MW at the rate of 7.01 cent per unit, another Dhaka plant produced 6.95 per unit and 282 MW from Chittagong plant at the rate of 6.98 cent. The agreements life will be fifteen years while the average cost of each unit will be Tk 5.79.
If the excess of Tk 2041 crore is to be paid annually then in the span of fifteen years Orion will take an additional amount of Tk 30,615 crore. No satisfactory reason was received from PDB for this exorbitant high price.
Earlier Orion was given an average rate of Tk 3.82 per unit but now why this high price will have to be given to the same company, the reason is unknown to the concerned.
Though some concerned gave their opinion not to ink deal with Orion, but finally they had to yield to some pressures. They said that government wants to give the plants at this high rate to Orion in that case what we can do.
In plain eye and in limited vision though this Taka 1.97 is not big but if it is calculated on annual basis then definitely the amount is surprising and mysterious.
PDB chairman Abduhu Ruhullah told that nothing was done secretly though the rate is high. The whole process was done openly following all procedures. So, PDB can not be blamed for this.
For the previous three coal-based power plants Orion signed contract with PDB on June 27, 2012. Of the previous three Mawa plant was supposed to go into production within 45 months and the other two within 36 months. But though 19 months elapsed Orion could not arrange financing.
There is a system that after arrangement of financing the contracts are signed. Regarding financing government or PDB has no responsibility. If the concerned company fails to start the work on time then its security deposit has to be confiscated. In this case there is no scope of mercy or objection.
It is obligatory that the agreement with the financier will have to be inked within 120 days of signing of the deal with the government.
But no deal with the financier was signed by Orion with any body rather they are misleading PDB by giving misinformation. Whenever PDB asks them about progress, they usually give varied information on different occasions.
BDST: 1500 HRS, MAY 26, 2014
