Dhaka: Three state-owned organizations are set to sign an accord for the supply of fuel oils to government, non-governmental and rental power plants, as part of an orchestrated drive to tackle severe electricity crisis in the country.  

A Memorandum of Understanding (MoU) will be signed among Power Development Board (PDB), Bangladesh Petroleum Corporation (BPC) and Bangladesh Railway (BR) for fuelling operations.

PDB Chairman S M Alamgir Kabir Sunday told banglanews24.com.bd that a draft of the MoU has already been prepared. The initiative is being taken to supply and transport fuel to power plants.

“The MoU will be signed soon”, said the chief of PDB.

A senior official of the power department said an inter-ministerial meeting on fuel supply and transportation was held on 28 October 2009, with Communications Minister Syed Abul Hossain in the chair. In the meeting, the decision for signing the agreement was taken.

According to the draft deal, it will require 5,575 tons of oil to generate 2220 mw electricity from 23 rental and independent power plants (IPP) till 2014.  

The draft also says the third-party BR will construct and repair necessary rail lines to ensure oil-supply facility to the plants. The first party, PDB, will bear the expenses for using the rails. Besides, the BR will also ensure smooth transportation of fuels.

Second-party BPC, under the agreement, will build necessary infrastructure for storing fuel oils. Besides, it will give adequate facility for loading fuel in the wagons of Railway.

With 5-year term, the MoU will be effective from the date of signing.

BDST 0620 hrs May 24, 2010
HA/RS/SMS/MUA