The Summit and Unique groups are among the three power companies who have been asked by the Bangladesh Power Development Board to pay more than Tk 50 crore in liquidity damage.
The liquidity damage has been claimed because of the companies鈥� delay in building three power plants, according to a BPDB document.
The power plants are 584MW Unique Nebras Meghnaghat Power, 583MW Summit Meghnaghat II Power Company Limited and 15MW Desh Energy Hatiya Power Company Limited.
The power plant owned by Unique Group has been asked to pay Tk 16.38 crore due to its delayed commissioning. The power plant was required for commissioning on July 24, 2022. But it was commissioned on January 20, 2024.
Owned by Summit, the Summit Meghnaghat power plant was supposed to be commissioned on March 14, 2022 instead of which it was commissioned on April 26, 2024. In liquidity damage, the power plant will have to pay 32.71 crore.
The Hatiya power plant, on the other hand, was commissioned on February 12, 2023, delayed by over a year as its commissioning date was November 30, 2021. The power plant would have to pay Tk 1.09 crore.
Officials at the BPDB鈥檚 independent power producer cell said that the liquidity damage has been claimed as per the power purchase agreement, which outlined in detail the amount by which the liquidity damage due to delayed commissioning was to be claimed.
Incidents of delayed commissioning are very common in Bangladesh, while companies suing the BPDB to avoid paying delayed commissioning also happen routinely.
Some of the delays in commissioning could take place because of steps taken by the BPDB or other government agencies. For example, the commissioning of the Payra power plant was delayed for more than a year because of the delay in constructing the power evacuation line by the government.
The BPDB had amended the power purchase agreement with the Payra to accommodate the extra time needed to build the power evacuation facility. As long as the facility was not ready, the amendment said, the Payra power plant would be entitled to capacity charge considering its availability factor.
A power plant is entitled to get capacity charge only when its 85 per cent capacity is available.
The Payra power plant, however, was given 16 per cent return on equity and the interest on working capital for the period waiting to be commissioned.
The maximum usual time for constructing a power plant is 18 months although it may depend on the technology being used and the agreement with the government.