Doc Summary
In a letter signed by BIPPA President David Hasanat, the association said the Bangladesh Power Development Board (PDB) is obligated under power purchase agreements (PPA) to clear payments within 45 days.
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However, payments have been delayed for more than five months and the backlog has persisted for more than three years.
“The situation is critical,” the letter said, adding that the nation’s energy supply chain faces imminent collapse if payments are not received within the timeframe.
This will, in turn, have a severe and widespread impact, jeopardising agricultural production, national food security, industrial output and essential services to households during the crucial periods of the irrigation season, Ramadan and summer, it said.
The unpaid dues prevent power producers from importing furnace oil needed for electricity generation, according to Hasanat. Bro Aka
“If we don’t get at least half of our payments, we will not be able to open letters of credit to import furnace oil in due time to generate adequate power during Ramadan,” he said.
