Construction of the Payra Power Plant in Patuakhal is getting slower due to the central bank’s delay in clearing the Chinese loan for the project.
The Bangladesh China Power Company Limited (BCPCL) has also been slapped with fines for delay in machineries shipment.
The Export–Import Bank of China will lend $1.98 billion, 80 percent of total fund to construct the 1,320 megawatt coal-fired plant with the remaining covered by state-owned North West Power Generation Company Limited (NWPGCL).
To avail the loan, 17 bank accounts have been opened including nine Foreign Currency Accounts (USD account) in accordance with the Bangladesh Bank’s instructions.
According to Power Division sources, the Export–Import Bank disbursed its first installment, $430 million, which requires central bank’s clearance. The Bangladesh Bank is to yet approve it even after one month.
A Power Division official said, “They (Bangladesh Bank) are wasting time without any reasons.”
Making delay in a fast-track project of the government in such way is not logical, alleged the official, who asked not to be named.
A delegation of China’s EXIM bank, during a recent Dhaka visit, found the delay as quite unusual.
Admitting approval process requires a bit time, Bangladesh Bank General Manager (policy) Khorshed Wahab, said “We don’t disburse funds, but just clear it.”
Asked on the delay, Wahab said, “I am outside the office. I can’t tell until I see the file.”
BPCL sources said that 38 percent works of the plant has already been completed with infrastructure building underway. Machineries of the plant’s central part are scheduled to arrive by July this year, but the shortage of fund is delaying the whole process.
The first unit of the plant is scheduled to go on operation in June 2019. But, uncertainly looms over the deadline due to s the central bank’s delay.
The contractor company has already spent 15 percent of money to build the power plant.
Besides, the China National Machinery Import & Export Corporation (CMC) invested to construct 40 percent of the plant and build machineries before the approval of the fund.
Shipment of machineries is not possible until the payment, increasing delay fees for CMC.
The NWPGCL and the CMC share equal partnership in Payra ultra super-critical technology power plant.