BIPPA wants $ support for uninterrupted power from Mar

Bangladesh Independent Power Producers’ Association (BIPPA), a forum of private sector power producers, on Wednesday called upon the Bangladesh Bank to extend USD support to it to help open letters of credit (LCs) for importing oil so that uninterrupted electricity supply can be ensured from next month.

Its President Faisal Khan made the call during a courtesy meeting with Governor of the Bangladesh Bank Abdur Rouf Talukder. He said dollar assistance has been sought to import oil used for power generation.

“I am able to open less than 30 per cent of the LCs required for importing the amount of oil needed to ensure uninterrupted power supply. Therefore, dollar assistance has been sought to ensure uninterrupted power supply in the coming months,” he said.

He also said oil prices are now going down and not much support is needed. “The central bank has assured us that they will help us.”

On February 12, BIPPA sent a letter to the central bank seeking dollar support for opening and settling LCs for power generation. In the letter, it gave a four-point proposal to keep irrigation normal during the current Boro season and ensure uninterrupted electricity supply during the holy month of Ramadan.

The proposals include managing the opening of LCs with local commercial banks on an urgent basis to import heavy fuel oil, lubricant, and small parts; increasing dollar supply urgently to settle outstanding LCs; and ensuring single-digit interest on bank loans for power companies.

BIPPA also said the government should provide the necessary funds for Bangladesh Power Development Board so that the latter can settle outstanding bills.