The Chinese Foreign Exchange Control Authority has imposed an embargo on CMC (coal supplier) on coal import by Bangladesh-China Power Company (PVT) Ltd, known as Payra 1244 MW power plant as it failed to pay US$298 million coal import
bill for the plant for last nine months.
"We have only 15 days coal stock in our hand, we apprised the situation to all level, however, we have nothing to do alone as the issue is dollar," Engr AM Khorshedul Alam, Managing Director of Bangladesh-China Power Company said.
Failure to pay the installments for several months, which finally make the authorities ineligible to get credit support from the lender, he added.
We need 10,000 tonnes of coal per month to run its operation, however, all are imported from Indonesia, he said. Bangladesh-China Power Company (PVT) Ltd failed to pay its nine months bills which amounts to $298 million.
According to the Power Development Board (PDB), China is the 50 per cent owner at Payra Power Plant. According to an agreement between CMC and PDB, the CMC procure coal from Indonesia for this plant and enjoy six months "deferred payment" facilities.
"We are trying to pay $50 million as soon as possible to manage the LC dispute, we hope the situation would be ease very soon," a senior official of the PDB said.
Bangladesh in fact could not pay any coal import bill in 2022 for the Payra Power Plant, a joint venture between the NWPGCL and the China National Machinery Import and Export Corporation.
According to sources, mainly due to the dollar crisis, the Bangladesh Bank was in a tough position to open Letters of Credit (LCs) for the import of coal.
Meanwhile, on April 23, the power generation at Rampal thermal power plant in Bagerhat has come to a halt due to coal shortage.
Anwarul Azim, Deputy General Manager of Bangladesh India Friendship Power Company Ltd, said the production of the plant has been stopped since the night of April 23 due to coal shortage.
"Measures have been taken to import coal. We hope to be able to resume production by May 3," he added.
The monthly coal import payment is roughly $30 million, which may vary depending on the coal import price. However, the Barapukuria power plants (run by local coal) also went out of order due to coal shortage from April 29.
Bangladesh currently has three coal-based power plants with an installed capacity of 1,768 MW.
