China lifts ban on coal import for Payra by CMC

The Foreign Exchange Control Authority of China has withdrawn the ban on the China National Machinery Import and Export Corporation (CMC), the coal suppliers to Payra power plant as per request of the Bangladesh government.

In April 2023, China's foreign exchange control authority has been banned the CMC from importing coal for the Payra power plant for failing to pay off their dues last month saying that "Till the dues are paid, the coal supply will not resume."

"We will open the Letters of Credit right now to import coal but even if we open those tomorrow, the coal shipment will take at least 25 days to arrive. It says that the entire power plant will be out of operation for three to four weeks," Managing Director of NWPGC AM Khurshedul Alam has said.

Bangladesh-China Power Company Ltd (BCPCL) operates the power plant while China National Machinery Import and Export Company (CMC), which has 50 per cent stake in the plant, pays for the coal. As per contract, CMC realises the money from Bangladesh Power Development Board (PDB) within six months of paying for coal shipments.

"We get only $US 68 million against our accumulated approximately $298 million or Tk 3,200 crore in arrears for coal bills over the last nine months due to the dollar crisis, however, the PDB told us that they will pay $US 100 million by May 30," AM Khurshedul Alam said.

"As of last Thursday, we got $58 million and have the assurance of getting another $100 million by this month, however, on Tuesday we received only $US 10million from the rest of amount" he said.

Meanwhile, coal shortage has forced officials to shut down a 660 megawatt unit of Payra power plant on May 25. The plant requires 11,000 to 12,000 metric tons of coal every day to operate. Sources at the country's largest coal-fired power plant say they have only around 50,000 tonnes of coal in stock, and each of the two units require around 6,000 tonnes a day.

PDB spokesperson Shameem Hasan told the Daily observer that they (PDB) asked the IPPs to come into operation in full swing as Payra is going to shut down due to fuel supply, PDB also asked the Payra authority to keep the plant operational as long as possible.

"Now we have to wait for the next coal shipment. If the weather stays favourable, the national demand will not rise, unfortunately, another spell of heat wave is coming as per met office forecast," he added.

"We will be able to keep a normal electricity supply from other sources, maybe there would be some loadshedding" he added.
Currently, the country is producing around 12,200MW of electricity against a demand of 13,000MW to 13,500MW.

The country was producing around 2,000MW of electricity from coal-based power plants yesterday against a capacity of 3,440MW.
The Payra Thermal Power Plant is a 50:50 joint venture between BCPCL, CMC, and Bangladesh's North-West Power Generation Company Limited.