The Bangladesh Independent Power Producers’ Association (BIPPA) has called on the government to clear at least 60 per cent of outstanding dues to private power plants before Ramadan, warning that failure to act could lead to severe electricity shortages during the approaching summer.
Speaking at a press briefing at the Sonargaon Hotel in Dhaka on Monday, former BIPPA president Imran Karim said, “Payments for 8 to 10 months of bills remain unpaid. We are facing a serious financial crisis. According to our calculations, the total outstanding amount stands at around Tk14,000 crore.”
BIPPA President KM Rezaul Hasanat, its directors Navidul Haque and Faisal Ahmed Chowdhury were also present at the briefing.
Hasanat highlighted that under existing contracts, payments are supposed to be settled within 30 days. However, the Power Development Board (PDB) has reportedly defaulted for several months.
“Immediate action is needed before Ramadan, otherwise private power plants will face operational challenges, including difficulty in opening letters of credit (LCs) to procure fuel from abroad,” he warned.
Bangladesh currently produces between 9,000 and 10,000 megawatts (MW) of electricity, with only 400-600 MW coming from liquid fuel-based power plants. With summer approaching, the demand from these plants is expected to rise sharply, requiring at least 4,000 MW to meet peak consumption.
BIPPA officials said delayed payments are not the only challenge facing private power producers.
“The rising US dollar rate, scarcity of foreign currency at banks, and penalties for late payments to international lenders and equipment suppliers are major hurdles,” Hasanat said.
He noted that some LCs were opened months ago using lower exchange rates, resulting in losses of around Tk8,000 crore to date. Additionally, some banks do not sell dollars at the government’s fixed rates, further complicating fuel imports.
He added that foreign banks and equipment suppliers are also charging penalties for delayed payments, adding to financial pressure.
BIPPA emphasised the urgency of addressing these issues, stressing that the summer season could begin as early as March.
Officials warned that immediate action is necessary to ensure that liquid fuel-based power plants remain fully operational to meet the anticipated spike in electricity demand.
“If payments are not cleared promptly and fuel procurement is delayed, there could be serious disruptions in electricity supply during the peak summer months, which will affect both households and industries,” Hasanat said.
BIPPA called on the government to take swift steps to release funds and facilitate fuel imports to avoid a potential power crisis, stressing that early action is critical to maintain stable electricity supply throughout the hot season.
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