Govt to float 4 power co’s shares | 2017-09-11 |

Govt to float 4 power co’s shares

Shamim Jahangir     11th September, 2017 02:27:46 printer

Govt to float 4 power co’s shares

The government will offload shares of four major power companies in public sector aims to mobilize fund for generating 40,000MW of electricity by 2030.    


The power division has already issued a directive to the four companies in public companies for reformation of these companies.


It also asked to appoint consultants for making them profitable one   


The companies are: country’s lone transmission company Power Grid Company of Bangladesh (PGCB), North West Power Generation Company Limited (NWPGCL), the Electricity Generation Company of Bangladesh (EGCB) and Asuganj Power Station Company Limited (APSCL).


The government will offload the shares in order to implement the mega projects in generation and transmission companies, official said.


State-run PGCB has taken up 10 priority projects with an estimated cost of over Tk 30,000 crore to strengthen the country’s power transmission system to handle additional 18,000MW of electricity by the year 2020.


The projects include a 4142 kilometer power transmission line to distribute electricity from the proposed 2400MW Rooppur Nuclear Power Project, 1200MW Matarbari power project, 1320MW Paira Power Project and another 500MW additional power to be imported from India, officials said.


Of the total cost Tk 30,000 crore, around Tk 17,666.28 crore would come from foreign aide while the rest will be borne by the state exchequer. So, the government plans to raise over Tk 12,000 crore through offload of shares and state exchequer.


Besides, the NWPGCL implements series of coal-fired power projects having combined capacity to generate 2591MW of electricity under foreign and local credit. It has a capacity to generate 722MW now and plan to produce another 5442MW in future.


The EGCB has a combined capacity to generate 2608MW of electricity. It plans to 1600MW of a ultra super critical coal-fired plant at Pakua in Cox’s Bazar. The power division has already formed a seven member committee to set the land prices for implementing it.


The government will require extra $13 billion to achieve 24,000MW electricity generation capacity and upgrade the transmission and distribution facilities by 2021, Mohammed Hossain, director general of Power Cell under the ministry, told daily sun.


The power division will require another $24 billion between 2021 and 2030 for generating 40,000MW of electricity and make the transmission and distribution systems compatible with the increased power generation.


The power division will be $30 billion between 2030 and 2041 as the government is targeting to turn the country into a developed nation by 2041, he said.


“We are hopeful to get the fund through public private partnership, foreign lending and mobilize fund from capital market,” Mohammed Hossain said.