The power sector in Bangladesh is grappling with a staggering $4 billion in outstanding bills owed by the Bangladesh Power Development Board (BPDB) for electricity purchases. The shortage of taka has made it challenging for the BPDB to raise the necessary dollars to settle these bills, leading to a recent fuel shortage at power plants.
The BPDB has requested Tk 10,000 crore ($117.6 million) from banks as working capital to ensure an uninterrupted power supply and timely payments to power companies. The outstanding bills include Tk 25,070 crore owed to independent power producers (IPPs) and rental power plants, Tk 6,521 crore owed to state-run power plants, and Tk 1,515 crore in gas bills for BPDB’s own power plants. The situation has also put important projects, such as the Adani Group’s power plant and the Payra Power Plant, at risk, with potential penalties and loan repayment concerns looming.