Due to unpaid import duties on coal, China Machinery Import and Export Company (CMC), the foreign partner of Patuakhali’s Payra 1320 MW power station, has suffered financial losses. Even if the debt is paid in full, the Chinese corporation has stated it will not refinance. As a result, there is ambiguity on how the Payra thermal power plant will operate. On December 29 of last year, CMC wrote to BCPCL and informed them that their bank’s credit rating had been reduced as a result of a $151.53 million outstanding coal import bill. CMC consequently suffered losses in its Chinese business. CMC has stated that they will not fund the supply of coal beginning in January 2023 unless all fees have been paid.
According to BCPCL, it owes CMC $151.53 million, of which $57.84 million is due by October 2022, $58.30 million is due by November, and $35.39 million is due by December. CMC will pay for coal shipments into Payra till the end of 2022. Amounting to $477.39 million as of December 19, 2022, $151.53 million of CMC’s total debt is still owing and must be paid off within 180 days. Exim Bank of China (CEXIM), the project leader for the Payra power station, placed a requirement to guarantee coal supply for the duration of the power plant’s operational life.
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