Bangladesh Independent Power Producers Association (BIPPA) has appealed to the Finance Division for an exemption from “group or related party classification” in banking regulations. Concerned about the impact of sponsors’ financial troubles on their access to credit, BIPPA, representing 60 member companies, highlighted challenges such as payment delays and a $2.4 billion government debt for power bills. The association proposed excluding electricity generation companies from the group or related party classification, recognizing them as independent power producers of Special Purpose Vehicles (SPVs). This change, they argue, would facilitate bank loans, addressing cash flow issues, and ensure a smooth electricity generation process amid global economic challenges and a USD shortage.
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