Khulna Power Company Ltd (KPCL) has agreed to sell its 110MW barge-mounted power plant to US firm Excelerate Global Operations LLC for $15 million (Tk130 crore). The project has been dormant since 2018 due to the government’s failure to extend its power purchase agreement.
The business said in a regulatory filing on Sunday that the agreement to re-export the two-decade-old facility is subject to clearance by the Bangladesh Power Development Board and other authorities.
The 110MW dual-fuel barge-mounted plant, which began operations in 1997, was the country’s first private sector power plant, and after the contract expired, an impartial international valuer estimated the value of the idle plant assets at Tk227 crore a few years ago.
The fact that the asset is being sold at a 43 per cent discount, lowering the company’s book value, looks to be a disappointment to KPCL shareholders. The fact that the asset is being sold at a 43 percent discount, lowering the company’s book value, looks to be a disappointment to KPCL shareholders. The plant has been costing the corporation many crores of taka each year in upkeep alone, while the machine’s age will only increase over time, resulting in even lower pricing, according to Atiqul Islam.
Several factors, including the current high cost of fuel, have caused a reduction in the value of the plant over the last three years since the third-party valuation, he said. KPCL engineers will be in charge of assisting in the installation of the plant and teaching the new user’s workers how to run it. This is the first time a power plant has been sold outside of the country, as well as essential technical competence.
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