PPA of 10 power companies being renewed

The government’s Power Purchase Agreement (PPA) with 10 companies including Khulna Power which is listed on the stock market in the energy and power sectors, is being renewed conditionally.

In order to protect the interest of investors, the decision is being taken at the request of the Bangladesh Securities and Exchange Commission (BSEC), the regulator of the stock market, and instructed by the highest level of the government, according to reliable sources.

According to stock market stakeholders, the decision at the highest level of government will play an important role in protecting the interest of investors. Failure to renew the existing power sale agreement with the government would have a major impact on the business activities of the companies. As a result, the companies would suffer financially as well as the investors. Companies are set to get new life with such a decision.

These companies are DESCO, Power Grid, Baraka Power, Doreen Power, Energypack Power, GBB Power, Khulna Power, Shahjibazar Power, Summit Power and United Power Company Limited.

The BSEC has sent a proposal to Habibur Rahman, Secretary to the Power Department of Ministry of Power, Energy and Mineral Resources, for renewal of Power Purchase Agreements of 10 companies listed on the stock exchange with the government. However, the concerned ministry did not give much importance in this regard. So BSEC Chairman Prof. Shibli Rubaiyat-ul-Islam met Prime Minister Sheikh Hasina. The BSEC chairman held talks with Ahmed Kaikaus, Chief Secretary to the Prime Minister. In view of that discussion, the government will purchase power from 10 companies of the energy sector listed in the stock market subject to conditions. That means the government will buy electricity from the companies as per its need and will pay accordingly.

When asked, Secretary to the Power Department of the Ministry of Power, Energy and Mineral Resources Habibur Rahman told risingbd that he is not aware of the matter. The DG can say well.

Meanwhile, Bangladesh Merchant Bankers Association (BMBA) President and Managing Director (MD) of EBL Securities Sayedur Rahman told risingbd that if the PPA of the companies is renewed with the government, those companies will not stop their activities. This will save the company and the investors from being looser. If the government takes such a decision, it will be positive for the stock market.

Kazi Abdur Razzak, general secretary of the Bangladesh Capital Market Investors Unity Council, told risingbd that there were rumors that the government would renew the PPA with 10 companies listed in the energy and power sectors. However, such a decision has not been announced yet. In that case, investors will be protected from losses. The role of BSEC in protecting the interest of investors deserves praise.