Draft

Ref: BIPPA/SGO/ BPDB/ 2022/2.. Date: 1st January 2023

Chairman
Bangladesh Power Development Board (BPDB)
WAPDA building (1st floor)
Motijheel Commercial Area, Dhaka-1000.

Subject : Suspension of Outage Calculation due to BPDB's Failure to Pay Monthly bills within due
date and Absence of BPDB's Letter of Credit.

Ref:

i. Letter No. BIPPA/SGO/BPDB/2022/265, Dated: 25 September 2022

ii. Letter No. BIPPA/SGO/BPDB/2022/278, Dated: 16 November 2022

Dear Sir,
In continuation with our earlier letters and with reference to Power Purchase Agreement (PPA) of our member
companies we would like to draw your kind attention as follows:
1. Section 13.2 (a) of PPA stipulates the submission date of the monthly invoices by the company and also
the due date for payment by BPDB, which is 30 days from submission of the invoices.
2. In last one year, payment against monthly invoices has become extremely delayed which recently
exceeded even 140 days from the due date. Till to date the member companies received only partial
payment of June 2022 invoice. Besides, BPDB has not yet renewed its Letter of Credit (LC), which is a
contractual obligation under Section I and Section 13.2(a).
3. Due to BPDB's extremely delayed payment and the absence of Letter of Credit, it is not possible for the
companies to comply with their obligation to maintain the required HFO stock to satisfy the availability
of the plant as per NLDC demand.
4. All the existing Lube oil suppliers of our member companies informed that the Banks are now refusing to
open LC due to prevailing US$ crisis in the country and in the coming days we are foreseeing lube oil
crisis.
5. Very importantly, member companies have presently become unable to import the required critical
spares to keep the plants operating which may result in inadvertent shutdown of the plants at any time.
6. Due to financial crisis of the companies as well as prevailing USD crisis, All the Banks are refusing to
open the LC for Fuel import.
7. Due to BPDB's extremely delayed payment, the companies are now becoming "Loan defaulter" and
Banks are going to drop all the credit lines.
8. To cope with the situation, the companies have been delivering power consuming outage, which had to
be done under compulsion entirely for the failure of BPDB to release monthly invoices within due date
and failing to place Letter of credit. It is worth mentioning that under the clause no 13.2(j) the power
companies reserve the right to suspend delivery of power in full capacity under such circumstances.
However, the power companies have been delivering power at the best of their ability under these
impaired financial conditions to serve the country.
In light of the above-mentioned circumstances on behalf of our member companies, we would like to request
your good office to comply with the Clause 13.2(j) of PPA for suspension of outage calculation from 01 May
2022 for the time being until the payments issues are resolves as per PPA.
We also request you to communicate with Bangladesh Bank to resolve the Lube oil import issue for our member
companies.

Sincerely yours'
Faisal Khan
President
Bangladesh Independent Power Producers' Association (BIPPA)