Ownership of Grid Line

Q. To whom the ownership of the 400kV Grid Line belongs?

Answer: The interconnection facility has been divided into two separate parts; one is ITF
(Interconnection and Transmission Facilities) and the other part is called EIF (Electrical
Interconnection Facilities). Both the parts and their sub-parts are funded, maintained and
owned by separate entities as per the legal agreements. A brief overview of the Grid-Line’s
ownership has been discussed here.

a. Interconnection and Transmission Facilities (ITF)

As per the schedule 4 of the Implementation Agreement, (ITF) includes a 400kV double
circuit transmission line between the Payra Substation and the Gopalganj.

This ITF is further divided in two parts;-

(i) Main Transmission line from Gopalganj 400kV substation to Payra Substation’s gantry.
This part is completely owned by PGCB as per the provisions of Section 5A(1) (a) of the
Implementation Agreement.
Section 5A.1 of the Implementation Agreement states as-

“(a) Interconnection and Transmission Facilities (ITF)

PGCB shall procure the design, construction, installation, commissioning, operation and
maintenance of the transmission line from Gopalganj 400kV substation to Payra Substation’s
gantry in accordance with the terms of this Agreement, and PGCB shall own this
Interconnection and Transmission Facility.”

(ii) Second part of ITF is Interconnection Equipment on Company’s Side of Delivery Point.
According to Section 5A.2(c) of the Implementation Agreement read with Section 12.1 of the
Power Purchase Agreement, the BEPCL shall own all such auxiliary and interconnection
equipment.
Section 5A.2c. of the Implementation Agreement states:-

“Interconnection Equipment on Company’s Side of Delivery Point

Subject to Section 5A.2(e) hereof and Section 12.1 of the Power Purchase Agreement, the Company
shall be responsible, at the Company’s expense, for designing, constructing, installing and
maintaining all auxiliary and interconnecting equipment on the Company’s side of the Delivery Point
(except for the SCADA System), and, except for the SCADA System, the Company shall own all
such auxiliary and interconnection equipment.”

b. Electrical Interconnection Facilities (EIF)

This is a 25 kilometer long 400kV overhead or underground single circuit transmission line
connecting the gantry after Facility GIS with the 400 kV bus of the Payra Substation. The
EIF also includes the extension of the Payra Substation.

According to Section 5A.3 (i) of the Implementation Agreement, the main part of EIF from
the Facility to Payra is constructed and implemented by the BEPCL directly, while the
extension part of the EIF is implemented by BCPCL and funded by BEPCL.

However, according to Section 1 of the Implementation Agreement the entire ‘Facility’ is

owned by the BEPCL and ‘Facility’ includes the whole infrastructure of the EIF including the
extension part.
So according to Section 1 coupled with Section 5A.3 (i) and Schedule 5 of the
Implementation Agreement, the ownership of the entire EIF structure belongs to our
company BEPCL.

Relevant clauses from IA:-

Section 1 of the IA defines Facility as “the Coal fired power station, capable of 307 MW of
capacity (net, at Reference Site Conditions) to be owned and constructed by the Company at Taltali,
Barguna, Bangladesh, whether completed or at any stage of its construction, including without
limitation or regard to level of development, the land, engineering and design documents and
Construction Contract, all energy producing equipment and its auxiliary equipment and all
transmission facilities on the Company’s side of the Delivery Point, water intake and discharge
facilities (if any), water treatment facilities, solid waste disposal facilities, Coal receiving and
handling facilities and equipment, the Metering System, the Electrical Interconnection Facilities,
together with the residential facilities (if any) made available to certain employees of the Company,
the Contractor(s) and any subcontractors;”

Section 5A.3 (i) of the IA further states as follows:-

“Electrical Interconnection Facilities (EIF)

The evacuation of electric power to be generated by the Facility will be through Payra 400
kV substation of BCPCL at Payra, Patuakhali. The facility will be connected to the 400 kV
bus of Payra substation by a 400 kV single circuit overhead or underground line around
25km (the "Interconnection Line").

This Interconnection Line from the Facility to Payra substation will be implemented by the
Company at its own cost and responsibility including arrangement of necessary right of way.”

SCHEDULE 5 AGREEMENT STATES:-

“ ELECTRICAL INTERCONNECTION FACILITIES (EIF)
The EIF shall comprise:
(a) a 400kV overhead or underground single circuit transmission line approximately 25
kilometer in length connecting the gantry after the Facility GIS with the 400 kV bus of the
Payra Substation, which transmission line shall be constructed by the Company;

(b) the extension of the Payra Substation, including the relevant 400kV bay, to
accommodate the termination of the 400kV single circuit transmission line referred to in
paragraph (a), to be implemented by BCPCL at the cost of the Company; “

On a final note- whether the land on which such a structure of EIF and ITF is built is
immaterial in determining the ownership of Grid-Line. So even if the said land is arranged on
lease, the ownership of the Grid-Line structure will belong to our company and the company
will be entitled to uproot the metal structure and resell them on market before/at termination
of lease period.