The ongoing dispute between the Power Division and the Ministry of Shipping over a maintenance levy on coal transportation at Payra Port is likely to be resolved during a meeting on Thursday, January 30, 2025.
Finance Adviser Dr. Salehuddin Ahmed will chair the meeting, attended by Power and Energy Adviser Fouzul Kabir Khan and Shipping Adviser Brig Gen (Retd) Dr. M Sakhawat Hossain.
The disagreement arose after the Shipping Ministry introduced a port maintenance fee without consulting the Power Division through a gazette notification late last year.
Power Division officials estimate the levy, amounting to Tk 675 crore annually for transporting 7 million tonnes of coal through Payra Port, will increase electricity production costs and potentially raise power tariffs.
Officials from the Power Division noted that the levy contradicts commitments made to the International Monetary Fund (IMF) to reduce power production costs.
Meanwhile, the 1,320 MW Bangladesh-China Power Company Limited (BCPCL) and RPCL-Norinco International Power Limited (RNPL), the primary coal importers, expressed concerns about the financial burden.
RPCL-Norinco Managing Director Salim Bhuiyan stated that the levy would cost Tk 360 crore annually, increasing electricity tariffs by Tk 0.50-Tk 0.60 per unit. He also highlighted inefficiencies in port operations, citing an additional $7–8 per tonne expense due to incomplete channel dredging.
Khurshedul Alam, former BCPCL managing director, disclosed that $68 million had been spent on channel dredging from 2019 to 2020. The dredging company proposed tiered charges based on channel depth, but the Ministry of Shipping set a fixed rate of $7.71 per tonne.
On January 13, 2025, Payra Port Authority conditionally approved the unloading of 56,614 metric tonnes of coal for RPCL-Norinco Intl Power Ltd after temporarily halting the process over the unpaid levy.
The company warned that delays in resolving the issue could disrupt power production as the plant prepares to synchronize operations next week.
In a letter to Payra Port Authority, RPCL-Norinco called for urgent action to release coal shipments and proposed an inter-ministerial discussion. However, the port authority maintained that the levy, formalized in May 2024, is a settled issue.
Broader Implications
The levy also affects other coal-fired plants, including the 1,320 MW Payra power plant and the Matarbari 1,200 MW ultra-supercritical power plant.
These facilities are critical to meeting Bangladesh’s energy demands, especially during the summer. Rising costs threaten the Bangladesh Power Development Board (BPDB), which already faces Tk 30,000 crore in unpaid bills.
Officials have urged the Shipping Ministry to reconsider the levy to prevent further financial strain on the power sector and ensure uninterrupted electricity supply.
