The Ministry of Finance released another Tk 500 crore to the Bangladesh Power Development Board (BPDB) on Tuesday to help pay overdue electricity bills.
This disbursement is part of a larger commitment to release Tk 28,000 crore by June to ensure uninterrupted electricity during Ramadan and minimize load-shedding during the summer.
Late last month, the Finance Division had released Tk 1,000 crore to BPDB.
The fund allocation comes as the Bangladesh Independent Power Producers’ Association (BIPPA) raises concerns over nearly Tk 16,000 crore in unpaid dues.
“We have received Tk 500 crore today from the Finance Division,” a Power Division official told Just Energy News. “However, this amount is insignificant compared to the mounting unpaid bills owed to private power producers.”
Discussing the payment, BPDB Chairman Rezaul Karim stated that the amount released by the finance division is insufficient to cover the dues ahead of Ramadan and summer.
Recently, the Power Division met with the Finance Division, requesting increased fund disbursements to address overdue payments.
BIPPA has urged the government to settle outstanding dues urgently, warning of a severe electricity crisis in the coming summer months.
At a recent press conference, BIPPA leaders cautioned that power shortages could reach 2,500–3,000 MW during peak demand if heavy fuel oil (HFO)-based private power producers fail to import fuel due to non-payment.
According to BIPPA, the government currently owes private power producers approximately Tk 16,000 crore, including Tk 10,000 crore for HFO-based electricity.
Payments, typically delayed by 60–70 days, have now exceeded 180 days—despite Power Purchase Agreement (PPA) provisions requiring payment within 30 days.
“Our financial position has deteriorated due to delayed payments,” said Imran Karim, BIPPA’s former president. “Without these funds, how can we continue supplying electricity?”
Karim warned that the delays could have severe consequences, particularly during peak electricity demand in Ramadan, which starts in early March, and the Boro harvesting season in mid-March. He emphasized that importing furnace oil takes 40–45 days, leaving little time to mitigate the crisis.
Recently, the Ministry of Power, Energy, and Mineral Resources requested a US$4 billion allocation from the Finance Ministry. In response, the Finance Ministry assured that it would provide Tk 33,000 crore (US$2.71 billion) to the power and energy sector.
