The Ministry of Power, Energy, and Mineral Resources has requested $4 billion in phases by June to address the looming power and energy crisis during the summer.
Of this amount, the Power Division has sought $3 billion, while the remaining funds have been requested by the Energy and Mineral Resources Division to clear outstanding energy bills and open Letters of Credit (LCs) for fuel imports, ensuring electricity generation during Ramadan and the peak summer months.
The formal request was submitted by Power and Energy Adviser Fouzul Kabir Khan to Finance Adviser Dr. Salehuddin Ahmed, who has responded positively to addressing overdue payments, official sources confirmed.
The Power Division has requested Tk 28,000 crore ($2.6 billion) from the Finance Division to settle unpaid bills and facilitate coal imports for power generation. This funding is particularly crucial to ensure uninterrupted electricity supply during the hot summer months and for Boro paddy irrigation, a key agricultural activity in Bangladesh.
For the current fiscal year, the Power Division’s total subsidy requirement stands at Tk 59,000 crore ($5.4 billion). So far, the government has disbursed Tk 34,000 crore ($3.1 billion) to support electricity generation and distribution. However, additional funds are needed to cover outstanding payments and maintain energy security.
Additionally, the Bangladesh Bank has committed to providing separate funds for opening Letters of Credit (LCs) to facilitate coal imports for the Matarbari and Rampal power plants. This measure is expected to ensure a steady supply of coal, preventing disruptions in power production at these key facilities.
The Bangladesh Independent Power Producers Association (BIPPA) has requested Tk 3,000 crore ($275 million) to clear overdue payments for furnace oil imports. BPDB’s payment delays now range from 120 to 180 days, with some exceeding 200 days in 2022–23, despite a 30-day payment term in the Power Purchase Agreement (PPA), BIPPA President David Hasnat noted.
Meanwhile, India’s Adani Group has been pressing for the settlement of over $750 million in unpaid power import bills.
To ease the subsidy burden, the Energy and Mineral Resources Division has sought approval for importing 102 LNG cargoes, arguing that it will help reduce overall power subsidies. However, officials declined to disclose further details.
The division has also requested funds to clear outstanding bills owed to Chevron, Vitol, Qatar, and Oman Gas.
The Ministry of Power, Energy, and Mineral Resources has requested a US$4 billion fund from the Ministry of Finance. In response, the Finance Ministry assured that it would provide Tk 33,000 crore, or US$2.71 billion, to the power and energy sector.
