BPDB to sell fly ash at 55pc lower price

Staff Correspondent | Published: 00:05, May 25,2018 | Updated: 23:06, May 24,2018

 
 

The Bangladesh government is forced to sell dry fly ash from the third plant of the Barapukuria coal-fired power plant under a 30-year contract with a Barisal-based cement manufacturer at a price which is 55 per cent less than the projected rate.
Officials said the power division has already sought approval from the economic committee on economic affairs to award the deal to M/S Olympic Cement Limited which quoted highest Tk 550 for a tonne fly ash.
The quoted price is 55 per cent less than the initial projection after Bangladesh Power Development Board sold fly ash of the first and the second units of the country’s lone coal-fired power plant at Tk 1,232 per tonne.
Still, the proposed deal would enable Bangladesh Power Development Board to earn Tk 252.34 crore with the agreement to be expired after 30 years.
Bangladesh Power Development Board officials in its proposal to the cabinet committee on economic affairs explained that Olympic Cement Limited had won the previous bid.
But it did not take delivery of the fly ash citing falling price of the item in the international market.
Moreover, BPDB said that the lone ash pond at the Barapukuria power plant had already filled with the arrival of dry ash from the third plant and was flowing with water to affect nearby crop lands.
As quality of dry ash was also falling, BPDB said, it was forced to accept the quoted price of the Olympic Cement Limited which was higher than M/S Hossain International Dhaka and M/S Meghna International Barisal.
Olympic Cement Limited senior executive (brand and research) Omar Faruk said he could not speak about the matter as he was busy.
He added that he required permission from the company high officials to explain why the company did not take delivery of fly ash as per previous agreement done in 2015.
BPDB owns and operates the power plants that generate electricity using coal from the Barapukuria colliery.
Despite several attempts, BPDB in the past failed to sell fly ash from its Barapukuria coal-fired power plant.
Until now, PDB used to dump approximately 77,000 tonnes of dry fly ash produced by Barapukuria power plant each year since its commissioning in 2006.
Lightweight and super fine particles of coal fly ash from coal-fired power plants are used as cement’s additives.
Since commissioning, Barapukuria power plant has been dumping its fly ash in a large pond mixing it with water. 

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