logo

BSEC moves to facilitate renewal of PPAs with listed power companies

Mohammad Mufazzal | Thursday, 29 April 2021


The securities regulator has moved to facilitate the renewal of the power purchase agreements (PPAs) earlier signed between the government and some listed power companies.

The officials of the Bangladesh Securities and Exchange Commission (BSEC) said the initiative has been taken considering the interest of general investors and the stock market.

As part of the move, the BSEC has urged the Ministry of Power Energy and Mineral Resources to provide information regarding the scope of renewing the listed power companies' PPA.

Besides, the securities regulator is trying to convince the government for the renewal of the listed power companies' PPA.

Mohammad RezaulKarim, a BSEC spokesperson, said general investors have significant amount of stakes in some listed power companies having PPA with the government.

"General investors will be affected if the companies' PPAs are not renewed. That's why, the BSEC has taken an initiative to facilitate the renewal of the companies' PPA," Mr. Karim said.

According to BSEC information, Baraka Power, Dhaka Electric Supply Company, Doreen Power Generation and Systems, Energypac Power Generation, GBB Power, Khulna Power Company, Power Grid Company of Bangladesh, Shahjibazar Power Company, Summit Power and United Power Generation and Distribution Company have signed PPAs with the government.

Institutions and general investors have shares ranging between 10 per cent and 68.97 per cent in these listed companies.

The BSEC spokesperson Mr.Karimsaid the securities regulator has also talked with the government's high ups to ensure the renewal of the power companies' PPA.

Asked, whether the move taken to facilitate the renewal of the companies' PPA is the BSEC's stipulated job, Mr. Karim said the regulator has taken the initiative for the sake of the capital market and general investors.

Of listed power companies, Khulna Power Company is providing electricity under two PPA agreements earlier signed with the government.The tenures of those agreements will end by May 31, 2021.

In its letter sent to the ministry, the securities regulator said general investors of Khulna Power Company have not yet got back their investments through the dividend so far distributed by the company.

"The commission is very much concerned about the interest of general shareholders of the Khulna Power Company," the BSEC letter reads.

In its letter, the securities regulator has requested the Ministry of Power Energy and Mineral Resources to make the BSEC informed of the scope of renewing the PPA of the listed power companies including the Khulna Power Company.

[email protected]