Bangladesh is considering the repayment to Adani Power so that the supply of electricity does not remain disrupted in the country. Bangladesh needs to pay 800 million dollars to Adani which generates 10 percent power in the country. Partial payments are being made through BPDB officers so that the debt can be paid back to Adani and normal power supply remains restored.
Bangladesh is going to pay Adani as the company has decided to cut down the power supply by half recently. BPDB recently issued a letter of credit amounting to $170 million to Adani Power to avoid any further disruption.
Though the Indian conglomerate hasn’t made any public statement on the reduced supply, officials fear that full suspension may be inevitable if the outstanding balance isn’t paid by November 7 because of continued non-payment. However, a BPDB official seems optimistic about avoiding full suspension as Bangladesh tries to pay Adani and gradually clear off the debt.
Bangladesh considers repayment to Adani Power: Here is the monthly payment breakdown
The Bangladesh energy crisis, especially in rural areas, has spiked with the reduction of the power supply from Adani Power. Bangladesh has boosted its monthly payments from $35 million in July to $97 million in October. While repaying Adani in installments, Bangladesh has also brought back into commission several oil and gas-fired plants to fill the supply gap.
However, experts are of the view that it would hike costs. The authorities say the first priority is the stabilization of the grid as a result of this and assurance of continued energy supply from Adani.
Bangladesh’s interim government, formed in the wake of political turmoil, faces one big headache: the country’s energy crisis. With sinking foreign reserves, Bangladesh approached the IMF for an additional $3 billion loan on top of the existing $4.7 billion package and is now asked to repay Indian Adani. While Bangladesh tries to pay Adani and maintain critical power supplies, it is reviewing all previous energy deals, which some observers say are expensive.
To complement its energy mix, Bangladesh will unveil its first nuclear plant in December as a joint venture with Russia and it cost around $12.65 billion. As the winter sets in, Bangladesh’s immediate needs are bound to continue with Adani Power even as demand slowly ebbs away.
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