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Three more solar park projects facing the axe

  • Published at 10:54 pm January 14th, 2019

Under the agreements, the PDB was supposed to purchase electricity from the projects at different prices for the next 15 years

The government is likely to revoke three more solar park projects in the private sector as the implementing agencies have failed to make any progress though the deadlines of the projects expired.

The government has already issued “Event of Default Notice (EDN)”, the initial process to terminate a contract, to the sponsors of the projects to this end, Power Division Joint Secretary (Renewable Energy) Mohammad Alauddin told UNB.

The three projects are 32MW Sunamganj Solar Park, 50MW Mymensingh Solar Park and 5MW Lalmonirhat Solar Park.

Earlier, the government cancelled the 200MW Teknaf Solar Park project as US firm SunEdison failed to implement it as per the schedule.

However, the executing agency has moved the international arbitration challenging the government's decision.

Sources said state-owned Power Development Board (PDB) signed a contract with Edison-Power Point and Haor Bangla-Korea Green Energy Ltd to implement the 32MW Sunamganj Solar Park by August 15, 2017 while the 50MW Mymensingh Solar Park was awarded to Hetat-Detrolic-IFDC Solar to set up the plant by April 19, 2018 and Green Housing and Energy Ltd (PV) Power Patgram was scheduled to install the 5MW Lalmonirhat Solar Park by January 29, 2018.

Under the agreements, the PDB was supposed to purchase electricity from the projects at different prices for the next 15 years.

But all the sponsors failed to implement the projects as per the schedules, a PDB official said, adding that their failure has prompted the government to issue the EDN.

"Actually, the EDN is the initial process to cancel a contract with a project sponsor. If they fail to respond to the notice, the government will then move to terminate their contracts and cancel the projects," said a senior PDB official.

Another PDB official, however, said of the three companies, Edison-Power Point-Haor Bangla had appealed for extending time which was granted, but there was no substantial progress in the project. He said Hetat-Detrolic-IFDC Solar had also sought time extension.

Officials said the issue was discussed at a Power Division review meeting on November 11 with Power Secretary Dr Ahmad Kaikaus in the chair.

The meeting asked the project directors concerned to submit reports in the next review meeting to be held within a three-month period from the previous meeting on their further actions regarding the projects, said a source present at the meeting.