Two state-owned electricity distribution entities Rural Electrification Board (REB) and Dhaka Power Distribution Company Ltd (DPDC) on Monday formally signed power purchase agreement (PPA) with the state-owned Power Development Board (PDB) to supply electricity to their consumers.
The deal signing ceremony was held at Biddyut Bhaban in the city where State Minister for Power and Energy Nasrul Hamid and Power Secretary Dr Ahmad Kaikaus were present, reports UNB.
Through this signing of the PPA deals separately, both the distribution agencies came under a formal arrangement with the top generation agency to get electricity for their consumers.
Both the REB and DPDC have been purchasing electricity from PDB since their inception. But the Power Division now insisted both of the agencies to sign formal agreement to buy electricity from the PDB.
REB is entrusted with responsibility to distribute electricity to the country`s rural areas while DPDC is liable to distribute power in south and central parts of Dhaka city.
Welcoming the PPA signing State Minister Nasrul Hamid said such move will help all the three agencies to get alternative financing as these deals are valued by the international financiers.
He said the Power Division planned to implement many mega projects in future which will require strong balance sheet to show up their performances.
The function was also addressed by PDB chairman Khaled Mahmood, REB chairman Moin Uddin and DPDC managing director Bikash Dewan.
They said such PPA will help them improve the performance of their organisations.
