Power Division sources said the Power Development Board (PDB) issued an ‘event of default notice’ to Beximco-TBEA Xinjiang SunOasis Co Ltd on May 5 for failing to implement 200MW Gaibandha grid-tied power project as per schedule.

A Power Division document shows that the Cabinet Committee on Public Purchase approved an unsolicited offer of Beximco-TBEA joint venture in August 2016 to set up the plant.

Beximco-TBEA obtained the project under the Special Act of Speedy Increase of power and energy supply, officials said.

After the approval, PDB signed a contract with Beximco-TBEA on October 26, 2017 to set up the plant by April 26 this year.

One of the conditions was that Beximco-TBEA joint venture Teesta Solar Limited would set up Sundarganj Solar Power Plant at Latshal within 18 months on 1,000 acres of land.

The company would supply electricity to the national grid at a rate of $ 0.15 kilowatt per hour (about Tk 12 per unit) for 20 years under the 'no electricity no payment method'.

The government will purchase electricity from the project for the next 20 years at a total cost of Tk 7,778.4 crore.

But a review meeting of Power Division on May 19, chaired by Power Secretary Dr Ahmad Kaikaus, found the project’s implementation progress very unsatisfactory.

Concerned PDB officials informed the meeting that they have already started a process for terminating the contract with Beximco by issuing an event of default notice.

however, said that the company has already appealed for extending the execution time of the project. “But the PDB is yet to approve any such appeal of Beximco-TBEA joint venture,” said an official.