The Bangladesh Securities and Exchange Commission (BSEC) has called on Khulna Power Company Limited's (KPCL) board to learn about its business plan.
The power purchase agreement between KPCL and the Bangladesh Power Development Board (BPDB) will expire in May this year. The securities regulator has called on the board of the company to learn what they plan to do if the term of the agreement is not extended, said sources at the BSEC.
Mohammad Rezaul Karim, executive director and spokesman of the BSEC, told The Business Standard, "The board of Khulna Power Company has been called on to explain its business plan."
The BSEC's Supervision and Regulation of Markets and Issuer Companies (SRMIC) department sent a letter to the company asking its board to appear before the commission on Tuesday to inform the commission about its business plan.
KPCL supplies electricity to the national grid through the power purchase agreements with BPDB. The company's Khulna Power Company Unit II and Khanjahan Ali Power Plant generate electricity under the agreement.
As the expiration dates of the agreements are approaching, KPCL authorities sent a letter to BPDB to renew the contract, but BPDB has not responded. Therefore, there are concerns about the company's ability to conduct future business.
Meanwhile, Khulna Power's associate company United Payra Power Plant started commercial production in January this year.
The plant with 150 megawatt capacity signed a 15-year power purchase agreement with BPDB.