Bangladesh: Analyzing Hasina era Adani Power Deal

[UKBengali]

And it was later on refuted by disclosing the supply cost. If your IG energy advisor thinks Adani stated wrong figure. It can come out.

Adani Power refutes reports of supply of costly power to Bangladesh - CNBC TV18

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Citing the comparative power costs detailed in the Bangladesh Power Development Board's FY23 (July-June) report, company sources stated that Adani Power supplies electricity to Bangladesh at a rate of BDT 14.02 per unit, compared to BDT 16.02 per unit from the Payra Power Plant and BDT 14.12 per unit from the Rampal Power Plant.

Yes but that was temporary as BD had to pay 400 US dollar a tonne for coal due to Ukraine war at the time. Since then coal prices have come down to 90-100 US dollars a tonne.

 

[vasanthm]

Ultimately Adani is supplying power cheaper than the other sources BD is currently getting.. looks like lot of controversy for nothing

 

[Afif]

Ultimately Adani is supplying power cheaper than the other sources BD is currently getting..

False.

 

[BananaRepublic]

Yes but that was temporary as BD had to pay 400 US dollar a tonne for coal due to Ukraine war at the time. Since then coal prices have come down to 90-100 US dollars a tonne.

Which is why I was asking how the Adani deal is structured.

Spot price or hedged?

Did BAL go for stability over fluctuations?

 

[Cryptonian]

Yes but that was temporary as BD had to pay 400 US dollar a tonne for coal due to Ukraine war at the time. Since then coal prices have come down to 90-100 US dollars a tonne.

Which is why I was asking how the Adani deal is structured.

Spot price or hedged?

Did BAL go for stability over fluctuations?

Yes it seems. It's like insurance policy. People don't like the insurance premium when they look back.
But what if.... is the factor.

 

[Pingle]

Indian government should intervene and assure the supply of electricity to Bangladesh..... Bangladesh is one of the most important country of South Asia with 170 million people with a potential to grow as one among the top economies in next decade or two......

We have given asylum to Hasina which has already negatively impacted Bangladeshi youths in their attitude towards India and this step will fuel it further.....

Once Bangladesh settles from internal issues paying 800 millions is not a big deal for him but do we have to create another hostile state on the Eastern front especially when we are so vulnerable at chicken neck?

 

[UKBengali]

Indian government should intervene and assure the supply of electricity to Bangladesh..... Bangladesh is one of the most important country of South Asia with 170 million people with a potential to grow as one among the top economies in next decade or two......

We have given asylum to Hasina which has already negatively impacted Bangladeshi youths in their attitude towards India and this step will fuel it further.....

Once Bangladesh settles from internal issues paying 800 millions is not a big deal for him but do we have to create another hostile state on the Eastern front especially when we are so vulnerable at chicken neck?

Bro, BD will actually be relieved as the deal was so controversial.

Newly built Matarbari is hardly at constant full production capacity and that can be fired up easily. Roopur nuclear with its 2.4GW will be online next year.

Reading between the lines it seems that India-Adani wants out and BD is also fine with that.

Cancelling the deal will have no repercussions to BD-India friendship. Please ignore the immature students and those in their 20s here who think otherwise. BD will pay every dollar outstanding of course.

https://www.dhakatribune.com/bangladesh/power-energy/363928/coal-crisis-halts-production-at-matarbari-power

"Due to a coal shortage, both units of the Matarbari coal-fired power plant in Maheshkhali, Cox's Bazar, have been shut down since last Thursday."

"Authorities say that the coal shortage should be resolved by the end of November, once a new shipment arrives"

 

[Guynextdoor]

If Adani unilaterally terminates its end of the contract, BD won't care and will probably be relieved.


Roopur nuclear with its huge 2.4GW capacity will come online next year. In the meantime any shortfall can be made up with buying coal for Matabari power plant that has similar capacity(1.2GW).

Strange decision from Adani.

You are proposing to pick up a fight with Adani and....actually think you will win...???

Good Joke.

 

[Pingle]

Adani wants out because they see Bangladesh for what it is and what it is going to be, a bankrupt basket case. He can sell the power to Indian grid and be happy about it. No one is interested in the failing economy.

It's a 3rd most populated country in our neighborhood with lots of potential to grow..... we need them too..... sometimes national interest becomes bigger than some Adani bro......

 

[Circadian Rhythm]

It's a 3rd most populated country in our neighborhood with lots of potential to grow..... we need them too..... sometimes national interest becomes bigger than some Adani bro......

You cannot Shake Hands with a CLENCHED FIST

This was said by Indira Gandhi

If population is the only criteria then Pakistan has more population than Bangladesh

 

[c14-Isotope]

Here is the report from a top Pro India newspaper in Bangladesh -

"According to sources from the Power Development Board (PDB), the 1,320 MW power plant at Payra in Patuakhali is charging USD 75 per tonne of coal. In contrast, the coal prices at Chattogram’s Banshkhali SS Power Plant and Bagerhat’s Rampal Power Plant are both under USD 80 per tonne.

Adani, however, is requesting USD 96 per tonne of coal, which is USD 16-21 more per tonne than the prices at Payra and Rampal."

Redirect Notice

Adani's demand is as per contract, and coal isn't priced the same.
Even if you have a dispute on coal price, what explains Bangladesh not clearing dues as per the coal price of it's understanding of contract, and keep the remaining payment for further negotiations and/or clarification?

The backlog is easily 5-6 months, maybe even more. Can any company run like this?

The truth is Bangladesh has no forex. Bangladesh has no forex to import coal for it's own power plants. The administration is run by luddites, who have found a method to cry wolf everytime Adani sends a payment notice, and hide their incompetence

They are going to do partial payment just like last time, then cry again when Adani sends another notice next month. Rinse-repeat

Adani is squeezing the government, it's evident, but this won't work if you pay your dues on time.

 

[BananaRepublic]

Yes it seems. It's like insurance policy. People don't like the insurance premium when they look back.
But what if.... is the factor.

Lot of juvenile delinquents in charge lol

Doubt any of them have ever bought life assurance let alone every day insurance lol

@UKBengali

 

[c14-Isotope]

If Adani unilaterally terminates its end of the contract, BD won't care and will probably be relieved.


Roopur nuclear with its huge 2.4GW capacity will come online next year. In the meantime any shortfall can be made up with buying coal for Matabari power plant that has similar capacity(1.2GW).

Strange decision from Adani.

Discontinuation of supply of power due to unpaid dues does not mean unilateral termination of contract, you will still have to pay capacity charges even if you take 0 electricity from the power plant.

 

[Pingle]

You cannot Shake Hands with a CLENCHED FIST

This was said by Indira Gandhi

If population is the only criteria then Pakistan has more population than Bangladesh

Brother Pakistan is an official enemy of India who has claims on territorial integrity of India..... Bangladesh 1 or 2 bitter experiences here and there is not our official enemy and officially has never claimed any Indian territory......

My point is we have now globally second most populated enemy on east and 2nd most populated enemy of South Asia on west with both having nukes..... we don't need 3rd most populated (south Asia) enemy on east.....

800 million amount is not worth it especially after we have given a safe custody to Hasina..... sometimes I feel such policies by us makes things easy for China to encircle us in our own backyard.....

 

[UKBengali]

Discontinuation of supply of power due to unpaid dues does not mean unilateral termination of contract, you will still have to pay capacity charges even if you take 0 electricity from the power plant.

Do you have any idea of whether the contract even allows this?

Think it through - BD is paying for current electricity and paying 5% every month of the debt. That would be judged reasonable under any circumstance.

Also why did Adani say nothing when Hasina was in charge as he supplied power for a year with zero payment?