Barapukuria Coal
CMC asked to resume operation
Staff Correspondent
Energy Adviser Tapan Chowdhury yesterday requested the Chinese company CMC to resume its operation at Barapukuria coal mine from next week.The production at the mine has remained suspended since October last year. During a meeting with the energy adviser, the representatives of CMC accompanied by Chinese diplomats asked him to make the sixth installment of the repayment, worth $15 million, of the Chinese Supplier's Credit under which this project was being developed. Besides, CMC is seeking other financial benefits of around another $15 million. However, the Barapukuria Coal Mining Company Ltd's (BCMCL) legal adviser strongly opposed the payment as the company has repeatedly failed to meet contractual obligations. Suspension of mining operation has led to near shutdown of the 250 megawatt (MW) coal-fired power plant (also built by the CMC) at the site. Sources said that to end the deep crisis that has gripped the mine, the authorities have requested the CMC to resume the operations first. The energy adviser told the CMC and Chinese embassy officials that suspension of coal production has added to the cash crisis of the BCMCL. After the production is resumed, the government would initiate the process for payment of loan installment and look into other financial matters, he further said. Though the government has already paid China Tk 662 crore in five installments, CMC has failed to complete the project even eight years after the original schedule. For recent delays, the CMC faults the BCMCL's delay in payment of the fifth installment and non-payment against supply of mining equipment. The BCMCL in recent months resolved much of these issues to bring back the CMC to the mine. The BCMCL expects to resume coal production from next week.
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