ng on internal and external borrowing on importing petroleum fuels as per the BPC set target,” the official said. He said the IMF fixed borrowing target $750 million last fiscal year. But the IMF is yet to set any IT ceiling to import petroleum fuels this fiscal, the official said. He also said the government expenditure was $4.6 billion to import 5.3 lakh tonnes of petroleum fuels in fiscal year 2013-2014. He added that the BPC set a target to import 57 lakh tonnes of petroleum fuels this fiscal year. Last fiscal year, the government has reduced the borrowing to $1200 million from $2200 million of the previous fiscal year to fulfil the condition of IMF. The official said BPC would not require any loan in the next two years if the government provides them Tk 8,053.28 crore outstanding subsidies between 1999 and 2013. He said BPC has already sought Tk 2,200 crore fund support from the government to import petroleum fuels and repay loans for the next six months between July and December, 2014. “The corporation would face fund crisis in importing petroleum fuel if the government doesn’t provide the said amount,” BPC Chairman Md Eunusur Rahman told the Energy and Mineral Resources Division secretary last month. The BPC would require $2364.50 million to import total 27.20 lakh tonnes of petroleum fuels required for the next six months, the BPC official said. Besides, another fund worth $1080.01 million would be required to repay loans received from the Islamic Trade and Finance Corporation (ITFC) under a deferred payment support facility and also through syndication of banks, he said. “The BPC at present suffers a shortage of Tk 2,200 crore as it needs total $3444.51 million to repay loans and make payments to petroleum fuel suppliers for ensuring uninterrupted fuel supply for power plants,” the official told the ministry. The corporation expects that it would be able to arrange total $2100 million fund support as loan from ITFC and availing deferred payment facility from four fuel suppliers. The BPC borrows short-term loan from different sources to import petroleum fuels, he said. The ITFC, an enterprise of Islamic Development Board (IDB), would provide $1200 million. The proposal to avail the loan has already been approved by the government’s standing committee on non concession loan, an inter-ministerial committee headed by the finance minister, on May 18, 2014. In the coming fiscal, the BPC would also avail $900 million deferred payment facility from four suppliers--$300 million from PETCO-Malaysia, $250 million from PETRO-China, $200 million from PNOC-EC and $150 million from UNIPEC-Singapore—for 150 days with 3.78 percent interest rate annually, he added. The BPC has requested the standing committee on non concession loan to allow it to seek the $900 million deferred payment facility from the fuel suppliers, he said. Even it is allowed for the deferred payment facilities, the BPC could require Tk 2200 crore to make payment for import of petroleum fuel between July and December, 2014 period.
Monday, August 18, 2014
BPC seeks to borrow $650m to import fuel for Jul-Dec period:Daily Sun
ng on internal and external borrowing on importing petroleum fuels as per the BPC set target,” the official said. He said the IMF fixed borrowing target $750 million last fiscal year. But the IMF is yet to set any IT ceiling to import petroleum fuels this fiscal, the official said. He also said the government expenditure was $4.6 billion to import 5.3 lakh tonnes of petroleum fuels in fiscal year 2013-2014. He added that the BPC set a target to import 57 lakh tonnes of petroleum fuels this fiscal year. Last fiscal year, the government has reduced the borrowing to $1200 million from $2200 million of the previous fiscal year to fulfil the condition of IMF. The official said BPC would not require any loan in the next two years if the government provides them Tk 8,053.28 crore outstanding subsidies between 1999 and 2013. He said BPC has already sought Tk 2,200 crore fund support from the government to import petroleum fuels and repay loans for the next six months between July and December, 2014. “The corporation would face fund crisis in importing petroleum fuel if the government doesn’t provide the said amount,” BPC Chairman Md Eunusur Rahman told the Energy and Mineral Resources Division secretary last month. The BPC would require $2364.50 million to import total 27.20 lakh tonnes of petroleum fuels required for the next six months, the BPC official said. Besides, another fund worth $1080.01 million would be required to repay loans received from the Islamic Trade and Finance Corporation (ITFC) under a deferred payment support facility and also through syndication of banks, he said. “The BPC at present suffers a shortage of Tk 2,200 crore as it needs total $3444.51 million to repay loans and make payments to petroleum fuel suppliers for ensuring uninterrupted fuel supply for power plants,” the official told the ministry. The corporation expects that it would be able to arrange total $2100 million fund support as loan from ITFC and availing deferred payment facility from four fuel suppliers. The BPC borrows short-term loan from different sources to import petroleum fuels, he said. The ITFC, an enterprise of Islamic Development Board (IDB), would provide $1200 million. The proposal to avail the loan has already been approved by the government’s standing committee on non concession loan, an inter-ministerial committee headed by the finance minister, on May 18, 2014. In the coming fiscal, the BPC would also avail $900 million deferred payment facility from four suppliers--$300 million from PETCO-Malaysia, $250 million from PETRO-China, $200 million from PNOC-EC and $150 million from UNIPEC-Singapore—for 150 days with 3.78 percent interest rate annually, he added. The BPC has requested the standing committee on non concession loan to allow it to seek the $900 million deferred payment facility from the fuel suppliers, he said. Even it is allowed for the deferred payment facilities, the BPC could require Tk 2200 crore to make payment for import of petroleum fuel between July and December, 2014 period.
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