TDS Desk:

The Managing Director of the Payra Thermal Power Plant – formally known as Bangladesh-China Power Company Ltd. (BCPCL) – receives monthly salary and allowances amounting to around Tk 1.5 million. In contrast, managing directors of other government and joint venture power plants do not receive more than Tk 500,000 per month.

It is not just the MD; several top officials at the Payra Power Plant enjoy similarly high salary and benefit packages. Each director, for instance, receives an allowance of USD 500 – about Tk 60,000 – for attending a single board meeting.

Government-run and joint venture power plants typically follow a standardised salary structure. When Payra Power Plant began operations in 2016, it also adopted this structure. However, a board meeting in 2019 approved significant hikes in the salaries of top-level officials, which came into effect in 2020.

At that time, the MD’s basic salary rose to Tk 700,000 from existing Tk 175,000. Including house rent and other allowances, the total monthly salary reached Tk 1.5 million. Similarly, the basic salary for second-tier officials was raised from Tk 149,000 to Tk 450,000 – totalling around Tk 900,000 with allowances.

In contrast, mid-level salaries saw only modest increases, and lower-level staff received no raise at all.

According to sources at the Payra Power Plant, the key figure behind this revised salary structure was former Managing Director AM Khorshedul Alam. He not only availed these benefits for himself but also extended them to a few close associates. The then power secretary Ahmad Kaikaus, who also chaired the board, reportedly did not object to the changes.

Following the July mass uprising, Ahmad Kaikaus’s current whereabouts remain unknown, making it impossible to obtain his comments.

The interim government removed Khorshedul Alam from his post in March. Speaking to Prothom Alo, he said BCPCL was established as an international-standard company, and thus a competitive salary structure was adopted.

He claimed that decisions on salaries, allowances, and board meetings were made collectively by the board and that no irregularities occurred.

However, Payra Power Plant officials question whether the company can truly be considered international in standard if only its top executives benefit from higher paychecks.

According to the plant’s salary structure, despite steep increases for the top two grades in 2019, those in grades 3 to 8 saw raises ranging from only Tk 2,000 to Tk 12,200. The lower the grade, the smaller the increment. Employees in grades 9 to 18 received no increase at all.

The coal-fired Payra Power Plant was originally envisioned to supply electricity at an affordable cost. Yet, it currently sells power at around Tk 12 per unit. While the public did not benefit from low-cost electricity, high-ranking officials continue to enjoy inflated salaries.

Bangladesh-China Power Company Limited (BCPCL), a joint venture between two state-owned companies from Bangladesh and China, constructed the 1,320 MW coal-fired Payra Thermal Power Plant in Kalapara, Patuakhali.

The company is equally owned by Bangladesh’s Northwest Power Generation Company Limited and China’s China National Machinery Import and Export Corporation (CMC), with each holding a 50 per cent share.

According to multiple sources linked to the project, AM Khorshedul Alam was appointed Managing Director of Northwest Power Generation Company on 24 November 2008.

He went on to serve as Managing Director of the Payra Power Plant with three extensions until 6 May 2023. During this time, he held dual responsibilities as head of both Northwest and BCPCL. Even after retiring from Northwest, he continued to serve as MD of BCPCL for about two and a half years. He was known to be close to the previous government.

There are also allegations that Khorshed granted special privileges to the Chinese company, effectively acting in its interest. After the new government assumed office, China National Machinery Import & Export Corporation (CMC) sent a letter to the Adviser on Power, Energy and Mineral Resources in October, praising Khorshed’s leadership in managing the Payra Power Plant.

Currently, an official from the Chinese company CMC is serving as the acting Managing Director of the plant as an additional responsibility.

According to a BCPCL board order issued on 10 March, Wang Xin, a CMC-nominated director, was appointed as acting MD. In his absence, CMC Vice President Chi Yu was designated to take over the role. Since then, Qi Yue has been mainly handling the duties, though company sources say he spends most of his time in China.

As per company policy, officials holding dual responsibilities at Payra and other companies receive half of their basic salary. The current acting managing director is also drawing benefits under this provision.

HOW MUCH IS THE SALARY IN OTHER POWER PLANTS?

It has been learned that several power plants have been established by the government and through joint ventures. Another power company formed jointly by Bangladesh and China is RPCL-Norinco International Power Limited (RNPL), which has constructed a 1,320 MW coal-fired power plant in Patuakhali.

Selim Bhuiyan, the Managing Director of RPCL and RNPL, told Prothom Alo that both companies follow the same salary structure as all other government power companies.

Similarly, the 1,320 MW power plant built in Rampal, Bagerhat – through a joint venture between Bangladesh and India – also adheres to this standard salary structure. Even the salary structure of Northwest Power Generation Company, a government-owned firm and a partner in the Payra Power Plant, is aligned with this same system.

ALLOWANCES HAVE BEEN REDUCED

Ahmad Kaikaus also received substantial allowances for attending meetings as the chairman of BCPCL. He held this position from 1 April 2017 to 25 January 2023. During this period, on 30 December 2019, he was promoted from Power Secretary to Principal Secretary to the Prime Minister. Despite the promotion, he continued as BCPCL chairman.

According to BCPCL sources, even when meetings were held online, each board member received an allowance of Tk 60,000. On average, two board meetings were held each month. Additionally, board meetings were occasionally organised abroad, including in Singapore, with all expenses covered by the company.

Following the political change, the Ministry of Power, Energy and Mineral Resources moved to reduce expenditures in the power and energy sector. As part of this initiative, allowances were revised.

On 20 January, a letter from the Power Division stated that in the case of public limited companies, board directors would receive a maximum of Tk 12,000, after tax, as an honorarium. For joint-venture companies, a ceiling of USD 100 or its equivalent in Bangladeshi taka was set.

‘DISCRIMINATORY’

The construction of the Payra Power Plant cost around Tk 200 billion. Its first 660 MW unit began production on 13 January 2020, followed by the second unit on 26 August of the same year. Since becoming operational, the plant has taken over Tk 130 billion as capacity charge.

M Shamsul Alam, energy adviser to the Consumers Association of Bangladesh (CAB), told Prothom Alo that the quality of electricity services in the country is not of international standard – so why should the salaries be?

He said the salary structure should be the same for all power plants. The discriminatory benefits provided in the name of salary and allowances must be addressed without delay.

Source: Prothom Alo