Bangladesh, Oct. 18 -- The amount---more than Taka half a trillion--- is huge. The money was, reportedly, paid to the owners of the private sector power plants during the last 12 years as ' capacity payments'.
The payments were in addition to a large amount that the state power agency---the Bangladesh Power Development Board (BPDB)--- paid to the private power plants, including a large number of rental power plants, every year against purchase of electricity.
But against the capacity payments, the BPDB did not get anything material. What it got was assurance of stable supply of power.
Capacity payments are, however, more like guarantee money. Power plants do get such money whether or not they produce electricity. The payments operate lik...