| dc.description.abstract | This internship report titled “The Impact of Power Purchase Agreement (PPA) on the Financial
Sustainability of Power Generation Companies: A Case Study on Haripur Power Limited.” has
been prepared as a partial fulfillment of the requirements for the Bachelor of Business
Administration (BBA) degree at Sonargaon University.
The report aims to examine how Power Purchase Agreements influence the financial sustainability
of power generation companies in Bangladesh, with a particular focus on Haripur Power Ltd. As
a private power producer, the company’s financial health is largely dependent on its contractual
arrangement with the Bangladesh Power Development Board (BPDB) through a PPA that defines
revenue structure, tariff rates, and payment mechanisms.
The study explores how the expiration of the PPA has impacted the company’s financial
performance, liquidity, profitability, and overall going concern status. The report employs both
qualitative and quantitative methods, including ratio analysis, trend analysis, and review of
financial statements.
Findings indicate that the PPA provided a stable revenue stream, ensured cost recovery, and
supported financial predictability. However, after the expiry of the PPA, Haripur Power Ltd. has
faced challenges in maintaining cash flow stability, managing operational expenses, and sustaining
profitability.
The study concludes that Power Purchase Agreements are crucial instruments for financial
sustainability in the power generation industry. It also suggests that companies should develop
alternative strategies—such as PPA extensions, new agreements, or diversification—to mitigate
financial risks associated with PPA expiration.
The report consists of seven chapters: an introduction, company overview, overview of the power
sector in Bangladesh, discussion of PPAs, financial analysis, findings and recommendations, and
conclusion. | en_US |
