Experts foresee graft, non-transparency

M Azizur Rahman | Published: August 27, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The country's energy experts and stakeholders expressed concern over the government's decision of extending the Speedy Supply of Power and Energy (Special Provision) (Amendment) Act 2012 by four more years, saying it could encourage non-transparency and corruption.
The country currently has better power and energy supply situation than before, and hence there is no necessity of extending the law, they opined.
The cabinet approved Monday a draft to amend the law by four more years that gives the government sweeping authority to bypass any existing legislation in the energy and power sector, and implement projects quickly in a bid to address the country's acute shortage of power and gas.
The cabinet, headed by Prime Minister Sheikh Hasina, has approved the draft of the law, extending its effectiveness until October 11, 2018.
"I think the country's existing power and energy situation does not permit further extension of the law," said Professor M Tamim of Bangladesh University of Engineering and Technology (BUET).
He said the law, adopted in 2010, was initially necessary to implement power and energy sector projects, as the country was undergoing an acute power and energy crisis then.
Many countries in the world, including the war-ravaged Sri Lanka, adopted such law for quick implementation of projects. But that situation does not exist anymore, he said.
"Currently, the government has enough time to plan and execute power and energy projects, maintaining the existing rules and regulations and following due tendering process," said Mr Tamim, who was special assistant to chief adviser of the 2007-08 caretaker government on energy .
Former director general of Power Cell, BD Rahmatullah, came down heavily on the government's decision of extending the law, saying, "It has been done for money-making."
The extension of the law would lead to further delay in implementation of the much-needed base-load and efficient power plant projects, he warned.
The sponsors of base-load and low-cost big power plants, who are also the sponsors of many rental and quick rental oil-fired power plants, are now concentrating on their oil-fired power plants to earn quick money.
"I have been opposing the law since inception," he said.
Rehabilitation of old power plants, and adopting a short, mid and long term power and energy planning and its execution could avoid it, he added.
The indiscriminate awarding of expensive oil-fired rental and quick rental power plants under the law has already pushed up the country's power tariff substantially, and created an opportunity of 'money-making' by a section of dishonest government officials and private sector. The government is counting billions of taka as subsidy as the consequences, he alleged.
The government adopted the law for the first time in October 2010 to ensure quick implementation of power and energy projects. It then extended the law by two more years until October 2012.
Under the law, all types of power and energy projects, including import of natural gas, coal, liquefied natural gas and petroleum products, as well as extraction of mineral resources, can be implemented quickly without the usual tendering process. Electricity generation, transmission and distribution projects are also covered under the new legislation.
The legislation states that any activity which comes under its purview, or any official or employee performing such activities, cannot be subject to any legal challenge in court.
The government has already approved and implemented a number of power and energy projects under the law, including setting up of oil-fired quick rental power plants, awarding Russian Gazprom to drill 10 onshore gas-wells, and installing three major gas transmission pipeline projects, a senior energy ministry official said.
It has also moved to award the project of building the country's first floating LNG terminal to the US-based consortium of Excelerate Energy and Astra Oil under the law.