Fund shortage to hit implementation of eight power plants

FE Team | Published: December 20, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

FHM Humayan Kabir
The implementation of eight big power plants, planned to be built by next three years, is likely to face obstacles as the fund proposed for the projects is far less than the requirement, officials said.
The government has proposed Tk 38 billion for the power division to carry out the entire generation, transmission and distribution works in the next financial year 2009-10 under the medium term budgetary framework (MTBF) mechanism.
But implementation of the eight power generation projects in the pipeline alone would require more than Tk 40.50 billion during 2009-10, a planning commission official told the FE.
He said if the power division spends 50 per cent of the proposed Tk38.0 billion funds for setting up the eight power plants, it will require another Tk 21.5 billion to implement the projects in FY10.
In the current FY09, the power division has allocated some Tk 14.00 billion out of its total development fund of Tk35.00 billion for the generation projects in pipeline.
"Due to lower fund allocation than requirement eight large power plants construction will be affected. The country will have to suffer for electricity crisis for another one to two years," the planning commission official said.
"Since there is a gap between the required fund and proposed fund for FY10, the installation work of the power stations will be affected," a senior power division said.
Power Division secretary M Fauzul Kabir , However differed and said "I do not think that the generation projects will be hampered due to less fund allocation".
"If the implementing agencies could complete their works on time, the power division will adjust the required additional funds from other projects or obtain additional funds from the government," he told the FE.
"If the agencies can implement their due work in yearly-basis, we will inject money diverting from another projects or we will seek additional money from the government," Mr. Kabir said.
The secretary said they are hopeful that those projects would be commissioned in due time by the year 2012 and we will get additional 1300mw new electricity to the national grid.
Seven of the power plants in the pipeline will add 1290-megawatt (mw) electricity by FY 2012 and another one 360mw by FY 2014.
The projects in the pipeline are World Bank-funded 300mw peaking power plant at Siddhirganj, Asian Development Bank (ADB)-funded 150mw one each at Sirajganj and Khulna, Japan-funded 360mw at Haripur, and government-funded 150mw one each at Sylhet, Chandpur and Sikolbaha.
The ADB-funded 240mw plant at Siddhirganj is in the final stage for commissioning within a year.
Planning commission official said the Haripur 300mw plant has sought Tk10.40 billion, Sirajganj 150mw Tk3.0 billion, Khulna 150mw Tk4.0 billion, Haripur 360mw Tk10 billion, Sylhet 150mw Tk 4.0 billion, Chandpur 150mw Tk4.0 billion, Sikolbaha 150mw Tk 3.0 billion and Siddhirganj 240mw Tk2.30 billion in FY2010.
Daily demand for electricity in Bangladesh is over 5000mw. Country's all the power units generate only 3400mw to 3700mw of power per day.
Following the severe electricity crisis, the present caretaker government took move to generate more power and prepared a short to mid-term power development plan.
Under the plan, total 5,875mw electricity generation is targeted by the year FY2012 both in private and public sector initiatives.
In the public sector it was planned to generate some 3375mw power from 17 new projects.