The government is set to double the allocation for power sector projects for implementation under the Annual Development Programme (ADP) during the next fiscal year (FY), 2015-16. However, the sector's performance in the outgoing FY falls far behind the target, said officials.
The government is set to allocate Tk 164.85 billion in the ADP for FY 2016 to execute some 66 projects of power sector, against the outgoing FY's allocation of Tk 82.84 billion to implement 69 projects.
Until April 2015, the Power Division under the Ministry of Power, Energy and Mineral Resources (MPEMR) could achieve only 63 per cent of the target set for the first 10 months in the revised ADP.
Under the FY 2016 allocation, the Division has set a target to collect the lion's share of the fund, worth Tk 91.85 billion, from the foreign lending and donor agencies, and Tk 73 billion from the government fund.
The government also plans to allocate Tk 19.83 billion, including a block allocation of Tk 108.4 million, to the state-owned corporations and their subsidiaries under the Energy Division for implementation of 22 projects.
The Energy and Mineral Resources Division under MPEMR is set to get Tk 10.14 billion from the government, while the foreign lenders and donors will provide Tk 9.80 billion.
Officials said the Energy Division is set to implement 27 more projects, involving Tk 15.71 billion, by using money from its own fund and from the Gas Development Fund.
The power sector projects planned for implementation during FY 2016 include 20 power generation projects, eight power transmission projects, 33 power distribution projects and five technical projects.
The government, however, in the revised ADP for the outgoing FY, slashed allocation by about 11 per cent due to slow progress in implementing the power transmission and distribution projects.
ADP allocation for energy sector was worse, as it could implement only 62.48 per cent of the target set for the first 10 months.
ADP size for projects of the sector was cut short by over 40 per cent due to failure of the two state-owned entities - Petrobangla and Bangladesh Petroleum Corporation - in implementing projects.
The Petrobangla projects that made slow progress include installation of two gas compressor stations at Ashuganj and Elenga, installation of three gas transmission pipelines from Hatikumrul to Bheramara, Bonpara to Rajshahi and Bakhrabad to Siddhirganj, controlling gas seepage out of Titas field, supply efficiency improvement of Titas Gas Transmission and Distribution Company, south-west gas distribution project, and gas transmission capacity expansion between Ashuganj and Bakhrabad.
Besides, projects regarding installation of single-point mooring near Moheshkhali Island to establish two dedicated imported fuel supply lines to Chittagong, construction of three storage-tanks for petroleum products at Eastern Refinery in Chittagong, extension of hydrant system for jet-fuel at Hazrat Shahjalal International Airport, and construction of storage-tanks for jet-fuel and diesel at Godnail in Narayanganj also witnessed lower-than-expected execution in the outgoing FY.
mazizur.rahman@outlook.com
