A different perspective
Thursday, 5 November 2009
Mahmudur Rahman
World oil prices are slowly creeping up and this by itself should send some warning signs flashing as the government weighs in earnestly to address the vexing power issue. The government is set to go on a major road show to woo investors to cough up the massive amounts of investments required. The question that is hanging in the air is whether, when all is ready, the basic inputs of power generation fuel or water will be available and affordable enough to deliver power at rates affordable to the consumer.
Barrack Obama made it quite clear that he was setting the US direction into the area of nuclear and renewable and sustainable forms of energy to reduce dependency on world oil machinations. Given that IMF and World Bank have lots of prescriptions ready for Bangladesh, would it not be a good idea to ask them to come up with funds for similar projects such as nuclear power and wind-turbine power generation? It is an area where local scientists and engineers could be involved.
This is also a major public-private partnership (PPP) sector that could be made attractive to local investors as well. The Dhaka Stock Exchange (DSE) authorities seem confident that initial public offerings (IPOs) could raise Taka 500 million (50 crore) a day. That would suggest there is a fund worth Tk 180 plus billion of money in the market that could be appropriately channelled. The returns from power are definite, predictable and lucrative and very few reasons for investors not to be interested. The alternative options strengthen the government's efforts even as it pursues the more traditional forms of energy generation.
The gradual involvement of the private sector in power generation and transmission is a no brainer in that the benefits of proper management and efficiency reach the consumer far quicker than can be imagined. Kolkata is a case in example of how a shambles of a power supply went from chaotic to very reasonable with the changing of hands to the private sector. And no longer would the private sector have to wait for a government decision to disconnect a government organisation that had not paid its bills.
There are signs from the garments, food and poultry sectors that larger loans are being sought for expansion and future business. With the right cards on the table, a local road show might provide some unexpected responses. (The writer is a former head of corporate and regulatory affairs of British-American Tobacco Bangladesh and former CEO of Bangladesh Cricket Board. He can be reached at mahmudrahman@gmail.com)
World oil prices are slowly creeping up and this by itself should send some warning signs flashing as the government weighs in earnestly to address the vexing power issue. The government is set to go on a major road show to woo investors to cough up the massive amounts of investments required. The question that is hanging in the air is whether, when all is ready, the basic inputs of power generation fuel or water will be available and affordable enough to deliver power at rates affordable to the consumer.
Barrack Obama made it quite clear that he was setting the US direction into the area of nuclear and renewable and sustainable forms of energy to reduce dependency on world oil machinations. Given that IMF and World Bank have lots of prescriptions ready for Bangladesh, would it not be a good idea to ask them to come up with funds for similar projects such as nuclear power and wind-turbine power generation? It is an area where local scientists and engineers could be involved.
This is also a major public-private partnership (PPP) sector that could be made attractive to local investors as well. The Dhaka Stock Exchange (DSE) authorities seem confident that initial public offerings (IPOs) could raise Taka 500 million (50 crore) a day. That would suggest there is a fund worth Tk 180 plus billion of money in the market that could be appropriately channelled. The returns from power are definite, predictable and lucrative and very few reasons for investors not to be interested. The alternative options strengthen the government's efforts even as it pursues the more traditional forms of energy generation.
The gradual involvement of the private sector in power generation and transmission is a no brainer in that the benefits of proper management and efficiency reach the consumer far quicker than can be imagined. Kolkata is a case in example of how a shambles of a power supply went from chaotic to very reasonable with the changing of hands to the private sector. And no longer would the private sector have to wait for a government decision to disconnect a government organisation that had not paid its bills.
There are signs from the garments, food and poultry sectors that larger loans are being sought for expansion and future business. With the right cards on the table, a local road show might provide some unexpected responses. (The writer is a former head of corporate and regulatory affairs of British-American Tobacco Bangladesh and former CEO of Bangladesh Cricket Board. He can be reached at mahmudrahman@gmail.com)