BPDB corporatisation process likely to start next month
Monday, 17 September 2007
S M Jahangir
The process of corporatising the st-run Bangladesh Power Development Board (BPDB) is expected to gather momentum shortly as the consultant firm engaged for the purpose will submit its draft to the government outlining the required initiatives to be undertaken next month.
"A New Zealand-based firm will submit the draft of BPDB Corporatisation Guideline in October, paving the way for giving the state-run power entity a corporate structure," a senior Power Division official said.
The government with technical support from the Asian Development Bank (ADB) appointed the P A Consulting Firm in February 2006 for outlining an operational structure as well as draw business plans for the proposed BPDB corporatisation move.
Although the consultant was given a one-year timeframe for preparing its report, it could not do so as the political turmoil early this year compelled them to temporarily suspend their works, sources said.
An official said the experts from the firm have already apprised the Power Division about their initial findings, prescribing two major options for the BPDB corporatisation.
Under the first option, they have suggested creation of an operating holding company and transfer of all assets, liabilities and workforce into it.
And, then the operations of the holding company could be transferred into a single entity, sources said.
In the second option, the experts have recommended creation of a non-operating holding company and then transforming the BPDB operations into subsidiaries.
Besides, the residual BPDB will function as a single entity, which can later be corporatised, they mentioned.
Earlier, the government with the support from the Asian Development Bank (ADB) has initiated the move to give the BPD a corporate entity.
A broad-based business plan and operational structures required for creating a holding company are, among others, high on the proposed BPDB corporatisation agenda.
The government had initiated the BPDB corporatisation move under its ongoing reforms in the power sector as suggested by multilateral donors - the ADB and the World Bank (WB).
The WB has also assured the government of providing credit support for the reforms initiative, the Power Division officials said.
"The reform programme aims to establish corporate cultures in the state-owned entities in order to make them operationally vibrant and commercially viable," said a senior official.
Under the reform initiative, all other sate-owned generation, distribution and transmission companies under the power sector are also to be corporatised in phases.
Besides, the PDB would be the owning holding company of other corporate entities under the power sector, officials mentioned.
The process of corporatising the st-run Bangladesh Power Development Board (BPDB) is expected to gather momentum shortly as the consultant firm engaged for the purpose will submit its draft to the government outlining the required initiatives to be undertaken next month.
"A New Zealand-based firm will submit the draft of BPDB Corporatisation Guideline in October, paving the way for giving the state-run power entity a corporate structure," a senior Power Division official said.
The government with technical support from the Asian Development Bank (ADB) appointed the P A Consulting Firm in February 2006 for outlining an operational structure as well as draw business plans for the proposed BPDB corporatisation move.
Although the consultant was given a one-year timeframe for preparing its report, it could not do so as the political turmoil early this year compelled them to temporarily suspend their works, sources said.
An official said the experts from the firm have already apprised the Power Division about their initial findings, prescribing two major options for the BPDB corporatisation.
Under the first option, they have suggested creation of an operating holding company and transfer of all assets, liabilities and workforce into it.
And, then the operations of the holding company could be transferred into a single entity, sources said.
In the second option, the experts have recommended creation of a non-operating holding company and then transforming the BPDB operations into subsidiaries.
Besides, the residual BPDB will function as a single entity, which can later be corporatised, they mentioned.
Earlier, the government with the support from the Asian Development Bank (ADB) has initiated the move to give the BPD a corporate entity.
A broad-based business plan and operational structures required for creating a holding company are, among others, high on the proposed BPDB corporatisation agenda.
The government had initiated the BPDB corporatisation move under its ongoing reforms in the power sector as suggested by multilateral donors - the ADB and the World Bank (WB).
The WB has also assured the government of providing credit support for the reforms initiative, the Power Division officials said.
"The reform programme aims to establish corporate cultures in the state-owned entities in order to make them operationally vibrant and commercially viable," said a senior official.
Under the reform initiative, all other sate-owned generation, distribution and transmission companies under the power sector are also to be corporatised in phases.
Besides, the PDB would be the owning holding company of other corporate entities under the power sector, officials mentioned.