Energy, power sector allocation up by 21pc
FE Report | Tuesday, 10 June 2008
Finance and Planning Adviser Dr AB Mirza Azizul Islam Monday proposed an allocation of Tk 43.40 billion (4,340 crore) for the power and energy sector for the FY 2008-09, which is 4.3 per cent of the total budget and 21 per cent higher than the revised allocation of the current fiscal.
The increased allocation is aimed at mitigating the country's existing power and energy crunch.
The state-owned oil and gas exploration company BAPEX will be provided Tk 32 billion to strengthen its exploration programme over the next seven years, he said in his budget speech. The country's per capita electricity consumption is low compared to many developing countries, he added.
In 2007 Bangladesh's per capita electricity consumption stood at 140 Kilowatt hour (KWH), while it was 325 KWH in Sri Lanka, 408 KWH in Pakistan and 665 KWH in India.
'Currently our daily requirement of electricity is 4,500 MW on an average against which our average net power generation is 3,600 MW,' said Dr Azizul Islam.
The huge investment that will be required to generate power to meet the deficit of 900 MW will be difficult to be mobilised by the government alone, he observed.
'We have, therefore, taken short-term and long-term steps for involving the private sector in generation of adequate power. We are currently working to reach the target of meeting minimum requirement of power by 2008-09,' said the finance adviser.
He hoped that by 2020 the country would be able to reach the level of generating power commensurate with the increasing demand.
In the current fiscal year, a total of 124 MW power from public and private sectors has been added to the national grid, he disclosed. Another 210 MW will be added by June 2008.
By December 2008, a total of 320 MW power will be generated on a rental basis in the private sector and another 166 MW will be generated by 10 small power producers.
An agreement has been signed with captive power plants to purchase 27 MW electricity, of which 10 MW has already been added to the national grid.
'To meet the emergency, we have increased generation of 318 MW power by renovating the old power plants,' he mentioned.
Construction of four large power plants has begun at the initiative of the private sector.
The increased allocation is aimed at mitigating the country's existing power and energy crunch.
The state-owned oil and gas exploration company BAPEX will be provided Tk 32 billion to strengthen its exploration programme over the next seven years, he said in his budget speech. The country's per capita electricity consumption is low compared to many developing countries, he added.
In 2007 Bangladesh's per capita electricity consumption stood at 140 Kilowatt hour (KWH), while it was 325 KWH in Sri Lanka, 408 KWH in Pakistan and 665 KWH in India.
'Currently our daily requirement of electricity is 4,500 MW on an average against which our average net power generation is 3,600 MW,' said Dr Azizul Islam.
The huge investment that will be required to generate power to meet the deficit of 900 MW will be difficult to be mobilised by the government alone, he observed.
'We have, therefore, taken short-term and long-term steps for involving the private sector in generation of adequate power. We are currently working to reach the target of meeting minimum requirement of power by 2008-09,' said the finance adviser.
He hoped that by 2020 the country would be able to reach the level of generating power commensurate with the increasing demand.
In the current fiscal year, a total of 124 MW power from public and private sectors has been added to the national grid, he disclosed. Another 210 MW will be added by June 2008.
By December 2008, a total of 320 MW power will be generated on a rental basis in the private sector and another 166 MW will be generated by 10 small power producers.
An agreement has been signed with captive power plants to purchase 27 MW electricity, of which 10 MW has already been added to the national grid.
'To meet the emergency, we have increased generation of 318 MW power by renovating the old power plants,' he mentioned.
Construction of four large power plants has begun at the initiative of the private sector.