Experts doubt govt capacity to spend
Monday, 14 June 2010
M Azizur Rahman
Spending the substantial allocation made in the budget for power and energy sector might prove a daunting challenge as most state-owned entities in the sector lack efficient manpower, experts said Sunday.
Finance minister AMA Muhith proposed an allocation of Tk. 61.15 billion, up by 61.5 per cent from that of the revised budget of the current fiscal, aiming to ease the perennial power and energy crises.
But the minister did not spell out the projects where the money would be spent, experts said.
How the power and energy ministry would be able spend such a large fund in a year, when Tk 6.0 billion had to be returned to government exchequer for inability to spend in the outgoing fiscal, they questioned.
"It's not clear where the government would utilise this fund," said Professor Ijaz Hossain of Bangladesh University of Engineering and Technology (BUET).
There is no scope to spend heavily in the planned coal and liquefied natural gas (LNG) sectors in the next fiscal as the government is yet to make any headway as far as relevant projects are concerned, Dr Ijaz, also an energy expert said.
He said no new power plant could be installed in the public sector next fiscal as it takes at least a couple of years to build such plants.
What the government can do in a year is renovating the aged power plants. But renovation does not require that much of funds, said the BUET professor.
Allocating substantial amount without putting in place the much-needed power and energy projects would not carry any meaning, said former Director General of Power Cell BD Rahmatullah.
He said the state-owned Bangladesh Petroleum Exploration and Production Company (BAPEX) does not have enough scope to spend from this allocation as the company is already engaged in gas exploration programmes for the next couple of years.
International Oil Companies (IOCs) would also spend money from their own coffers for oil and gas exploration under the production sharing contract (PSC).
"This year's huge allocation is to purchase electricity from rental power plants at higher costs," said Professor Anu Muhammad of Jahangir Nagar University.
There is no scope of building power plant or extract coal next year with the allocated money, he said.
The government does not have any plan either for enhancing working capacity of state-owned power and energy entities next year with the funding, Prof Anu Muhammad said.
But the government could easily build several power plants with this fund if it could plan properly beforehand, he said.
Spending the substantial allocation made in the budget for power and energy sector might prove a daunting challenge as most state-owned entities in the sector lack efficient manpower, experts said Sunday.
Finance minister AMA Muhith proposed an allocation of Tk. 61.15 billion, up by 61.5 per cent from that of the revised budget of the current fiscal, aiming to ease the perennial power and energy crises.
But the minister did not spell out the projects where the money would be spent, experts said.
How the power and energy ministry would be able spend such a large fund in a year, when Tk 6.0 billion had to be returned to government exchequer for inability to spend in the outgoing fiscal, they questioned.
"It's not clear where the government would utilise this fund," said Professor Ijaz Hossain of Bangladesh University of Engineering and Technology (BUET).
There is no scope to spend heavily in the planned coal and liquefied natural gas (LNG) sectors in the next fiscal as the government is yet to make any headway as far as relevant projects are concerned, Dr Ijaz, also an energy expert said.
He said no new power plant could be installed in the public sector next fiscal as it takes at least a couple of years to build such plants.
What the government can do in a year is renovating the aged power plants. But renovation does not require that much of funds, said the BUET professor.
Allocating substantial amount without putting in place the much-needed power and energy projects would not carry any meaning, said former Director General of Power Cell BD Rahmatullah.
He said the state-owned Bangladesh Petroleum Exploration and Production Company (BAPEX) does not have enough scope to spend from this allocation as the company is already engaged in gas exploration programmes for the next couple of years.
International Oil Companies (IOCs) would also spend money from their own coffers for oil and gas exploration under the production sharing contract (PSC).
"This year's huge allocation is to purchase electricity from rental power plants at higher costs," said Professor Anu Muhammad of Jahangir Nagar University.
There is no scope of building power plant or extract coal next year with the allocated money, he said.
The government does not have any plan either for enhancing working capacity of state-owned power and energy entities next year with the funding, Prof Anu Muhammad said.
But the government could easily build several power plants with this fund if it could plan properly beforehand, he said.