FBCCI roadmap for next government
Wednesday, 24 December 2008
COUNTRY'S apex chamber body, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), according to a media report, has prepared a roadmap, titled, 'Maximising Growth of Bangladesh: Dreams of the Private Sector', for the first 100 days of the next elected government. Copies of the roadmap that covers, at least, 38 macro areas of the economy have already been sent to different political parties. The FBCCI roadmap, as expected, has identified the issues in the power and energy sector as the major challenges for the next government. The roadmap contains a few short as well as long term measures to help beef up production of power, the lifeline of development. The FBCCI, while suggesting the establishment of a good number of rental power plants, wants the next government to finalise the coal policy expeditiously, strengthen the Bangladesh Petroleum Exploration Company (Bapex) and increase the regional integration in areas of power and energy.
There is no denying that the meeting of the energy needs is going to be the number one challenge for the next elected government. For, inaction and inefficiency of successive governments have made the situation in the power and energy sector worse. The power generation, for many years, has been far short of the requirement, leading to frequent load-shedding, particularly in the summer. Similarly, the short-supply of gas is hampering production in existing mills and factories and power plants as well as discouraging new investments. A good number of industries, set up recently, could not be commissioned because of non-availability of gas. The extent of the power shortage is not being felt now because of the drop in demand for the same during the winter season. After three to four months, the mills and factories and residents would again be subjected to limitless sufferings due to load-shedding. The long queues of vehicles before the CNG filling stations which are not seen these days would again be back as soon as summer sets in.
Actually, the prevailing situation in the energy sector is a major deterrent to Bangladesh's economic growth. No investor, domestic or foreign, would put in his or her money in new manufacturing units when the existing ones are suffering a lot because of the shortage of power and gas. It is not the business community alone but also the international agencies working in Bangladesh that have identified the gas and power shortage as the number one obstacle to attract investment. The past political governments are blamed for dragging their feet in taking decisions on setting up of new power plants and extracting gas and coal from beneath the soil. But the present non-political caretaker government which is about to complete its stint in power for two years also, does not have anything worthwhile to demonstrate in this particular area.
The power and gas issues have become rather complicated now and there is no quick-fix formula for them. Even the next government might find it difficult to implement some of the FBCCI suggestions. For instance, gas supply might turn out to be a major problem if the next government decides to set up some rental power plants expeditiously. It does not cost anything to suggest for early finalization of the coal policy. But getting an appropriate coal policy approved, that too by a political government, would not be that easy because of opposition from different quarters. However, the use of coal for generating additional power does appear to be the easiest and the most feasible option under the prevailing circumstances. The next elected government should waste no time to expedite exploration work for hydrocarbon deposits in both onshore and offshore areas of the country. In this context, the FBBCI suggestion for early dissolution of dispute between Myanmar, India and Bangladesh over exploration rights in the offshore areas deserves due consideration by the next elected government.
There is no denying that the meeting of the energy needs is going to be the number one challenge for the next elected government. For, inaction and inefficiency of successive governments have made the situation in the power and energy sector worse. The power generation, for many years, has been far short of the requirement, leading to frequent load-shedding, particularly in the summer. Similarly, the short-supply of gas is hampering production in existing mills and factories and power plants as well as discouraging new investments. A good number of industries, set up recently, could not be commissioned because of non-availability of gas. The extent of the power shortage is not being felt now because of the drop in demand for the same during the winter season. After three to four months, the mills and factories and residents would again be subjected to limitless sufferings due to load-shedding. The long queues of vehicles before the CNG filling stations which are not seen these days would again be back as soon as summer sets in.
Actually, the prevailing situation in the energy sector is a major deterrent to Bangladesh's economic growth. No investor, domestic or foreign, would put in his or her money in new manufacturing units when the existing ones are suffering a lot because of the shortage of power and gas. It is not the business community alone but also the international agencies working in Bangladesh that have identified the gas and power shortage as the number one obstacle to attract investment. The past political governments are blamed for dragging their feet in taking decisions on setting up of new power plants and extracting gas and coal from beneath the soil. But the present non-political caretaker government which is about to complete its stint in power for two years also, does not have anything worthwhile to demonstrate in this particular area.
The power and gas issues have become rather complicated now and there is no quick-fix formula for them. Even the next government might find it difficult to implement some of the FBCCI suggestions. For instance, gas supply might turn out to be a major problem if the next government decides to set up some rental power plants expeditiously. It does not cost anything to suggest for early finalization of the coal policy. But getting an appropriate coal policy approved, that too by a political government, would not be that easy because of opposition from different quarters. However, the use of coal for generating additional power does appear to be the easiest and the most feasible option under the prevailing circumstances. The next elected government should waste no time to expedite exploration work for hydrocarbon deposits in both onshore and offshore areas of the country. In this context, the FBBCI suggestion for early dissolution of dispute between Myanmar, India and Bangladesh over exploration rights in the offshore areas deserves due consideration by the next elected government.