Highest ever allocation in the power sector
Friday, 18 June 2010
Enayet Rasul Bhuiyan
RESPONDING to expert suggestions as well as from its own realisation, the government has allocated some 66 per cent more for the power sector in the proposed national budget for the coming fiscal year compared to the allocation in the sector in the current budget. The Taka 50-billion outlay is the highest-ever recorded in this sector. But the government's responsibilities cannot end with allocating resources only. For any plan to progress towards implementation requires resources. But it should be very regretful indeed if resources are there but lack of implementation capacities or deliberate delaying tactics leads to the non-utilisation of those resources. In that case, the allocations become simply meaningless.
Taka 32 billion was allocated for the power sector's development in the outgoing fiscal year, 2009-10. Later the allocation was revised to Taka 26.36 billion. But according to credible reports in the media, the greater part of this outlay remains unutilized. Another Taka 4.0 billion was reserved as block allocation for the development of this sector. But that amount has also remained similarly unused.
Thus, the question cannot help but arise: where is the confirmation that things will be any better in the coming fiscal year in making good uses of the resources that have been proposed for allocation in the power sector ? If determined efforts are not made to improve implementation capacities, there is likelihood that this year's proposed allocation, will largely be found ineffectual again from not being utilised in time.
The only silver lining in the energy sector is the plan to set up a number of rental power plants in the present year and the following one to be able to supply some 1300 mw of power to the national grid by the middle of next year. These are time-bound plans and their owners and operators would be under strict contracts to produce and supply this amount of power by the stipulated dates or suffer penalties for failure to do so. The operationalisation of these rental plants will also likely impact favourably on the power supply situation for a while. But will this improvement be sustainable ?
This is indeed a very serious question as sustainable improvements in power supply depend on timely execution of schemes in 'multiple' areas. These relate to improving transmission lines, repairing or completely overhauling or replacing altogether worn out machinery, installing vital equipment in the power distribution networks, etc. These activities are to be exclusively carried out by the government's Power Development Board (PDB) where sloth, inefficiency and corruption are found to be the worst.
Bangladesh has installed capacities to produce some 6,000 mw of power. But a big part of the capacities remains unusable most of the time for not carrying out planned tasks such as the above for repairs, maintenance, replacement and rehabilitation. Thus, even after notable additions of new power to the grid from new projects, there is not seen any significant increase in power supply or its dependability because typically an older major plant may turn dysfunctional any moment as timely maintenance work has not been done on it.
The sustainable improvement in power supply, therefore, requires not only establishment of new power generation capacities but it is equally important to execute plans in time to revamp the older capacities. Completing the tasks simultaneously and satisfactorily in both areas only can lead to sustainable increase in power generation and efficient distribution of that power. But PDB is noted to be doing its work rather slothfully in maintenance and rehabilitation areas that largely explain why developmental funds for this sector remain unutilized.
Government has declared a complete roadmap of development for the power sector during its years of tenure. This is inspirational. But a hard-headed realist can be expected to detect shortcomings in the roadmap from examining it. The declared goals in the roadmap are fine and sound sweet to the ears. But the hard-boiled observers will tell you that the plans are not realistic in the backdrop of the government still not knowing, even though a year and half of its tenure has been completed, about what it will do and when it will do to ensure that the plans in the drawing boards can get implemented in time.
For example, an important component of the power sector's roadmap is building a number of large coal-fired power plants. In fact, the energy Adviser and other experts in the government are all saying that Bangladesh can produce affordable and dependable power on a large scale from only using its abundant coal reserves particularly at a time when its gas from existing fields is no more plentiful to be used for producing power. Thus, by only exploiting its coal reserves in time the country can overcome its energy related crisis at the fastest.
In order to realise this vision of utilising the vast coal resources in time or consistent with the roadmap, the government should have completed the coal policy at least a year ago and should have been in an advanced stage of actually starting coal mining operations at the most prospective sites. But even the basic of declaring the coal policy has not yet been done, not to speak of actually harnessing the coal resources which now looks like a desert mirage given the government's tortoise-like attitude in addressing the issue.
The same is the case with other plans like harnessing energy from renewable sources, import of LNG, etc. The government is proceeding with these plans as if it has all the time in the world to just ponder on them when the hard realities dictated the swiftest taking of steps to make them happen.
Thus, one may not be blamed for thinking that the government is doing too little and too late for overcoming the power crisis.
RESPONDING to expert suggestions as well as from its own realisation, the government has allocated some 66 per cent more for the power sector in the proposed national budget for the coming fiscal year compared to the allocation in the sector in the current budget. The Taka 50-billion outlay is the highest-ever recorded in this sector. But the government's responsibilities cannot end with allocating resources only. For any plan to progress towards implementation requires resources. But it should be very regretful indeed if resources are there but lack of implementation capacities or deliberate delaying tactics leads to the non-utilisation of those resources. In that case, the allocations become simply meaningless.
Taka 32 billion was allocated for the power sector's development in the outgoing fiscal year, 2009-10. Later the allocation was revised to Taka 26.36 billion. But according to credible reports in the media, the greater part of this outlay remains unutilized. Another Taka 4.0 billion was reserved as block allocation for the development of this sector. But that amount has also remained similarly unused.
Thus, the question cannot help but arise: where is the confirmation that things will be any better in the coming fiscal year in making good uses of the resources that have been proposed for allocation in the power sector ? If determined efforts are not made to improve implementation capacities, there is likelihood that this year's proposed allocation, will largely be found ineffectual again from not being utilised in time.
The only silver lining in the energy sector is the plan to set up a number of rental power plants in the present year and the following one to be able to supply some 1300 mw of power to the national grid by the middle of next year. These are time-bound plans and their owners and operators would be under strict contracts to produce and supply this amount of power by the stipulated dates or suffer penalties for failure to do so. The operationalisation of these rental plants will also likely impact favourably on the power supply situation for a while. But will this improvement be sustainable ?
This is indeed a very serious question as sustainable improvements in power supply depend on timely execution of schemes in 'multiple' areas. These relate to improving transmission lines, repairing or completely overhauling or replacing altogether worn out machinery, installing vital equipment in the power distribution networks, etc. These activities are to be exclusively carried out by the government's Power Development Board (PDB) where sloth, inefficiency and corruption are found to be the worst.
Bangladesh has installed capacities to produce some 6,000 mw of power. But a big part of the capacities remains unusable most of the time for not carrying out planned tasks such as the above for repairs, maintenance, replacement and rehabilitation. Thus, even after notable additions of new power to the grid from new projects, there is not seen any significant increase in power supply or its dependability because typically an older major plant may turn dysfunctional any moment as timely maintenance work has not been done on it.
The sustainable improvement in power supply, therefore, requires not only establishment of new power generation capacities but it is equally important to execute plans in time to revamp the older capacities. Completing the tasks simultaneously and satisfactorily in both areas only can lead to sustainable increase in power generation and efficient distribution of that power. But PDB is noted to be doing its work rather slothfully in maintenance and rehabilitation areas that largely explain why developmental funds for this sector remain unutilized.
Government has declared a complete roadmap of development for the power sector during its years of tenure. This is inspirational. But a hard-headed realist can be expected to detect shortcomings in the roadmap from examining it. The declared goals in the roadmap are fine and sound sweet to the ears. But the hard-boiled observers will tell you that the plans are not realistic in the backdrop of the government still not knowing, even though a year and half of its tenure has been completed, about what it will do and when it will do to ensure that the plans in the drawing boards can get implemented in time.
For example, an important component of the power sector's roadmap is building a number of large coal-fired power plants. In fact, the energy Adviser and other experts in the government are all saying that Bangladesh can produce affordable and dependable power on a large scale from only using its abundant coal reserves particularly at a time when its gas from existing fields is no more plentiful to be used for producing power. Thus, by only exploiting its coal reserves in time the country can overcome its energy related crisis at the fastest.
In order to realise this vision of utilising the vast coal resources in time or consistent with the roadmap, the government should have completed the coal policy at least a year ago and should have been in an advanced stage of actually starting coal mining operations at the most prospective sites. But even the basic of declaring the coal policy has not yet been done, not to speak of actually harnessing the coal resources which now looks like a desert mirage given the government's tortoise-like attitude in addressing the issue.
The same is the case with other plans like harnessing energy from renewable sources, import of LNG, etc. The government is proceeding with these plans as if it has all the time in the world to just ponder on them when the hard realities dictated the swiftest taking of steps to make them happen.
Thus, one may not be blamed for thinking that the government is doing too little and too late for overcoming the power crisis.