Poor project execution forces Power Div to downsize ADP fund
FHM Humayan Kabir | Sunday, 8 March 2009
The Power Division has sought Tk 5.55 billion less fund from its annual development programme (ADP) allocation as it failed to execute the development schemes particularly the electricity generation projects, official said Saturday.
The division has requested the planning ministry to provide them Tk 29.47 billion from its ADP allocation of Tk 35.02 billion for current fiscal.
"We've no option but to downsize the development budget size as the implementing agencies will not be able to spend their allocated fund by the turn of the current fiscal in July," a senior power division official told the FE.
He said the implementing agencies have already failed to spend the money for electricity generation projects, which forced them to trim the total allocated funds.
In July-December period of FY09, Power Division, the third largest recipient of the government's development fund, has spent only Tk 9.10 billion out of its total Tk 35.02 billion allocation for the current fiscal.
Under the Power Division, the Power Development Board and the Electricity Generation Company Ltd (EGCB) are responsible for power generation, the DPDC, DESCO and REB for distribution and the Power Grid Company Bangladesh Ltd (PGCB) for transmission.
In the case of generation, the Power Division sought Tk 3.83 billion less funds against its original allocation of Tk 15.28 billion, for transmission Tk. 1.36 billion less than the original allocation of Tk 14.65 billion and for distribution Tk 102.4 million less from the original allocation of Tk 4.32 billion.
The division also trimmed down its technical assistance requirement to Tk 440 million from the original allocation of Tk 501.7 million in the ADP.
The agencies under the Power Division have failed to utilise their allocated full ADP funds at a time when the country is facing severe power shortage, a planning ministry official said.
There is nearly 1200-megawatt (mw) electricity supply shortage per day in the country against its total demand for over 4500mw during peak hours.
Inefficiency of the agencies is the major reason for failure in non-utilisation of funds for the development projects, the planning ministry official said.
He said: "The Power Division is a very important body of the government. Its progress in fund utilization is very crucial for the improvement of power supply."
The planning ministry official said they were reviewing the proposals of the Power Division. "After scrutiny, we will finalise a revised ADP allocation."
The newly elected government is working to prepare a revised ADP for the current FY2009 due to poor performance of all the ministries in implementing the ADP.
The government ministries and agencies combinedly have spent only 24 per cent of their total allocation of Tk256 billion in the current year ADP.
The division has requested the planning ministry to provide them Tk 29.47 billion from its ADP allocation of Tk 35.02 billion for current fiscal.
"We've no option but to downsize the development budget size as the implementing agencies will not be able to spend their allocated fund by the turn of the current fiscal in July," a senior power division official told the FE.
He said the implementing agencies have already failed to spend the money for electricity generation projects, which forced them to trim the total allocated funds.
In July-December period of FY09, Power Division, the third largest recipient of the government's development fund, has spent only Tk 9.10 billion out of its total Tk 35.02 billion allocation for the current fiscal.
Under the Power Division, the Power Development Board and the Electricity Generation Company Ltd (EGCB) are responsible for power generation, the DPDC, DESCO and REB for distribution and the Power Grid Company Bangladesh Ltd (PGCB) for transmission.
In the case of generation, the Power Division sought Tk 3.83 billion less funds against its original allocation of Tk 15.28 billion, for transmission Tk. 1.36 billion less than the original allocation of Tk 14.65 billion and for distribution Tk 102.4 million less from the original allocation of Tk 4.32 billion.
The division also trimmed down its technical assistance requirement to Tk 440 million from the original allocation of Tk 501.7 million in the ADP.
The agencies under the Power Division have failed to utilise their allocated full ADP funds at a time when the country is facing severe power shortage, a planning ministry official said.
There is nearly 1200-megawatt (mw) electricity supply shortage per day in the country against its total demand for over 4500mw during peak hours.
Inefficiency of the agencies is the major reason for failure in non-utilisation of funds for the development projects, the planning ministry official said.
He said: "The Power Division is a very important body of the government. Its progress in fund utilization is very crucial for the improvement of power supply."
The planning ministry official said they were reviewing the proposals of the Power Division. "After scrutiny, we will finalise a revised ADP allocation."
The newly elected government is working to prepare a revised ADP for the current FY2009 due to poor performance of all the ministries in implementing the ADP.
The government ministries and agencies combinedly have spent only 24 per cent of their total allocation of Tk256 billion in the current year ADP.