REB incurs Tk 3.70b loss annually: study
Sunday, 17 October 2010
The Rural Electrification Board (REB) is incurring a loss of Tk 3.70 billion every year as its PBSs (Palli Bidyut Samities) have lost their 'cooperative attitude' and are being governed by political directives, according to a World Bank-sponsored study, reports BSS.
It also increased the disparity of access of electricity between urban and rural areas as the rural people did not get any additional electricity from the national grid in the last four years.
There are 70 PBSs of which only three are making profit and the ratio of access of electricity between rural and urban people now stands at 8:20, the study said.
The study was conducted by Power Cell, the think tank of government in the power sector, in collaboration with the International Consultancy Company Infrastructure Services Management on REB's financial and engineering capability and scope of expansion of this organisation.
"REB needs to be restructured as it's a huge challenge for the country to reach electricity to the poor," Country Director of National Rural Electric Cooperative Association of the United States (NRECA) Jems Foard told the news agency.
NRECA is a partner of REB both in financial and technical matters.
The study said due to political interference, the rural people got poles, not electricity, in past years. "Electricity is a political agenda here.
The demand for electricity was ignored by the REB Board because of political interference," it said.
Once REB was a replica of Bangladesh in the world. It portrayed its golden achievement in rural electrification introducing the cooperative system of USA in electrifying rural areas in late 70s.
Admitting the financial crunch of this organisation, State Minister for Power, Energy and Mineral Resources Enamul Haque said that REB needs to be restructured.
"The PBSs should be pro-people and the expansion of REB should be determined by the demand curve, not by the local influence," he said.
The study also said that the disparity of access of electricity between urban and rural areas has increased although the government announces that all the people of the country would get electricity by 2020.
It also increased the disparity of access of electricity between urban and rural areas as the rural people did not get any additional electricity from the national grid in the last four years.
There are 70 PBSs of which only three are making profit and the ratio of access of electricity between rural and urban people now stands at 8:20, the study said.
The study was conducted by Power Cell, the think tank of government in the power sector, in collaboration with the International Consultancy Company Infrastructure Services Management on REB's financial and engineering capability and scope of expansion of this organisation.
"REB needs to be restructured as it's a huge challenge for the country to reach electricity to the poor," Country Director of National Rural Electric Cooperative Association of the United States (NRECA) Jems Foard told the news agency.
NRECA is a partner of REB both in financial and technical matters.
The study said due to political interference, the rural people got poles, not electricity, in past years. "Electricity is a political agenda here.
The demand for electricity was ignored by the REB Board because of political interference," it said.
Once REB was a replica of Bangladesh in the world. It portrayed its golden achievement in rural electrification introducing the cooperative system of USA in electrifying rural areas in late 70s.
Admitting the financial crunch of this organisation, State Minister for Power, Energy and Mineral Resources Enamul Haque said that REB needs to be restructured.
"The PBSs should be pro-people and the expansion of REB should be determined by the demand curve, not by the local influence," he said.
The study also said that the disparity of access of electricity between urban and rural areas has increased although the government announces that all the people of the country would get electricity by 2020.