Tangible action needed in power sector
Sunday, 9 May 2010
Mozzamel Hossain
The long suffering people of Bangladesh would certainly bear with the government and give it time if they could be convinced that this government has gone to work from day one to fix the power problem. If they had really done that, then substantial power would not possibly have been added to the power grid by now. But that have at least created a hope that the power-related agonies would be less in the present summer season with progressive improvements in the power supply situation in the future.
Besides, all sorts of investors would have found an inspiration from such developments to come forward and materialize their investment plants on the basis of credible signals that the government remained determined to increase power supply as it had projected on taking over charge. But the power outlook is not at all promising.
According to media reports, government is now in very active stages of implementing policies to bring some 500 mw of power from India. If this power import could be made in a very short period of time, the same would make some sense. But after spending at least two years in establishing infrastructures on both countries and then getting the power, the same may raise many questions. For example, Bangladesh has to go for such cumbersome and delaying process to import power and make itself dependent on external power supply? Such questions would not have arrived if urgent import of the very badly needed power could be ensured through such an arrangement. Besides, such arrangements should be cost-effective as well as strategically sound.
The power crisis could possibly be met through establishing rental power plants and importing LNG which, after its gasification, could be used to run the already available power stations in the country that remain shut from shortage of gas.
As for resources to start work on a number of major power plants with the country's own resources in the case of non-availability of timely donor support, there is also a solution to this. The country's foreign currency reserve now stands comfortably at over $ 10 billion and all the indicators are there that the reserve would only swell further in the future. Thus, a part of it or several billions from it can be spent -immediately -- to establish power plants on a war footing in the public sector without in any way endangering the reserve position. Rather such a move would mean a very timely and beneficial utilization of the reserve.
When all of these and more options are available to the government, it is strange that there is hardly any tangible action in this very crucial power sector and precious time is being wasted with only talks and promises.
The long suffering people of Bangladesh would certainly bear with the government and give it time if they could be convinced that this government has gone to work from day one to fix the power problem. If they had really done that, then substantial power would not possibly have been added to the power grid by now. But that have at least created a hope that the power-related agonies would be less in the present summer season with progressive improvements in the power supply situation in the future.
Besides, all sorts of investors would have found an inspiration from such developments to come forward and materialize their investment plants on the basis of credible signals that the government remained determined to increase power supply as it had projected on taking over charge. But the power outlook is not at all promising.
According to media reports, government is now in very active stages of implementing policies to bring some 500 mw of power from India. If this power import could be made in a very short period of time, the same would make some sense. But after spending at least two years in establishing infrastructures on both countries and then getting the power, the same may raise many questions. For example, Bangladesh has to go for such cumbersome and delaying process to import power and make itself dependent on external power supply? Such questions would not have arrived if urgent import of the very badly needed power could be ensured through such an arrangement. Besides, such arrangements should be cost-effective as well as strategically sound.
The power crisis could possibly be met through establishing rental power plants and importing LNG which, after its gasification, could be used to run the already available power stations in the country that remain shut from shortage of gas.
As for resources to start work on a number of major power plants with the country's own resources in the case of non-availability of timely donor support, there is also a solution to this. The country's foreign currency reserve now stands comfortably at over $ 10 billion and all the indicators are there that the reserve would only swell further in the future. Thus, a part of it or several billions from it can be spent -immediately -- to establish power plants on a war footing in the public sector without in any way endangering the reserve position. Rather such a move would mean a very timely and beneficial utilization of the reserve.
When all of these and more options are available to the government, it is strange that there is hardly any tangible action in this very crucial power sector and precious time is being wasted with only talks and promises.