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The missing \\\'quick-fire\\\' action

Shamsul Huq Zahid | Monday, 1 September 2014


An act that was enforced in 2010 to facilitate 'quick-fire' action in electricity generation is set to get yet another extension. The cabinet last week approved a draft bill that sought the extension of the Energy Quick Supply (Special Provision) Act for another four years. This will be the second extension of the law. The first one was for two years.
The Grand Alliance government, led by the Awami League, after coming to power in 2009 sought an urgent solution to severe power crisis through the installation of liquid fuel-based rental power plants by private sector operators.
To avoid the time-consuming bidding process, the government made a move to accept unsolicited offers from the private sector for installation of such plants. Despite strong opposition from various quarters the government had passed a law in parliament empowering itself to bypass the usual tendering process for 'expeditious' implementation of all types of power and energy projects, including the import of natural gas, coal, liquefied gas, petroleum products as well as extraction of minerals.
Given the country's graft situation, many had raised objections to the provision for accepting unsolicited bids. But their main objection was to the provision that guaranteed impunity to officials and employees taking actions under the purview of the said law.
Yet the government adopted the law with a promise that with the implementation of large and medium conventional power plants, most liquid fuel-guzzling power plants would go out of stream within a very short time.
But the government failed to keep its promise and the special provision act got an extension for two years against the backdrop of substantial increase in both power tariff and the volume of subsidy given to the power sector.
The media carried scores of reports on financial irregularities involving the rental power plants. The ruling party men or the people having the blessing of the powerful quarters were allowed to install power plants despite the fact they had never been in power business. Newspapers have carried reports how a section of officials and owners of so-called rental power plants are embezzling government money in the name of 'capacity' payment.
The government has found it wise to ignore criticism over the rental power plants because of the fact that these plants have helped it solve the power crisis - albeit temporarily.
There is no denying that without the rental plants the power situation by now would have been far more critical. The nature and extent of troubles centring around the power crisis could have gone beyond the control of the government. So, the government, apparently, has decided to swallow the bitter criticism over the rental plants without much protest.
The government, undeniably, has failed to make any tangible progress in the implementation of gas or coal-based conventional power plants that were supposed to eliminate the rental power plants from the scene.
The power subscribers heard a lot about new large and medium power plants during the past five and a half years and most of those were coal-fired ones. But barring a few small ones the government could not implement even one large or medium scale power project. Here the government lacked the 'quick-fire' approach, unfortunately.
That is why it has no option other than extending the life of the special provision act. But the reasons for extending the act for four years are unknown. One might now assume that the government would not be able to implement any major power project within that period.
The extension of the law would also help the unscrupulous section of owners of the rental power plants and officials concerned to continue the alleged plunder of public fund for another four years.
There is no denying that the elimination of the rental power plants is very much necessary in the greater interest of the power subscribers and the country's economy.
The power ministry's love for the rental plants is understandable since the same has provided a quick-fix solution to the country's nagging power crisis and created scopes for hiding its incapacity to make available the durable and cheap sources of power. But the finance ministry should not have any reason for demonstrating any liking for the plants that make its fiscal management job rather difficult.
The government in the meanwhile has embarked on a massive plan to generate coal-based power. The implementation of a number of large and medium coal-fired power plants is expected to begin soon and many more such projects are under the procession of negotiations with local as well foreign investors.
These projects, when implemented, would necessitate the import of a substantial quantity of coal if the government fails to make any tangible move to extract coal from the country's own large reserve, particularly in Phulbari coalmine.
The special provision act also empowers the government to accept unsolicited offer to extract coal and guarantees legal impunity for its action. Will the government make a bold move to get the Phulbari coal out of Earth's womb the way it has done in the case of rental power plants?   
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