The power load-shedding is back

The summer is back. So is the load-shedding after a brief respite during the winter season. As the mercury is set to rise in the coming months, the frequency of power load-shedding is bound rise manifold. The diversion of power to be made for irrigation purposes in the next couple of months is likely to make the situation even worse. All the assurances given by the incumbent government to ensure some improvement in power supply situation during the current summer have turned out to be hollow. Most of the liquid fuel- guzzling rental power plants awarded to private sector sponsors, according to a report published in The Financial Express last Sunday are unlikely to meet their respective deadlines. The government has so far awarded permission to set up 15 rental power plants having a total generation capacity of about 1500 megawatt (MW) through unsolicited deals. The import of machinery and equipment for these power plants has caused substantial erosion in the country's foreign exchange reserve. But due to lack of farsightedness on the part of the authorities concerned is mainly responsible for delay in the start of operation of most rental power plants. Many rental power plants are reportedly ready to start their operation. But non-availability of liquid fuel has emerged as a major problem in this connection. There appears to be a serious lack of coordination among the agencies concerned in ensuring fuel for the rental power plants. The agencies are the Bangladesh Power Development Board, the Bangladesh Petroleum Corporation and the Bangladesh Inland Water Transport Authority. Moreover, an inadequate fuel storage capacity has compounded the problem further. Some of the rental power plants have approached the government for granting permission to import fuel on their own. But the government has not yet given its consent. Even if the government allows private import of diesel or furnace oil for running the rental power plants, finding proper storage facilities for the same would be a problem for them. Interestingly, when the operations of the rental power plants, already approved by the government, remains uncertain, the power ministry is trying to allow more such plants through unsolicited deals. It could be that the controversial Speedy Supply of Power and Energy Act 2010, has emboldened a section of people involved in the power ministry to take decisions that benefit them more than the country. The act concerned contains provisions granting immunity to the persons involved in the implementation of projects in the power and energy sector. The law protects the government officials and all associate stakeholders from any subsequent legal challenge in the court over awarding of unsolicited contracts. Besides, the law concerned empowers the government to bypass any existing law, including the Public Procurement Act, for awarding contracts for setting up power plants. The law, no doubt, smacks of lack of transparency. Yet, considering the urgency of the power situation, the people would have approved the enactment of the law had there been some results. Even sweeping powers given under the act to the people manning power ministry have failed to rise up to the expectation of the people. The whole rental power plant episode demonstrates utter lack of planning and farsightedness of the power ministry. There is no denying that the government has to take some quick decisions under extraordinary circumstances. But such decisions need to be taken taking into consideration all the relevant issues and factors. The responsibility of the power ministry does not end with the awarding of contracts, solicited or unsolicited, to the private sector sponsors to build rental power plants. Prior to awarding contracts, it is necessary on the part of the power ministry to look into the issues such as import costs of power plants and fuels and their implication on the country's foreign exchange reserve, fuel storage and transportation. Prior consultations among all the agencies, including the central bank, PDB, BPC, are of utmost importance. What is more painful is that the government now runs the risk of paying a substantial amount of compensation to the rental power plants for its failure to supply fuel at the plant site. It is not the money alone; the availability of power from these plants would have helped the government ease the power situation, at least, partially. The leaders of the incumbent government, at times, claim to have added 1500 to 1600 MW of electricity after their coming to power. But, unfortunately, the situation on the ground does not substantiate that as the people are still experiencing frequent power outages.