Thrust on speedy implementation of power generation projects
Sunday, 10 June 2007
Doulot Akter Mala
Experts stressed the need for increasing monitoring and proper leadership to enhance efficiency in the power sector for materialisation of objectives over the coming years.
They claimed that there was sufficient flow of funds in this sector, but due to lack of proper utilisation, there was hardly any positive impact on power generation.
The government has allocated 16.9 per cent of the development budget worth Tk 269.64 billion for the power and energy sector in fiscal 2007-08.
The government, in the budget for fiscal 2007-08, has announced a three-year plan to increase power generation by 345 megawatts (MW) in the first year, 900 MW in the second year and 1050 MW in the third year.
While talking to the FE, power sector expert Lutful Kabir said: "The government should pursue the targets in a more scientific way as demands for power will increase manyfold during the period."
The new budget also envisages speedy implementation of those projects, which are expected to add electricity to the national grid by 2008-09.
Kabir laid emphasis on the speedy implementation of the projects, because it sometime gets delayed due to bureaucratic tangle.
He termed it a 'long term target' to increase power generation of the country.
"The government has, so far, reached electricity to about 30 per cent of the population of the country. So there is a large suppressed demand for power and any further generation of electricity will be just consumed in no time," he added.
This summer, the demand for power shot up to 5,200 MW against the supply of around 3,500 MW.
When contacted, power sector expert and former Director General (DG) of the power Cell BD Rahmatullah said: "The power sector needs efficiency, monitoring and proper leadership rather than an increase in fund allocation."
The power sector is reeling under 21 per cent systems loss, which should not exceed 10 per cent as per study of the development partners, he said.
He claimed that 11 per cent systems' loss occurs due to power theft in the sector.
"The power sector has received about Tk 175 billion in the last three fiscals, but the sector failed to perform as per allocation due to leadership crisis and corruption," he said.
He said the authorities could save 300-400 MW power through enhancing monitoring.
"There is existence of 'D-rated power generation', which has suppressed about 600 MW power in the power stations," he said.
The power division could increase power generation from the D-rated power plants by installing appropriate equipment, he said.
Rahmat also suggested providing fiscal incentives to the captive power plant owners to get their produced electricity in a short time.
Md Aziz Khan, chief of power company Summit group, said: "The government should encourage the private sector to inject equal amount of fund to meet the requirement of large investment in this sector."
Referring to the government's allocation of subsidy for the Bangladesh Petroleum Corporation (BPC), he said a large portion of government's fund is being wasted by providing the subsidy.
He, however, suggested that the government should form specific policy guideline for private sector investment in power sector.
"The government could perform as a regulatory body for the private sector investors in the power sector," Aziz said.
He said Tk 42 billion allocation for the energy and power sector in the next Annual Development Programme (ADP) is not sufficient for the capital intensive sector.
To make a substantial progress in the sector, an equal amount of private sector investment is necessary, he said.
Experts stressed the need for increasing monitoring and proper leadership to enhance efficiency in the power sector for materialisation of objectives over the coming years.
They claimed that there was sufficient flow of funds in this sector, but due to lack of proper utilisation, there was hardly any positive impact on power generation.
The government has allocated 16.9 per cent of the development budget worth Tk 269.64 billion for the power and energy sector in fiscal 2007-08.
The government, in the budget for fiscal 2007-08, has announced a three-year plan to increase power generation by 345 megawatts (MW) in the first year, 900 MW in the second year and 1050 MW in the third year.
While talking to the FE, power sector expert Lutful Kabir said: "The government should pursue the targets in a more scientific way as demands for power will increase manyfold during the period."
The new budget also envisages speedy implementation of those projects, which are expected to add electricity to the national grid by 2008-09.
Kabir laid emphasis on the speedy implementation of the projects, because it sometime gets delayed due to bureaucratic tangle.
He termed it a 'long term target' to increase power generation of the country.
"The government has, so far, reached electricity to about 30 per cent of the population of the country. So there is a large suppressed demand for power and any further generation of electricity will be just consumed in no time," he added.
This summer, the demand for power shot up to 5,200 MW against the supply of around 3,500 MW.
When contacted, power sector expert and former Director General (DG) of the power Cell BD Rahmatullah said: "The power sector needs efficiency, monitoring and proper leadership rather than an increase in fund allocation."
The power sector is reeling under 21 per cent systems loss, which should not exceed 10 per cent as per study of the development partners, he said.
He claimed that 11 per cent systems' loss occurs due to power theft in the sector.
"The power sector has received about Tk 175 billion in the last three fiscals, but the sector failed to perform as per allocation due to leadership crisis and corruption," he said.
He said the authorities could save 300-400 MW power through enhancing monitoring.
"There is existence of 'D-rated power generation', which has suppressed about 600 MW power in the power stations," he said.
The power division could increase power generation from the D-rated power plants by installing appropriate equipment, he said.
Rahmat also suggested providing fiscal incentives to the captive power plant owners to get their produced electricity in a short time.
Md Aziz Khan, chief of power company Summit group, said: "The government should encourage the private sector to inject equal amount of fund to meet the requirement of large investment in this sector."
Referring to the government's allocation of subsidy for the Bangladesh Petroleum Corporation (BPC), he said a large portion of government's fund is being wasted by providing the subsidy.
He, however, suggested that the government should form specific policy guideline for private sector investment in power sector.
"The government could perform as a regulatory body for the private sector investors in the power sector," Aziz said.
He said Tk 42 billion allocation for the energy and power sector in the next Annual Development Programme (ADP) is not sufficient for the capital intensive sector.
To make a substantial progress in the sector, an equal amount of private sector investment is necessary, he said.