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BUDGET: LOOKING BACK : Power Div among worst ADP performers
Tuesday, 03 June 2014
The Power Division has earned the reputation as among the worst performers in implementing public sector projects funded by the annual development programme in fiscal 2013-2014.
It also earned an unenviable record of providing little or no respite to the public from the nagging power outages.
Due to slow implementation at least 12 public sector power plants failed to achieve the desired progress in the outgoing fiscal, a Power Division official told New Age. The units on completion would have a combined generation capacity of 3,659MW.
The revised ADP for the outgoing fiscal slashed the Power Division’s allocation to Tk 8,051 crore from Tk 9,054 crore as it could utilize no more than 51 per cent of the allocation in the first 10 months.
In the first 10 months of the previous fiscal, the Power Division had utilized 66 per cent of the ADP allocation.
Slow implementation of public sector power generation projects and the government’s continuing reliance on supply of costly electricity from private companies using rental plans contributed to the lingering public sufferings caused by frequent power outage.
Since the current summer season began urban areas faced load shedding six to eight times and the rural areas — 15 to 16 times every day.
Inept implementation of projects for power generation, transmission and distribution by public sector utilities has to be blamed for the mess the sector is in, a Power Division official told New Age.
He said that the utilization of the ADP allocation would stand between 65 to 70 per cent by the end of June when the fiscal ends.
The Energy Division also earned a similar reputation utilising 66.07 per cent of the its allocation for  29 projects in the first 10 months of the out going fiscal.
In the first 10 months of the previous fiscal the Energy Division had utilized 72.19 per cent of the allocation it had received from the revised ADP, shows official data.
Out of the 12 power plants Power Development Board has been implementing nine to increase generation by 1,874MW.
Ashuganj Power Company has been implementing three to generate 1,125MW and Electricity Generation Company of Bangladesh has been implementing one to generate 335MW.
And slow implementation bedevils most of the projects for increasing power generation and the transmission and distribution capacity, said the official.
The work for upgrading three simple cycle power plants now generating 320MW of power by the PDB is in progress to turn them into combined cycle plants to increase generation by 160MW.
The North-West Power Generation Company has been implementing two such projects to increase generation capacity by 150MW.
The official said that the delays in implementing the generation projects would prolong public sufferings.
An obvious result is increased dependence on the supply of more costly power by private companies who use rental plants, he said.
From March 1, the Bangladesh Energy Regulatory Commission increased the average retail power prices for domestic and six other categories of consumers.
The average electricity price has increased to Tk 6.15 from Tk 5.75 per unit or kilowatt-hour.
The government’s policymakers, however, refused to call it power price hike, preferring to explain it as price adjustment due to increased cost of generation.
- See more at: http://newagebd.net/17325/power-div-among-worst-adp-performers/#sthash.VxL81Z0s.dpuf