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Wednesday, October 19, 2005

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HEADLINE
 
WB still reluctant to release $105m credit to PDB
S M Jahangir
10/19/2005
 

          The World Bank (WB) is still reluctant to release US$ 105 million in pledged credit to the Power Development Board (PDB) despite of some progress made by the Board in fulfilment of the Bank's conditions.
The Bank tagged the disbursement of the credit with a successful transfer of the PDB's certain electricity lines to the Rural Electrification Board (REB), official sources said.
"The WB says it will not release the credit until the PDB completes the handing over of its proposed power lines to REB under the condition," a Power Division official said quoting the WB.
Besides, the non-availability of the WB credit puts the implementation of various development projects under the PDB in limbo, the official noted.
The WB earlier pledged the credit package for up-gradation of the PDB's power transmission and distribution lines.
Under the credit deal, the PDB was to transfer at least 2,109 kilometres (KM) of electricity lines to REB within a set timeframe for receiving the WB credit.
The PDB recently handed over nearly 1,500-km electricity lines to the REB despite strong opposition from its officials and employees, sources said, adding the process of handing over the remaining 609-km lines is underway.
"The PDB had accomplished the handing over process recently amid strong oppositions from its officials and employees," the official said, adding the lines were transferred after the settlement of some legal disputes.
The Power Division took the initiative to handover the electricity lines after the WB warned the authorities that it would consider withdrawal of the credit package if transfer process is not completed by June, 2005.
The collective bargaining agent (CBA) of PDB opposed the handing-over move on the ground that a good number of employees will lose jobs because of the move.
The CBA was against the move to transfer electric lines under the PDB's distribution areas having a minimum power consumption capacity of up to three megawatt (mw).
But the power ministry ordered the PDB to transfer electric lines of the distribution areas with power consumption capacity of three megawatt and above, they alleged.
Officials, however, said the CBA and power consumer groups earlier filed 54 cases with different local courts against the handing-over move.
With the latest handover, the PDB has so far transferred about 7000 km of transmission lines to the REB.
The PDB has a total of 325 electric supply units covering the distribution area of 45,600 km across the country.
Out of them, 90 electric supply units covering 24,000 km urban and rural distribution lines have so far been handed over to the REB.

 

 
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