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Friday, February 25, 2005

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Study suggests placing of donors' representative in REB body
FE report
2/25/2005
 

          A recent study suggested placing of a donors' representative in the governing body of the Rural Electrification Board (REB) to help, what it said, restore confidence of the development partners.
The study titled, "Bangladesh Rural Electrification Programme at the Crossroads: An analysis of barriers, threats and opportunities to enhance programme sustainability," was prepared for the REB with assistance from a USAID partner recently.
"Bangladesh has the unfortunate reputation of high levels of government corruption," the study observed adding, "political influence has been a relatively recent issue that has become apparent in the RE execution programme."
"The recent trend of allowing ruling party members of Parliament (MPs) to participate in project selection for up to 40 kilometres of lines construction for each Palli Biddut Samitee (PBS) is illustrative of the instrusion of political influence into the RE programme," it maintained.
Besides, for ensuring independence of REB the study recommended selecting its chairman from among military personnel.
"REB experience suggests that for a variety of reasons civil service members appear to face a greater challenge in maintaining independence than the military officers who chaired REB in the past," the study substantiated.
Meanwhile, the REB, which once used to attract huge donors' interest, now faces a drought in foreign aid throwing the country's cherished goal of lighting the villages into darkness.
Foreign aid to REB has dropped sharply as the main donors -- World Bank (WB), Asian Development Bank (ADB) and the USAID - shifted their attention from funding electricity generation to providing technical assistance to other power projects, it was alleged.
"Their assistance to rural electrification has significantly declined over the past several years", a senior power ministry official told the FE.
He said the WB's contribution to the country's power sector has been virtually nil since early 1990s,"
"In the past 26 years the USAID provided $215 million, which was 15 per cent of the total funding for the REB projects," a senior PDB official said.
The USAID's contribution to the REB projects was significant in the initial years, but it dropped afterwards.
"It gave an annual $15 million aid for the REB on an average over the initial five years, $8o million in the next 15 years and $2.5 million in the last six years," the PDB official said.
"The USAID's funding to the REB projects has virtually been stopped since 1999," a senior official of the PDB told the FE.
Instead of funding the REB projects, the US donor agency has now concentrated its activities in consultancy for the REB under the auspices of National Rural Electric Cooperation Association (NRECA), the PDB official added.
The power ministry sources said the rural electrification programme was initiated in 1978 with a view to providing electricity to rural areas and thus accelerate the country's economic development.
Around $1350 million has so far been invested in the REB projects with the help of international donors.

 

 
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