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Wednesday, February 08, 2006

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News Analysis
Going back to days of lantern and Hatpkha
Shamsul Huq Zahid
2/8/2006
 

          The bad news has come from the horse's mouth. State Minister for Power Iqbal Hassan Mahmood told newsmen Monday that the present level of power load-shedding was likely to increase by more than 100 per cent--- from 700 megawatt (MW) to 1500 MW--- during the coming summer.
If that happens, darkness is set to engulf most part of the country after dusk, and industrial production, irrigation, and other productive activities will remain starved of power during most part of the day. Students would have no other option but to use lantern or candles. The 'Hatpakha' (hand fan) made of palm leaves is expected to make a strong comeback even in urban areas during the coming summer days.
The manufacturers and sellers of small power generators, kerosene lantern and candles must have been very delighted by the statement of the state minister for power. They, by now, have started working overtime to double or triple their production to meet the possible increase in demand for their products in the coming summer. At the end of the summer season, they can even think of arranging a reception to the power sector people for helping their business to grow at a rapid pace.
The urban people, who have been rather privileged so far as the availability of power is concerned, may not be that fortunate in the coming summer. In the event of such a huge power deficit, they are likely to be the victims of frequent load-shedding.
Then again, if a load-shedding of 700 MW can trigger a Kansat-like bloody incident, the authorities should guess the consequences of a 1500MW load-shedding. It will be really difficult for the authorities concerned to satisfy the power consumers living either in cities and towns or in rural areas. And so far as the ruling party is concerned, the massive load-shedding will be coming at the worst time--- only few months before the next general elections. Its political opponents, undoubtedly, will try to cash in on people's resentment over the government's failure to ensure adequate supply of power. Actually, the main opposition Awami League will be paying back the BNP with its own coin. The BNP had organised demonstrations and rallies to protest against the failure of the last AL government to supply adequate power to the subscribers.
The present deplorable state of the power sector, in fact, is the outcome of the failure of successive governments for last two decades. There have been no serious efforts on their part to create sufficient generation capacity to match the ever-increasing demand for power. The performance of the incumbent government on this count is the worst. During its four and a half years of rule, it could add only 80 MW new generation capacity through a gas-fired plant at Tongi. The plant, too, has not been using its full capacity because of low pressure of gas.
What is interesting to note here is that the state minister for power tried to defend the government position saying that the number of power consumers has increased by nearly 0.7 million in last four years, a record rise in recent time. Should then the people be blamed for seeking power supply to light their houses or run their industries or irrigate their rice fields?
The minister and others concerned do need to look at their own scorecards. There is no denying that the reluctance on the part of the multilateral donors to fund power projects for the last two decades has been largely responsible for the present state of affairs with the power sector. The donors had washed off their hands because of the government's alleged failure to implement various reforms recommended by them.
But if the government was serious about improving the power situation, it could add new generation capacity using its own resources or through private participation. For instance, the government spent around Tk. 750 billion on development projects for the last four fiscal years. It could establish at least three or four 100 MW power plants with taxpayers' money when sizeable amount of fund is wasted on redundant and politically motivated projects. The cost of a 100 MW power plant is estimated at Tk 4.5 billion (approx. $70m).
The incumbent government has, apparently, spoiled another opportunity to add substantial generation capacity through private initiatives. About eight to nine months back, the power division had initiated a right move by inviting bids from the private entrepreneurs to establish power plants with generation capacity between 10 MW and 50 MW at a few selected sites across the country. There was tremendous response from the private sector. But things turned sour because of political interference. Many ruling party lawmakers and influential businessmen scrambled for getting permission for setting up their own power plants and genuine entrepreneurs having experience in power generation lagged far behind in the rat race.
Following adverse media reports and intervention by a powerful multilateral donor, the entire process was suspended. The Prime Minister's Office (PMO) took over the responsibility of inviting fresh bids for setting up small power plants by the private entrepreneurs. But the PMO seems to be in no mood to initiate another rat race, ahead of next general elections. So, the power consumers will have no respite from frequent power outages for a period that none can specify right at this moment.

 

 
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