The New Nation - Internet Edition

UNB, Dhaka

The caretaker government is likely to dissolve the Dhaka Electric Supply Authority (DESA) in January next to hand over its operation to the newly formed Dhaka Power Distribution Company (DPDC).

The DPDC was formed early this year as a new entity like DESCO (Dhaka Electric Supply Company) as part of reform programme to turn the existing DESA into a corporate body. Official sources said the DPDC has already got registered with the Joint Stock Commission as a Public Limited Company (PLC) and started functioning as a new corporate body with a new and independent management in March this year. The Asian Development Bank (ADB) is providing technical assistance to the new corporate body as part of its commitment to implement reform programmes.

The government has already appointed managing director and some other directors to the DPDC on contract basis. A consulting firm is now working with the DESA to formulate its organisational structure and ascertain its financial and technical responsibilities. Power Ministry officials said the government formed the DPDC following DESCO's success in reducing system loss, enhancing revenue collection and improving its services.

"DESCO has been a successful entity in power sector as a financially viable and technically sound public limited company (PLC)…. Even it got a huge response when it floated its shares through the stock market," said a Power Ministry top official.