Internet Edition. November 20, 2007, Updated: Bangladesh Time 12:00 AM 
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Corruption costs : Tk 23,000cr in power sector in 10 years

Staff Reporter



The government had incurred about Tk 23,000 crore loss in the past ten years in the power sector due to corruption by which it could have established power plants capable of producing at least 9,500 MW electricity.

In the fiscal year 2005-06 the government had lost about Tk 10,600 crore for production loss as they have no gas based power plant.

By reducing the technical and distribution loss up to 15 per cent the Government could earn at least Tk 1,853 crore extra and the Government would not have to increase the price of electricity.

Transparency International Bangladesh (TIB) yesterday presented this information in a report at a discussion meeting on 'Problems in Good governance in Power Sector and Remedies' at the National Press Club.

The research report presented by Md Zakir Hossain Khan says the main problems of the power sector of Bangladesh is lack of transparency and accountability in the sector, huge lack of power, corruption in purchasing and distributing network, economic inefficiency, high technical and distribution loss, weakness in service and harassment of the consumers.

TIB recommended forming an independent commission to implement the vision 2025 master plan of the power sector.

It also recommended appointing ombudsman for the power and energy sector and reforms in the courts and laws of the power sector.

TIB Chairman Prof Mozaffar Ahmed said the situation of the power sector was degrading gradually.

He said check and balance is needed in the management in the power sector to ensure people good service and reduce the system loss.

Pointing on Rural Electrification Board Dr Mozaffor said massive injection of capital needed for the REB to gain back its past goodwill.

He said, "Electricity is a necessity it's not a luxury, it's a necessity for production and it should be treated like that.

Dr Mozaffar opioned against recruiting foreign consultant for the power and energy sector. He said, civil society representatives should be given chance to give their opinion in the policy making of the power sector.

The report of the TIB also says that almost two third of the consumers of electricity was not satisfied with the services provided by the institutions of the power sectors.

The government would earn only Tk 426 crore by increasing price of electricity by 5 per cent whereas by reducing system loss up to 15 per cent government would earn extra Tk 1,853 revenue.

Bangladesh is the 174th country in the world according to per capita power consumption. Bangladesh's per capita power consumption is only 140 KW while the average per capita power consumption of the LDCs is 357.8 KW and the most power consuming country in the world consumes 24, 000 KW per capita.

The TIB also recommended the government should start one stop service for the consumers to reduce their hassle in getting service from the institutions of the power sector.

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