The New Nation - Internet Edition

UNB, Dhaka

The government has allocated Tk 4,340 crore for the power and energy sector in the budget for FY 2008-09, recognising that it would be difficult for it alone to mobilise the huge investment needed to meet the power deficit.

"This allocation is 4.3 percent of the total budget and 21 percent higher than the revised allocation of the current fiscal year," the Finance Adviser said in his televised budget speech.

He said the daily demand for electricity is now 4,500 MW on average against the net generation of 3,600 MW.

The huge investment that will be required to generate power to meet the deficit of 900 MW will be difficult to be mobilised by the government alone.

"We have, therefore, taken short-term and long-term steps for involving the private sector for adequate generation of power. We're currently working to reach the target of meeting the minimum requirement of power by 2008-09," he said.

According to the existing Master Plan, it is anticipated that by 2020 the country would be able to reach the level of generation of power in line with the growing demand.

Mirza Aziz said although 43 percent of the total population currently are enjoying electricity facility, the per capita electricity consumption is lower than many developing countries.

In 2007, Bangladesh's per capita electricity consumption stood at 140 KWH while it was 325 KWH in Sri Lanka, 408 KWH in Pakistan and 665 KWH in India.

He said in the current fiscal year a total of 124 MW from public and private sectors has been added to the national power grid. Another 210 MW will be added by June 2008.

By December 2008, a total of 320 MW power will be generated on a rental basis in the private sector and another 166 MW will be generated by 10 small power producers.

"To meet the emergency, we have increased generation of 318 MW of power by renovating the old power plants. In spite of all these efforts, inadequate gas supply has disrupted the normal power generation," the Finance Adviser said.

He said the International Atomic Energy Agency (IAEA) has agreed to support the proposed Rooppur Nuclear Power Generation Plant.

IAEA will shortly field a mission to Bangladesh. Efforts are underway to generate electricity from coal and renewable solar energy.

He said the government has supplemented BPDB to the tune of Tk. 600 crore to foot the bills of Independent Power Producers (IPP).

Another amount of Tk. 399 crore has been provided from the government budget as equity to finance pension and gratuity payments of the employees absorbed in the newly created power and transmission companies.