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Bangladesh Budget 2009-10 and Power Crisis June 26, 2009

Posted by bdoza in BANGLADESH, Budget.
Tags: , , ,

The Budget outlined a long-term vision to solve the gas and power crisis at present and in future, and as part of it proposed an allocation of Tk 4,310 crore for the sector in the next fiscal year (FY). The allocation is 48 percent higher than that in the revised budget for the current FY.

The Budget 2009-10 states that our development efforts are severely constrained by the dismal state of the energy and power sector. We were aware that there was a huge gap between demand and supply in this sector but we did not know that the snag is not only in the supply of gas and generation of power but also in the transmission of power as well. Not only is there a huge lag in the exploration of new gas fields, there has in fact, been serious neglect in taking up new work in known gas fields in order to augment gas supply as well.

The new Government is now compelled to set up expensive dual-fuel power plants that can use diesel or furnace oil and also gas. Energy and power sector demands a comprehensive plan for ordering of power plants, increasing supply of gas and other feed stock, strengthening of power transmission and distribution
facilities, rationing of gas supply to competing demands, finalization of a coal policy and a long term sectoral master plan.

The Government acknowledged that the power deficit is the principal impediment to our overall development including industrialization. The Government is committed to get rid of this impediment. It is said that only 45 percent of our entire population has access to power. Currently our per capita power consumption is only 172 kwh, which is 325 kwh in Sri Lanka, 408
kwh in Pakistan and 665 kwh in India.

The Budget states that, at present, our average power demand is about 5,000 MW, against which as of now the existing power plants can only generate 3800 MW of electricity. The Government is determined
to take appropriate steps to increase power
generation assuming its demand to be 20,000
MW by 2021.

It ascertained that it is not possible on the part of the Government alone to finance huge investment that is dearly needed for targeted power generation. The Government has, therefore, embarked upon involving the private sector in short, medium and long term plans. We want to reach a position to fulfill the minimum electricity demand by 2011.

It states that in the year 2008, there has been an additional power generation of 307 MW in the private
sector. In 2009, 500 MW of additional power will be generated through 4 projects a ubder public sector nas 440 MW will be added from 11 projects under the private sector. It is said that the bidding process for the construction of a 450 MW Bibiyana Power Plant is underway. It is hopes that by 2013, 2810 MW of power will be produces though 13 projects under public sector and another 1350 MW, under 3 projects of 3 power sector including Bibiyana. Besides, the Government is continuing dialogue with our neighbouring countries to import power for mitigating the power crisis on a short term basis.

Alongside increase in the production of power, efforts are under way to ensure efficiency enhabcement of management and efficient use power produced. During the last Boro season, 300 MW power could be saved through power load management. The diversion of this power towards irrigation helped the achievment of a bubper Boro production thi year. The Government also taken up a project at a cost of Tk. 105 crore to produce energy saving bulbs. Once this project is impemented there will be a saving of 350 MW of electricity.
To overcome the problems of transmission and distribution of power, the Government has taken steps to distribute the net addition of power in the next 3 years accross the country. For this an additinal 837 kilometers of power grid line, 17 sub-stations and 15000 kilometres of distributionline will be constructed.

The Govrnmnet believes that the development of rural electrification will play a vital role in our rural economy.

Finance Minister opined that It would not be advisable to avoid power generation using nuclear technology despite the element of risk of accidents involved. He declared that the Government has begun the preparatory work on this matter. However, FM cannot
make any definite statement as to when the nuclear power generation will commence. The Government is considering seting up a GOB-finqnced nuclear power project at Roopur with a capacity of 1000 MW.

Bangladesh is producing 20 MW of electricity by using renewable energy. The Government is encouraging the production of renewable energy by providing various financial incentives through through both public and private channels. Besides, the Government has taken initiative to conduct a feasibility study for setting up small hydro-electricity projects. So far , the use of solar and bio-gas as mainly been tried in rurl areas. The Government is taking initiatives to use this technology in population concentration areas in cities also.

The Government is seriously considering using coal along with gas for power generation. The Government will set-up coal -fired power plant using environment friendly technology for extraction of coal. It said that coal may be imported to run these power plants.

Budget shows hopes in power sector. Let us wait and see how the citizens get relief from their pain from power crisis.

An ordinary citizen


1. Sodaipati - June 26, 2009

[…] financial incentives through through both public and private channels. … More here:  Bangladesh Budget 2009-10 and Power Crisis « An Ordinary Citizen Posted in Bangladesh | Tags: and-private, Bangladesh, both-public, breaking, […]

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