Although a dozen private sector offers for setting up power plants have been received, the government's procedural framework is yet to be streamlined.

According to official sources. a number of issues including legal, contractual and policy guidelines remain to be finalised to usher in the private sector in power generation.

Earlier last month, a 13-member committee headed by an Additional Secretary of the Energy Ministry was set up to review the technical and financial aspects of the private sector offers and recommend I heir possible acceptability to the government. The committee was set up as per a cabinet decision to expedite private' sector participation In power

generation.

But this committee now seems to be debating over some vital issues like whether to go for solicited bids or unsolicited bids, the environmental aspects of some projects, and fuel and the procedure for purchase of the generated electricity, according to committee sources.

Currently all the 12 offers are unsolicited proposals, from both local and international companies. These companies are: the International Energy Group. USA; Solar International Trading Corporation. USA: North America Consultants. Canada: National Power. UK: Geppetrol Resources. Canada; China Chang Jiang Energy Corporation. China; the ARRO Company. USA; PBI Capital. USA; Industrial Engi-

neertng Services. Bangladesh; Electro-Mech Engineers. Bangladesh; Alkashlf Ltd. Bangladesh and Westinghouse. USA.

Some committee members feel that these unsolicited blds may lack competitive elements and may obstruct the path for future solicited bids. On the other hand, others felt that in order to attract quick private investment in the capital-intensive sector unsolicited bids should be encouraged initially.

Officials said this problem has arisen because of the absence of an overall power policy clearly outlining. In a transparent manner, the gov emment's strategy for generating power, both by the public and private sectors.

The country's existing low tariff rate structure is also discouraging for the private sector.

The existing rate in the country is about three cents per kilowatt hour while the rate is six cents in both Southeast Asia and in neighbouring India and Pakistan.

"If Bangladesh wants to attract private power, it has to raise its rate and offer even better incentives than India and Pakistan," a prospective private power developer told The Daily Star.

However, the committee, in a recent meeting, has decided to prepare a complete document outlining the modalities for private participation in power sector, official sources said.

Technical experts will also be brought in from abroad to complete this document. A technical assistance project proposal is now being prepared to tap technical assistance from donors for preparing this document, an authoritative source said.

Some committee members have also shown reservations about the project of a particular company, which intends to generate power from wastes.

They feel that this would create serious environmental problems for the country because the country does not have a proper monitoring sys-, tem in place.

The power purchase agreement ensuring guaranteed take-off of power from the private generators by the Power Development Board and — ensuring quick billing and payment to them is also seen as vital for attracting private capital, private power developers feel.

Besides, the Electricity Act must be further amended to allow for joint ventures, officials added.