The World Bank (WBI has suggested gradual divestiture of the natural gas sector, privatisation of the T&T Board, and restructuring of the Power Development Board (PDB) to make independent and corporatised entities for generation, transmission and distribution activities.

It has also recommended that labour force in the Railway sector be trimmed, the Roads and Highways Department be transformed into a maintenance-oriented organisation and the Dhaka Electric Supply Authority be corporatised and

commercialised giving it management and financial autonomy.

These suggestions were made in the Bank's draft document. "Agenda for Action", aimed at setting priorities for the new government. These were sent to the ministries concerned last week.

The government should restructure the PDB along functional Unes and establish independent and corporatised entities for generation, transmission, and distribution activities, the Bank said.

An independent regulatory

authority to oversee the reorganised sector. Including setting of tariffs should also be established, it maintained.

The Bank pointed out that a GDP growth rate of eight per cent a year would require a corresponding 16 to 20 per cent growth in power generation although it has been difficult to achieve a growth of over seven per cent a year in the last decade.

But still the power sector has been the largest lossmaker in the economy.

The Bank stressed that since Taka 20 billion annual

capital investment is needed for matching expansion of the power sector, the government should move quickly to radically improve the sector's performance.

It said the government, to cope with the situation, should create an enabling environment for private sector participation in build-own-operate power generation plants.

About the Bangladesh Telephone and Telegraph Board (BTTB). the WB suggested privatisation of the BTTB saying. "This is likely to be easier than commercialising or restructuring it to make it more efficient, competitive and commercially oriented "

Regarding the railway sector, the WB suggested the government to adjust tariffs and improve collection, reduce labour force, rationalise services and sell surplus assets.

About natural gas sector, the single largest energy source, the WB suggested that the government establish a regulatory framework for the sector providing for a mixed ownership structure and divestiture eventually.

"The restructuring and privatisation of the public gas operating companies which has been avoided is now long overdue." the WB added.

The WB urged the government to take action so that the Power Development Board (PDB). the single largest gas consumer, pay its gas bills to the Petrobangla. According to the Bank, the PDB's worsening financial position is a threat to Petrobangla as well.

To improve the functioning of the ports, the WB urged the government to increase the autonomy of port authorities.

The Bank recommended for establishing an apex task force comprising representatives of ministries, port authorities and the private sector with a mandate to suggest investment plans, set performance evaluation

criteria and establish procedures for accountability.

The Bank also suggested the government to allow the private sector to run internal container depots outside Chittagong port, in Dhaka and other places, operate rail container movement on the Chittagong-Dhaka corridor under contract with Bangladesh Railway and operate container barges to link Dhaka/-Narayanganj with Chittagong and Mongla and drop the government s plan to buy and run such barges.

In the road communication sector, the government should declare its full support for the ongoing capacity building aimed at transforming the Roads and Highways Department (RHD) into a maintenance-oriented organisation with computerised cost accounting practices, the Bank suggested.

The WB also recommended for establishing a planning cell in the Road Transport Division of the Ministry of Communication and setting up of a National Road Safety Secretariat.

The Bank said with the swelling of urban population, the country is faced with two dominating issues to be addressed immediately — the need for massive funds to provide basic municipal services, and the need for improving management capacity for these services.