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Govt seeks $150m from WB to fight power crisis

UNB, Dhaka
The government has sought $150 million as emergency funds from the World Bank (WB) to overcome the ongoing power crisis across the country.
State Minister for Power Iqbal Hassan Mahmood sought the support of the international donor agency when a delegation of the bank, led by its Country Director Christine Wallich, met him at his office in the Secretariat yesterday.
Through the funds, the government will implement a fast-track programme to overcome the present power crisis.
Under the programme, the government will install a number of barge-mounted and trailer-mounted power plants and also carry out rehabilitation programme for some old generation units to resolve the power crisis within next 6-9 months.
The barge-mounted and trailer mounted plants will be brought in the country on rent for five to six years as a short-term remedy.
The government presented a comprehensive plan on the programme to the World Bank in this regard. Under the programme, 900MW electricity will be arranged--200MW through five to six bargemounted and trailer-mounted plants, 500MW through a rehabilitation programme and 200 MW through introducing an intensified loadmanagement system.
The World Bank delegation did not make any commitment to the government's request. Instead, they said the bank will examine and study the government's proposal and then decide on the issue, sources close to the meeting said.
The donor agency said it wants the government to ensure transparency in implementing the programme.
After the meeting, the state minister said if the World Bank provides the funds, he is very hopeful of resolving the present power crisis.
“World Bank has agreed to appoint a consultant to examine our programme”, he said.
The minister said he has requested the donor agency to evolve a mechanism to ensure transparency in the implementation process of the programme as it will run on a fast track.
Besides the donor's financial support, he said, the power ministry also put forward a proposal to the
Prime Minister's Office (PMO) seeking a special allocation of
Tk 1,200 crore to resolve the existing power crisis.
Emerging from the meeting, World Bank Country Director Christine wallich did not make any comment on the proceedings of the meeting.
But David Hughart, Operations Advisor to the World Bank, told journalist that they have widely discussed different issues including the government's latest programme on resolving the power crisis.
He admitted the bank's recent objection on the implementation process of small power plant projects.
He said the World Bank thinks the project should be implemented in a transparent manner in compliance with the existing policies and regulations.
Hughart said the World Bank has suggested the government to repackage the proposed project on small power plants to ensure transparency.
Earlier, the government suspended the proposed project on small power plants following the World Bank's objection about its implementation process.
The bank had raised questions about transparency in the bidding process of the proposed small power plants.
As per plan of the government, the private sector sponsors were expected to set up about 45 small power plants, each having 10-50 MW capacity, across the country and the government would purchase electricity from the plants at a negotiated tariff.
But questions arose about the selection process as the selectors were given discretionary power to qualify or disqualify a sponsor.