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Power sector ignored

Bapex pledged Tk 3200cr investment in 7years

Staff Correspondent
Without promising any solution for the ever worsening power crisis, the finance adviser yesterday declared in his budget speech that Bangladesh Petroleum Exploration Company (Bapex) will be provided with Tk 3,200 crore over the next seven years to strengthen its exploration programme.
The adviser said since the country's current gas reserve of 7.86 trillion cubic feet (tef) will be depleted to a precarious level by 2011, the government has put in place this investment plan for exploration of oil and gas.
"The government will shortly declare a national coal policy," Mirza Azizul Islam said proposing allocation of Tk 4,340 crore for power and energy sector in the budget, which is 4.3 percent of the proposed total budget and 21 percent higher than the revised allocation in the current fiscal year. "International Atomic Energy Agency (IAEA) has agreed to support the proposed Rooppur Nuclear Power Generation Plant. Shortly, IAEA will field a mission to Bangladesh. Efforts are underway to generate electricity from coal and renewable coal energy;" he said.
"We are currently working to reach the target of meeting minimum requirement of power by 2008-09."
In his speech, the adviser claimed that power shortfall was just 900 MW. Daily power requirement was 4,500 MW against the average net generation of 3,600 MW. But, according to the Power System Master Plan (PSMP), the demand for power would be 5,569 MW this year, leaving a constant deficit of almost 2,000 MW.
The adviser's speech did not guarantee any improvement in power supply this year. He said
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nothing about what the nation would do to address power crisis in 2009, though he shed some light about the power situation in 2010
"In the current fiscal year, a total of 124 MW from public and private sector has been added to the national power grid. Another 210 MW will be added by lune 2008 By December 2008, a total ol 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," he said.
"An agreement has been signed with captive power plants to pur-chase 27 MWof electricity, of which 10 MW has already been put into the grid. To meet the emergency, we have increased power generation by 318 MW, renovating the old power plants. In spite of all these efforts, inadequate gas supply disrupted normal power generation."
The adviser however admits the pitiable power consumption situation in the country. "Although currently 43 percent of our total population enjoys electricity facility, the per capita electricity consumption is low compared to many developing countries. In 2007, our 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.
He claimed that four private power plants with a total of 450 MW capacity -- now being built -- will come into operation by 2010. and three public sector plants with 380 MW capacity are also being constructed.
But according to the power ministry, presently no private power plant is being built. The Power Cell of the ministry is conducting tender for two 450 MW power projects, and it is far from awarding the contracts.
Power ministry sources however said some public sector power projects are now under implementation. Siddhirganj 240 MW power project will come into operation within a few months while the authorities are expected to award contracts for a 150 MW power project in Sikalbaha and a 360 MW onein Haripur within thisyear.
The adviser pointed out in his speech that presently 75 percent of the nation's commercial energy requirement is met from natural gas resources, and the remaining by importing petroleum, and generating hydro-power and thermal power at Barapukuria.
He mentioned that Barapukuria mine is supplying coal to the 250 MW coal-fired power plant there while production has started in Madhyapara Hardrock Mine. Petrol, diesel and liquefied petroleum gas are being produced in processing plants at Kailashtila and Biyanibazar. Efforts are continuing to save foreign exchange by increasing the use of compressed natural gas(CNG).