Dhaka, Aug. 27 -- Establishment and timely commencing production of the major segments of the power plant, contracted to be established on "Quick Rental" basis in Bangladesh is failing gradually, thus not only causing huge amount of financial loss to national exchequer but also increased sufferings of the citizen of the country. Up to April, 2011 all the 14 Quick Rental Power Plant [QRPP] projects, which were undertaken by the ruling Bangladesh Awami League government on a "fast-track" basis to generate electricity to meet the current acute power crisis in the country, have miserably failed to commence production. According to contract, these projects were scheduled to start production latest by April 2011.
Power Development Board [PDB] said, the rental, quick rental and peaking plants were undertaken on a fast-track basis to address the nagging power crisis. The QRPP projects were supposed to add about 1,000 MW of electricity to the national grid. These QRPP projects are Meghnaghat 100 MW, Khulna 115 MW, Meghnaghat 100 MW, Ghorasal 78.5 MW, Ashuganj 80 MW [gas-generated], Keraniganj 100 MW, Ashuganj 53 MW, Noapara 40 MW, Amnura 50 MW [Chapainawabganj district], Juldha 100 MW, Siddhirganj 100 MW and Katakhali 50 MW.
Opposing the idea of QRPP, experts said that mostly second-hand equipments and machinery are used in such plants, which will be less efficient and the tariff will ultimately rise. They argue that the government would be better off spending money on upgrading the existing power stations.
Bangladesh's energy infrastructure is quite small, insufficient and poorly managed. The per capita energy consumption in Bangladesh is one of the lowest [136 kWH] in the world. Noncommercial energy sources, such as wood, animal wastes, and crop residues, are estimated to account for over half of the country's energy consumption. Bangladesh has small reserves of oil and coal, but very large natural gas resources. Commercial energy consumption is mostly natural gas [around 66 percent], followed by oil, hydropower and coal.
In generating and distributing electricity, the failure to adequately manage the load leads to extensive load shedding which results in severe disruption in the industrial production and other economic activities. A recent survey reveals that power outages result in a loss of industrial output worth US$1 billion a year which reduces the GDP growth by about half a percentage point in Bangladesh. A major hurdle in efficiently delivering power is caused by the inefficient distribution system. It is estimated that the total transmission and distribution losses in Bangladesh amount to one-third of the total generation, the value of which is equal to US$ 247 million per year. Bangladesh has 15 MW solar energy capacities through rural households and 1.9 MW wind power in Kutubdia and Feni. Bangladesh has planned to produce 5 percent of total power generation by 2015 & 10 percent by 2020 from renewable energy sources like air, waste and solar energy.
Meanwhile, a local company named Quantum Power Limited [an enterprise of OTOBI Limited] has been fined TK 200 crore [US$ 25 million] for their failure in commencing production of a 105MW plant at Bheramara district in Bangladesh. Quantum Power Limited got this contract against QEPP project. The authorities concerned though have collected an amount of TK. 6.4 million [US$ 90,000] only as penalty money out of the total amount of TK 200 crore [US$ 25 million], while, OTOBI is actively pursing with various important figures in the government including the energy advisor in averting payment of the remaining amount of penalty.
QRPP projects have already come totally messed up as the policymakers in the energy ministry, instead of looking into national interest were busier in making evil cash. A large number of projects were also illegally awarded to a company owned by two of the influential and controversial ministers in the government. Published by HT Syndication with permission from Weekly Blitz . For any query with respect to this article or any other content requirement, please contact Editor at
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