Energy & Power

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Melting Of Ice

Khandker Abdus Saleque

We always believed that people of Bangladesh will be the ultimate victors. The political impasse is almost over and Bangladesh is on the verge of a credible election under a true neutral caretaker government. The unholy alliance and syndicates have been swept away. It is now to be seen how soon the CA and his team can effectively neutralize the administration and the Election Commission, regenerate credible voter list and conduct the election in neutral environment. But one must say the evil deigns could be foiled due to combined resistance of commoners and well-wishers of Bangladesh.

The changed circumstance has created opportunity to address the urgent needs of energy sector from the neutral point of view. The newly appointed Advisor in charge of energy sector knows it all and is in a comfortable position to take some dynamic steps during his tenure so that the impending energy crisis can be minimized as far as practicable.

Neutralization of Energy Sector Management
The immediate past government not only failed to manage the sector but also thoroughly politicized the sector. Honest, committed professionals were politically victimized as they refused to be dictated by the evil syndicate, which cast its dark shadow in every affairs of the energy sector. Only people with doubtful credibility but having political alignment with BNP or Jamaat were placed in crucial posts. Their only purpose was to favor the syndicate and create opportunities for massive plundering of national resources. Consequently, development of energy infrastructure suffered creating undesirable imbalance in demand supply situation. So the first and foremost requirement is to depoliticize the energy sector management it should start with Secretaries and go down to chief executives of energy companies. These people must be scanned and only genuinely qualified and competent professionals should be retained. If the management is not efficient good governance cannot be expected which is so essential at this stage.

We are optimistic as the process has already started with the removal of the controversial Secretary Power Division. More effective changes are essential in sector corporations, enterprises of power, energy and petroleum sector.

Address the Immediate requirement of Power Sector
Serious power crisis is anticipated within few months which may create embarrassment for the men in charge. Within such a short time it is not possible to bring new generation on stream but certain contingent actions can be taken to maintain the current level of generation and retrieve some more in bringing the under maintenance units into operation. Urgent actions may be taken to utilize the surplus of captive generation in respective areas as a measure of crisis management. Effective load management through stringent control of theft and pilferage may save substantial misuse. Some practical actions may be taken to save substantial power misuse during evening peak hours. Shopping culture may be revised. Excepting weekends all shopping malls in major cities may be requested to pull down shutters after 6 PM. People will definitely respond positively if the appeal is made generously. Our export-oriented industries must be protected from power cuts to keep the economy vibrant and re-establish credibility in export market. Energy advisor is well aware of the situation as being one of the worst sufferers of recent power crisis. So he is the right person to take correct decisions to affect some appropriate actions.

Energy Sector Priorities
Some critical issues of energy sector need urgent attention. Some documents like Coal Policy, Gas Act, exploration for petroleum in deep water, off-loading shares of petroleum marketing companies were at various stages of approval. These can be tracked and kept ready for the incumbent political government to act upon. Pipeline compressor project and Bakhrabad–Siddhirganj pipeline project of GTCL must progress without interruptions. These are already delayed. Further delay may cause serious gas supply crisis. The sector may land up in a position where there will be crisis in the downstream despite of substantial surplus in the upstream. ADB assisted Gas Sector Development Project (GSDP) must be steered effectively to expedite gas supply to Bheramara and Khulna areas. Load management of gas sector may also be required to ensure stable supply to power plants. The annual maintenance of Fertilizer plants may be synchronized to manage the peak power season. Drive for controlling gas theft may also ensure effective utilization. Caretaker government must push utilization of CNG in majority of vehicles. For setting examples advisors may run CNG vehicles and lead by example. All government vehicles must be converted in the shortest possible time. Some initiatives may be taken to activate ERC to expected level. Private-public sector harmony in investment and sector operation is essential to alleviate the situation. The role of ERC is critical ensure level playing ground. Caretaker government may look into the issues why ERC could not be made effective to its desired level. Any investor in the sector local or foreign will judge the capacity of ERC in approving license and setting pricing mechanism. Setting the market oriented energy price is essential precondition for investment in the sector. Government may protect poorer section and farmers through subsidy. But ERC may be supported to set appropriate pricing mechanism.

The draft Coal Policy may be scrutinized and kept ready for the incumbent government for action. Similarly if the PSC document for inviting IOCs for water drilling is in the final shape it should also be further scanned for saving time of incumbent government. Off-loading shares of public companies of energy sector will generate fund for operation and development of these companies and create more accountability and transparency. The beneficiaries of present in disciplined public sector are opposing this move. This should be given serious rethought.

The caretaker government will mainly focus on free and fair election. Much of its efforts will be directed and dedicated for that. But if the contingent actions of energy sector are not taken the crisis may further deepen and sufferings of the people will be prolonged.

Let us hope that people will realize the constraints and limitations and will stand by the positive actions of the government. Once the ice has melted in the mountain, it will definitely roll down and bring peace and prosperity in the hinterland. Bangladesh has adequate capacity and competence to tide over crisis, reestablish credibility to world community. While the government will endeavor to create level play ground for all political parties to contest in a free and fair election people and also enforcers must support any pragmatic efforts of the government to manage energy crisis. Major policy decisions may not be taken but to keep the wheel of economy mobile the essential bare minimum reforms and restructuring of the energy sector can be carried forward. Who else other than the caretaker government is better placed to take some long overdue pragmatic actions to salvage some pride and glory of the bygone days. e have adequate resources , we have hard working competent professionals, we have reasonably transparent and free media. What we need are strong political will, good governance and honest and accountable politics.

It is a reality that Bangladesh needs significant invest of private sector to address its growing demand of energy to survive and sustain development. We have to create conducive environment and refrain from acting funny triggering wrong signal to the investors. Countries like Thailand, Vietnam, Laos, Cambodia, which once lagged far behind have surged ahead. Well this is going to be our one last chance to take off. Let us mobilize and rally around the caretakers to optimally utilize the opportunity to salvage pride and glory of the nation.