A brief by on the ADB-assisted project in Bangladesh which will establish which will establish a cross-border electrical link between the western grid of Bangladesh and eastern grid of India to promote electricity trading between the two countries.
It has been recognized that there is a need for a cross-country analysis that can be used to identify the factors that contribute to the problems of state incapacity in South and Southeast Asian nations. In taking up this challenge, we explore selected initiatives of new public management (NPM) in the region to analyse cross-country variations. For this purpose we have chosen four South and Southeast Asian countries, namely: Singapore, Malaysia, Sri Lanka and Bangladesh.
Excerpts of ADB Evaluation Study (Oct 2009) – “Bangladesh – Energy Sector”:
"Evaluation Validation Report: Ninth Power Project (Bangladesh)", Independent Evaluation Department, ADB, May 2009 http://www.adb.org/Documents/Reports/Validation/BAN/in160-09.pdf
ADB has been the lead institutional development agency in the power sector in Bangladesh since 1973.
Public Services International (PSI) Asia Pacific Regional office hosted a Forum on ‘Electricity Reforms in Indonesia and Asia Pacific: Role of ADB/IFIs’ at Novotel Nusa Dua Hotel, Bali, Indonesia on the 2nd May 2009. Participants representing PSI electricity unions from Asia-Pacific joined the forum. Speakers from Philippines, Bangladesh, India & Indonesia shared their experiences on the impact of the reforms in the electricity sector vis-à-vis the role of the Asian Development Bank (ADB).
INDIA HOPES FOR EARLY SIGNING OF MOU ON GAS PIPELINE
FEB 8, 2005, DHAKA - India today said it looked forward to an early signing of a MOU for a tri-nation gas pipeline that involves Myanmar and Bangladesh and dismissed reports in sections of Bangladeshi media that New Delhi was yet to send the list of negotiators for the technical committee meeting in this regard. "It is our sincere hope that the forthcoming Technical Committee deliberations in Yangon (Myanmar) will be meaningful and successful, thereby paving the way for the early signing of the Memorandum of Understanding (MOU) on the tri-nation gas pipeline," the Indian High Commission here said in a statement.
GAIL (INDIA) SIGNS MOU WITH BANGLADESH FIRM FOR GAS RETAILING (FEB)
State-run gas firm GAIL (India) Ltd has signed an agreement with Spectra International Ltd of Bangladesh to identify possibilities of joint cooperation in CNG infrastructure development projects and gas retailing in Bangladesh.
BANGLADESH ENERGY MINISTRY TO REVISE EXISTING COAL RELATED LAWS (AUG)
regulations and policies in the context of growing interest by the foreign companies in the country's coal mine sector.
TATA GROUP APPOINTS CHIEF REPRESENTATIVE IN BANGLADESH (JAN)
India’s giant conglomerate has begun feasibility studies for proposed multi-billion dollar investments in power, urea and steel.
Compiled from "Energy Briefing - Asia Pulse" re: ADB/WB; SPPs, IPPs, CPPs; South Asia power grid; India-Bangladesh-Burma gas pipeline; Barapukuria coal-fired plant (250 mw); Meghnaghat power combined cycle 3 (450-mw); Sylhet combined cyle power (90 mw).
For Bangladesh, since it joined ADB in 1973, the power sector has received 16 public sector loans and one private sector investment for a total of about $1.122 billion, as well as 19 technical assistance (TA) grants totaling $8.78 million, till end-2003. ADB’s assistance over the past three decades has aimed to help the Government in achieving its development goals by closely addressing the system needs at each stage of power sector development. Between 1973 and 1982, assistance was focused on rehabilitation and expansion of generation capacities, which were largely destroyed during the War of Liberation. Between 1983 and 1989, the sector operational strategy shifted to improving transmission and distribution. Following a brief gap in lending activities between 1989 and 1995, and from 1995 onwards, ADB became the lead funding agency in the sector, accounting for one third of all the financial assistance from development agencies in the power sector. In recent years, ADB’s power sector strategy for Bangladesh consists of: (i) changes in the business environment through corporatization, commercialization, and increased private sector participation;
(ii) institutional improvements in Bangladesh Power Development Board (BPDB) and Dhaka Electric Supply Authority (DESA); (iii) creation of new power sector agencies that could serve as role models for the power sector (e.g. PGCB, DESCO, West Zone Power Distribution Company Limited, Ashuganj Power Company Limited); (iv) enlarging the scope of rural electric cooperatives and promoting the development of renewable energy; and (v) strengthening the long-term planning and regulatory processes in the Bangladesh power sector.
The most important out come is that people are not getting minimum electricity causing serious damage in their daily life & countries Development. ORGANIZATIONAL - Lack of coordination among the organizations; Increase of over head expenditure in every organization; Increase of corruption Creating moral & social difference among the workers & executives --Unfriendly working environment; Financial indiscipline; Ultimately handicapped organization. WORKERS/EMPLOYEES CONTEXT - Weak Trade Union / No Trade Union; No job security; Workers rights are being denied; Workers are being compelled to perform jobs for which he is not appointed for; Number of workers is reducing; Existing Workers are over burden; Demoralized workers / Employees NATIONAL - General people are not getting adequate & quality electricity; Different tariff in different area; Tariff is increasing; Electricity is going out of reach of poor people; National organization BPDB purchasing electricity in higher price from IPPs & selling in lower price –Ultimately financially being looser; Generation is not increasing to meet the demand – resulting adverse effect to other industries; Increasing un-employment & social unrest;Self employed group are being job less & financilly looser; Service is commercial oriented not welfare oriented.
The active presence of various labor unions and employers’ cooperative societies constrains the
management of DWASA. Billing and revenue collection in three of six water supply zones of
Dhaka, covering approximately half the population and service connections, has been handled
by DWASA Employees Consumer Supplies Co-operative Society through the Program for
Performance Improvement (PPI) agreement. The PPI agreements are based on performance.
The billing efficiency of the PPI zones are generally higher than in the DWASA zones. However,
the division of responsibilities between DWASA staff and PPI staff is unclear and impractical in
some areas. For example, controlling unaccounted-for water is DWASA’s responsibility, while
PPI handles identification and disconnection of illegal connections. Further, meter maintenance
is under DWASA, while meter reading is under PPI. This PPI arrangement has various
problems, as it creates new vested interests within DWASA and has conflict of interests that
should be eliminated. The metering, billing, and collecting must be outsourced to a separate
entity; and PPI should be abolished or revamped to create a more appropriate system. Two of
the unions are affiliated with the two major political parties, while the third is independent.
Political interventions interfere with and jeopardize the management’s ability to recruit, promote,
and post the right persons at the right positions. A committee must be established to explore
private sector participation to bring good corporate governance into WASAs. The committee will
prepare a study and make recommendations with a time-bound action plan. The committee also
will review the existing PPI and recommend ways to eliminate conflicts of interest.
On 10 June 2007, the High Court ruled that allowing private operators to carry out the PPI initiative is against the provision of WASA Act 1996, and revoked DWASA’s move to outsource the billing and tariff collection.
Power sector reforms that form part of ADB loan conditionalities include “unbundling” the sector to introduce competition, creation of ’successor entities’, strengthening of regulatory bodies, elimination of cross-subsidies, and promotion of electricity trading. PSI affiliates are being harmed and their rights seriously threatened in ADB power projects in Philippines, Indonesia, India, Bangladesh and Pakistan.
Corral, Violeta P. (Feb 2009), PSIRU: ADB’s Energy Policy – How it Affects PSI Unions in Philippines, Indonesia, India, Bangladesh and Pakistan
Dhaka Water Supply and Sewerage Authority (DWASA) serves 10 million customers and relies on ground water as its source, including wells and the nearby river. It has great difficulty sustaining high water quality and service continuity. In contrast, its twinning partner— K Water— has superior water quality results and provides 24/7 supply to an equally large population. In this twinning deal, improving water quality is the immediate target. K Water is a state-owned water utility responsible for water resources management and bulk water supply; it has assisted local governments with capacity building and technical consultancy for their water supply systems since 1980s. With its financial and technical capabilities and community support, K-water has gained a reputation for its expertise and seen as an alternative to private sector and as a partner for water services delivery.
Dhaka Wasa is planning to increase water tariff by 20 percent, only after a month it slapped a five percent increase in tariff. Dhaka Wasa Managing Director (MD) engineer M Raihanul Abedin said, “The Board has approved increasing water tariff by 20 percent and the proposal has already been sent to the LGRD ministry for final decision.” “The Dhaka Wasa Board has the mandate to increase tariff up to five percent annually. The Board increased tariff by five percent in July after three years. But it is not sufficient to meet the expenditure as the salary of Wasa employees were increased by 20 percent,” he said. He said due to frequent power outage, they have to run pumps often by generators, which is contributing to a rise in water lifting cost. However, the decision of increasing tariff without improving the service of Wasa facing systems loss has raised questions. Transparency International Bangladesh (TIB) Chairman Prof Muzaffer Ahmad said, “An organisation needs to tackle systems loss before increasing tariff.” “Wasa should improve its service first,” he said, adding that it should conduct a survey before making such decisions. However, the Dhaka Wasa MD is confident of providing the city residents with better service in the near future. “We shall install more water treatment plants to increase our production. Water supply in the city will improve after implementation of the Asian Development Bank (ADB)-funded Dhaka Water Supply Sector Development Programme at a cost of Tk 1,456 crore. Moreover, we shall purchase 75 generators,” he added.