ADB- & WB-funded power reforms in Bangladesh

IFI-funded power sector reforms in Bangladesh was initiated in 1996 with the creation of a new company, Power Grid Company of Bangladesh (PGCB). Various ADB loans -- including US$268-million Power Sector Development Program approved in 2003 -- supported power restructuring and corporatizaton of PGCB and ’successor’ entities. These reforms involve human resource issues such as employee retrenchment plans and retirement or gratuity benefit schemes, which may be unfunded. In case of PGCB, unfunded pension obligations and gratuities amounted to US$8 million that affect 1,270 employees. According to PSI Bangladesh affiliate (PGCBSKU), PGCB’s management initially did not intend to absorb all existing workers in the transmission sector, and was also against the formation of the trade union. After prolonged and difficult negotiations, PGCBSKU succeeded in reaching agreement for absorption of all employees and the formation of the union in 2003. From the onset, the union faced hostile attitude from management; the union will address the following -- regularize casual/daily basis workers; rationalize manpower set-up; implement ILO standards properly; and raise members awareness and efficiency through various education and capacity-building programs.

BANGLA power-adb&wb_vpc-sep07.doc189.5 KB
BANGLA power-adb_vpc-sep07.doc293 KB