POWER SECTOR REFORM -BANGLADESH

1. POWER SECTOR REFORM -BANGLADESH PRESENTED BY: A.S.M. HAFIZUL HOSSAIN WORKING PRESIDENT CEC, PGCBSKU, BNANGLADESH. asmhafiz@gmail.com

2. BANGLADESHGeneral information • Population 146.7 million • Area 147570 Sq. Km. • Density of Population 904/ sq. km. • Active lobour force 53.3% with 38% women • Un employment rate 3.3% • Per capita GDP US $ 388 • Literacy Rate 56% • Agriculture workers 62.3% • Idustrial Workers 7.6%

3. Formation ofEast Pakistan Water & Power Development Authority- EPWAPDAin 1959 WATER WING River Controll Water management SERVICE WING Dredging & Mechanical Equipment POWER WING Power -Generation -Transmission -Distribution Gen. Capacity -88 MW

4. 1971 Liberation of BANGLADESH • 1972 Bifurcation of EP WAPDA • Creation of Bangladesh Power Dev. Board –BPDB a statutory body under Ministry. • Integrated policy to develop electricity sector to provide electricity to all citizen as it is the Constitutional provision. • Electricity declared as reserved Public Sector.

5. Reform Process Started 1978 Creation of Bangladesh Rural Electrification Board – REB. -with a view to provide electricity to the rural population. 1985 Liberalization in Govt. policy - Electricity excluded from Reserved sector - Creation scope for private participation

6. 1991Distribution system of Dhaka Metropolitan City & surrounding urban areas were separated from BPDB & a new Public Sector Utility “Dhaka Electric Supply Authority-DESA” was created.Later gradually the surrounding areas were handed over to REB.

7. IMPACT: • Increase of Over Head Expenditure • Non Coordination among the entities • Corruption Increased • Increase tendency of violation of rules • Financial indiscipline. • Ultimately handicapped organization. • Dismantled in 2008 – Taking the privilege of Emergency

8. Private Participation Legalizedunder a new“ENERGY POLICY”* Vertical separation of existing utility in functional line i.e. Generation, Transmission & Distribution.* Private participation introduced* Commercialization

9. Creation of Power Grid Company of Bangladesh Ltd.–PGCB Ltd. A separate Electricity Transmission Utility (HT Lines) under Public Sector. Unbundling from BPDB & Registered in Stock market. So far 20% share off loaded

10. IMPACT • Top Heavy Style of Management • Highly Increase in Over Head Expenditure. • Job is not secured • Irrational Salary structure among the workers & Executives. • Number of Worker / Staff is less than executives. • Existing workers right & facilities (as per labor law) –denied.

11. Continuation • Initially Management had no intention to allow TU – Workers managed to organize TU • Provision for Engaging New workers on Daily payment basis as part of policy. (Of course union became successful to change the attitude of the management to some extent). • Future service benefit like pension closed.

12. 2001Corporatization of BPDB owned Ashuganj Power Station as a public limited Company- APSCL.2003 Corporatization of Distribution system of 19 administrative District of Western area named " West Zone Power Distribution Company Ltd.”.

13. NEW EXPERIEMENT 2008 “Dhaka Electric Supply Authority-DESA” Converted into new Company “Dhaka Power Distribution Company –DPDC Ltd resulting job loss of about 700 workers. PDB DESA DPDC WHAT NEXT ?? .

14. BANGLADESH POWER DEV. BOARD -BPDB RURAL ELECTRIFICATION BOARD –REB 1978 DHAKA ELEC. SUPPLUY AUTHORITY –DESA 1991 POWER GRID CO. OF BANGLADESH LTD –PGCB 1996 ASHUGANJ POWER STN CO. LTD -APSCL 2001 PRIVATE PARTICIPATIN –IPP 1995 ELECTRICITY GENERATING CO. LTD -EGCB ? WEST ZONE POWER DIST CO. -WZPDPCO 2003 RPCL ? DHAKA ELEC, SUPPLY CO-DESCO DHAKA POWER DIST CO. LTD ---DPDC 2008 PBS NORTH WEST POWER GEN. CO NORTH ZONE POWER DIST. CO SOUTH ZONE POWER DIST CO ? ?? FUNCTIONING UNDER PROCESS

15. GENERATION RPCL APSCL BPDB EGCB IPPs REGULETARY COMMISSION TRANSMISSION SINGLE BYER REGULETARY COMMISSION PGCB BPDB BPDB DESCO PBs CONSUMERS DESA WZPDCo REB DPDC DISTRIBUTION

16. LET US TAKE THE CASE OF PGCB FOR STUDY.

17. continuation

18. Out comeAfter so many project, loan, agreement, meetings, re structure, formation – reformation, TA & with all other activities what is the result or out come?The most important out come is that people are not getting minimum electricity causing serious damage in their daily life & countries Development.

19. Result of reform 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.

20. 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

21. 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.

22. CURRENT DEVELOPMENT • No trade Union scope as there is no worker in Electricity Generating Company-EGCB – Introducing contract out / lease out system for workers as policy. • Could not organize any TU in DESCO /REB • Formation of TU is discouraged in DPDC – Practically those who are taking initiative are being threatened to loose job officially.

23. PRESENT SITUTIONA • Demand of Power 5050 MW • Installed Generation Capacity 5200 MW • Actual Generation is 3200-3400 MW • Short in Generation 2000-1800 MW • Transmission capacity (HT) 180% + of maximum demand • Most of the fertilizer factories are forced to shut down so that the natural gas can be used as fuel in the power stations.

24. THANK YOU HAVE A GOOD DAY