bangladesh power sector reform-hossain-may09

7/31/2019 Bangladesh Power Sector Reform-hossain-may09

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POWER SECTOR REFORM-BANGLADESH

PRESENTED BY:

A.S.M. HAFIZUL HOSSAINWORKING PRESIDENTCEC, PGCBSKU, BNANGLADESH.

[email protected]


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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%


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Formation ofEast Pakistan Water & Power

Development Authority- EPWAPDAin 1959

WATER WING

River Controll

Water management

SERVICE WING

Dredging & MechanicalEquipment

POWER WINGPower -Generation

-Transmission

-DistributionGen. Capacity -88 MW


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1971 Liberation of

BANGLADESH1972 Bifurcation of EP WAPDA

Creation of Bangladesh Power Dev. BoardBPDB a statutory body under Ministry.

Integrated policy to develop electricitysector to provide electricity to all citizen as

it is the Constitutional provision.Electricity declared as reserved Public

Sector.


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Reform Process Started

1978 Creation of Bangladesh RuralElectrification 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


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1991

Distribution system of DhakaMetropolitan City & surrounding urbanareas were separated from BPDB & a

new Public Sector Utility Dhaka ElectricSupply Authority-DESA was created.

Later gradually the surrounding areaswere handed over to REB.


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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 privilegeof Emergency


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1995 Private Participation Legalized

under a newENERGY POLICY

* Vertical separation of existing utility

in functional line i.e. Generation,Transmission & Distribution.

* Private participation introduced

* Commercialization


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1996 Creation of Power Grid Companyof Bangladesh Ltd.PGCB Ltd.

A separate Electricity TransmissionUtility (HT Lines) under Public Sector.Unbundling from BPDB & Registeredin Stock market. So far 20% share offloaded


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IMPACT

Top Heavy Style of Management Highly Increase in Over HeadExpenditure.

Job is not secured

Irrational Salary structure among theworkers & Executives.

Number of Worker / Staff is less than

executives. Existing workers right & facilities (as per

labor law)denied.


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Continuation

Initially Management had no intention toallow TU Workers managed to organizeTU

Provision for Engaging New workers onDaily payment basis as part of policy. (Ofcourse union became successful tochange the attitude of the management tosome extent).

Future service benefit like pension closed.


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2001 Corporatization of BPDB ownedAshuganj Power Station as a publiclimited Company-APSCL.

2003 Corporatization of Distribution systemof 19 administrative District of

Western area named " West ZonePower Distribution Company Ltd..


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NEW EXPERIEMENT

2008 Dhaka Electric Supply Authority-DESAConverted into new Company Dhaka

Power Distribution CompanyDPDC Ltd

resulting job loss of about 700 workers.

PDB DESA DPDC WHAT NEXT ??

.


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RURALELECTRIFICATION BOARDREB 1978

NORTH WESTPOWER GEN. CO

DHAKA ELEC.SUPPLUYAUTHORITYDESA 1991

NORTH ZONEPOWER DIST.CO

PRIVATEPARTICIPATINIPP 1995

POWER GRID CO.OF BANGLADESHLTDPGCB 1996

? ??

ASHUGANJPOWER STN CO.LTD -APSCL2001

BANGLADESH POWER DEV. BOARD -BPDB

DHAKA ELEC,SUPPLY CO-DESCO

WEST ZONE

POWER DISTCO. -WZPDPCO2003

ELECTRICITY

GENERATINGCO. LTD -EGCB

DHAKAPOWER DISTCO. LTD ---DPDC 2008

SOUTH ZONEPOWER DISTCO

FUNCTIONING

UNDER PROCESS

??PBS

RPCL


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MPEMR (Ministry)

APSCL

EGCBBPDB

RPCL

GENERATION

IPPs

TRANSMISSION

PGCB

SINGLE BYER

DISTRIBUTION

DESCO

WZPDCo

BPDB

DPDC

BPDB

PBs

REB

REGULETARYCO

MMISSION

REG

ULETARYCOM

MISSION

CONSUMERS

GENERATION

TRANSMISSION

DISTRIBUTION

STATU ATHO.

POWER FLOW

INCOME FLOW

IPP TENDERS POLICY

ISSU LICENCEES

SET TARRIFS &CODES

DESA


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LET US TAKE THE CASE OF PGCB FORSTUDY.

BPDB PGCB One CE managed total

Transmission System.

7 GM managing the system

some more posts are going to

be created.

Pyramid style Management.

Top Heavy Management.

Staff Officer ratio was +7;1 863 workers working against

1069 officersRatio is 1:1.24

Job was secured. No job Security

Standard Service rule & Labor

law was followed properly.

No standard service code &

labor law violated frequently.

Regular appointment against

sanctioned set up.

Tendency to engage workers

on daily payment basis.


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continuation Salary structure was rational. Salary structure is not rational.

Retirement in due time -at theage of 57 for all.

Service extension only for topofficials after retirement is very

common (at the age of 60)

Satisfactory retirement benefit. Retirement benefit is not so

satisfactory Risk benefit was available Risk benefit is absent

Attitude of the management

was sober Friendly Working

Environment.

Attitude of the management is

hostile - Unfriendly Working

Environment.

Strong Trade Union Weak Trade Union / No TU


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Out come

After so many project, loan, agreement,meetings, re structure, formationreformation, TA & with all other activities

what is the result or out come?

The most important out come is thatpeople are not getting minimum electricitycausing serious damage in their daily life& countries Development.


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Result of reform

ORGANIZATIONALLack of coordination among the organizations

Increase of over head expenditure in everyorganization

Increase of corruptionCreating moral & social difference among the

workers & executives --Unfriendly workingenvironment.

Financial indiscipline.

Ultimately handicapped organization.


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Workers/ Employees Context

Weak Trade Union / No Trade Union

No job security.

Workers rights are being denied.

Workers are being compelled to performjobs for which he is not appointed for.

Number of workers is reducing

Existing Workers are over burden.Demoralized workers / Employees


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NATIONALGeneral 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 priceUltimately financially being looser

Generation is not increasing to meet the demandresulting 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.


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CURRENT DEVELOPMENT

No trade Union scope as there is no worker in

Electricity Generating Company-EGCBIntroducing contract out / lease out system forworkers as policy.

Could not organize any TU in DESCO /REB

Formation of TU is discouraged in DPDCPractically those who are taking initiative arebeing threatened to loose job officially.


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PRESENT SITUTIONA

o Demand of Power 5050 MWo Installed Generation Capacity 5200 MW

oActual Generation is 3200-3400 MW

o Short in Generation 2000-1800 MWo Transmission capacity (HT) 180% + of

maximum demand

o Most of the fertilizer factories are forced toshut down so that the natural gas can beused as fuel in the power stations.


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THANK YOUHAVE A GOOD DAY

bangladesh power sector reform-hossain-may09

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