In the public sector, power generation plants have been set up one after another. The total

power generation capacity of public sector enterprises is 4,000 megawatts now. Power generation from private sector plants is estimated to be 1,500 megawatts.

Even then, a devastating shortage of power is prevailing in Bangladesh. Irrigation has been adversely affected because of interrupted power supply and low voltage. The students have been affected for want of power in the evenings. The industries which consume public sector power remain stopped for hours together owing to load shedding and low voltage.

Nowadays, the expectation from the administration is very high. People consider the administration as being responsible for any problem they confront in their daily life. As such, in Bangladesh, the people consider that the government is responsible for the inadequate power supply to industry, agriculture land, educational institutes, health care centres, commercial enterprises, and house-hold connections.

In our country, the power generation project under public administration used to follow bureaucratic procedures. At present it needs three to five years to set up a power plant. It is not possible to reduce the time if the existing bureaucratic procedure is followed.

A few years back, 105 steps were being followed to import or export goods through Chittagong port. When the garment factory owners association exerted pressure on the authorities concerned, the procedure was revised and half of the steps were removed.

We have been observing with concern that demand for power is ever increasing in Bangladesh, but the administration cannot keep pace with the increasing demand. The administration has to review its existing long and cumbersome procedure for setting up power plants. This has to be simplified.

The simplification of existing procedures will reduce the time in project selection, financing and implementation. Reduction of time significantly reduces the cost of the projects, because the parties involved in a power project evaluate time involvement of their manpower (expert, skilled, and non-skilled), and the changing price of machinery.

When project selection and implementation takes a long time, all these factors result in higher investment. A high powered one-member committee headed by a secretary may be formed by the administration to recommend procedural simplification, and authorize BPDB, Desa, Desco, and Rural Electrification Board to set up power plants according to their respective needs, without individual approval of the ministry or the cabinet.

Even if positive steps are taken to implement new power generation, transmission, and distribution facilities under public administration, the private sector should be given some responsibility to fill up a portion of the increasing power demand.

The administration has to purchase power from the private sector power producers, and has to market it through its enterprises like BPDB, Desa, Desco, and Polli Biddut Samities. Here also the existing procedure is to be simplified.

At present, when a private entrepreneur decides to generate power to sell it to a public sector enterprise, say, to a Polli Biddut Samity, he has to submit a technical and financial proposal to the Palli Biddut Samity.

The Samity evaluates the proposal, following its hierarchy of technical officials, and gets approval from the management committee. The accepted proposal is forwarded to the Rural Electrification Board (a public sector enterprise).

The bureaucrats of the board examine the proposal at different levels. When every step is completed, the proposal is forwarded to the Power Cell (a unit under Power Division of the Ministry).

The technical and financial bureaucrats at different levels of the cell evaluate the proposal again and again and, if they agree, recommend it to the Power Division. Here also, the bureaucrats and political head of the division, when satisfied, recommend it for consideration of the purchase committee, and if they agree they send it for approval to the Prime Minister's Office.

Again, evaluation is repeated and submitted to the prime minister. During the above-mentioned stages and steps if anyone disagrees the proposal will be shelved. When the prime minister approves a proposal, the file will move through the above steps and go down to the Palli Biddut Samity. An agreement is signed between the private entrepreneur and the Palli Biddut Samity.

It is generally understood that in most of the stages and steps, though of course not all, speed-money, tadbir (personal persuasion), or political influence is required to move the proposal.

Owing to the above mentioned time-consuming and cumbersome procedure, a good number of bona-fide private sector entrepreneurs do not show interest in setting up power generation plants to sell power to the public sector power marketing enterprises like, BPDB, Desa, Desco, and Polli Biddut Samities.

To simplify the procedure, the administration may authorize the public sector power marketing enterprises to purchase power from private power plants where they require power. But to maintain uniformity, the administration may fix the purchase price of power per unit, make a simple policy for power purchase, and publish a gazette notification accordingly.

The administration can review the changed factors of power generation from time to time, and re-fix the maximum power purchase price from private power plants. On the basis of policy and fixed prices, the public sector power marketing enterprise will purchase power directly from private producers and pay the bills.

The administration can audit the deals from time to time to maintain discipline and encourage private contribution to reduce power scarcity.

The investment requirement for small power plants, having capacity of 10 to 100 megawatts, in the private sector is 30% to 40% less then that of a public sector plant.

It is financially very profitable where natural fuel gas is available. When the public sector purchases power from private plants, following easy procedures, a lot of private entrepreneurs will come forward.

Small power plants in the private sector need very little time to implement, about one year. We can expect 400 megawatt to 500 megawatt power within one year if the government purchases power following easy procedures.

It is high time that the public sector and private sector work shoulder to shoulder for national development.

Md Ashraf Hossain is Senior Manager, RM Group of Industries.