Power sector ranked top in money disbursement, project works

The Power sector ranked the top position among all the ministries, both in terms of disbursing money and implementing its doable pipeline projects in 2017. Though a number of challenges threatened to kick-off the works of Matarbari( 1200 MW ) and Rampal (1320MW) coal fired projects in Sundarbans , but there have been some visible progresses.
The country also signed it's biggest power project deal in 2017 with Siemens AG, a German company, to build a $2.8 billion LNG-based power plant based on Liquefied Natural Gas (LNG) by 2021 at Dhankhali in Patuakhali district.
In the wake of the Holy Artisan attacks in 2016, JICA International was in dilemma to visit Bangladesh, but finally the government was successful to keep up its promise by showing "Zero tolerance" against any terrorism impeding the works of Matarbari (1200 MW) power project last year. The ruling party was able to assure and convince the foreign investors to invest in the country's development sector."Following the agreement signing with Sumitomo for constructing the Matarbari power project, we have signed the country's largest power project with Siemens, however, we signed EPC contract with a Chinese company and a Indian company to implement the 1320 MW Payra power project and Rampal power projects respectively in 2017. These are mega projects, however, we will also implement the much awaited ever green power project taken in 2017, the Sharishabari 3 MW Solar grid power project," Power Division Secretary Dr. Ahmed Kaikaus told the Daily Observer on Monday.
According to him power division successfully completed the work of Shiddhirganj 360 MW project and engaged a EPC contractor for a 450 MW Bibiyana-3 power project.
"We will add 1500 to 2000MW of electricity into the national grid by June 2018, however, we have added about 1350 MW of electricity in 2017 and stepped in average production of 16000 plus MW of electricity per day," Kaikaus said.
Commenting on issues about the power sector in 2017, Professor Samsul Alam said three crucial issues dominated the sector in 2017 (a) price hike issue (b) Rampal power project and (c) planning for importing LNG to produce power.
He said although the government said that the power price hikes were 'negligible' but poor to middle class people are facing its repercussion that we discussed. The government has taken up a move to implement Rampal power project, however, people of that area would be the worst victims of the controversial project, he said.  
"The people will experience another shock in 2018 when LNG will be used in electricity generation, the price of power would jump three to five times in the coming days, however, government will give subsidy here but the main challenge would be to maintain stability in this sector as all elements will be imported from abroad in this pre-election year," he added.
According to the Power division, the Rural Electrification Board (REB) set to provide some 3.5 Lakh new power connections every month with a view to fulfilling government's goal to ensure electricity for all by 2019.
"At present we can provide electricity connection by seven days to household consumers while it takes 4 weeks in case of industrial connection," State Minister for Power, Energy and Mineral Resources said adding that at least 50 percent consumers are now receiving the connections as per the government's schedule.
According to the State Minister, to ensure smooth transmission and distribution of electricity across the country, the government has already undertaken a Tk 1200 crore distribution project in Chittagong, US$1.25 billion distribution project in Dhaka. The Power Grid Company of Bangladesh also undertook a $1.5billion transmission project for smooth functioning of grid line connectivity.
For implementing all these projects government needs to invest around $30 billion for generating 60,000MW of electricity a day by 2041, according to the State Minister for Power and Energy Nasrul Hamid. He said the current volume of investment in different schemes in the power sector is $21 billion.
At present, the country's total power generation capacity stands at around 16,046mw, but the power division can generate maximum 91, 011mw of electricity due to lack of adequate distribution and transmission lines.
Over half a dozen of local and international companies have been expressing their interests to set up LNG based power plants in the country having combined capacity to generate 13,083MW of electricity under unsolicited deals, official confirmed.
Professor Samsul Alam said , in order to mobilize the money from local and foreign markets , government will face serious problems as there are no commitment for funds to implement all these mega projects in the future and if the government somehow manages it would come at the cost of a huge 'energy price shock  in the future".