Slow projects dwarf power sector gains

The government has missed its target to finish several large power projects on time, while demand for power keeps spiralling.

It believes the country's power coverage would be hundred percent by 2021, as it has already provided power to 80 percent of people. However, load shedding has been hovering around 1,000 megawatts this May, which is in striking contrast to last year when load shedding was almost zero.

The country's power demand has reached a new benchmark of 10,000MW, while power generation had been highest 9,300 MW. In 2009, the country's demand was around 5,000MW and supply was less than 4,000MW.

The government succeeded by implementing fast track rental power and some other large power projects. Besides, the government is importing 500MW of power from India.

But that was in the past. At present, the implementation of several large power projects has not been satisfactory.

In his budget speech yesterday, the finance minister said 33 power plants having a capacity of more than 11,000MW are under construction. The government plans to install capacity of another 11,000MW in the coming years.

Among the large plants that are being implemented are the Rampal, Matarbari and Payra coal power projects — each having a 1,200 plus megawatt capacity.

If these had been implemented as per schedule, the Rampal and Matarbari projects would have already made significant progress. But construction of the Rampal project has only just started, while the contract for the Matarbari project has not been awarded yet. The Payra project was only floated last year.

Another large power project is the $13 billion worth Rooppur nuclear power project that is now ready for implementation.

The 33 power projects mentioned by the finance minister include some large coal based private power projects, which have not made any significant progress in the last five years.

Some other medium to large power projects that are lagging behind schedule are -- Bibiyana 3 Marubeni, Bibiyana South Isolux, Bhorashal third unit GE-CMC, Sirajganj CMC, Sirajganj Sepco, Anwara United, Patiya, Julda, and Bhola Shapoorji.

Some of them have zero progress although they were either set to be completed by this year or the next year.

At this rate of implementation, the government is likely to miss the 2021 target of power for all.