The implementation of the US$7.6 billion development programme for the power sector has become uncertain due to lack of financial support from the development partners.

The power ministry made several moves to mobilise funds from the development partners
during the last one year but it did not get any response from them, sources said.

The energy experts of the Power Cell (PC) worked out some short, medium and long-term
programmes for implementation by 2012. The programmes include setting up of new power plants and development of transmission and distribution systems.

Recently, the power ministry reviewed the programmes in a meeting and decided to approach the development partners again for funds to implement the programmes, sources said.

As per the decision of the PC, the ministry planned to implement the short-term programme with an estimated cost of $150 million. The mid-term programme has been planned to be implemented within the next three years with a total cost of $3.1 billion.
It decided to execute the long-term programme at a cost of $4.4 billion.

Under the short-term plan, a peaking power plant having a generation capacity of 115 megawatt (mw) has been planned to be constructed with an estimated cost of $38 million.
Besides, the entire distribution system under Chittagong zone has been decided to be corporatised with an estimated cost of $60 million.

The peaking power plant has been undertaken by the ministry to meet the peak-hour demand of electricity.

The ministry planned to spend $6.0 million for the system metering project and $6.0 million for the development of a central power generation maintenance unit. The mid-term programme includes 10 distribution and transmission projects and two reform projects.
Last December 3, the WB country chief Christine Wallich assured the power ministry of providing US$150 million for the development of the power sector.

The power sector has to enhance its daily generation capacity from the existing 3235mw to 5386mw by 2007 for meeting the increasing demands of all types of consumers.
The ADB has also recently pledged to provide $1.0 billion for power sector development.