The Asian Development Bank (ADB) on March 5 requested the power division to strengthen the Bangladesh Energy Regulatory Commission (BERC) in order to help accelerate the pace of development activities in the power sector with donors support. The Manila-based donor agency also suggested to recover a huge amount of outstanding bills of the state-owned Power Development Board (PDB) from different government entities and to pay the arrears to the independent power producers (IPPs) for purchasing electricity from the private companies.

An ADB delegation, headed by its Bangladesh Country Director Hua Du, placed the suggestion at a meeting with the Energy and Power Adviser, Tapan Chowdhury, at the secretariat. The main objective of the ADB delegation was to exert pressure on the government for complying with their conditions for getting donors financial support for the development of the country’s ailing power sector. The ADB team categorically hinted that if the government did not comply with those suggestions at the earliest, it would be difficult on the part of the bank to extend its support further. The Manila-based donor last year made a commitment to providing $465 million loan to the Bangladesh government for the power sector development that was awaiting the signing of a loan agreement. Under the development funds, two power generation projectsa 150megawatt (MW) capacity of Khulna power unit and 150MW capacity of Sirajganj power unit and nine power distribution projects would be implemented.

The government established the BERC on March 13, 2003 through a piece of legislation as per the suggestion of the donors to regulate the countrys energy sector. But it has so far failed to do work independently. However, Tapan Chowdhury, elaborating on the interim governments position on power sector reforms, requested the ADB delegation to expedite the process for extending their financial support for development projects in power sector, particularly those relating to electricity generation.