The World Bank is going to prepare a strategy paper on power sector to help Bangladesh overcome problems in electricity generation. An expert team from the World Bank headquarters would arrive in Dhaka on March 25 for a 12day visit to initiate activities for preparing the document styled political economy of the power sector in Bangladesh. The paper will highlight all features including investment, existing electricity generation, transmission and distribution system, per capita power consumption, demand, necessary investment in the sector in future to make electricity available for all and its role in the national economy,.

Against the backdrop of worsening situation in the power sector, the Washington-based multilateral donor agency has decided to analyse the power sectors contribution to the economy in Bangladesh and draw up a strategy for ensuring electricity for all. The World Bank mission will have talks with the finance and energy ministries to prepare the strategy paper. Following the huge electricity consumption growth in Bangladesh’s emerging economy, the World Bank might take the initiative aiming at giving more financial support to generate power in the country.

The bank has not given any financial support to Bangladesh for generating electricity for many years.
However, our country does not even have a complete master-plan on power sector that discourages the investors to invest in this sector. But it is very imperative to attract the private sector investment in the power sector as the government alone cannot develop it for huge investment requirement.

According to a study by the Center for Policy Dialogue (CPD), the country’s economy faced a loss of Tk 130 billion for power outage during the fiscal 200506, which is about four per cent of the gross domestic product (GDP). It also said that the loss in 200405 was Tk 120 billion or 3.3 per cent of the total GDP. The country’s power plants currently generate only 2600MW to 2700MW of electricity against the demand for more than 4500MW.