Hike to be effective in two phases — 1st in Dec, 2nd in Feb

Dhaka, Dec 22 (UNB) – Bangladesh Energy Regulatory Commission (BERC) on Thursday raised the retail electricity tariff by 20.28 percent on average, which will come into effect in two phases.
 
In the first phase, the retail tariff was raised by 13-14 percent with effect from December 1 and it was increased by 7-8 percent in the second phase with effect from February 1, 2012.

Along with the tariff hike, the demand and service charges were also raised for the consumers at different levels.
 
The retail power tariff was last raised in February this year by 5 percent on an interim basis. But, the bulk tariff was raised twice, by about 13 percent in February this year, and again by 33 percent in December.
 
After the latest rise, the average retail tariff will go up to Tk 5.02 from the existing average rate of Tk 4.16 per unit (each kilowatt hour).
 
This time, the power tariff was increased for all kinds of consumers, including those in the agriculture, religious institutions and at the grassroots level.
 
Previously, these three groups were always left out from the increase tariff.  But this time, the retail tariff was increased by 5 percent.
 
Announcing the decision, BERC Chairman Syed Yusuf Hossain said this time the tariff of the three consumers groups was increased in order to give a relief to the government from its ‘overburdened’ subsidy.
 
After the 5 percent tariff rise on the groups, the national exchequer will be able to save about Tk 210 crore, he said.

PC for punishment to errant agency

FHM Humayan Kabir

The government has to spend nearly double the fund in actual cost for installing a 240-megawatt power station due to delay in project implementation by a government power generation company, officials said Friday.

Power Division officials said the cost for the 240mw capacity Asian Development Bank-supported power station at Siddhirganj, close to Dhaka city, has doubled to Tk 12.46 billion from its original Tk 6.85 billion estimate.

The state-owned Electricity Generation Company of Bangladesh (EGCB) has sought Tk 1.13 billion in extra funds from the Planning Commission for completing its installation, although it received Tk 5.60 billion more funds in 2007 in additional to the original project cost.

"It is very unfortunate that a public company cannot construct a power plant in seven years. Moreover, it has sought two years' more time demanding additional funds for completing the scheme," a senior Power Division official said.

 Rajuk, Housing Ministry jointly to build 4032 flats, 16-storied 84 apartment buildings, for middle income group

Aggreko’s 145 MW costly rental plant gets approval for gas conversion

Dhaka, Nov 13 - Cabinet purchase Committee today approved 10 proposals of different ministries, including 16-storied 48 apartment buildings at Uttara Sector-18 for low and middle income groups people. The approval came at a meeting with Finance Minister AMA Muhith in the chair.

The 48 apartment buildings will have a total of 4032 flats. Each building will have 84 flats. Size of each flat will be 1250 square feet.

Housing and Public Works Ministry and Rajdhani Unnayan Kartipakkhaya (Rajuk) will jointly implement the project at a cost of Tk 1706.96 crore. Each will build 24 buildings.

The project will contain internal water, power and gas supply, sewerage, fire-fighting and other systems.

Ena Dongha Construction Firm and BFL-HCL JV won the construction contract of the Rajuk’s 24 buildings at a cost of Tk 844.60 crore while the same company obtained the contract of Housing and Public Works Ministry’s 24 buildings at a cost of Tk 862.36 crore.

Housing and Public Works Ministry and the Rajuk separately invited international tender for the work. However, Housing and Public Works Ministry placed the proposal to the Cabinet body for approval.

Fiscal management to face challenges

FHM Humayan Kabir

Prospect of receiving the World Bank's US$1.0 billion budgetary support has become uncertain as the lender is unwilling to finalise the assured loan before completion of the ongoing investigation into alleged graft in the Padma bridge bidding process, officials said Saturday.

The World Bank high officials in Washington made their views known to a Bangladesh delegation on the sideline of the World Bank-International Monetary Fund (IMF) annual meeting last month, a top official said.

Bangladesh delegation, led by the Finance Minister AMA Muhith, sought support from a World Bank (WB) Vice President and a Director to facilitate its promised $1.0 billion worth of budgetary support.

Since the government has come under fiscal pressure

due to soaring subsidies on power and energy sector, the team sought the $1.0 billion budgetary support from the Bank, the official who was also a Bangladesh delegation member, told the FE.

Since WB and IMF are unlikely to make available the budgetary support loan and the extended credit facility (ECF) respectively soon, it is most likely that both fiscal management and the balance of payment (BoP) would come under stress and strain, according to analysts.