DHAKA: The World Bank has unveiled a new program to reduce 2.5 percent system loss in the electricity sector.
The newly elected government has taken the initiative to curb system loss in the power sector. In the fiscal year of 2012-13 and 2011-12, the rates of the loss were 16.82 percent and 15.82 percent respectively.

The World Bank has assured financial assistance of Tk 4,626 crore in two programs of “Up-grading of Rural Distribution System” and “Enhancement of Capacity of Grid Sub Station and Transmission Line (Fase-1)” to reduce 2.5 percent system loss.

The operational responsibility of the project was assigned to Rural Electrification Board of Bangladesh in January and the project will continue till the end of 2019.

The project will cost around Tk 5011-crore, of which one fourth will be provided by the government and the rest will be funded by the World Bank.

A committee was formed on January 20 this fiscal year. Hedayetullah-Al-Mamun from Planning Commission (Industries and Energy Division) chaired the meeting.

He stressed on the importance of private and public sectors working together for the development of the sector.
He also spoke about production, distribution and pricing of electricity. The electricity board, he said, should look into all aspects.

The main objectives of the project:

A prime objective is to establish new power distribution network and increase the capacity of power to 1840-Mega Volt. It will fulfill the demand of 37 Rural Electricity Associations in Dhaka, Chittagong and Sylhet.

The Chairman of Rural Electrification Board Brigadier General Moin Uddin told banglanews that "around 9.7-million recipients are benefitting from our service and another 2.5-million people will get electricity facility through new projects."

He added that the increasing number of electricity users as well as the long distance of supply lines cause low voltage and system loss in some areas of the country.

According to him, the lack of new equipments is also a cause of electricity crises. The projects will help people to overcome load shedding.

However, around 90 percent of the consumers are using the power for domestic or agricultural usage. The rest are industrial consumers.

The project “Enhancement of Capacity of Grid Sub Station and Transmission Line (Fase-1)” will help manage the crises.

Total cost of the project is pegged at Tk 1344 crore with the World Bank providing the lion`s share.
The rest of the money will be arranged by local government and Grid Company of Bangladesh Limited. The duration of the project is from July 2014 to December 2017.

BDST: 1850 HRS, FEB 08, 2014