Power project execution flawsWB may take tough stance on future funding

Laggard project-execution performance in Bangladesh's power sector, which is blamed for the current crisis, may make the World Bank toughen its stance on funding at an upcoming review, officials have said.

The Bank has selected its financial-supported at least six energy-sector projects most of which are struggling for many years in implementation delays, they added.

The Washington-based lender will sit for a tripartite portfolio-review meeting on September 11-12 with the project authorities and the government's Economic Relations Division (ERD) in Dhaka, they said Thursday.

Meanwhile, the government will discuss the status of WB-assured eight pipeline projects at the tripartite meeting aiming to get confirmation of the funding.

"We will sit for a tripartite meeting on September 11-12in Dhaka with the WB and the project- implementing authorities. The WB has picked up the energy-and power-sector projects to review the implementation status," said a senior ERD official.

He said the meeting will mainly focus on removing hurdles on way to implementation of the energy-sector projects.

According to the WB, it will review the long-struggling Ghorasal unit-4 repowering project, rural electrification and renewable energy development II (RERED II) project, Bangladesh scaling-up renewable energy project, electricity distribution-modernisation programme, power- system reliability and efficiency-improvement project, and the project on enhancement and strengthening of power-transmission network in eastern region.

Many of those projects have been struggling for implementation delays although the WB confirmed its fund release against the implementation status, said an official of the Ministry of Finance (MoF).

He said some of the power-sector projects like the Ghorasal repowering project, RERED, power-system reliability-and efficiency-improvement project and electricity distribution- modernisation programme have been under implementation for many years.

"The WB has already extended the loan-activation deadline for some of those power-sector projects. But the responsible project office could not complete the project in time. It has already created discomfort to the WB," the MoF official added.

If the projects are not completed within the deadline, re-fixed by the WB on last occasion, the Washington-base lender could divert the funds to another country, he cautioned.

Meanwhile, the ERD will focus on the pipeline projects as funding for many of them is not confirmed yet by the World Bank, the ERD official said.

"We've tried to get at least two policy-support credits and budgetary support from the WB over the last few months, but the confirmation has yet to be furnished," he added.

The upcoming meeting will discuss pipeline projects like 2nd Recovery and Resilience Development Policy Credit (DPC), Bay terminal setting-up project at Chittagong port, Green, resilient and inclusive DPC, and Jamuna river economic corridor.

"On the first day, we will discuss the WB-funded eight power-and-energy-sector projects on September 11 and six other pipeline projects the next day," the ERD official said.

Meanwhile, the country has opted for electricity rationing through load-shedding amid power- production shortages due to dearth of primary fuels in the wake of global energy price rises.

The WB last year (2021) made a commitment on US$4.54 billion worth of foreign loans and grants for different projects in Bangladesh.