rural electrification in bangladesh
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Rural Electrification in Bangladesh. Sabihuddin Ahmed March 8, 2006 Energy Week at The World Bank. Origins of RE Program. Thana (county) Electrification Scheme Connected 459 Thana (county HQ) with 33 KV line Some called it Growth Center - PowerPoint PPT PresentationTRANSCRIPT
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Sabihuddin Ahmed
March 8, 2006
Energy Week at The World Bank
Rural Electrification in Bangladesh
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Origins of RE Program Thana (county) Electrification Scheme
Connected 459 Thana (county HQ) with 33 KV line
Some called it Growth Center
Number of development schemes surrounding Thana (county) headquarters
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Institutional Model Adopted Bangladesh adopted “Area Coverage RE
Program”
– United States model from 1930’s
– Recently in the Philippines
Formation of (PBS) Rural Electric Society (instead of the RE coop) in each area
13 separate contiguous areas selected
–13 PBSs established to implement program
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Financial Model: To Solve High Startup Cost REB obtained loan from GOB
– 2% interest
– 7 year grace period
– repayment in 30 years REB on-lends to PBS (Rural Electric Society)
– 3% interest
– 7 year grace period
– repayment in 30 years No other subsidy, other than preferential form of
loan
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Financial Model (2)
Areas for electrification
– required to meet minimum financial criteria set forth in lending terms
Minimum criteria set for each mile of line approved for construction
Tariff for each PBS calculated independently
PBSs penalized (higher tariff) for undue systems losses
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Political Dimensions Political interference in planning process and
how they were managed
–Nomination of non-political board of directors
–Only PBS-nominated board of directors involved in initial development of each PBS
–Board of Directors election held only after switching on electrical energy
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System Design Issues Engineering model of REA USA was
adopted
REB did not consider any low cost alternative for the program
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Growth of Program: Number of Connections – Year Wise
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Consumer Connections: Cumulative thru Dec ‘05 MIS Rpt.
Consumer Category
Cumulative Consumer Connection
Domestic 5,548,881
Commercial 713,607
Irrigation 165,964
Industry 110,236
Others 13,472
Total 6,552,160
Category-wise Consumer Connection
84%
11%3%
2%0%
Domestic
Comm.
Irrigation
Industry
Others
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Annual Power Consumption: FY 04-05 June MIS Rpt.
Consumer Category
Annual Power
Consumption (MWH)
Domestic 2,757,540
Commercial 361,379
Irrigation 594,615
Industry 2,730,118
Others 13,481
Total 6,457,136
Power Consumption (MWH)
43%
6%9%
42%
0%
Domestic
Comm.
Irrigation
Industry
Others
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Issues Related To Bill Collection
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Recommendation for Africa Establish independent institution
– similar to one adopted by REB Develop tariff
– Based on specific index of purchasing power in rural areas
Involve donor agencies to closely supervise–Selection of project areas–Recruitment of personnel–Training–Management of project areas
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Obstacles & ChallengesTo RE Program
Maintaining quality with rapid growth Inadequate power supply Poor “consumer mix” – impacts revenue Keep Program from being politicized Consultancy for both tech/management areas
still needed at appropriate levels given rapid growth and operational complexities