Govt may bring energy sector under public-private partnership
The budget may include plans to expand partnership initiatives, boost private investment in power generation and renewable energy and strengthen the security framework.
The government is likely to place greater emphasis on public-private partnerships in the energy sector and adopt more investment-friendly policies to encourage private sector participation in addressing challenges, according to budget proposals expected to be unveiled today (11 June).
Finance Minister Amir Khosru Mahmud Chowdhury is scheduled to present the first budget of the BNP-led government in parliament, outlining a range of measures to tackle persistent energy and power shortages.
The budget may include plans to expand partnership initiatives, boost private investment in power generation and renewable energy and strengthen the security framework.
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Speaking to The Business Standard, David Hasanat, president of Bangladesh Independent Power Producers Association, said private investors would be willing to invest in the power and energy sectors if the government introduced a genuinely investment-friendly policy environment.
The Yunus government floated tenders for solar power projects, but those efforts did not yield results. The current government has revised the policy and issued new tenders, but major investors are unlikely to come under the existing framework, he said.
"We want to invest, but nothing comes free," Hasanat said.
The budget is expected to set a target of raising power generation capacity to 35,000 megawatts by 2030 and expanding transmission lines to 25,000 circuit kilometres.
Regarding this, Hasanat noted that gas shortages currently prevent the government from generating nearly 8,000MW of electricity despite having the installed capacity.
He said expanding solar power generation would require policies that are more attractive to private investors.
The finance minister may also announce measures to identify corruption in the power sector, review capacity charge payments and power purchase agreements, modernise transmission and distribution networks, develop smart grids, promote domestic manufacturing of renewable energy equipment, and build strategic fuel reserves to enhance long-term energy security.
