Share Divestment
ADB asks Reb to inform about latest position
UNB, Dhaka
Asian Development Bank (ADB) has asked the Rural Electrification Board (Reb) to let it know about the latest position on the divestment of its shares in the Rural Power Company Limited (RPCL) to local level Pally Biddyut Samities (PBSs).A tussle has been going on for the last few weeks between the Reb and the PBSs over the control of the RPCL, a power company now generating 140-MW electricity for the national grid. RPCL was set up in 1994 with financial assistance from ADB. At the time of the inception of RPCL, 51percent equity of the company was held by Reb while 49 per cent was held by five PBSs. But there was a condition in the ADB loan agreement that the Reb's shares in the RPCL would have to be divested to the PBSs by March 2005. Earlier, 33 per cent shares of Reb in the RPCL were gradually divested to the PBSs and the remaining 18 per cent shares were finally sold to Dhaka PBS-1 and Narshingdi PBS-1 at a board meeting on April 18. These two PBSs owned the lion's shares of RPCL and most of the RPCL directors came from them. But this decision has irritated the Reb, leading to a counter action against the PBSs. Reb has removed eight RPCL directors who represented the PBSs. Besides, Reb has also dissolved the elected Boards of Directors of the Dhaka PBS-1 and Narsingdi PBS-1. Amidst such brawls, official sources said, ADB has sent a letter to Reb on May 5 to send a status report on the progress of divesting the shares of Reb in RPCL.
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