Body to map ways to raise $5-10b

The government yesterday formed a committee to sketch a rapid strategic plan to raise $5-10 billions which would help the country finance 7,000 MW electricity generation in next five years.
The committee will frame the plan on how this fund can be raised, which authority would take care of it or under which law should it operate and address many other issues related to this first of its kind fund.
Ziaul Hasan Siddique, deputy governor of Bangladesh Bank, will head the committee that was formed at a meeting chaired by State Minister for Power Enamul Haque. Energy Adviser to Prime Minister Dr Towfiq-e-Elahi Chowdhury, Bir Bikram was also present.
Representatives from the finance ministry, energy ministry, Power Division, Petrobangla, Power Development Board, Infrastructure Development Company Limited, national and international banks and insurance companies are included in the committee.
"The committee will be pathfinder of the government to raise the fund to generate 7,000 mw of electricity in next five years," State Minister for Power Enamul Haque told journalists after the meeting.
According to Power Secretary AK Azad, this fund will drastically reduce dependency on donors for power projects. "Presently, we look forward to the donors for a feasibility study for a power project. That would no longer be needed," said Azad.
Both public and private power projects can be financed from this fund as loan.
It has been primarily estimated that the power sector would need between 5 to 10 billion dollars to generate 7,000 mw of power in next five years. But it would be up to the committee to decide the size of the fund.
The participants at the meeting were upbeat about creating this fund. They said it could be developed through participation of local and non-resident Bangladeshis through floating shares and bonds.
Talking to The Daily Star, Dhaka Stock Exchange Chairman Rakibur Rahman said DSE is ready to raise Tk 20,000 crore for power sector development.
"We need some specific proposal from the government," he said.
Officials attending the meeting say a circular mentioning the names of the committee members will be issued in a week. The committee will recommend on how the energy sector development fund would be raised and what should be the administrative and management structure of the fund.
Once the committee submits its report in consultation with the finance ministry, it will be scrutinised by the law and energy ministries and then sent to the cabinet committee on economic affairs and the cabinet for necessary approval.
The move came at a time when the government's one of the election pledges to mitigate acute electricity crisis has been criticised by experts.
In Bangladesh, power crisis has become a political issue since last few years as no political government could meet required electricity demand.
The power ministry will sit with bankers today again to discuss the financing issue, sources say.