Low cost upsets energy sector

Soren Pind

Low energy price and pilferage by consumers are major problems for Bangladesh to become self-sufficient in energy, says Danish Minister for Development Cooperation Soren Pind.
The country should develop a mechanism to fix standard energy prices and make sure that none can use energy free of cost, he says.
The Danish minister visited Bangladesh recently with a trade delegation including high-profile officials from power and energy companies.
“No matter which party is governing the country, the situation will not improve until there exists a system that everyone is paying standard energy bills. Energy in this country is almost free. Many even do not pay for energy,” Pind says.
"If you do not introduce a system so all pay a standard price, the situation will not improve.”
He suggests Bangladesh should bolster energy exploration and diversify sources. "The country can go for wind, solar and other sustainable energy projects."
The minister assures Bangladesh of his government's support for technology transfer in renewable and clean energy sector under joint-venture investment.
Pind says he brought with him the representatives of 12 companies, and some of them have signed letters of intention with local companies to work together for setting up joint venture for renewable and sustainable power projects.
“Some of the companies that have visited with me are satisfied with the facilities the local companies have and they signed letters of intent for setting up renewable energy projects,” he says.
The companies that visited Bangladesh have expertise in generating power through bio fuel, in solar and wind energy, and they were on the lookout for local partners.
The minister says Bangladesh will continue its growth as it has abundant manpower with solid skill in readymade garment, shipbuilding and information technology sectors.
About the country's export potential in European markets, he says many foreign companies will invest in Bangladesh to tap export market in Europe using the country's competitiveness.
Europe, Japan and even China are struggling with labour force, whereas Bangladesh has 'tremendous' potential with affordable labour cost, Pind says.
“One million new people are joining the workforce every year in Bangladesh. This means that you have competitiveness. Many foreign companies including the Danish will be interested to invest in Bangladesh for getting the advantage of cheap labour,” he says.
The minister stressed setting up standard training centres to provide adequate and demand-oriented training to the country's workforce.
About IT sector, he says the Danish support will continue.
Pind sees a huge potential in shipbuilding industry, saying Denmark has provided software support to Bangladesh's shipbuilding industry.
“This technology transfer will enrich Bangladesh's shipbuilding industry.”
The minister says the Danish government's priority is to help develop Bangladesh's private sector and provide help for the overall value chain of farm sector in Chittagong Hill Tracts (CHT).
“Our priority is to help develop private sector as we have found that if the private sector grows, people will earn more, and if people can earn more, the government will generate more revenue,” Pind says.
The minister emphasised investing in the value chain of food production, saying that they have projects in Africa where they have found success by investing in the value chain process.
“We want to work for the development of CHT. We will expand our help, supporting the value chain. For instance, we will help develop juice industry instead of only helping fruit production,” he adds.
The minister suggests energy solution in phases with some immediate solutions so foreign investors do not stop coming to Bangladesh.
“Many foreign investors are ready to invest here in different sectors but the energy crisis bars them,” he says.
The minister's visit has also marked Denmark's priorities in human rights, democracy, private sector growth and climate change issues.

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