The state-owned Power Development Board (BPDB) will prepare a position paper on the financial and economic condition of the organisation within a week.

“The BPDB has been asked to prepare a state of its financial and economic conditions within the next 7 days...The instruction came in line with the directive of the newly appointed adviser of the interim government,” a top official of the organisation told UNB.

Dr M Fouzul Kabir Khan, a former secretary of the Power Division who served the government from 2007 to 2009, has been appointed adviser of the Ministry of Power, Energy and Mineral Resources, the Ministry of Road Transport and Bridges and the Ministry of Railway.

Officials said the new directive came from the maiden meeting of the adviser with the top officials of the Power, Energy and Mineral Resources Ministry and their subordinate bodies on Sunday.

Following the meeting, the new adviser said he would take decisions after analysing the position paper.

The country’s power and energy sector has been passing a critical juncture where the BPDB has been incurring a loss of over Tk 45,000 crore annually in buying electricity at higher cost while its pending outstanding bills with private companies is Tk 45,000 crore.

It also has an annual burden of a whopping Tk 37,093 crore in capacity charge payments under the contracts with private power producers.

Energy experts, economists and officials of BPDB are worried over the current financial condition of the BPDB and put forward their suggestions to bring some reforms in the state-owned entities.

Taking into cognizance the new adviser already took two major decisions—crapping of the Speedy Supply of Power and Energy (Special) Act 2010 and also the amendments to the BERC Act 2003.

Many energy experts and economists identified Speedy Supply of Power and Energy (Special) Act 2010 as the main source of corruption for which the power and energy sector has been over burdened with huge financial losses.

They also blamed the fallen Awami League government for looting the state-wealth through using the Speedy Supply of Power and Energy (Special) Act 2010 under which the government can award any contract or project to any company without any tender.

Centre for Policy Dialogue’s research director and economist Dr Khondaker Golam Moazzem said the interim government should first focus on bringing a major reform in the country’s power and energy sector.

“As part of the reform, it has to scrap first the Speedy Supply of Power and Energy Special Act 2010 to remove all discrimination and ensure transparency and competition in the procurement process,” Dr Moazzem said.

He said the next step should be renegotiation with the private power producers to re-fix their tariffs, especially with those companies where the government has long term power purchase agreements and has passed a critical minimum period.

Energy experts, stakeholders urge the interim government to restore BERC's authority over power and energy pricing by scrapping a recent amendment to the BERC Act 2003.