1. POWER SECTOR REFORM -BANGLADESH PRESENTED BY : A.S.M. HAFIZUL HOSSAIN WORKING PRESIDENT CEC, PGCBSKU, BNANGLADESH. asmhafiz@gmail.com

2. BANGLADESH General information Population 146.7 million Area 147570 Sq. Km. Density of Population 904/ sq. km. Active lobour force 53.3% with 38% women Un employment rate 3.3% Per capita GDP US $ 388 Literacy Rate 56% Agriculture workers 62.3% Idustrial Workers 7.6%

3. Formation of East Pakistan Water & Power Development Authority- EPWAPDA in 1959 WATER WING River Controll Water management SERVICE WING Dredging & Mechanical Equipment POWER WING Power -Generation -Transmission -Distribution Gen. Capacity -88 MW

4. 1971 Liberation of BANGLADESH  1972 Bifurcation of EP WAPDA  Creation of Bangladesh Power Dev. Board –BPDB a statutory body under Ministry.  Integrated policy to develop electricity sector to provide electricity to all citizen as it is the Constitutional provision.  Electricity declared as reserved Public Sector.

5. Reform Process Started 1978 Creation of Bangladesh Rural Electrification Board – REB. -with a view to provide electricity to the rural population. 1985 Liberalization in Govt. policy - Electricity excluded from Reserved sector - Creation scope for private participation

6. 1991 Distribution system of Dhaka Metropolitan City & surrounding urban areas were separated from BPDB & a new Public Sector Utility “Dhaka Electric Supply Authority-DESA” was created. Later gradually the surrounding areas were handed over to REB.

7. IMPACT:  Increase of Over Head Expenditure  Non Coordination among the entities  Corruption Increased  Increase tendency of violation of rules  Financial indiscipline.  Ultimately handicapped organization.  Dismantled in 2008 – Taking the privilege of Emergency

8. 1995 Private Participation Legalized under a new “ENERGY POLICY ” * Vertical separation of existing utility in functional line i.e. Generation, Transmission & Distribution. * Private participation introduced * Commercialization

9. 1996 Creation of Power Grid Company of Bangladesh Ltd.–PGCB Ltd. A separate Electricity Transmission Utility (HT Lines) under Public Sector. Unbundling from BPDB & Registered in Stock market. So far 20% share off loaded

10. IMPACT  Top Heavy Style of Management  Highly Increase in Over Head Expenditure.  Job is not secured  Irrational Salary structure among the workers & Executives.  Number of Worker / Staff is less than executives.  Existing workers right & facilities (as per labor law) –denied.

11. Continuation  Initially Management had no intention to allow TU – Workers managed to organize TU  Provision for Engaging New workers on Daily payment basis as part of policy. (Of course union became successful to change the attitude of the management to some extent).  Future service benefit like pension closed.

12. 2001 Corporatization of BPDB owned Ashuganj Power Station as a public limited Company- APSCL. 2003 Corporatization of Distribution system of 19 administrative District of Western area named " West Zone Power Distribution Company Ltd.”.

13. NEW EXPERIEMENT 2008 “Dhaka Electric Supply Authority-DESA” Converted into new Company “Dhaka Power Distribution Company –DPDC Ltd resulting job loss of about 700 workers. PDB DESA DPDC WHAT NEXT ??.

14. RURAL ELECTRIFICA TION BOARD –REB 1978 NORTH WEST POWER GEN. CO DHAKA ELEC. SUPPLUY AUTHORITY – DESA 1991 NORTH ZONE POWER DIST. CO PRIVATE PARTICIPATIN – IPP 1995 POWER GRID CO. OF BANGLADESH LTD –PGCB 1996 ? ?? ASHUGANJ POWER STN CO. LTD -APSCL 2001 BANGLADESH POWER DEV. BOARD -BPDB DHAKA ELEC, SUPPLY CO- DESCO WEST ZONE POWER DIST CO. -WZPDPCO 2003 ELECTRICITY GENERATING CO. LTD -EGCB DHAKA POWER DIST CO. LTD --- DPDC 2008 SOUTH ZONE POWER DIST CO FUNCTIONING UNDER PROCESS ? ? PBS RPCL

15. MPEMR (Ministry) APSCL EGCB BPDB RPCL GENERATION IPPs TRANSMISSION PGCB SINGLE BYER DISTRIBUTION DESCO WZPDCo BPDB DPDC BPDB PBs REB REGULETARY COMMISSION CONSUMERS GENERATION TRANSMISSION DISTRIBUTION STATU ATHO. POWER FLOW INCOME FLOW IPP TENDERSPOLICY ISSU LICENCEES SET TARRIFS & CODES DESA

16. LET US TAKE THE CASE OF PGCB FOR STUDY. BPDBPGCB  One CE managed total Transmission System.  7 GM managing the system – some more posts are going to be created.  Pyramid style Management.  Top Heavy Management.  Staff Officer ratio was +7;1  863 workers working against 1069 officers –Ratio is 1:1.24  Job was secured.  No job Security  Standard Service rule & Labor law was followed properly.  No standard service code & labor law violated frequently.  Regular appointment against sanctioned set up.  Tendency to engage workers on daily payment basis.

17. continuation  Salary structure was rational.  Salary structure is not rational.  Retirement in due time -at the age of 57 for all.  Service extension only for top officials after retirement is very common (at the age of 60)  Satisfactory retirement benefit.  Retirement benefit is not so satisfactory  Risk benefit was available  Risk benefit is absent  Attitude of the management was sober – Friendly Working Environment.  Attitude of the management is hostile - Unfriendly Working Environment.  Strong Trade Union  Weak Trade Union / No TU

18. Out come After so many project, loan, agreement, meetings, re structure, formation – reformation, TA & with all other activities what is the result or out come? The most important out come is that people are not getting minimum electricity causing serious damage in their daily life & countries Development.

19. Result of reform ORGANIZATIONAL  Lack of coordination among the organizations  Increase of over head expenditure in every organization  Increase of corruption  Creating moral & social difference among the workers & executives --Unfriendly working environment.  Financial indiscipline.  Ultimately handicapped organization.

20. Workers/ Employees Context  Weak Trade Union / No Trade Union  No job security.  Workers rights are being denied.  Workers are being compelled to perform jobs for which he is not appointed for.  Number of workers is reducing  Existing Workers are over burden.  Demoralized workers / Employees

21. NATIONAL  General people are not getting adequate & quality electricity.  Different tariff in different area  Tariff is increasing  Electricity is going out of reach of poor people  National organization BPDB purchasing electricity in higher price from IPPs & selling in lower price – Ultimately financially being looser  Generation is not increasing to meet the demand – resulting adverse effect to other industries.  Increasing un-employment & social unrest  Self employed group are being job less & financilly looser.  Service is commercial oriented not welfare oriented.

22. CURRENT DEVELOPMENT  No trade Union scope as there is no worker in Electricity Generating Company-EGCB – Introducing contract out / lease out system for workers as policy.  Could not organize any TU in DESCO /REB  Formation of TU is discouraged in DPDC – Practically those who are taking initiative are being threatened to loose job officially.

23. PRESENT SITUTIONA oDemand of Power 5050 MW oInstalled Generation Capacity 5200 MW oActual Generation is 3200-3400 MW oShort in Generation 2000-1800 MW oTransmission capacity (HT) 180% + of maximum demand oMost of the fertilizer factories are forced to shut down so that the natural gas can be used as fuel in the power stations.

24. THANK YOU HAVE A GOOD DAY