DHAKA, March 19 (NNN-BSS) -- The World Bank (WB) is hopeful in mitigating Bangladesh's power shortage problem within two or three years as the bank's new assistance strategy focuses on long-term financing in private sector power generation.

"The current power deficiency is jeopardizing the future growth of the country. I am quite hopeful that the government will be able to overcome the problem in the next two or three years," said Ellen Goldstein, country director of the Bank.

Upon completion of the visit to a WB-assisted power plant styled Doreen Power Generations Ltd in Tangail, she said energy deficiency eats up two percent of GDP every year and added that and the country has now 2,000 mw power shortage in peak hours.

Putting high emphasis on the need for public-private partnership (PPP), the newly appointed WB chief said the model holds promise to overcome Bangladesh's power deficit by large scale power generation.

Increasing power generation through long-term investment, gas supply, the issue of coal policy and regional cooperation were discussed in the newly appointed WB chief's maiden media trip Thursday.

Managing director of Doreen Power Tahzeeb Alam, financial expert of the World Bank Zubair KM Sadeque were present during the visit.

The Doreen Power plant with a capacity of generating 22mw power, one of the successful venture of Investment Promotion and Financing Facility (IPFF) project of the World Bank, went into generation two months ahead of stipulated time.

Ellen Goldstein referred to the government in efforts to increase power generation saying as a supporting agency the WB can certainly be a part of the solution.

About the prospect of solar energy in the country, she said there is a tremendous scope of scaling up the renewable energy and replicate it to hard to reach areas including coastal
regions.

The WB country director noted with appreciation the success in installation of solar energy in different parts of the country and mentioned that the Bank is set to unveil its new country assistance strategy (2010-14) for augmenting power generation.

Updating gas sector master plan, low cost power generation study, master plan for power transmission and introduction extension of rural electrification project are among the salient features of the strategy, said Goldstein.

The strategy will have additional US$ 257million financing for the IPFF since in less than three years of operation, the IPFF has delivered seven fully operated power plants with a power generation capacity of 178 mw added to the national grid.

When BSS correspondent talked to a number of stakeholders of WB-supported solar energy programme of Infrastructure Development Company Ltd (IDCOL) and they echoed same voice for reducing cost of raw materials of solar home systems (SHSs).

The SHSs are now benefiting only middle-income people keeping the poor section darkness as 60 percent cost goes for raw material, they pointed out and pleaded for WB support to help produce those in Bangladesh to discourage raw material import from Japan and India.

By supporting US $ 321 million to Rural Electrification and Renewable Energy Development (RERED), the WB has contributed to connecting six lakh rural homed to the national electricity grids and provided 3.20 lakh remote households with Solar Home Systems (SHS). -- NNN-BSS