INTRODUCTION Corruption is a theme of interest and concern in academic sectors, in the multimedia, among people of various professions, inside the civil service, among people of legislative house, politicians, authorities officials, people of the organization and monetary communities, college students, foreign shareholders, aid organizations and non-governmental organizations. Quite simply, the term problem is certainly not new to Bangladesh. A general impression conveyed by the media and by popular discourse is that amongst ordinary people in Bangladesh, problem is looked at quite obviously as , a way of life’.
A recent survey completed by the Bangladesh Unnayan Parishad reinforces that impression: the survey identified, among different significant data, that 95 per cent of respondents presumed that the police were one of the most corrupt department in the terrain, followed very closely by the customs, the division of bar and taxation, the paperwork, and the judiciary. A solid 62 per cent of respondents assumed that the major responsibility to get corruption in Bangladesh put in the hands of government officials. Corruption can be not recognizable as a sole, separate, impartial entity which may be isolated and destroyed.
Problem is a complicated set of operations involving human behavior and many other variables, some of which are hard to recognize or perhaps measure. Though corruption manifests itself like a force itself and often generates its own momentum, it is connected to many other elements, and it is by understanding these factors that individuals can aspire to understand problem. What is data corruption? There are several symbolism of the phrase corruption nevertheless we make use of the term, we usually refer to a specific sort of exchange, activity or habit.
For instance, file corruption error could suggest a process of physical rot or deterioration, the loss of innocence, a state of ethical impurity or moral degeneration, perversion in taste or language, plus the wrongful, at fault or willfully corrupt act of a public official inside the discharge of his or her community duties. Corruption is the mistreatment of vested power intended for private gain. It hurts everybody whose existence, livelihood or perhaps happiness depends on the integrity of folks in a position of authority. File corruption error (philosophical concept), often identifies spiritual or moral impurity, or deviation from a perfect.
Corruption is not just an economic exchange, generated by a monetary or perhaps , economic’ motive. None is file corruption error an exclusively political activity, motivated by a desire to obtain or maintain political electricity. The process of data corruption is more than economic or perhaps political , it is a interpersonal process too, existing side-by-side with, and frequently complementing financial and personal activity. Historic Background: Power is the key way to obtain productivity and an effective breakthrough discovery to the modernization of the world society.
Electricity was initially installed in Dhaka later, in 1901, and in 1948, the Electricity Directorate was established in East Pakistan. In that period, the best plant size was just 10 mw Steam Turbine in Siddhirganj along with other plants in Chittagong and Khulna. Box one particular: Historical Backdrop of The Electric power Sector 1901: Electricity was initially installed in Ahsan Manjil, Dhaka Town (Generation: 21 MW by Public, Distribution: 17 cities by non-public companies) 1948: Electricity Directorate (ED) late 1950s: Water and Power Creation Authority (WAPDA) 1960: EPWAPDA statuary org. 972: Bangladesh Water Advancement Board and Bangladesh Power Development Plank 1978: Countryside Electrification Plank 1991: Dhaka Electricity Source Authority mil novecentos e noventa e seis: Electricity Technology Company of Bangladesh and Dhaka Electric power Supply Firm 2002: Ashuganj Power Supply Organization Ltd. the year 2003: West Sector Power Syndication Company Ltd. 2005: North West Sector Power Distribution Company Ltd Source: http://www. bpdb. gov. bd The development of the Kaptai hydro-electric project with an installed potential of forty five MW and commissioning of Dhaka-Chittagong thirty-two KV indication line in 1962, was obviously a milestone inside the history of electricity development with this country. Every year the demand is usually increasing with the rate of 10 ” 12 percent or 800-1000 mw as well as the government is additionally commitment in order to meet the MDG (Millennium Development Goal) regarding the access to electrical energy for all by 2020, the country’s electric power generation has to be increased simply by at least 8 % each year. Besides, to ensure strength security, there should be an layout of 16″22 percent capacity to be set aside in both these styles public and private sectors through quality investment3.
Since simply 12 percent of the households in the cheapest 20 percent in the income distribution have access to electricity, the need for better access to cost-effective and trustworthy electricity to the majority of those of Bangladesh by 2020. However , the yearly regarding the generation verses the need for new connections provides the invert scenario. Consequently , the determination of consumer tariffs as well as the reliability of power are crucial issues regarding the plan formulation, while energy rates should be depending on production costs and productivity, and financial aid should be offered on the basis of interpersonal and economical need.
Introduction to the Power Sector in Bangladesh: The Government of Bangladesh is usually committed to give affordable and reliable electric power to all people by 2020. However , the country’s 1386 , 000, 000 people, just 42 percent7 have access to electricity, which was just 3 percent in 1971, but per household electricity consumption is one hundred sixty five kwh/unit, even now one of the lowest in the world, against India’s 561 kwh every. Unfortunately, seventy nine percent from the connected undergo severe load-shedding, and sixty percent from the consumers confront low ac electricity supply. The ability sector of Bangladesh is often characterized by all-natural monopolies10.
Conventional wisdom claims that as natural monopolies threaten competitive pressures, they should be regulated either by the authorities, through 3rd party regulatory organizations or straight by public enterprises. Stand 1: Key Statistics with the Power Sector SectorPublicIPP+Captive Installed Capacity5275 mw2490 mw* De-rated Generation Capacity4582 mw Era (Effective)Demand* Optimum Generation (sep’ 07)4130 mw5368 mw Minimum (Jan’ 07)2331 mw Transmission Lines (230 and 132 KV in km)4119 Syndication Lines in Km2, sixty four, 891 Access of electrical power (%)42
Every capita era 165 kwh Per capita consumption a hundred and forty kwh Consumer Number including WZPDCL97. thirty-three lac Agricultural Consumers2. of sixteen lac Program Loss (Average Percentile) twenty one. 3 Source: Power Cell, February twenty-five, 2007 * 1290 mw generation in IPP and 1200* captive power intake Moreover, allowing for another company would increase cost or perhaps inefficiency. The Power sector includes the generation, transmission and distribution of electricity amongst different coalition including residential, commercial, commercial and assistance sectors within the guidance in the Power Trademark MPEMR.
At present, BPDB offers total mounted capacity create 4680 MW in sixty-five units, like the public and sectors. The Independent Power Producers (IPP) is now making 1290 mw in 37 units of power crops located at different parts of the country11. In this situation, the GoB selected an energy coverage accounting the increased range of gas exploration and power generation to meet the near future demand for both equally renewable and non-renewable energy. Currently, 80 percent of electric power is nonrenewable indigenous gas-based, and 70 percent of the commercial energy can be recovered simply by gas12, the remainder 20 percent is definitely from electric power and 10 % from fossil fuel.
Due to poor generation, the most demand dished up was the cheapest of 3000 mw by peak hours in January, 2007. Nevertheless there was not any significant increase in power technology, the indication network was expanded rapidly by the funding from ADB. However , because of the intervention of vested fascination groups, poor co-ordination, the absence of responsibility and visibility is perverse. Power lack hampers the contribution of power to GROSS DOMESTIC PRODUCT growth and creates large excesses/unbearable demand.
Under these kinds of critical conditions there is an instantaneous need to identify or detect the major reasons for the unavailability of electricity as well as the low-level performance with the power sector. Corruption is among the major risks to global development, particularly in developing countries, for instance, “corruption is jacking up the cost of electric power projects in the Philippines, delaying their setup and providing Filipino homes and businesses with expensive but difficult to rely on electricity services.
According to the Household Survey upon Corruption in 2005, “around 10 percent of the consumers are employing illegal contacts and about 48 percent paid pièce for taking a fresh connection or perhaps meter. This corrupt practice was first discovered in 1956. According to Husainy, “Dacca Electricity Source Co. was also nationalized in 1956 due to cruel corruption in new connection due to extra demand, retaining uninterrupted power supply, though some improvement was observed although not significant in any way during that period.
When it comes to distribution of electricity, nontechnical loss and pilferage of electricity make the sector weaker and the bribery and harassment of the personnel faced by 70 percent of the consumers18 are few of the samples of the mismanagement of this sector. Under the above circumstances, it is necessary to identify the outlook and governance in the electrical power sector. This study tries to find the origin of corruption in several issues of purchase, generation, transmission, distribution and human resource management, such as effectiveness in the existing work to fight the data corruption and misuse of power.
Purpose of the research: Broad Objective: The larger objective is always to review the governance system of the power sector and to identify the nature of problem likely to be within the different division of the power sector. Specific Research:? To detect governance failure and demand-supply shortfalls? To recognize whether virtually any governance inability exists, with regards to human resource, government, finance and so forth? To identify the interest rate of file corruption error are occurred in this sector. To identify the actual lose have been occurred in this kind of sector and so forth.? To identify the sufferings and harassment faced by the buyers, especially by the poor in the industry services including new contacts, day-to-day companies, billings weight shedding. Method: Data Collection Process to get Secondary Supplies: Literature, content articles, periodicals, reports, acts and rules, also electronic periodicals, documents of power sector, case research on electric power generation and distribution have been completely reviewed. Variety of Primary Info:
The primary options for qualitative data are casual discussions with stakeholders, employees and professionals of the electric power sector and documents around the procurement and distribution edges to assess whether any mismanagement or illegitimate practices including abuse of power and funds and resources came about. Rapport building played an important role in the extraction in the qualitative data. Key informants were sector experts, insurance plan makers, academicians who offered specific circumstance studies and recommendations to boost the governance of the electric power sector, including procurement, BERC, generation, division and legal practice.
Customer Survey within the Quality of economic Service and Billing: A cross section survey among all types of shoppers was administered during a few May to five June of 2006 to determine the quality of solutions provided by different organization including DESA and DESCO. The instrument with the survey, my spouse and i. e. the questionnaire, originated by the specialist and then validated through discipline tests. The questionnaire on consumer review covers the type and extent of the data corruption and harassment faced by consumers. Questionnaire for Client Survey:
The components of the questionnaire were 6: i) the standard profile with the consumers with the information on the socio-economic users of the consumers/adult respondents, intake pattern of electricity, ii) the types of connection, the new interconnection process, problems and harassment faced simply by consumers, the quantity of bribe made during the connection process, iii)the quality of electricity assistance in terms of colocar reading and billing method, illegal techniques such as entente with meter readers, false billing, and other day-to-day service-related problems, iv) load expansion, load shedding and voltage variation, losses of equipment because of voltage fluctuation, v) and then, the consumers’ satisfaction about the different commercial services is illustrated through this testing scale. Sampling Technique: A multi-stage stratified sampling method has been implemented to determine the testing of the buyers for the survey ” Stage 1: Consumption pattern of DESA DESCO, to set the in proportion weight in determination with the number of the sample for every agency. After that, the percentage of consumers over the distributors is regarded as in stage 2 .
Stage 2: Depending on this amount, different types of individuals are considered to select the sampling via each supplier agency. Stage 3: Distribution of Sample Consumers sing the standard mixture of random sample, the finely-detailed level or perhaps observed possibility of damaged practices was extracted at 0. 7 at a 5 percent degree of error. Test size, 1027 was determined using the design effect and across organizations in regional clusters. Division of Testing Consumers: DistributorDistrict/Area Or Ward D C ISub totalTotal DESA DESCO Dhaka, Mirpur Dhaka, Karwan Bazar 15 10 15 10 twelve 10 30 30 60 (D= Household, C= Commercial, I= Industrial) Governance Failures and Concerns in the Electrical power Sector:
Within the co-ordination and guidance with the Power Division, BPDB, a holding company, is solely responsible for making, transmitting and distributing electrical power through PDB, DESA, DESCO, WZPDCL and REB/PBSs nevertheless out the region. Usually, the Prime Minister manages the MPEMR and a State Minister works the Power Department under the assistance of the PM HOURS. The PDB Chairman is Chairman from the newly changed holding organization of BPDB21 and the Secretary of corporatized companies such as PGCB and WZPDCL. Furthermore, Chairman of DESA is usually the Chairman of DESCO. The recently established BERC is to control planning, contract price fixing, question settlement and licensing.
The subsequent Flow Chart-1 shows the functional romance between the diverse wings with the power sector. Adverse Electric power Crises: According to the ADB (2005), “Consumption of electricity in Bangladesh grew at an average annual charge of almost 8. 2% via FY year 1994 to FY 2004 and forecast should be to grow at an annual rate of about 8% for the next a decade. Since the early 1990s, the supply of power took place and program loss shot up and the consistency of insert shedding improved vigorously by middle of the nineties. In this scenario, the Government recommended the Countrywide Energy Insurance plan in 1995, but this kind of also failed to meet the crisis and finally Electricity Cell created the Private Power Era policy in 1996 in order to boost the technology of electrical power.
Crisis inside the power sector or the incredible demand-supply space has surfaced due to several key factors. Since the technology of electric power did not enhance at the charge of the increase in demand, the gap between served era and optimum demand has improved over the period shown in Figure 1 . In the middle of ’90, the shortage was almost zero, but the shocking gap plus the demand has recently been increasing, the official figure reaches 4250 mw, but the production is only for 2100-2200 mw which triggered a 2000 ” 2200 mw deficiency in era. According to the PSMP 2006, the real demand was forecasted at 6200 mw in 3 years ago, but simultaneously the amount of power generation took place to 3, two hundred mw.
It is noted here that the with regard to power have been increasing at a rate of around 10 percent annually and furthermore then a total deficit of power can be around 435032 mw in 2010 or even more than the current estimation (shown in figure 4) if the progress of the organization of the suggested power plant life is certainly not completed according to schedule. In estimating demand, the PDB does not generally consider economic growth and the exact demand of the possible consumers. The crisis as well emerged because of the absence of a vision and mission simply by PDB and DESA as well. Absence of very clear organization desired goals of the PDB and DESA: The Power sector is such a powerful sector it requires very clear organizational desired goals or objectives and the power to take sharpened decision. The truth is, however , the PDB and DESA might not have clear operating paper, organizational goals.
Because of this, there is always a feeling of confusion between policy makers and the supervision. This hampers the successful growth of the sector and also its everyday services. New Connection Method and harassments faced by the consumer: The staff is responsible for doing the several jobs associated with a brand new connection. In a particular having, no more than one particular residential interconnection is offered, with each flat considered flat as a separate enterprise. Requirements should be fulfilled as per tariff guidelines and pro-poor documentation. In fact it is quite challenging for a job candidate to total the process by himself due to harassments by the staff and agents or multimedia.
According to the review, on average, 27percent of the customers (the highest figure staying 42 percent) face the harassment through the new interconnection process. A fresh connection procedure and the tyranny of “media or “broker According to the 2006 survey, among the list of applicant for any new connection, 94. a couple of percent had taken the new interconnection through an agent in order to avoid the effort and to save time, simply 4. a few percent in the consumers got the new interconnection by themselves. In line with the consumer study in the case of the two LTI and HT connections, 94 percent of the candidates took the help of brokers or perhaps agents including meter readers, MLSS/Fourth class employees, or electrical Service provider. Process of new connection IN DESA
Typical bribe of a new interconnection: Reduction of bills by cost of bribe in DESA: The S i9000 , G Office turned off the line with an outstanding volume of Taka. 3, 00, 000 and filed an instance against ‘x’ consumer of Lalbagh S, D. The Meter Target audience proposed a bribe of Taka. you, 50, 500 to settle the situation. The worried consumer opted for the pitch in order to become gained and to prevent harassment. Finally, the case was dismissed and office released the decreased bill intended for only Taka. 28, 000 for the subsequent month. It is noted below that the colocar reader did not provide any kind of bank receipt to the consumers, just a daily news upto clearance. This is a mirrored image of the DESA’s management system.
Normal bribe to lessen meter change Delay in Providing New Connections: Based on the 2006 study findings, in the event that any consumer does not pay out a bribe then the customer can get connection even before the deadline of around thirty days, the lengthiest delay in DESCO for providing a new connection was 103 days, but in the payment of bribe the bond took just 6 to 7 days so you can get a new contacts in DESA and RDB respectively. Curiously, the PBS, through successful in maintaining the specified import-collection rate, also makes delays when you get new interconnection if the consumers do not incentivise to the officials (Table 9). Complexities in single file Processing:
Bureaucratic dilemma/delay can be described as regular phenomenon in Bangladesh, and it is also practiced throughout the provision of the new interconnection, as app files move through around 36/38 hands/tables just before an applicant get a connection. Although office statements that the delay is due to the insufficiency of MLSS and inadequacy with the required paperwork, the real reason behind the hold off is illegal practice152 or the paying of bribes to speed up the process. Bribe to get meter change: Office staff takes regular monthly bribes to reduce the electric power bill of the consumers by simply issuing the very least bill against the huge costs of the electrical power consumed (which are remaining unadjusted and stored in the meter).
When the cumulative numbers of the past due bills, especially of HT consumers, become high, the meter reader proposes to change meter declaring to be concerned amounts exhibiting the damage. Going for a handsome incentivise, officers change the meter proclaiming to be concerned with the clients showing the cause of the card holder’s safety and GoB loose huge amount of revenue. Buyer, on average, compensates an extra Taka 2056 since bribe to the meter reader, lineman, foreman or the Gatish of the m reader in the event he/she really wants to change the damaged meter. Oddly enough, the highest volume has to be paid out (i. at the. Taka 8685 and Taka 2748) by consumers with the corporatized or perhaps said to the efficient business REB. PBS and DESCO161. Erroneous and/or false payment
On average, 39 percent in the consumers of all the distributor agencies claimed that they can received surplus bills as well as the meter readers with the help of ledger keeper plus the billing section. In case of the unavailability of receipts, buyer has to spend the bill having a fine including a surcharge, the value of the chi-square value162 justifies the prosecution on the incorrect meter reading. It supports the presence of wrong and phony billing inside the PDB, DESA and PBSs as well. In the event that any honest consumer, especially, is the tiny industries category (such as cold safe-keeping, cinema admission etc . ) where refrigeration plants, ac units had common loads, would not agree To deduce with colocar reader and wants to pay out the correct charges, he is likely to be in serious trouble.
Summary and Coverage Recommendation: A number of efforts had been made by the modern day caretaker govt in order to mitigate the power failures. These work include the subsequent: Cancellation of the tendering procedure for small electrical power plants dealing with the accusations of nontransparent process and attempt for re-tender. Recognition of major targets to rehabilitate as well as the power place, and signal of treaties to establish the two public and power crops. Unfortunately, it really is alleged by local utility company that the aid providing organizations have set several nature in the bet manual so that they cannot submit the bid documents fulfilling the conditions.
Approval of 5 IPPs (three foreign companies) of 1, 930 mw ability, increasing the share of IPPs in the total electricity generated about 3, one hundred ninety mw (62%). Unfortunately, simply no significant decision has been considered yet to distinguish the leakages and rampant theft of power. Appointment of two members for the BERC and advancement several recommendations along with the technique of the determination of electric power tariff. However , in this methodology, the peak and off-peak demand was not considered. Besides, you cannot find any vivid criteria from BERC on how posted documents and information simply by applicant IPPs would be cross-checked and the recently completed agreements between PDB and IPPs are out from the proposed method.
This research was taken on with the try to diagnose the down sides prevailing through this sector. The scope on this study includes review your governance from this sector, demand-supply shortfalls, the present procedure of power plant procurements and determining the nature and extent of corruption, accountability of the personnel, investigate the sufferings and harassments faced by the buyers, day-to-day providers, billing, load shedding, and rural-urban disparities. Information coming from both principal and secondary sources has become used in planning the statement. Sources of secondary information included acts and rules, printed articles, periodicals, reports, and also official documents.
Primary options for information add a consumer review, informal discussion with stakeholders, employees, and experts from the power sector. The consumer study covered the type and the magnitude of data corruption and harassments faced by the consumers. The cross section survey among all types of consumers (1027) was administered to learn the quality of solutions provided by diverse organization including PDB, REB/PBSs, DESA and DESCO. Adverse power entrée and governance failures The PDB’s official report displays a deficiency of generation of about 2000 ” 2200 mw. However , relating to PSMP 2006, the overall shortage of electricity would be around 4350 mw in 2010.
The reasons for power shortages are identified beneath. Policy Level Failures: The government failed to place adequate focus on the power sector, there has not been virtually any clear and specific guideline to estimate the real require and supply, there have also been infringement of the PSMP in the form of politicization of the position, size and types of plants, focus on short-term organizing, inadequate autonomy in making financial and administrative decisions, scheduled appointment of overseas consultants to get rent-seeking goal despite the availability of local hands, and imbalanced expansion of distribution lines for rent-seeking purposes Constraints and negligence within the purchase process:
The procurement method in electricity sector has been distorted as a result of unwanted involvement in the procurement process, difficulties of the bidding process, wrong evaluations, a shortage of uniform Specialized Evaluation Panel (TEC), delay in employing consultants and resolving differences due to bureaucratic dilemma, file corruption error such as adding specific condition, nepotism, extortion by vested interest groups, collusion between the offer officials and bidders, phony experience qualification submitted by simply bidders, visit of technicians for maintenance and rehabilitations without any tender, abuse of funds by plant and policy-level staff, supply of cheap machinery violating the agreement, and power purchase deals made by high costs. As a result, around Tk 4, 007 crore or US$ 688 million (from getting the 6th power plant life and outsourced workers the maintenance and rehabilitation functions to a international company) during 1996-2005 had been abused.
Limited financial capability: Around 17000 crore Taka is required to meet the demand for benefits of 8000 mw by next 2010, but the concerned businesses have limited financial ability due to i) cumulative boost of past due bills and unaccountable indebted organizations, ii) poor price of collection (caused by simply high T, D deficits, legal shelter taken by huge bill defaulters, low thickness of consumers in numerous PBSs of REB), and iii) immediate increase of economic burden as a result of contract with IPPs by a flying exchange level, iv) agreement, under PPA, with IPPs at high tariff ardid, v) excessive input expense of diesel based generation plants. References:
Analysis of the Durability of the Electric power Sector, Advanced Engineering Affiliates International (AEAI), February the year 2003, Asian Development Bank, 2006, Sector Assistance Program Evaluation of Oriental Development Lender Assistance to Korea Power Sector. Asian Creation Bank, “Special Evaluation Examine on Expense Recovery inside the Power Sector Operation and Evaluation Department, SS-55, 04 2003 Cash, R. Watts. and Besant-Jones, J., 2001, ‘Global Electric Power Reform, Privatization And Liberalization Of The Electric Power Industry In Developing Countries’ The International Bank of Reconstruction and Development, The World Bank. Wa. D. C. Bangladesh Energy Regulatory Commission payment Act the year 2003, BG press, MPEMR, GoB, 2003, Dhaka
Bose, Sudhansu, Poor collection efficiency of Indian condition owned electric power distribution corporations: causes and remedies, Light Paper, Wipro InfoTech Complexness of Electric Electrical power Distribution Governance, Journal, 21 (3), 1-39, 2004 Dr . Hardiv They would Situmeang, 06 1, 2005, THE CHALLENGE OF FINANCING ELECTRICAL POWER PROJECTS. Jakarta Fiany, Ronald, et. al. July 2003, Governance Problem in the Brazilian Power Sector, Oxford University Gilbert, Richard and Kahn, Edward cullen et al, 1996, International Comparisons of Electricity Legislation, Cambridge: Cambridge University Press. HYPERLINK”http://www. stenmar. com/oil_and_gas_sector. asp” http://www. stenmar. com/oil_and_gas_sector. or net
