The government is planning a second tenure extension for the Speedy Supply of Power and Energy Act, set to expire in December, for ensuring swift future project undertakings.
A meeting held yesterday involving government highups reportedly discussed extending the tenure for four years until December 31, 2018. The act, promulgated in 2010, got the first two-year extension in 2012.
A source, who attended the meeting, said the extension was thought to help the release of funds for ongoing projects under the act and kicking off future projects.
The source also said another idea discussed in the meeting was crafting every project in the next four years under the Speedy Supply of Power and Energy (Special Provision) (Amendment) Act 2012. Power Secretary Monowar Islam yesterday confirmed that they had held the meeting and discussed the tenure extension issue.
The only future project that the meeting source could disclose for the moment was building an additional unit for the Chittagong-based Eastern Refinery Limited (ERL).
ERL is a subsidiary of Bangladesh Petroleum Corporation and meets around 40% of the country’s demand for petroleum products.
The Speedy Supply of Power and Energy Act was enacted to “simplify” the approval of power projects and bringing generated electricity quickly to the national grid, said a booklet based on Finance Minister AMA Muhith’s 2011 budget speech.
The law assumes that solving the raging power crisis in various sectors of the economy was absolutely essential. It requires swift and immediate measures because following the existing laws will make the task lengthy and time consuming.
The act empowers the government to do “whatever necessary” for ensuring swift implementation of energy and power projects.
Under the speedy energy act, in order to save time and red tape tangles, the government can undertake projects without actually floating tenders if needed, even if the steps taken go against the Public Procurement Act.
Under the special act, the government has so far signed agreements on setting up the country’s first floating storage and re-gasification unit; drilling 10 wells at six gas fields and building several power plants.