FY25 ADP: Govt prioritises power infrastructure over generation
Power generation projects’ allocation decreased by 6% compared to the revised ADP of FY24
The government has prioritised power transmission and distribution system projects over power generation projects in the Annual Development Programme (ADP) approved for the upcoming 2024-25 financial year (FY25).
According to the ADP for FY25, approved by the National Economic Council (NEC) on 16 May, allocations for power generation projects have decreased, while funding for power transmission and distribution system projects has increased compared to the ADP for FY24.
Experts say the government's power generation capacity has increased recently and in order to maximise the benefits of this capacity, the government is boosting the allocation for and implementation of transmission and distribution projects.
Md Habibur Rahman, senior secretary of the Power Division, told The Business Standard, "The government has already made a lot of progress in power generation. Therefore, the government's policy now is to privatise production as much as possible."
Keep updated, follow The Business Standard's Google news channel
However, Professor M Shamsul Alam, energy adviser for the Consumers Association of Bangladesh (CAB), said that considering the current economic situation, it would not be right to increase allocation for the development of power generation, transmission, or distribution systems.
"In the current situation, investment in the power sector will increase the cost of electricity, and people will have to pay the extra price. It will put pressure on people," he added.
Planning Commission data reveal that in the FY25 ADP, Tk19,707.89 crore has been allocated to power generation projects. On the other hand, Tk11,716.43 crore and Tk10,681 crore have been allocated to transmission and distribution projects, in that order.
The allocation for power generation projects has decreased by 6% or Tk1,259.91 crore in the FY25 ADP compared to the revised ADP of FY24. Compared to the original FY24 ADP, the allocation for these projects has decreased by 11.5%.
On the other hand, in the FY25 ADP, the allocation for transmission line projects has increased by 11% compared to the revised ADP of FY24 and by 15.78% compared to the original FY24 ADP.
Meanwhile, the allocation for distribution system projects in the FY25 ADP has increased by 34.8% compared to the revised FY24 ADP. However, it is 5.8% lower than the original FY24 ADP.
Key projects and allocation
According to Planning Commission data, Tk10,502.90 crore has been allocated in the upcoming FY25 ADP for the Rooppur Nuclear Power Plant project, the largest project in the power generation sector. Compared to the revised FY24 ADP, the allocation for this project has increased by Tk796 crore.
Allocation for the Matarbari Coal Power Plant project has decreased by Tk3,154 crore compared to the revised FY24 ADP. In the FY25 ADP, this project has been allocated Tk6,105.45 crore.
Meanwhile, of the 14 ongoing projects on transmission lines, allocation for the Power Grid Network Strengthening project has increased. Compared to the revised FY24 ADP, the allocation in the new ADP has risen from Tk1,891.90 crore to Tk3,615 crore.
In the new ADP, allocation for the Barapukuria-Bogura-Kalikoir 400 KV Transmission Line project has nearly doubled to Tk2,440 crore. Additionally, Tk838 crore has been allocated for the construction of transmission lines to evacuate electricity produced at the Rooppur Nuclear Power Plant.
Meanwhile, for the development of the power distribution system, Tk1,305 crore has been earmarked for the Power Development Board, Tk3,017.62 crore for the Rural Electrification Board, and Tk4,390.83 crore for the Dhaka Power Distribution Company (DPDC) in the upcoming ADP.
