Power Sector Development Technical Assistance Project

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The Power Sector Development Technical Assistance Project is designed to create the institutional, and policy environment needed to scale up the development of the power sector, so that it can better contribute to the national goals of economic growth, given inadequate coverage and poor quality of power supply have been identified as dominant constraints to private investment, and economic growth. The technical assistance (TA) component will provide consulting support to scale up sector reforms, by preparing a detailed restructuring plan, using this plan to shape Government's policies and the regulatory arrangements, and, creating corporate structures for at least two urban electricity distribution entities. This includes: financial restructuring and the recovery plan, through the design of an overall restructuring plan, including corporatization models, single buyer structure, and initial market interface arrangements. To support these arrangements, an electricity/energy demand assessment, and power system master plan will be prepared, and financing and implementation strategies for the power system master plan will be updated. Furthermore, demand side management and energy efficiency programs will be designed, and a sector wide social safeguard framework will be prepared, as well as other policy program design, including training and capacity building programs, and communication and consultations strategy. Within the power companies management strengthening component, operating and management practices into electricity distribution in non-rural areas, and the management of power plants will be introduced, at the Siddhirganj power company, and Chittagong and Sylhet area electricity distribution companies, in addition to other power companies, based on emerging demand for management services. Training activities and capacity building designed under component A, will be based on feedback from beneficiary entities, and taking into account other on-going training programs, including study tours, and staff exchanges. This third training component, will focus on strengthening the planning, management, operations, customer and regulatory aspects of the power sector - policy making and reform capacity. The fourth and fifth components will support equipment supply contracts, and project implementation operating costs, respectively.