Rural electrification III

The REB will implement the project, which is aimed primarily at expanding services in existing PBS areas. Reflecting a major policy shift in the Government of Bangladesh"s (GOB) RE program, the project will focus on intensifying the distribution network of the 17 PBS"s funded under projects 0021/00544, although some expansion to new areas will occur. The project will therefore include a significant commodity element, providing: 16 new 33/11 KV/10 MVA substations and a few replacement 5 MVA substation transformers (an additional 10 MVA or more of substation capacity per PBS); 3,500 miles of new 11 KV distribution and feeder lines; and commodities to bring service to the meter point of potential consumers. Increasing the average PBS line mileage by 220 miles, the project will allow the connection of 140,000 new meters by 1991, including 295,000 households, 15,200 commercial businesses, at least 4,500 irrigation users, and 1,700 industrial consumers. Line extensions will be targeted to productive users, such as irrigation and small industries, and surveys will be conducted to identify areas with the greatest demand. As PBS"s will be able to reach 60% of consumers who desire hook-ups (versus the current 40%), depreciation and administrative costs as a percentage of sales should decrease to 12% by 1992. The project will address other issues relating to PBS financial performance (including rationalization of rate structures) through policy dialogue, supported by conditions precedent to future funding through project amendments. A.I.D. will fund all TA planned for Phase III (through 1991) of the GOB"s 5-phase RE program, including that for other-donor activities. Up to 20 full-time expatriate advisors under a host country contract will support construction, PBS management and operations, materials specifications, and REB operations, and help the REB to annually train 4,500 REB, PBS, and contractor employees and village electricians in institutional and/or technical matters. Specialized, short-term TA will be funded, as will 2-3 months of U.S. training for 30 REB and PBS staff on managing and operating electric utilities. Potential other donors include the World Bank, Canada, and Finland.