Bangladesh plans to privatize state-owned electricity distribution companies as energy shortages disrupt industrial production and increase the risk of businesses defaulting on loans, a government minister said.
Power and Energy Minister Iqbal Hasan Mahmud announced the decision at an energy policy conclave in Dhaka, saying the prime minister had approved the initiative. He invited private companies to submit proposals.
Industrial entrepreneurs said gas shortages, voltage fluctuations and unplanned power outages were making business increasingly difficult and disrupting production.
Energy experts blamed corruption, dependence on imported fuel and inconsistent planning for the crisis. They called for an integrated energy policy supported by political consensus so it would survive changes in government.
Mahmud said Middle East conflicts had forced Bangladesh to purchase liquefied natural gas at exceptionally high prices while avoiding the Strait of Hormuz.
The government also plans to generate 10,000 megawatts of solar power during its current term. Renewable energy tenders are expected by September.