Before delving into the discourse among Bankers, Editors, and Regulators, I am delighted to extend my heartfelt appreciation to THE BANGLADESH EXPRESS as it commemorates its illustrious 30-year journey as a reputable newspaper. Furthermore, I wish to convey my gratitude to BJFCI for orchestrating this exceptional dialogue, focusing on a pivotal subject: 'The Banking and Financial Sector Reform: The Impact of Media and Press Freedom. Because I believe that good journalism and good media can make our world a better place.

In his keynote speech, Mr Faruk Ahmed, Editor of THE BANGLADESH EXPRESS has brought to light some crucial issues of the media, press freedom and journalists in the financial reform process. No doubt there is a substantial amount of goodwill between the financial and power sector and journalists. There seems to be an unclear and undivided opinion on the role the media played in the financial crisis and reform. Media engagements with the financial sector, in the form of reporting and coverage, are critical to realizing the regulatory objectives of transparency and accountability. Knowledge of the sector by journalists and how it operates will undoubtedly afford them a greater understanding of the sector. Mr Ahmed rightly pointed out that it is this knowledge deficit that affected the ability of the media to produce stories on the sector with such accuracy and competence that most suit journalistic tenets. So, there is a discrepancy between the ideal active watchdog role journalist's picture for themselves and their actual role enactment.

Reform is not a one-shot exercise, but a dynamic socio-economic process. Financial sector reform is also not an exception to this. During the 1970s and 1980s, there had been intense debate in Bangladesh on the need and rationale for financial sector reform. Contrastingly, one does not observe any fundamental or conceptual objection to the objectives of reform, though there might be varying perspectives regarding its pace, sequencing, timing etc. Here, the role of journalists and media is very crucial.

The banking, financial and energy markets are more susceptible to being influenced by negative press and consumer-generated scandals rather than objective facts and fundamentals. Some allege that in many cases, the media fail to play their watchdog role. Fake news is now a more significant issue than ever before due to the expansion of alternative news outlets and the use of social media as a platform. But my experience is different. Some people see the glass half full. Others see it as half empty. I see a glass that's twice as big as it needs to be. In most cases, journalists are playing vital roles in speeding up the country's reform process. In the power sector, where I am working as an executive and journalists are enjoying full freedom, I find journalists are the catalysts of the reform process. In many cases, news published in press and media guided us to take appropriate measures which helped us to implement massive reform measures in the power sector.

Reforms in Power and Energy Sector

The government began reforming the power sector in the 1970s, a process that continues today. After independence, the government established the vertically integrated Bangladesh Power Development Board (BPDB) in 1972. As the first step toward reform, the GoB formed the Bangladesh Rural Electrification Board (BREB) in 1977 to expand electricity access in rural areas.

In 1990, the Bangladesh Power Sector was constitutionally public and extensive political intervention in all aspects of activity continued. These lead to high levels of losses, poor collection performance and supply interruptions. In 1993, an inter-ministerial Committee on Power Sector Reform in Bangladesh (PSRB) recommended unbundling the power sector, corporatizing unbundled entities, and establishing an independent regulatory commission. This was followed by the creation of Power Cell to facilitate the implementation of reform, the adoption of the National Energy Policy, and the separation of transmission and parts of distribution from BPDB in 1996.

The biggest push for reform came in 2000 when the government adopted the Vision Statement and its annexed Policy Statement on Power Sector Reforms. The statements announced seven main components for reform, essentially a version of the textbook model. The government requested technical assistance from the Asian Development Bank (ADB) to corporatize BPDB; in 2008, ADB proposed five options for the medium-term target structure of the holding company.

After detailed analysis, the "non-operating holding company with separate single buyer" structure was recommended as the most promising option. In 2008, the government released the 3-Year Road Map for Power Sector Reform: 2008-2010. Its primary objective was to create an institutional foundation to stimulate the substantial investment needed for economic growth and poverty reduction.

This would require restructuring the power sector to improve its efficiency, transparency, and overall governance; to facilitate effective and independent regulation; to expand competition; and to improve the quality of electricity service.

Following the road map, several generation and urban distribution companies were created and corporatized as subsidiaries of BPDB. Although the plan included specific reform initiatives, progress has slowed in recent years and the roadmap was not updated. It clarified that Bangladesh's power market structure is a single-buyer model, in which BPDB will continue functioning as the single buyer except for some direct utility purchases from small power producers.

Bangladesh is on a trajectory toward middle-income country status and strives to become a developed nation by 2041. Its growth must be supported by energy security and universal access to high-quality, reliable electricity that can fuel economic and social activities.

Achievements from Power Sector Reforms

In the past decade, the country has made great strides toward these objectives. The electricity access rate has increased to 100 per cent, per capita electricity consumption and generation capacity has more than fivefold, electricity supply reliability has improved substantially, and system losses have fallen to about 8 per cent.

After independence, twenty-one years passed since the brutal assassination of the Father of the Nation in 1975. But no visible progress has been made in the power sector. In the development of Sonar Bangla, the overall economy of the country including the power sector plan fell on deaf ears. Irregularities, mismanagement, corruption, and system loss continued to increase. When the daughter of Bangabandhu Sheikh Hasina formed the government in 1996 after a long 21 years, the power situation was very fragile. Load shedding was a daily common phenomenon. Corruption and mismanagement were major barriers to investment.

Realizing the fact that main driving force of the economy is electricity, the significant initiatives taken by the Sheikh Hasina government are as follows:

* Formulation of "Private Sector Power Generation Policy" under Power Sector Reform Program;

* Establishment of Meghnaghat and Haripur Power Plants in the private sector under the said policy;

* Formation of separate agencies and companies in the generation, transmission and distribution sector through structural reforms in the power sector.

As a result, power generation capacity increased from 1,600 to 4,300 MW during the period.

From 2001-2006, the country's economy was stumbling due to a lack of electricity, industry and trade were stagnant and public life was in disarray. People's lives were unbearable due to load shedding for an average of 8-10 hours per day. In order to overcome the situation, the Hon'ble Prime Minister announced in the election manifesto that electricity will be provided to all households by 2021. After taking charge in 2009, the following steps were taken to develop the power sector:

* Adoption of immediate, short, medium and long-term power generation plans;

* Formulation of "Speedy Power and Energy Supply (Special Provision) Act, 2010" for setting up of new power plants;

* Enactment of "Electricity Act 2018";

* Formulation of "Net Metering Guidelines" for clean energy expansion;

* Installation of rental power plants under immediate and short-term plans;

* Establishment of Sustainable and Renewable Energy Development Authority (SREDA) as the sole body for renewable energy expansion;

* Enactment of Bangladesh Energy and Power Research Council (BEPRC) for innovation in the power sector;

* Establishment of Bangladesh Power Management Institute (BPMI) for human resource development in the power sector;

* Signed Memorandum of Understanding between Bangladesh and India for bilateral cooperation in the power sector.

The government is implementing various mega projects in power generation by giving utmost importance and priority to the development of the power sector. Considering energy security; coal, LNG, liquefied fuel, dual-fuel, nuclear power and renewable energy-based power plants are being set up and power is being imported from neighbouring countries as a part of fuel diversification. Various mega projects are being implemented under the long-term plan, one of which is Payra Ultra Super Critical 1320 MW Thermal Power Plant.

A Comparative Picture of Significant Achievements in the Power Sector in:

(*Including Captive)

The Prime Minister was the Chairperson of the Climate Vulnerable Forum and was leading the way in reducing carbon emissions by increasing the use of clean energy to combat global warming and climate change. In order to generate 10 per cent of electricity from clean energy, more emphasis is being laid on solar power-based power generation. The country has provided electricity to 20 million off-grid people through 6 million solar home systems. At present about 1,200 MW of electricity is being generated from renewable energy.

As a result of the far-sighted, courageous and timely decision of Hon'ble Prime Minister Sheikh Hasina, unprecedented success has been achieved in the power sector in an era which has not happened even in the last 100 years.

Achievements of the Power Sector in 14 Years:

* 100 per cent of the population has access to electricity;

* Power Installed capacity has increased 5 folds;

* A total of 22,091 MW has been added to the power grid;

* At present, 31 power plants with a capacity of 11,734 MW are under construction;

* Importing 1,160 MW of electricity from India;

* Planned to export excess electricity of winter and off-peak hours;

* A total of 6,672 circuit kilometers of transmission lines have been constructed;

* A total of 369 thousand kilometers of distribution lines have been constructed;

* A total of 34.2 million new subscribers have been connected;

* Per capita power generation has increased from 220 kWh to 609 kWh

* Distribution system loss reduced by 6.89%;

* A total of 545 thousand pre-paid/smart pre-paid meters have been installed;

* Uninterrupted electricity has been ensured for irrigation;

* Renewable energy is generating 1,400 MW of electricity;

* Installed a total of 60 million Solar Home Systems (SHS);

* Paperless offices are being set up in the power sector by launching online-based software including e-tendering, e-documents, ERP, SCADA, GIS etc.

The government has also planned to generate 40000 MW by 2030, 60000 MW by 2041 and 77,000 MW by 2050. To meet the demand for electricity generation, distribution & transmission projects are in the various phases of implementation. The government has taken steps for fuel diversification along with an emphasis on renewable energy. The government also set the vision to generate up to 40% of clean energy by 2050.

The Prime Minister has kept her promise to the nation. On the birth centenary of Father of the Nation Bangabandhu, as a result of the implementation of Prime Minister Sheikh Hasina's special initiative "Electricity for All" has been possible to bring 100% of the population under access to electricity today.

You are aware that smart grids are implemented in the developed countries of the world today. Even smart grids are being implemented in other countries as well. Bangladesh has achieved its generation target to provide electricity to all people of the country. However, it has yet to fulfil its target of ensuring quality electricity. That would be possible only when the implementation of smart grids across the country can be ensured. Meanwhile, we are successful in connecting 100% of our population to the National grid but what is yet to be achieved is to make this power supply uninterrupted.

With the present system, it's not possible to achieve that feat. For this, we need the support of the state of the art technology. The smart grid connects consumers with an automated system where IT and IoT are enabled and provide the opportunity to monitor supply seamlessly. This kind of internet-based facility will help us ensure quality power supply, reduce system loss and monitor the overall performance of a power station and distribution line. Honourable State Minister Nasrul Hamid has long been stressing the installation of a smart grid. As a part of that vision, we took some initiatives like installing smart meters at some places at the consumer end. Similarly, we initiated SCADA (Supervisory Control and Data Acquisition) at the distribution end. Our goal is to bring the entire network under SCADA. Such steps will enable us to make sure that the power supply is seamless and can pinpoint any glitch from an automated system, which at the moment has to be done manually.

Bangladesh is adopting a two-fold strategy against climate change impacts. The main focus of Bangladesh's activities is on increasing resilience to the impacts of climate change. At the same time, the country is also working to achieve lower greenhouse gas (GHG) emissions as well as more resilient development. Improving the country's resilience to immediate and future climate risks is essential to the continuing development of Bangladesh. To reduce the impact of climate change on the environment, the government has taken immediate measures.

In Power System Master Plan 2010 (PSMP 2010), it was said that 50 per cent of electricity would be generated from coal. But to deal with the global climate change situation, it has been brought down to 35 per cent in PSMP 2016. The government is also gradually moving away from setting up several large-scale coal-fired power plants.

Bangladesh is aggressively promoting Renewable Energy (RE) as a part of the commitment of the Government to provide clean and environment-friendly energy, to increase energy security and reduce the dependency on imported fuel. The Government has adopted the Renewable Energy Policy 2009 to promote RE in the generation mix of electricity. In this policy, the government has set a target to generate 10% of electricity from RE resources. Bangladesh has envisaged generating up to 40% from clean energy sources by 2041. Presently, almost 1200 MW of power is being generated from different RE sources such as solar, wind and hydro which is 7.6% of the highest generation.

Among the resources, solar has the most potential followed by wind in Bangladesh and the country is trying to fully harness these resources. Utility-scale solar power plants, roof-top solar (with and without net metering), floating solar, and Solar Irrigation pumps are being installed to reduce the effect of climate change and dependence on imported fuel for power generation. Bangladesh has also started a study to assess the potential of wind resources in off-shore areas. 108 projects of 10,000 MW are in different stages of implementation and are expected to come to operation by 2030. Hopefully, this will increase the share of RE in the generation mix many folds.

While utility monopolies around the world helped foster energy access and equity, they also created drivers to change the status quo. In developed countries, access to electricity rose dramatically and the quality and reliability of supply improved, making the sector viable. However, these gains came with excess capacity in infrastructure and high electricity prices. By contrast, developing countries had difficulty mobilizing adequate state funds due to the size of their public debt. The government kept electricity prices low and highly subsidized, resulting in poor financial and operating performance.

The way forward for power sector reform in Bangladesh In view of its ambitious goal to achieve developed-country status by 2041 and the challenges the electricity sector faces, Bangladesh needs to implement structural changes soon. Critical steps include:

* Update the road map to provide clarity on progress so far and to facilitate the implementation of reform that the power sector needs to be ready for the future.

* Transition from the single-buyer model to a wholesale electricity market to increase competition, attract technology-agnostic private investment, enable Bangladeshi energy agencies to participate in regional markets, and benefit from lower electricity prices by allowing foreign entities to participate in Bangladesh's market.

* Segregate the transmission and load dispatch functions as the national grid expands and system management becomes more complex. Entrusting these functions to different entities will increase efficiency. An independent system operator can be established to manage load dispatch and oversee the wholesale market.

* Continue horizontal unbundling in the distribution segment, especially in BREB and BPDB distribution areas, which are too big for effective management. Further unbundling, corporatization, and commercialization in these areas will help improve reliability and quality of supply, which is a major concern in rural and industrial areas.

* Implement cost-reflective tariffs. Letting customers face the true cost of power will induce efficient use and improve the sector's financial position for long-term sustainability. The government should explore alternative mechanisms to provide subsidies to vulnerable customers rather than passing the subsidies through sector entities.

* Introduce private participation and ownership in the transmission and distribution segments to attract much-needed investment for upgrades, improve commercial and operational performance, draw private sector management and technical competencies, and improve the government's fiscal position. The process can start with urban and industrial pockets or zones, followed by rural zones. The GoB could also explore less controversial forms of private participation, such as input-based franchises.

* Make financing for energy infrastructure projects easier by facilitating long tenors, establishing preferential interest rates, relaxing equity exit requirements, and creating dedicated funds for energy projects.

* Scale up renewable energy's share in the energy mix to strengthen energy security, energy independence, and a low-carbon future.

* Modernize the electricity grid to increase the system's flexibility, resilience, and efficiency.

* Further commercialize the sector by continuing to reduce losses and improving business processes to ensure sustainability

The Role of Press to foster reform in Power Sector

To strengthen reform measures, the role of media is immense. In the Pakistan era, one sub-assistant engineer who was working in a rural area was beaten to death as angry people hit him after frequent load-shedding. Since then, the power sector recognised the immense role of the press and media and has been working together with the journalists.

Once consumers were not aware of the subject of power and electricity but they now know better about their rights in this regard. This is supported by research conducted by the Unnayan Shamannay that shows that consumers are now more conscious about electricity consumption. In addition, a relationship has grown up among the civil society, consumers and the authority of utility. Around 700 consumers frequently go to the electricity office to inform their problems and also discuss how to reduce the misuse of energy.

People are now also conscious of power consumption they are using electricity very efficiently thanks to the impressive roles of media. We are very courageous that many people from rural areas are now using solar energy. However, the media should focus more coverage on this important issue. The engagement of media with the financial sector, primarily through reporting and coverage, plays a pivotal role in achieving regulatory objectives centred on transparency and accountability. Journalists' familiarity with the intricacies of the sector and its functioning undoubtedly enhances their ability to comprehend and effectively convey its complexities.

Here, collaboration can bring tangible results, I am sure.

(The writer Engr. Mohammad Hossain is the Director General of Power Cell)