Power Development Board (PDB) launched in 1959 as an affiliate of the East Pakistan Water and Power Development Authority. It was created as an independent body in 1972 with its headquarters at Dhaka to control power plants and distribution network throughout Bangladesh. In 2001, it had a total manpower of 28,639. The distribution jurisdiction of PDB covers mainly the urban areas except the metropolitan city of Dhaka, where the distribution of power is vested in Dhaka Electric Supply Authority (desa). The rural electrification board (REB) performs this duty in rural areas. DESA and REB manage 39% and 21% respectively of total retail sale to consumers and the remaining 40% sale is managed by the PDB.

The zamindar of Bhawal (Gazipur district) is known to have been the first consumer of electricity in East Bengal. He acquired an electric generator in the nineteenth century. In Dhaka city, electric light was first introduced on 7 December 1901. Octavia Steel Company, a private enterprise took the overall responsibility of power generation and distribution in Dhaka city. khwaja ahsanullah, the Nawab of Dhaka financed the power project. The power generation capacity of Octavia was very limited and its supply was confined to a posh area of the city. Only main streets and the nearby residences of elite people were given electric connection. In 1933, another private company DEVCO set up a power station at Paribagh and started generation and distribution of electricity on commercial basis for the common people. The government of East Pakistan took over all private power generation houses and distribution lines in 1957.

At present, the per capita electricity generation in Bangladesh is 128 kilowatt per annum, which is one of the lowest in the world. About 30% of its 130 million people have access to electricity. Meanwhile, the government formulated the 'Private Sector Power Generation Policy' and opened the power sector for private investment. Independent Power Producers (IPP) started selling their production to PDB to enhance the total installed generation capacity, which is now 4,005 MW. PDB produces 3,320 MW and the rest 685 MW is produced by IPPs. PDB commissioned some new plants in recent years and completed BMRE of some existing plants.

In 1998-99, the total electricity generation was 14,450 million kilowatt-hours (MKWh). IPPs generate 578 MKWh by furnace oil. Of the total production, 84.97% was gas-based generation, 5.76% hydro, 4.99% furnace oil based and 4.28% was diesel oil based generation. The number of electricity consumers in Bangladesh is 5.2 million (June 2001), of which 42.7% are domestic, 8.17% commercial, 41.02% industrial, 5.61% are agriculture (for irrigation) and 2.5% are others. In 1999, the PDB earned revenue of Tk 23,862 million. In order to meet the growing demand for electricity, various development programmes are being implemented to raise the generation capacity to 7,266 MW by 2007.

The gas resource of Bangladesh, one of the cleanest and efficient fuels for power generation, provides a special window of opportunity to the BPDB and the private investors. PDB undertook some programmes to attain management efficiency for generation, distribution and transmission of power throughout Bangladesh. It formed some limited companies under its ownership to improve performance and these companies are Bangladesh Power Engineering Company for maintenance of power stations, Bangladesh Renewable Energy Company for development of solar energy, Bangladesh Power Services Company to provide supports service and Bangladesh P C Pole Company.

PDB is now implementing two large projects - the Haripur 109 MW Combined Cycle Power Plant (financed by Japan) and System Loss Reduction Pilot Scheme. The country's largest hydroelectric power station at Kaptai is also being extended. Japan, being the single largest development partner of Bangladesh has so far financed 69.42 billion yens to implement 12 development projects in power sector. PDB invited investment and bilateral or multi-lateral assistance in power sector from the both public and private entrepreneurs. [Mahbubul Alam]