19th September 2018
Mollah Amzad Hossain

Bangladesh is a thickly populated country having so many smart, innovative young people. It sounds ridiculous that the country lacks competent professionals for performing any work efficiently. Sad but true that there exists huge hue and cry in the country for competent persons in the power and energy sector. It is not only that the sector lacks expert technical person, there also exists crisis of non-technical human resources as well. Consequently, the country now has become a ideal market for foreign experts in almost every sector. Already a huge number of experts from India, Sri Lanka and China are working in Bangladesh. Their numbers are progressively increasing in the power and energy sector. For the acute shortage of Bangladeshi experts, private sector power companies are forced to engage foreign companies as the Operation and Maintenance (O&M) contractors for their power plants. Even the public sector companies are actively considering for engaging foreign O&M for the large power plants, those are expected to come into commercial operations soon. Many loan providing organizations of development partners are attaching covenants for engaging foreign O&M contractors.

Infrastructure development, especially in the power and energy sector, over the past decade has achieved many milestones. Power sector has grown from 5,000 MW to 17,000 MW, gas production capacity increased from 1,700 MMCFD to 2,700 MMCFD. Power generation capacity by 2021 is expected to reach 24,000 MW. Besides own natural gas production, 4 BCF of LNG would be imported per day by 2024. It is being considered to achieve 60,000 MW power generation capacity and 6,200 MMCFD (own and import) gas production capacity by 2041. Finally by 2024, Bangladesh is going to become 33rd nuclear power generating country of the world. Power Sector Master Plan and Gas Sector Master Plan have been adopting as guiding policies for achieving these milestones. But unfortunately the plan for developing the essential own human capital for managing implementation of mega infrastructure projects (including the types and numbers) and their operation and maintenance has not been planned at all. No feasibility study has even been carried out for creating curricula for the institutions created in unplanned manners for human resource development. The only exception is Rooppur Nuclear power plant. The main agreement embodies’ comprehensive plan for competent human resource development and implementation of that has already been launched.

HR Development Plan Remains Ignored in Mega Plans

Power supply in Bangladesh made ground breaking through power supply to Ahsan Manjil. But over the first seven decades, the expansion was bare minimum to be mentioned. In 1972, the generation capacity in new born Bangladesh was merely 300 MW. Gas production capacity was also very low. Power and gas supply were mostly limited to Dhaka and few district headquarters only. Father of the nation Bangabandhu Sheikh Mujibur Rahman in the war ravaged country first took initiatives for developing own human resources for steering power and energy infrastructure development, operation and maintenance. He encouraged many non-resident Bangladeshi experts who were working abroad or in Bangladesh for foreign companies to join his development initiatives. Former finance minister late Saifur Rahman was among them. He created three organizations in the power, mining and energy sectors and engaged reputed experts of Bangladesh origin. These companies were given required autonomy for working independently. He created opportunity for training of officials in Algeria for the training of officials for exploration of petroleum (gas and oil) in Bangladesh.

Unfortunately after his brutal killing in 1975, the power and authorities of the Bangabandhu-created organizations were degraded from narrow political vision. These became increasingly bureaucrat-dependent side-tracking the essential technical experts and technologists. Energy sector became exclusively dependent on the technical and financial support of donor agencies and development partners. Foreign consultants were increasingly engaged in almost every activity from planning, conceptual designing, tender document preparation, tender evaluation, construction supervision and so on. Now the power and energy sector has become exclusively dependent on foreign consultants and experts.

Inflow of investment from donors and development partners started declining from the end of 1980s. Donors started providing many loan covenants for infrastructure development for gas exploration, development, power generation in the public sector and encouraging inflow of private sector capital. The development of power and energy sector has been seriously affected. Indiscipline and corruption became rampant during the so called doctored democracy by military rulers. The Chief Martial Law Administrator (CMLA) turned President LT General HM Ershad of course took some initiatives for exploring and developing new gas resources and setting up new power plants. However, reliance on foreign experts and consultants was also increased.  Winning popular mandate a democratic political government came to state power in 1990. But apart from concluding some Production Sharing Contracts (PSCs) for oil and gas exploration and a contract for coal exploration, the achievements in power and energy sector were bare minimum. Of course, initiatives were taken to formulate master plans for power and gas system and, in some areas, implementation was also started.

The power and energy crisis grew at an alarming proportion by the middle of 1990s. In 1996, another leading political party formed the government after winning the popular mandate. Gas production capacity was enough for meeting the demand, but a huge crisis in the power sector was created. Industrial and commercial activities almost came to a standstill situation, resulting in almost 8-10 hours of daily loadshedding. Import of industrial generators has been exempted from import duties and taxes. Industries started setting up captive power plants using limited volume of gas. Private sector power generation policy was adopted to overcome investment crisis in new power plant construction and five major power generation projects were approved for construction under this policy. During the tenure of this government during the 1996-2001 tenure, 10MW power plants were also opened to local private sector. In 2001 again, the BNP-led government came to state power. They stopped the process of many power plants development initiated by the immediate past government and over the entire period from 2001-2006 failed to carry forward the massive efforts of the immediate past government. An interim government ran the country between 2006 and 2008. Awami League-led government of grand alliance was again voted to power in end December 2008 and that government is about to complete its second term in the office soon.

There have been several milestones achieved in the power and energy sector over the past decade. In 2009, the generation capacity, including 1,700 MW captive, was 6,700 MW. At present, close to the end of 2018, the generation capacity is 20,000 MW, including 2,800 MW captive. The greatest success during this period is importing electricity from India through cross border connectivity. Now from two fronts, 1,160 MW of power is being imported from India. But the major failure is not starting exploitation of own discovered coal reserves. Though the gas production increased from 1,700 MMCFD to 2,700 MMCFD mainly from discovered and under operation gas fields, the gas crisis in the entire gas grid is very acute now. Consequently, power generation for national grid has become largely depended on imported liquid fuel, which was thought to be only a limited period option for crisis management. The government had no option but to add new liquid fuel power plants as it failed to complete most of the power plants planned under medium and long terms. Contribution of liquid fuel power plants is about 40%.

Though the Power System Master Plans (2010 and 2015) and Gas Sector Master Plan were formulated and acted upon, but these have no plan for required human resources development for operating facilities to be readied in 2030 or 2041. The works for updating PSMP 2015 is under process, but still there is no major initiative for human resource development. The power generation capacity envisioned for 2041 is 60,000 MW. Gas availability would be 6,200 MMCFD and most of it would come from imported LNG. For the planned 22,000 MW coal-based power generation, about 60 million tonnes of coal would need to be imported. No plan is visible until now for developing the required human resources for piloting the planning, driving the implementation, championing the operation and maintenance of these mega infrastructure projects.

Dependence on Foreign Experts

It can be concluded that from conceptual design (FEED), detail design, tender document preparation, construction supervision, testing commissioning, operation and maintenance of large infrastructure projects of the power and energy sector have become almost exclusively dependent on foreign consultants and experts. Even the expertise of very limited local professionals is also not effectively utilized. For example, PSMP updating and GSMP have been formulated by two foreign companies. There was enough scope for utilizing experienced local professionals having institutional memories. But they were ignored. Wind mapping of the country is being done by a foreign company. Recently, an initiative has been taken for biomass resource assessment of the country. Foreign consultant is also being considered for this. This would be clearer if we discuss about some specific projects of power and energy sector. A Chinese contractor is now operating the Barapukuria coal mine. The company has the obligation as per the contract to train and develop Bangladeshi human resources for operation of the mine. But that was not done. So far 13 years since the beginning of the mining operation, the Chinese company continues to operate the mine. The local company has now become entangled with controversy, failing to keep proper accounts of the coal produced.

Bangladesh without having past proven experience of constructing coal-based power plant is implementing two large 1,320 MW each imported coal-based power plants at Rampal, Bagerhat and Payera, Patuakhali in joint venture with Indian and Chinese companies. Preparation of tender documents, coal sourcing, coal transportation study and construction supervision are being done by foreign companies. There are no clear guidelines about how the local human resources could be integrated in the entire process. This situation impedes opportunities for developing competent local manpower in the future for such works. Bangladesh is one of the leading countries for development and operation of gas-based power plants in the region. Still for designing gas-based power plants and construction supervision, Bangladesh is relying on foreign consultants. Experts believe that by engaging a lead consultant and letting local experts working under his guidance, Bangladesh can develop competent workforce for the future.

For failure of public sector companies in developing the local manpower for mega projects, private sector companies are engaging foreign companies as O&M contractor for operation of their plants. Some public sector companies have also engaged O&M contractors. As per conditions of loans from the borrowers, more foreign companies would be required to be engaged in future for operation of mega projects. Experts observed that there must be a guideline for engagement of foreign consultants and O&M contractors. On of the mandatory provision, there must be on job training of local manpower.

The owner and operator of the first FSRU Excelerate Bangladesh limited (EBL) used flanges in the subsea pipeline in contravention of local and international code. The subsequent leakage through the flanges delayed RLNG introduction to Bangladesh gas distribution system for over three months. Petrobangla has failed to supervise the work and get the works done properly through its contractor. Petrobangla and GTCL miserably failed in selecting the right contractor for HDD river crossing of the Karnaphuli river -- the most essential component for RLNG evacuation to the national gas grid. Failures of the HDD contractor have put the entire LNG program into a grave uncertainty.

How the Training Fund Created from PSC Being Utilized

Every PSC between IOC and Petrobangla/EMRD provides for a fund created for training of gas sector officials for efficient exploration and development of petroleum resources, development of gas transmission and utilization of infrastructure. The proceeds of this fund are to be utilized for developing competent human resources for contract negotiation, monitoring and overview activities of IOCs. But this fund is being generously used for foreign trips of Energy Advisor to Prime Minister, State Minister of Power, Energy & Mineral Resources, their personal staff, EMRD officials going to seminars and workshops abroad. Again along with the technical manpower going abroad for specific foreign training, a large number of non-technical EMRD officials are going repeatedly for foreign tours. When asked, a senior official of Petrobangla, on condition of anonymity, informed the EP that only 25% of the Petrobangla and its companies’ manpower resources can be sent abroad for training under this fund. The lion’s share of the PSC training fund is being used by EMRD, PMO, ERD and Planning Commission officials. Many of these trained professionals, for lack of incentives and motivations, left their jobs and went abroad.

Training from Project Budget and Development Partners

There are opportunities for training project officials using the fund of most of the major projects of Bangladesh now. Scope has been created for inclusion of ministry officials also in the training program. But in most cases, instead of sending most of the officials engaged in projects, people having no connections of the areas of training are repeatedly being sent abroad depriving the genuine officials. EMRD and Power Division officials availing dozens of training on power and energy sector-specific areas are being posted to other ministries wasting the training funds. A ministry official informed the EP that only 50% technical officials are sent for training by using the project fund, the reaming 50% goes from the ministry. The training proposals are not approved unless the names of ministry officials are included.

The DG of Power Cell said foreign training of the officials has been increased over the past few years. About 50-60% technical officials are now being sent for training. He finds nothing wrong in sending the remaining 40% from the ministry for better project management.

Some sources in the ministry informed the EP that there were opportunities for 1,000 people to get foreign training every year. In that consideration about 10,000 foreign trained people should be there now. There is no information in the ministry about how many of these 10,000 trained personnel are still on the job and making contributions. Experts observed a database of the trained officials should be created and they must be utilized in areas of their expertise.

Local Training Institutions

Bangladesh Petroleum Institute (BPI) is the only public sector institute in Bangladesh for the training of energy sector officials. For the power sector, there is Bangladesh Water and Power Institute. Besides these, DPDC has an institute. Power and Energy companies on their own initiative also organize some on the job trainings. There have been continued efforts for strengthening the capacity of these institutes over the past ten years. But progress is not mentionable. Experts observed that the capacity of these institutes must be strengthened by increasing facilities, engaging experts and linking with reputed regional and international training institutes. These institutes must formulate round the year training programs from basic fundamental training to advanced training on innovative technologies. Sources said that concerned officials are keen for foreign training but few have interest for local training. Many do not even attend the training or pay required attention. For making the training programs effective, foundation training and on the job training must be made mandatory and made a precondition for job placement and promotion. On top of all, training of trainers program must be done and a panel of trainers must be data based. These trained personnel should be used for training.

For strengthening local training, the government has initiated a program for setting up a training institute in a place on the outskirts of Dhaka. But over the past few years, very little progress has been achieved.

Dhaka University Energy Institute

Dhaka University Energy Institute is providing training for the public sector officials over the past few yearsabout renewable energy. Around 500 officials have so far been trained. Dr Saiful Haque, Director of the institute, told the EP that a very positive enthusiasm has been created as a consequence of this training program in the renewable energy sector. They have plans to expand the training facility across the wider spectrum of the power and energy sector. But due to lack of fund, they are not being able to launch such program now.

Needs Assessment for Efficient Manpower

For achieving mid-income country status by 2021 and developed economy by 2041, the power sector has set targets of power generation capacity for 2021, 2030 and 2041. But no vision or plan is visible till now for a comprehensive implementation plan for required human resources development for successful implementation of the power and energy sector mega projects, operations and maintenance. There are plans for achieving 60,000 MW power generation capacity by 2041. Coal power will contribute 22,000 MW. Gas supply would be increased to 6200 MMCFD -- 80% of this would come through LNG import. Some 66 million tonnes of coal import would be essential for the coal power generation. The government took no initiative at all for mining substantial volume of superior quality coal.

Engr. Khaled Mahmood, Chairman of BPDB, said the absence of required number of experienced, efficient manpower is already been keenly noticed. This would turn into crisis in future. On the other hand, Engr. Md Quamruzzaman acknowledged that the lack of experienced manpower has already created issues right at the start of the LNG import. This crisis would deepen when more and more RLNG would be added to the national gas grid. He also admitted that no study has been carried out yet for assessing the requirement of human resource development.

BUET Professor Dr. M Tamim observed that there must be a needs assessment done centrally as soon as possible to determine how many trained personnel needed to add to the existing resource every year in the power and energy sector. From there it can be determined how many of them can be provided from university graduates and what proportion can come from technical institutes. Prof Dr. Firoz Alam of world reputed RMIT University of Australia said the requirement of trained manpower must be centrally assessed through appropriate needs assessment. Dr. Alam is also involved in an Australian government-supported training program for the Bangladeshi power and energy sector officials in Australia. According to him there has to be two aspects of the needs assessment – what type of focused training is required for the existing manpower and what type of new manpower is required for new mega projects and the training needs.

Internationally reputed Human Resource Expert and Director Sapcon DB Limited Mosaddek Shahid, who is a Bangladeshi Australian, said the needs assessment would address another aspect that how local universities and vocational institutes could support local industries and what kind of additional institutional supports and trainer resources would be required.

Experts observed that Bangladesh is queuing into fuel- importing country category. Hence it must need competent manpower for win - win contract negotiation. Bangladesh is lagging way behind in international contract negotiation. Besides, qualified and trained human resource is to be developed keeping in the view the efficient management of coal supply chain, LNG import, cross border power trading, coal-fired power plant development, operation, upgrading power and gas transmission, and distribution system to international standard.

Conclusion

The requirements of competent, experienced manpower have increased four times due to massive development of power and energy sector over the past 10 years. Special pay packages for the officials of the sector have been provided going above the national pay scale. The idea was creating efficiency and ensuring improved customer services with lesser number of skilled manpower. The sector is on a paradigm shift. Keeping pace with the changes, efficiency of the manpower must be continuously improved. Foreign training alone cannot create sustainability. On the job local training must also be provided on regular basis. For this, training academy of international standard needs to be established. Mere establishment of infrastructure would not be enough. With the assistance of qualified and experienced trainers, comprehensive curricula must be developed. Trainers must be trained first. Alongside the officials on the job, transparent process must be launched for recruitment of fresh manpower. Mosaddek Shahid said that not only qualified and skilled engineers, power and energy sector would also require operators. Training facilities must be ensured for preparing young people, who are passing the higher secondary levels. First, they would require some classrooms, preparatory training and, after that, specific sector-related practical exposure. Trained people must be given internationally accredited certificates after proper tests and examination.

A database of trained manpower should also be created to attach them with industries. The organizations would get trained manpower from the database. The trained human resource could get jobs abroad even after meeting the local requirements.

All the universities of the country must have linkage with the industries. Dr Firoz Alam said the knowledge imparted in the universities is merely fundamental with narrow focus. From the very outset, the relevant technical, economical and commercial aspects of the projects must be included in the university curricula. In the developed countries like Germany and Australia, this is the way universities nurse the future professionals for the industry. Dr. Tamim while talking about this said that it would not be possible to meet the future demand of the industries without setting up of linkages between the universities and industries. If the linkage can be established, better overseas job opportunities would be created for the trained, skilled people after meeting the domestic requirements. Establishment of linkage between the public universities and industries may take time. So at the initial stage, this linkage might first be set up between the private universities and industries.

Experts believe that there must be a condition for capacity development of local counterparts in the contract with engineering and consulting firms to be engaged for preparing tender document, long-term master plans, projects implementation and supervision. This trained manpower can be given responsibility of similar works in the subsequent projects. It would create efficient human capital in phases. Development of contract negotiation skill is a huge challenge now. A local team of observers must be included with consultants during any contract negotiation. This would prepare the local resources for future negotiations.

Separate groups of existing and newly developed human resource must be developed with specific targets for coal-fired power plants’ design, operation, coal supply chain management and LNG import, accounting and utilization. Arrangement for long-term foreign training must be done. These groups in return could train new sets of personnel to transfer their lessons learnt.

Considering all the pros and cons, a well-planned comprehensive capacity development program must be launched for the future needs of the sector. A special training fund might be created for human resource development and training, drawing contribution from all the public and private sector companies. On the other hand, the government must provide special allocation annually. If we cannot take required initiative now, Bangladesh would be exclusively dependent on foreign experts for operations management of all infrastructure of the power and energy sector.

  


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