Power Sector Development Program (Project Loan)

The Bangladesh Power Development Board corporatization target was a premature step, which underestimated the difficulties in the way of major reforms toward unbundling and corporatization in Bangladesh. The government has already changed its power sector reform agenda. Instead of corporatizing Bangladesh Power Development Board, it plans to restructure Bangladesh Power Development Board business functions into several generation and distribution strategic business units, which will operate under the existing legal structure and be functionally separate with more financial authority. The effectiveness of the strategic business units approach remains to be seen.