"Yes, we are certainly going to provide the support. We are looking at it as a big crisis and we are going to give it on an emergency basis," Praful C Patel, WB vice-president for South Asia, told The Daily Star yesterday, before leaving Dhaka after a three-day visit.

He said the power sector is a priority area and the government should go about the problem head-on with support from the WB.

Earlier at a press conference, Patel said, "Reform in the power sector is critical since it will impact on the economy at large."

Urgent reforms are needed particularly for strengthening the sector's financial viability and increasing the electricity-generating capacity, he observed.

It is essential that the government undertake some key reforms like restructuring power companies and ensuring full financial recovery of the Power Development Board (PDB), he added.

The government has approved Tk 3,633 crore in the coming fiscal's ADP allocation for the power sector. Sector-wise, it is the highest allocation and 31 percent more than the preceding year's, planning ministry sources said.

Of the allocation, 56 percent is meant for setting up 14 new power plants with an electricity-generating capacity of 2,505 megawatts. The Economic Relations Division (ERD) will seek $300 million from the Bretton Woods institution for the power development projects.

The revised allocation for the sector in the current fiscal is Tk 2,779 crore, which is 6 percent less than that of preceding year.

Allocation for the power sector decreased by 0.47 percent in FY 04-05 and it witnessed a slight increase (0.47 percent) in FY 05-06.

The government may ask for the allocation under the Bank's special scheme Power Sector Development Credit (PSDC) programme instead of the existing Development Support Credit (DSC) programme.

Allocation for the power sector between FY 02 and FY 07 was Tk 17,244 crore, mostly for developing distribution lines. The expenditure was Tk 14,040 crore as of December 2006.