UNB, Dhaka :
The state-owned Infrastructure Development Company Limited, or IDCOL’s countrywide solar home system (SHS), which obtained recognition as the world’s single largest renewable energy program for benefiting the highest number of people, is coming across obstacles in its expansion.
“The SHS is experiencing impediments mainly from local influential quarters, who install the system, but simply want to believe it is a government-sponsored program that does not need to be paid for. So there is a lot of dilly-dallying in paying back money or monthly installments,” said an official involved in the program.
Becoming gravely concerned about the situation, IDCOL sought local administration’s help for the partner organizations (PO) who
execute SHS program at the field level. According to official sources, the chairman of the state-owned organisation and Economic Relation Division (ERD) Secretary Mohammad Mezbahuddin sought the cooperation through a recent letter to deputy commissioners.
IDCOL has been a state-owned special purpose company under the ERD created by the government in 1997 as a non-bank financial institution licensed by Bangladesh Bank.
Though the organization has been operating as a financer for different infrastructure projects in the private sector, its biggest success has been the solar home system, for which it has been known as a global pioneer.
Under the IDCOL initiative and financing, so far 3.2 million SHSs have been installed across the country, with another 3 million planned for implementation by 2030.
To execute the world’s largest single SHS program, IDCOL has appointed about 47 partners organization across the country including a number of big NGOs.
These POs have been the main tool of the state-owned body to carry out the solar program, as they are the ones to sell the solar home systems to the people usually in off-grid, rural areas. The POs also arrange low-cost financial loans from IDCOL for them.
With the low cost loans and grants, the SHS has become a very popular scheme in the off-grid rural areas. Even, many on-grid people are also buying solar home systems to ensure uninterrupted green power.
But recently, many POs have started facing a new experience as some locally powerful beneficiaries of the solar home systems are now reluctant to pay back the loans through monthly installments.
IDCOL and PO sources said most of these people belong to a particular political party and they are trying to display their political might to shore up their influence.
Sources at IDCOL’s headquarters say they are concerned about the situation.
The IDCOL chairman, who is also ERD secretary, wrote letters to each of the deputy commissioners (DCs) of 64 districts asking them to cooperate with the POs to realize money from the SHS owners who purchased the system through IDCOL loan.
In the letter, the IDCOL chairman said, “Some 47 partner organizations are engaged in selling the SHS in direct cash or through monthly instalment. They provide post-sales service and collect their monthly instalments. But now they are facing obstacles in expanding their program and realizing their instalments. Once they receive the cooperation of the administration, most of their problems get resolved.”
He also mentioned that about 3.2 million SHSs have been installed which resulted in ensuring access to electricity to some 14 million people, or 9 percent of the country’s total population.
“The solar home systems have brought improvement to the daily lives and businesses of the beneficiaries. The SHS programme also annually saves about Tk 13,000 crore by reducing the consumption of kerosene. It also created about 7 million employment opportunities directly or indirectly.”
Meanwhile, many of IDCOL’s partner organizations are becoming reluctant to expand their programmes as the huge amounts of money they are spending are ending up stuck due to non-re
The state-owned Infrastructure Development Company Limited, or IDCOL’s countrywide solar home system (SHS), which obtained recognition as the world’s single largest renewable energy program for benefiting the highest number of people, is coming across obstacles in its expansion.
“The SHS is experiencing impediments mainly from local influential quarters, who install the system, but simply want to believe it is a government-sponsored program that does not need to be paid for. So there is a lot of dilly-dallying in paying back money or monthly installments,” said an official involved in the program.
Becoming gravely concerned about the situation, IDCOL sought local administration’s help for the partner organizations (PO) who
execute SHS program at the field level. According to official sources, the chairman of the state-owned organisation and Economic Relation Division (ERD) Secretary Mohammad Mezbahuddin sought the cooperation through a recent letter to deputy commissioners.
IDCOL has been a state-owned special purpose company under the ERD created by the government in 1997 as a non-bank financial institution licensed by Bangladesh Bank.
Though the organization has been operating as a financer for different infrastructure projects in the private sector, its biggest success has been the solar home system, for which it has been known as a global pioneer.
Under the IDCOL initiative and financing, so far 3.2 million SHSs have been installed across the country, with another 3 million planned for implementation by 2030.
To execute the world’s largest single SHS program, IDCOL has appointed about 47 partners organization across the country including a number of big NGOs.
These POs have been the main tool of the state-owned body to carry out the solar program, as they are the ones to sell the solar home systems to the people usually in off-grid, rural areas. The POs also arrange low-cost financial loans from IDCOL for them.
With the low cost loans and grants, the SHS has become a very popular scheme in the off-grid rural areas. Even, many on-grid people are also buying solar home systems to ensure uninterrupted green power.
But recently, many POs have started facing a new experience as some locally powerful beneficiaries of the solar home systems are now reluctant to pay back the loans through monthly installments.
IDCOL and PO sources said most of these people belong to a particular political party and they are trying to display their political might to shore up their influence.
Sources at IDCOL’s headquarters say they are concerned about the situation.
The IDCOL chairman, who is also ERD secretary, wrote letters to each of the deputy commissioners (DCs) of 64 districts asking them to cooperate with the POs to realize money from the SHS owners who purchased the system through IDCOL loan.
In the letter, the IDCOL chairman said, “Some 47 partner organizations are engaged in selling the SHS in direct cash or through monthly instalment. They provide post-sales service and collect their monthly instalments. But now they are facing obstacles in expanding their program and realizing their instalments. Once they receive the cooperation of the administration, most of their problems get resolved.”
He also mentioned that about 3.2 million SHSs have been installed which resulted in ensuring access to electricity to some 14 million people, or 9 percent of the country’s total population.
“The solar home systems have brought improvement to the daily lives and businesses of the beneficiaries. The SHS programme also annually saves about Tk 13,000 crore by reducing the consumption of kerosene. It also created about 7 million employment opportunities directly or indirectly.”
Meanwhile, many of IDCOL’s partner organizations are becoming reluctant to expand their programmes as the huge amounts of money they are spending are ending up stuck due to non-re
