The government yesterday increased electricity prices of four distributing companies by 5.98 to 6.99 percent, with effect from March 1.

Bangladesh Energy Regulation Commission (BERC) Chairman Syed Yusuf Hossain announced the price hike at a media briefing in his office in the capital.

He said the additional revenue earned by the four companies due to the power tariff hike, will be spent to increase power generation, and to curb system loss.

He said after a long hearing of different stakeholders’ concerns, BERC decided to increase the power tariffs of Bangladesh Power Development Board (BPDB), Dhaka Electric Supply Company Limited (Desco), West Zone Power Distribution Company Limited (WZPDC), and Dhaka Power Distribution Company Limited (DPDC).

The domestic power tariff of four distribution companies?PDB, DPDC, DESCO and WZPDC?has been increased by 6.03, 6.99, 6.29 and 5.98 per cent respectively, effective from March 1.
The Bangladesh Energy Regulatory Commission (ERC) announced the new power tariff Tuesday at a press conference held at its headquarters?TCB Bhaban. ERC chairman Syed Yusuf Hossain addressed the press conference in presence of all members of the ERC.
The demand charge has also been increased from Tk 10 to Tk 12. The new service charge would be at Tk 6.0 for 1 phase in place of existing Tk 5.0 and it would be Tk 27 for the 3 phase, which was Tk 25.
Except the agriculture sector, all other sectors including the industry would have new power tariff. The agriculture sector would continue to enjoy the special rate of Tk 1.93 per unit.
The domestic consumers of all four distribution companies would have to pay Tk 2.60 per unit in place of Tk 2.50 for consuming 1-100 Khw power, which would be Tk 3.30 for the slab of 101-400 Khw, which was Tk 3.15. For the above 400 Khw slab the rate would be Tk 5.65 per unit in place Tk 5.25
The non-residential customers will not come under the new power regime. They will be charged on the basis of existing Tk 3.35 per unit.
The flat rate of the commercial enterprises would be Tk 5.58 per unit in place of Tk 5.30. The off-peak power tariff for the commercial organisation would Tk 4.05 in place of Tk 3.80. During the peak hours the power tariff would be Tk 8.45 in place of Tk 8.20
The ERC chairman while announcing the new power tariff said that the cost factor of all distribution companies and the affordable capacity of the power consumers were considered while recommending the tariff regime.
He, however, admitted that the impact on the market was not considered while deciding in favour power tariff hike. He also said that analyzing the market situation was not within their domain. The entrusted government organisation would per form this responsibility.
ERC member Mokhlesur Rahman Khandaker, however, said that there would be impact on the market situation due to increase of the power tariff but that impact should have to be little.
The financial strength of the distribution companies would be consolidated with the increase of the power tariff. The PDB would earn additional Tk 114 crore per year, which would be Tk 132 crore for the Dhaka Power Supply Company (DPDC). The additional earning of the Dhaka Electric Supply Company would be Tk 57 crore per year and it would be Tk 26 crore for the West Zone Power Distribution Company (WZPDC).
The ERC chairman hoped that the distribution companies would utilized their additional for offering better services to the power cutomers

BPDB has been selling power in Rajshahi, Chittagong, Mymensingh, Rangpur, Comilla, and Sylhet, Desco supplies power to Mirpur and Uttara areas of the capital, WZPDC sells power in Barisal and Khulna, and DPDC supplies power to the capital’s Demra and Jatrabari areas, and to Narayanganj district.

The BERC chairman said BPDB will make an additional profit of Tk 114 crore, Desco will make additional Tk 97 crore, DPDC Tk 132 crore, and WZPDC Tk 26 crore in a fiscal year, due to the price hike.

There will be no negative impact on the prices of essential commodities on the local market, as the power tariff hike is reasonable, he predicted

About :West Zone Power Distribution Company (WZPDC).

West Zone Power Distribution Company (WZPDC), incorporated in 2003, took over the electricity supply in the area of five towns around Khulna in April 2005. ? Electricity supply in rural areas is performed through 70 consumer co- operatives (PBSs) which are co-ordinated and monitored by the Rural Electrification Board (REB). The power sector of Bangladesh is currently undergoing a reform

Study link

http://www.adb.org/business/opportunities/not/ban/ban1885a.asp

http://www.adb.org/Documents/TACRs/BAN/35486-BAN-TCR.pdf

History of Electricity Generation and Distribution in Bangladesh

?

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Bangladesh is in energy problem ,,,to solve the reality through immidiate action ,The Bangladesh government has approved a project to give away more than 30 million energy saving bulbs countrywide in a bid to save national power consumption.

The two-year project at a cost of Tk 279 crore will distribute 1.5 crore (15 million) bulbs in the first phase and 1.75 crore (17.5 million) in the second phase.

A meeting of the Executive Committee for the National Economic Council (ECNEC) approved the ‘Efficient Lighting Initiative for Bangladesh ‘ project on Tuesday.

Planning Secretary Habibullah Majumder told reporters after the meeting that most of the bulbs would be distributed by Bangladesh Palli Bidyut Samity (PBS), while PDB, DESA, DESCO and other organisations would also be involved.

PBS will distribute bulbs in 15 zones in the first phase of the project, said the planning secretary.

The ECNEC meeting, chaired by finance minister AMA Muhith as the prime minister was absent, approved a total of 8 infrastructure projects worth Tk 1,532 crore, including the efficient lighting project, of which Tk 830 crore is expected to come as project aid.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Just in right time !!! (source )In the wake of serious gas crisis in Bangladesh which among other problems has created impediments to arrange fuel for power generation and Urea fertilizer production, two significant developments have created new expectations. Petrobangla at long last accepted the third party assessor report submitted by Chevron on Bibiyana gas reserve. It is a significantly large field having a reserve of 4Tcf + which effectively doubles the earlier Ultimate Recoverable Gas Reserve. The other development is that the government has set up mind to revise cabinet’s economic committee decision to award nine offshore gas blocks instead of three blocks awarded to two multinational companies. The two decisions can have significant impacts in the energy scenario of Bangladesh.
Bibiyana Episode:
We all knew from the day Bibiyana reserve assessment was submitted to PB in year 1999 that Bibiyana is significant world class gas field. At that time I had opportunity to work on behalf of Petrobangla to assist Unocal in Jalalabad Gad field development. Accompanied by senior Unocal executives several times flew to Bibiyana during drilling of Bibiyana well 2. Few senior level technical personnel of Unocal and later Chevron interacted with undersigned at different stages regarding Bibiyana Gas field development. But PB professionals having very shallow knowledge of reservoir engineering were illogically contesting reservoir assessment report and analysis of Chevron. At one stage some inexperienced professionals even insisted that production from Bibiyana should be restricted 450MMCFD. If you check PB daily Production and Marketing report it will appear that even in early 2009 Bibiyana production capacity used to be shown as 450MMCFD when it used to produce @550MMCFd. It was first changed to 500 and subsequently to 600MMCFD without any explanation.
We all knew that Unocal/Chevron proposed to build a pipeline from Bibiyana to export gas to India. As we were designing Rashidpoor ?Ashuganj at that time we had several interactions with concerned professionals of Chevron-Unocal professionals. Later ADB wanted to finance a pipeline having 500MCFD without compression and 1000MMCFD with compression .Initially it also proposed to export 300MMCFD to India dedicating 200MMCFD for Western Region. When Bangladesh regretted to accept Gas export ADB declined to fund the Rashidpoor-Ashuganj Loop Line Project .Bangladesh had to build it with its own money.
When we were constructing R-A loop line one day the then Energy Secretary while visiting Gas systems in Brahamanbaria region we had very useful meeting after dinner at Habiganj Gas Field gust house. The decision to develop Moulavibazar and Bibiyana to meet expanding Gas demand was taken. The following day we visited Moulavi Bazar and Bibiyana Gas fields and ball started rolling.
Simultaneous to Bibiyana development the supplementary actions for gas transmission capacity expansion were planned in the form of setting up gas pipeline compressor stations at Muchai, Ashuganj and Elenga. Chevron Developed Moulavi Bazar and Bibiyana in time. Compressor stations were supposed to be operational by early 2008. But till February 2010 construction of any compressor station has not started yet. Chevron is allowed to produce @650MMCFD in a capacity saturated transmission system which is also partially filled with gas condensate in absence of routine on-stream pigging. Consequently gas system low pressure has created panic.
We have seen a parliamentary committee recently discussed these issues and possibly on wrong advice stated that Chevron supplied unspecified gas into Transmission grid. Chevron plant at Bibiyana has higher capacity. There are no reasons that it would supply unspecified gas .GTCL during system calibration would definitely have spotted this if that happened.
Petrobangla acceptance of higher reserve has created opportunity to further develop Bibiyana to produce @1200MCFD. It would be far more appropriate if Chevron ?GTCL together can build a separate cross Country High Pressure pipeline from Bibiyana to Monohardi with a spur to Ashuganj. Significant works on ROW and Route were done we know for export pipeline. These will feed required Gas in under implementation Transmission pipelines all the way up to Khulna and Mongla. If PB Gas fields are also simultaneously developed and Magnama and Haitya exploration yield positive development by 2016 another 1500MMCFD gas will be available for use. If domestic Coal is used is extensively used for power generation Bangladesh may have gas security for Urea production and other use. But it is too early to be complacent .Significant works are essential to attain that situation at every segment of Gas value chain.

Revision of Offshore PSC Award:

We know Bangladesh has already fallen way behind India and Myanmar in offshore exploration. Taking our advantage they have made significant strides. We all know Bangladesh was first to start offshore exploration in 1974. But after Bangabandhu subsequent governments failed to carry forward good works. 4 Party alliance governments at the last stage started the initiative which Care Taker Government significantly advanced. Two IOCs Conoco Philips of USA and Tullow of Ireland were selected for PSC for 8+1=9 offshore blocks. But for silly reasons during approval Conoco Phillips was offered two blocks instead of 8 and Tullow one .Under the under consideration revision Irish company Tullow Bangladesh Limited will get block No-6 instead of block No-5 awarded to it while the US company ConocoPhillips South Asia New Venture Limited will get blocks No-10, 11, 12, 15, 16, 17, 20, 21 instead of blocks No-10 and 11.
The Conoco Philips bid for these blocks and were selected as evaluated bidders. But PB committee also recommended to make award accordingly .During negotiation for award of PSC the IOC claimed to award these in accordance to their bid. Perhaps Government was concerned for strong objections of India and Myanmar as they claimed significant portion of the blocks. Conocco Philips observes that while dispute resolution is in progress there is ho harm in carrying our preliminary surveys. In case of Tullow the situation is different .70% of the block 5 has been claimed by India so they requested to award block 6 instead. Well these could be always settled through negotiation.
Wonder why Conoco Philips situation drifted to this stage. Any Company has to spend significant time money and resources to submit winning bids. If they are asked to sign truncated works they have every reason to fell deprived. We are proving novice after years of brainstorming.
If PSCs could be signed in December IOCs could carry out some work before sea gets rough. Now IOCs have to wait till November at least .Another dry season for working in offshore is lost.
It will take at least 7 years to reap any benefit out of off shore exploration. Hopefully by that time maritime boundary disputes will be resolved either amicably or through arbitration.
Among many frustrating news the two significant developments in Bangladesh gas sector will create some hopes among mid stream and down stream investors. Our coal , our gas will be much better and more feasible options than Imported Coal and LNG.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Source

Through The Analysis about ?about The recent accord between New Delhi and Dhaka

Gowher Rizvi, adviser and special representative to Sheikh Hasina, prime minister of Bangladesh, was part of the team that negotiated the accord between New Delhi and Dhaka recently. Humra Quraishi spoke to Rizvi:

What will Bangladesh gain from this accord?

It would be better to rephrase the question: What do both India and Bangladesh gain from this accord in order to understand the spirit and philosophy that informs the agreements? It is the most complete win-win agreement that has ever been negotiated between any two countries in the region. I believe it has set a benchmark for other bilateral agreements. The accord has sought to remove all the irritants that have dogged the relationship between the two countries. It has made mutual trust and interests as the basis of relations between two equal democracies. The immediate agreements on security, border demarcation, trade, connectivity, environment, water, investments etc are historic and wide-ranging. In fact, this agreement has been correctly described as ‘transformative’ and a ‘game changer’.

Two obvious issues of friction between India and Bangladesh have been sharing of rivers and border skirmishes. Will the accord provide relief?

We want to transform the border of confrontation and conflict into one of peace and prosperity. We have reached substantive agreements on border demarcation, on adverse possessions and for solving the problem of access to enclaves. We are actively working on the demarcation of the last few miles of the border. We hope to complete the border agreements in the next three months. We are working to make sure that our border security personnel engage in confidence-building measures and commanders hold ‘flag meetings’ periodically to resolve outstanding issues before they actually flare up into cross-border firings. We have agreed to set up a number of border markets.

Our starting point in the discussion was that shortage of water is hurting people on both sides. The rivers that run through our countries cannot be managed, trained or harnessed in piecemeal efforts by different countries but rather through a joint strategy for managing the entire basin. The rivers from head to mouth are one single entity and have to be managed as such. Water distribution has to be fair and equitable. So, we have agreed to jointly collect hydrological data and enter into ad hoc interim agreements.

How do you see the relations between the two countries growing?

India has offered one billion dollars in concessional loan to Bangladesh that would have been difficult to imagine a few years ago. India will help Bangladesh build and upgrade its transport infrastructure, which will benefit both countries. The move to give 250 megawatt of electricity as a priority will help to speed up industrialisation in Bangladesh. This is just the beginning. The agreement should be seen as an investment in our vision for the future of South Asia. India is rapidly emerging as an economic superpower and we in Bangladesh hope to become partners with India in our progress and development and can partake of India’s affluence. Our hope is India will give us unrestricted access to its huge market and unilaterally allow us duty-free access. The prosperity and stability of Bangladesh is just as much in India’s interest as it is in our own.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend

Bharti Airtel has entered Bangladesh by buying Warid, the telecom operator with a 5% market share. But Grameenphone, the country?s largest telco Oddvar Hesjedal, CEO, Grameenphone
with about 45% market share, has warned that any attempt by the Indian operator to induce a price war there would have a disastrous impact on Bangladesh?s telecom market. Grameenphone, in which Norway?s Telenor has a majority stake, said that mobile tariffs in Bangladesh are the lowest in the world ? even below that of India?s ? and further reductions cannot be sustained, especially by the smaller players in that market. Grameenphone?s CEO Oddvar Hesjedal spoke to ET at the recently concluded Mobile World Congress in Barcelona. Excerpts:

What do you think of Bharti Airtel?s entry into Bangladesh?s telecom market?

We welcome competition. My fear is Bharti will attack the market on the price-front and send tariffs plunging as the company is too focused on grabbing market share. It may resort to this move regardless of how much it costs. It (Bharti) did this in Sri Lanka. That is good for subscribers, but not for the sector. Tariffs in Bangladesh are already the lowest in the world. All other factors have remained the same so tariffs cannot come down anymore. Grameenphone is the only operator in Bangladesh that is profitable so far. If tariffs fall further, it will have a big impact on the profitability of other operators.

Will Grameenphone share infrastructure with Bharti in Bangladesh?

We are getting into infrastructure sharing with other operators. So far, Bharti has not approached us, but indications are that they are knocking on the door now. We are open to sharing our infrastructure with our competitors.

As Bangladesh?s largest telco, how do you see the country?s communication market, both short term and in the considerable future?

The telecom penetration in Bangladesh is about 33%. But this is SIM penetration and the real numbers will be between 24% and 27%. The total number of mobile users are expected to double in the next five years to 100 million. We are well placed to ride the growth as Grameenphone?s networks cover 99% of the country?s population and about 90% of the geographical area. Bangladesh is expected to come out with its 3G norms soon and its regulator is closely watching the scene in India. Telecom contributes about 8% of the country?s GDP and of this, Grameenphone?s contribution is more than 50%.

In Bangladesh, the 3G auction may not be the best option, but, if the upcoming auctions in India fetch huge revenues, there will be sections in Bangladesh, who would demand us to adopt a similar process. The internet penetration through fixed lines is extremely low and is less than 1 million. We have about 2 million customers who use data and internet on their mobiles and about 50% of these are active users. Our market cap is 22% of the total value of all the companies listed on the Bangladesh exchange.
Grameen?s parent, Telenor, has launched operations in India under the Uninor brand. What are the learnings that you can take to India from Oddvar Hesjedal, CEO, Grameenphone
Bangladesh?

A lot of our experience in Bangladesh can be taken to India. Our understanding of the market, the distribution model we employ can all be replicated in India. Just like India, pre-paid segment in Bangladesh accounts for over 98% of its mobile users.
Indian operators, such as Bharti, have an EbitDa of about 40%, while the average minutes of usage per month is around 446. What is it in the case of Grameenphone?

Our Ebitda margins have been over 50% for the past five quarters. This is despite having to share 5.5% of our annual revenues and 35% of our profits with the government as levies. The minutes of usage is about 310 per month, but this depends on tariffs. When tariffs fall, there is a sudden surge in usage, but it soon goes back to the earlier levels. At present, non-voice revenues are less than 5% of Grameenphone?s revenues. We got a mobile banking licence recently and will launch financial services soon. We are looking to offer foreign and domestic money transfers and remittances through mobiles. Bill payments are now being done though mobile phones by our customers. We are also launching an IT company. Considering we run the IT requirement of Grameenphone, we can do the same for other clients too.
About : Bharti Airtel
Airtel comes to Market from Bharti Airtel Limited, one of Asia?s leading integrated telecom services providers with operations in India, Sri Lanka and Bangladesh. Bharti Airtel since its inception, has been at the forefront of technology and has pioneered several innovations in the telecom sector.

The company is structured into four strategic business units – Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 95 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos.

• share:
• Bookmark on Delicious
• Digg this post
• Recommend on Facebook
• share via Reddit
• Share with Stumblers
• Tweet about it
• Subscribe to the comments on this post
• Tell a friend