Bangladesh on Monday signed an agreement with India for buying power. The accord, valid for 35 years, was signed between the Bangladesh Power Development Board (BPDB) and the Power Grid Corporation of India Ltd (PGCI) in the presence of Bangladesh Finance Minister Abul Maal Abdul Muhith, Energy Adviser to the Prime Minister Tawfiq-e-Elahi Chowdhury and other high officials of the two countries.

BPDB secretary Azizul Islam and PGCI executive director Arun Kumar signed the deal.

Under the agreement, Bangladesh would buy 500 MW from Indian power plants and import it through the PGCI’s regional transmission system.

The power will be transmitted through a 400 Kv switching station and a 400 Kv single circuit line. The PGCI will construct a 400 Kv double circuit line stretching from Bahrampur in India to Bheramara in Bangladesh.

Initially, 250 MW will be made available by India. The transmission is expected to start in 2012.

The terms and conditions as well as the tariff will be set by the Central Electricity Regulatory Commission of India. The agreement, however, has a provision for amending the tariff from time to time. Bangladesh will have to make the payments within one-and-half month from the date of billing.

Mr. Muhith termed the signing of the deal ??a dream of regional cooperation coming true.?? Mr. Chowdhury said, ??This is a small step for Bangladesh and India, but a giant leap for regional cooperation.??

The agreement is the result of a Memorandum of Understanding signed in January, during Bangladesh Prime Minister Sheikh Hasina’s visit to New Delhi

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Power is the most thrusty infrustucture seek of Bangladesh, A good report on power prospect shows the most sustainable way of power geration for Bangladesh. Bangladesh can meet about 80 percent of her power demand using renewable energy including solar and wind power systems.
Dr Sajed Kamal, a scientist and teacher of Brandeis University, Massachusetts in USA, made the opinion at a seminar titled ??Solar Energy Resource: Bangladesh??s Un-utilizing Energy Storehouse?? at Dhaka Reporters Unity (DRU) in the city on Friday.
In his speech, Dr Sajed Kamal said: ??Germany and the Latin American countries including Cuba are now planning to generate 80 percent of their power by setting up renewable energy systems and we should consider these methods to address our ongoing power crisis??
As keynote speaker, Dr Sajed Kamal in a power point presentation displayed the technology used by the western countries for generating power from renewable sources.
He said: ??The entire world is now giving attention to generate power from renewable sources. It is high time for us to make immediate plans to generate power from renewable sources.??
He added: ??Bangladesh has a great potential. We??ve huge solar and wind energy, but we never consider using these sources of energy to address our power demand.??
Mentioning the reason for global warming, Dr Sajed Kamal said the global temperature has been rising gradually due to the use fossil energy all over the world.
He suggested using renewable energy including solar and wind power to permanently address the country??s power crisis and also contribute to reducing global warming.
The expatriate scientist urged the government to take a long-term plan to set up renewable energy system in the country.Bangladesh Poribesh Andolan (BAPA) organized the seminar, which was chaired by former adviser of the caretaker government and BAPA vice-president Advocate Sultana Kamal.
Prof Dr Saiful Haque and Prof MM Akash of Dhaka University, and Engr Dr Khursedul Islam also spoke at the seminar
Sources :

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The government yesterday promised to make investment in the cash-strapped power sector more attractive.Finance Minister AMA Muhith on Saturday sought investment from the private investors from home and abroad in the country??s energy and power sector

The assurance came at a conference on “Investment in Power Sector of Bangladesh: Opportunities and Challenges” at Sonargaon Hotel in Dhaka. The government also suggested doubling the price of CNG.

More than 100 potential local and international investors gathered at the hotel to show their interest in Bangladesh government’s call for investment in the power sector.

Addressing the daylong conference, top government executives also assured them of every incentive and the right price if they invest in generating power.

The conference was a follow up of the road shows the government organised in London in 2009 and Singapore and New York this year to attract entrepreneurs from across the world into investing in the power sector.

The Power Division organised the conference, which was the first of its kind in Bangladesh, to reflect the government’s commitment to move forward with the ongoing activities in the power sector.

Speaking at the inaugural session as the chief guest Finance Minister Abul Maal Abdul Muhith said despite many hurdles, the economy of Bangladesh is growing reasonably and there is a huge potential of investment in various sectors, including power.

He said about 40 percent of the country’s power plants are over 40 years old and not in a position to produce at their capacity. “The gas shortage is also causing problem,” he said.

He suggested to double the price of compressed natural gas (CNG) as the present CNG price is one-fourth of liquid fuel. However, he reaffirmed that the government would continue the subsidy to keep electricity within the reach of common people.

“Please do not expect we will double the price, but we will adjust the price in phases,” he said.

“We need huge subsidy to meet the urgent demands by generating electricity with some costly resources,” said the minister.

The government has taken initiatives for setting up rental power plants, which will be very costly, said the finance minister.

“I am sure gas supply will eventually increase with concerted and sustained efforts in exploration, which will help attract more investment in the power sector, and eventually ensure growth of much higher than the present rate.”

He said investors in the power sector have long been sceptical about the government’s ability to pay for purchasing the power they will generate.

Muhith said the government is working to prepare a coal policy to extract the country’s coal deposit for power generation. He hoped that the policy would be finalised by the year.

The finance minister emphasised the need for introducing regional energy trade and said Bangladesh should not have power crisis from mid 2012 as the government ha taken many projects to mitigate the shortage.

“We can easily take the country’s growth rate up to eight percent by quickly solving the power crisis,” he observed.

Chairman of Power Development Board (PDB) SM Alamgir Kabir gave details of the country’s present power situation, the demand and supply gap, and the scope for investment, the government mega plan and financial challenges in generating power.

Giving a year-wise projection of power generation, he said the government has planned to generate about 10,000 megawatts of electricity by 2015 by setting up of power plants in private and public sectors. “The government is promoting private sector investment in Bangladesh,” he added.

Energy adviser to the prime minister Towfiq-e-Elahi Chowdhury said all the organisations of the government are making concerted effort to achieve the target. “We are very open to you,” he told the investors.

He invited investors to come forward and take the benefit of investing in the power sector and help meet the huge present and future power demands.

Executive Chairman of the Board of Investment SA Samad said the energy sector needs 24 percent growth if the country’s economy grows at eight percent.

Summit Group Chairman Aziz Khan came up with the drawbacks of re-tender of bidding and delays. He said this costs a lot to the investors of Bangladesh and abroad.

He identified the large difference between cost of electricity and the sale price as a major challenge.

Chairman of Parliamentary Standing Committee on Power, Energy and Mineral Resources Mohammad Shubid Ali Bhuiyan, State Minister for Power Enamul Huq and power secretary Abul Kalam Azad also addressed the inaugural session.

In the first working session titled “Investment Opportunities”, the government executives, investors and representatives of development partners meticulously explained the investment opportunities in power, gas, liquid fuel and transport sectors.

Genting Energy, Daewoo International, Getco Ltd, Sinha Power Generation, Dutch-Bangla Power, Dana Engineerings, Bangla Cat, GBB Power Ltd, Spectra Group, Vito Asia Private Ltd, Cap Asia, New Line Groups and Tek Energy were among about 80 local and foreign companies that took part in the conference.

Different ministries also set up stalls at the conference venue highlighting their activities and the opportunities of investment.

The conference ended with one-to-one meeting between government officials and potential investors.

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UNIDO raedy to Support Bangladesh for Green Industries, Director General of the United Nations Industrial Development Organization (UNIDO) Dr Kandeh K Yumkella today assured Bangladesh of providing technological support to supplement its efforts in greening of industries.
“As Bangladesh embarks on its green industry development path, access to best available technologies is essential. UNIDO’s green industry initiative can support to that end,” said Dr Kandeh while speaking a seminar at a city hotel.

Industries Minister Dilip Barua spoke as the chief guest at the seminar on ‘Application of Green Technologies in SMEs for Sustainable Industrial development in Bangladesh’ while Industries Secretary Dewan Zakir Hossain in the chair. Representatives from trade bodies, businessmen, industrialists, entrepreneurs and experts took part, among others, in it.

Director of Environment Management Branch of UNIDO Dr Heinz Leuenberger presented a keynote paper on Greening of Industries while another paper on ‘Application of Green Technologies’ presented by chief executive officer of a US-based Xenergeia Inc Dr Sabir Majumder.

Dr Kandeh said three factors are very important for resource efficiency of industries-material consumption, productivity and carbon emissions.

Quoting a UNIDO study dubbed Resource Use and Resource Efficiency in Asia, he said the per capita material consumption in Bangladesh is very low and is falling due to high population growth.

Material productivity values are very high in Bangladesh compared to some emerging countries, he said citing China’s example, which could stem from the fact of poverty leads people to use the few available resources more efficiently.

“Bangladesh required external support to increase material affluence and cut poverty,” said UNIDO DG.

He said UNIDO’s agenda for greening industries is to ensure that all manufacturing industries produce more while using less resources and thus generate fewer emissions and waste.

Dilip Barua narrated SMEs growth is up-and-coming saying around six millions SMEs and micro-enterprises are contributing 25 percent to the GDP side by side with creating jobs for many. Strengthening of SMEs is key to implement the Vision-2021 as envisioned by Prime Minister Sheikh Hasina, he said and added transforming Bangladesh into a “middle-income country” is an ultimate goal of the vision.

The minister touched upon issues including power shortage, alternative energy sources and IDCOL’s green energy initiatives. “We must understand that we cannot promote industries that affect our live and environment. Developed countries must play proactive and sincere role in this regard,” said Barua

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In an exclusive interview with ET Now , R S Sharma , CMD, NTPC, talked about NTPC’s future plans and prospective

MoU to be signed with Bangladesh. Excerpts:

Leaving aside the reasons for the disqualification of L&T from your bulk tender orders, could you just clarify for our viewers if there is going to be a fresh tender that you will be floating for supercritical boilers and if yes, then will L&T be allowed to re-bid?

Let me tell you, we will not like to talk anything on this particular issue at all as this is the matter, which is with the board for discussion.

If I am not wrong, then NTPC has added about 1560 megawatts of capacity in FY10, so taking your total operating capacity to 31704. Now could you tell us how much capacity is currently under construction and how much do you expect to commission in the current fiscal year?

Yeah. Right now 18000 megawatts is under construction and out of which, 4160 megawatts are going to be commissioned this year.

Alright. You had earlier targeted adding something like 22 gigawatts in the 11th plan. Now has that target been revised because we have only seen 4 gigawatts being added so far in the plan period?

Our target so far for the 11th plan is 78000 megawatts. The Government of India fixed up around 17000 megawatts in the plan.

Was that for the whole plan period?The Government of India had given us a target of around 17000 megawatts to add during 11th plan. Out of which, we have already added up around 3750 megawatts. We are going to add 4160 megawatts this year and around 6000 megawatts shall be added up in the next financial year.

We have also heard that you will soon be serving as the conduit for all power trading between India and Bangladesh through your power trading subsidiary. Could you tell us a little bit more about the agreement and the Memorandum of Understanding that you would be signing with Bangladesh?

Yes, that is a consideration by the Government of India to nominate NVVN as a nodal agency for the trading of power between India and Bangladesh. We are yet to receive a letter but there is a consideration for us. We are signing the MoU with Bangladesh Power Board somewhere in the second week of July for the development of two projects of 1320 megawatts each in Bangladesh in a joint venture. This is what we are going to have in MoU; so discussions have advance quite a bit and we are going to finalise within another 10 to 12 days.

Coming to the recent APM gas price increased to $4.2 per mmbtu, will that have any impact on your bottom line or be a complete parcel to consumers?

You see that developments with the prevailing CRC regulation. So nationally the increased fuel price ultimately shall be pass through the buyer of the power. The increase which will take place from the price of present APM price to the increased one that will also get pass to the ultimately buyer to that extent the cost of the power from the gas will increase.

When it comes to the fresh tender for supercritical boilers, could you give us the timeline by when would this come on board and when would the re-bidding actually start?

You will be able to know on that very soon. At this stage, we are engaged in taking the action whatever is required to be taken, once the decisions and actions are complete than certainly, I will be discussing with you.

What about your plans for renewable energy and details of any?

For renewable energy, NTPC has got a very very big plan. I would like to tell you that NTPC plans to begin the largest generator of solar power. By 2013 and 2014, we are planning to have around 300 megawatt solar power and about 500 to 600 megawatt of the wind power. This is what we are planning to have by 2014. We have already prepared the blueprint for all these things and we are taking the actions. As far as solar power is concerned, we are going to add more and more capacity in the solar thermal. And, solar thermal will be much more cheaper and economical and this will be much more dependable power.

Since we are talking about your renewable energy plans, could you throw some more lights on your JV between ADB (Asian Development Bank) and Japan??s Kyuden International Corp?

This JV was signed quite long back. But later on because of some economic resilience, the JV struggled. So right now we are moving ahead with ADB and Kyushu Electric Japan and NTPC. Later on we will induct some more operators. We are going to add wind and solar, and primarily they will be on the wind energy. We are targeting not only India but also other countries as wellin this JV. This JV will target both domestically as well as abroad.

For the current fiscal year as a whole, how are you likely to do on your sales and profit numbers? Give us a qualitative picture.

Sales number go up and from trends I can only tell you it is too early to say on that. Both sales and profits shall be much better than the previous year. We are going to add a big jump in the capacity, and certainly they will add to cover top line and bottom line both.

What about your revenue realisations? will those also improve?

That is 100%. Let me tell you that for 6 years the revenue realisation of NTPC is 100%. Every buyer of the electricity from NTPC pays that. The reason for that is strong customer relationship wherein not only we are supplying power to them but we are taking lot many measures to improve their bottom line and to really impart lot of training to them and develop very good relationship. 100% realisation is not an issue at all with us now.

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The two sides are slated to sign a slew of formal agreements and a joint venture between NTPC and the Bangladesh Power Development Board (BPDB) in the coming months. ??This is to improve the relationship between the two countries,?? Ministry of Power joint secretary M Ravi Kanth told The Indian Express during today??s joint working group meeting between India and Bangladesh. ??So far, transmission is moving very smoothly, now the power generation MoU between NTPC and BPDB will soon be signed.??

The MoU between the state-run Maharatna and BPDB will ultimately produce a joint venture company this year, which will be charged with collecting bids for a 1,240 mega watt (MW) supercritical power plant subject to international competitive bidding. Bangladesh will be responsible for fueling the coal-fired plant which will require less coal than subcritical plants to run at optimal efficiency. ??NVVN will authorize cross-border trade with Bangladesh and we are prepared if Bangladesh wants to sell power to India once 2×600 MW plant is complete,?? said a source in the Ministry of Power source on condition of anonymity. NTPC is in early stages of tendering 11 similar units in India subject to domestic norms which have nixed bids from foreign players who do not meet the tender requirements.

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Power can generate automated development of a nation .Power is priority for present Bangladesh Goverment. Bangladeshi Prime Minister Sheikh Hasina is seeking Swedish investments in Bangladesh’s energy and power sectors.

Prime Minister Sheikh Hasina made her appeal during a meeting with the outgoing Swedish ambassador Britt Falkman Hagstorm, the Daily Star reported on Friday.

Hasina told Hagstorm that besides Bangladesh’s renewable energy, power generation, oil and natural gas industries, Swedish business investment was also being sought for the country’s mineral exploration activities, information and computing technology sector, tourism, telecommunications, roads and highways, agriculture, leather, textiles, electronics, and shipbuilding industry.

Besides investment, Hasina requested Hagstorm assist Bangladesh in facilitating work for skilled professionals in both the European Union and Sweden and that his country could support the establishment and development of institutions to train skilled professionals fields such as nursing, medical aides and caregivers, hotel and hospitality professionals, with assistance for finding work for the program graduates in Sweden and European Union U countries.

In stressing the potential for increasing bilateral trade Hasina noted that in 2008-9 Bangladeshi exports to Sweden totaled $221 million.

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Debate 1.
Centre for Policy Dialogue, the local think-tank, Friday termed a 6.7 per cent growth target for 2011 financial year “ambitious”, saying the government will require more investments to achieve that.

“Growth target for FY11 has been ambitiously set at 6.7 per cent, particularly in the context of uncertainty regarding industrial sector – if achieved it will be the highest in recent past,” said Dr Mustafizur Rahman, executive director of CPD.

“Attaining the target of 6.7 per cent economic growth for FY11 will be challenging – a growth rate between 6.0 and 6.5 might be a more realistic outcome,” Dr Mustafiz told a post-budget briefing in the city.

Finance Minister AMA Muhith Thursday presented a Tk 1.32 trillion budget with higher growth target, although budgetary deficit widened to 5.0 per cent of gross domestic product (GDP).

He said investment target for the next financial year suggests private investment rate in terms of economic output should pick up, but much will depend on how fast the government executes projects under public-private partnership (PPP).

The CPD’s views came as the economy slowed down for years, with one-sixth of the growth disappearing since 2007. The Bangladesh Bureau of Statistics (BBS) said Bangladesh’s growth dipped to 5.5 per cent in June – the lowest in seven years.

The policy think-tank said it would be challenging to attain a significant performance in the agriculture sector, but hoped the target is achievable if the policy support is continued and there strike no disasters.

Referring to the manufacturing sector, Dr Mustafiz, also a visiting professor at Yale University, noted that a 9.0 per cent growth can only be attainable if the recent positive growth experienced by the export sector sustains in the next year.

He said inflation target for 2011 fiscal may not be attained – maintaining that the inflation at 6.5 per cent will be challenging.

Mismatch between fiscal and monetary policy is likely to be continued, he said, adding projected figures for monetary aggregates do not reflect the required credit flow as is planned for financing fiscal deficit.

Mr Mustafiz said total investment target of 26.4 per cent of GDP in the next fiscal year by doubling growth of investment could be challenging with major role played by Annual Development Programme (ADP).

“Poor state of ADP implementation in major infrastructure-related ministries during FY 10 has raised concerns as regards higher utilisation of fund under these ministries in the FY11,” he said.

The CPD, in its budget analysis, said the government should put emphasis on preparing action plans for top 100 projects included in the ADP selected by the Planning Commission and power and infrastructure projects should get priority.

It feared about the squeeze in flowing credit to the private sector as the proposed budget relies heavily on bank borrowing to cover the budget deficit – a 81 per cent hike from the revised budget of the outgoing fiscal.

The CPD hailed the government’s move to keep the individual incomes from the capital market as wise, saying otherwise it could discourage people from investing in stock markets.

“The present move to impose tax on a few types of income of the share market would prepare the individual investors to face such imposition of tax on their incomes in future,” he said.

It, however, lambasted the proposal to levy a 3.0 per cent tax on the premium value of shares of companies, fearing it could act as disincentive for companies to be listed with the capital market.

Debate -2
.. Krishi Bank chairman and a former deputy governor of the Bangladesh Bank, Khondkar Ibrahim Khaled thinks that the proposed budget is not ambitious at all.

“In fact, it should be far more ambitious,” he said suggesting the budget could well be about 20 percent of the GDP.
The current outlay is equal to about 17 percent of the economy.

Khaled made the comment at a post-budget discussion session on Saturday organised by Unnayan Samannay, which was founded by the central bank’s current governor Atiur Rahman, and is currently headed by his wife.

The comments came two days after the main opposition BNP termed the budget too ambitious.

The BNP had suggested in their comments that the budget lacked substance and would not be much effective in generating economic growth.

Finance minister AMA Muhith on June 10 proposed a net outlay of Tk 1321.70 billion for the next fiscal year beginning July 2010.

Khaled, also an emeritus fellow of the non-governmental organisation that organised the discussion, stressed for more allocation to develop the state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX).

“There is no alternative to increasing gas production for power generation.”

BAPEX, a company under Bangladesh Oil, Gas & Mineral Corporation (Petrobangla), is charged with the exploration and drilling of fossil fuel, mostly natural gas.

Khaled said emphasis was given on public welfare rather than pure capitalist economy.

He pointed out that the rural areas received more attention in terms of budgetary allocation compared to the urban areas as in the previous budgets.

This was a positive shift in the government’s policies, he said.

The government has increased the target for disbursement of agricultural loans, which he thought would benefit poor farmers, he said.

The budget proposes to allocate Tk 67.42 billion for agriculture and Tk 120 billion has been fixed as farm loan target for the next fiscal, up from Tk 110 billion in the outgoing fiscal. Tk 40 billion has been proposed as subsidies.

Analysts think that execution of ADP (annual development programme) would be challenging.

Khaled said only a few projects had been added

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Scope for whitening money may be kept limited to only two sectors in the next fiscal year in the face of criticism and poor response to the offer, finance ministry sources said.

The facility will be provided if money is invested in Bangladesh Infrastructure Finance Fund (BIFF), and no question will be raised about the source of the money.

The government has created the BIFF to finance big infrastructure projects including those in power and energy sector. Initially the government gave Tk 1,600 crore to the fund. There is scope for the private sector to invest in the fund.

Money whitening may also be allowed in cases of purchase of flats, apartments or floors for the next fiscal year (FY) but the tax rate may be increased, the sources said.

In the current FY, Tk 400 to Tk 1,500 tax per square foot is charged for whitening money in this category.

And investors in share market, and entrepreneurs setting up new industries are charged 10 percent tax for getting the facility.

Sources in the National Board of Revenue said the offer did not draw much response. In 10 months from July to April in the current FY, only 81 people took the opportunity, and whitened Tk 57 crore. Of them, 53 got the scope for buying flats.

Finance Minister AMA Muhith presents the Tk 1,32,170 crore national budget for FY 2010-11 in the Jatiya Sangsad at 3:00 pm today.

The budgetary target of revenue collection is Tk 93,000 crore. Of the amount, the NBR is to collect Tk 72,600 crore, which is more than 19 per cent higher than in the current FY.

In share market, no scope for whitening money is given to individual investors in the current FY, but persons, who made profit through institutional investment, are given the scope by imposing tax on 5 to 10 percent profit.

In the next budget, brokerage houses in share market will be brought under the VAT net. But tax at a reduced rate, may be 5 percent, will be charged on them, sources said.

The existing import duty structure will not be changed. But increased supplementary duty may be imposed on luxury items including 1,300 to 2,000 cc motor cars.

The finance minister will also present a concept paper on district budget and unified budget today. Besides, he might present a development plan on power and energy sector, the sources mentioned

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In physics, energy (from – energeia, “activity, operation”, from- energos, “active, working”) is a quantity that can be assigned to every particle, object, and system of objects as a consequence of the state of that particle, object or system of objects. Different forms of energy include kinetic, potential, thermal, gravitational, sound, elastic, light, and electromagnetic energy. The forms of energy are often named after a related force.
To active digital and successful Bangladesh energy security is most thurst.

Bangladesh Bank ,The central bank of Bangladesh is recommending immediately ensuring adequate power and gas supplies as a way to attain sustainable economic growth by curbing inflation.

??For the output potentials for exports and domestic consumption to be realized, availability of adequate power and gas supplies must be ensured with utmost urgency,?? the Bangladesh Bank, the country??s central bank, said in its latest quarterly report released Wednesday.

The reported noted “the slower than expected recovery of exports and the disruptions in output activities from shortage in power and gas supplies are likely to cause fiscal 2009-10 (FY10) real gross domestic product growth to fall somewhat short of the initial projection of around 6 percent.??

The central bank said disruptions in manufacturing routines from shortages in power and gas supplies, if prolonged, may cause supply shortages and attendant price pressures; new investment activities are also being slowed by power and gas supply bottlenecks as evidenced by lower withdrawal of industrial term loans during the third quarter.

Disbursement of industrial term loans fell by nearly 14 percent in the period due mainly to worsening supply of gas and electricity, the report said.

The disbursement of industrial term loans dropped to US$896 million (BDT 62.12 billion) during the January-March period from $1.04 billion (BDT 72.11 billion) the previous quarter, according to central bank statistics.

The estimate included disbursement of fresh credit, rescheduling of term loans and fund release for balancing, modernization, rehabilitation and expansion (BMRE) of industrial units, a senior bank official said.

The central bank has predicted that the 12-month average consumers?? price index (CPI) inflation might touch around 7 percent by the end of this fiscal year, exceeding the program projection of 6.5 percent.

The rate of annual average inflation went up 0.31 percent in March mainly because of the increase in prices of food items.

The inflation rate moved up to 6.26 percent in March from 5.95 percent in February on an annual average basis, according to the Bangladesh Bureau of Statistics.

??The upward pressures on domestic consumer prices originate mainly from rising trends in international prices of major food and non-food commodities feeding in through import and export channels in the open external trade regime,?? the BB report added

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