BE Magazine

Recommendations

Info

Monthly business magazinepower & energy16power & energyElectricity Industryattracting highest FDIg Enrg. Mohammad Zahinul IslamBangladesh saw highest electricitygeneration in its history on 29 May2019. According to informationgiven by Bangladesh PowerDevelopment Board (BPDB),12,893 megawatt (MW) electricitywas generated, against theforecasted demand of 14,796MW.The power sector of Bangladesh isone of the fastest growing in SouthAsia, according to the World Bank.Bangladesh has made rapid progressin access to electricity by doublingelectrification coverage in a decade, reachingto 93% of the population. Growth in termsof capacity addition has been remarkable,increasing from 5% in 2012 to 28% in 2018,according to BPDB and World Bank information.A decade ago, when the government of PrimeMinister Sheikh Hasina re-assumed power,Bangladesh was immersed in acute powershortage. To come out with a quick solution, thegovernment invited private companies to buildMonthly business magazinedecember, 2019
small-range power plants, termed as quick-rentalpower plants. The decision initially was receivedwith much skepticism by many intellectuals andpolicy advocates.After a decade, the Power sector of Bangladeshis on track for attaining mid-term and long-termgoals. The government has set the target of takingelectricity to 100% population by 2021 and increasegeneration capacity to 24,000 MW.Strategy taken by the Government of Bangladesh(GoB) was to address acute shortage throughimmediate short-term measure and to chalk outmid-term and long-term measures to meet growingdemand for electricity. The government formulateddetailed supportive policies to accommodateprivate players in the power generation sector. ThePower sector was liberalised for private investmentand Foreign Direct Investment (FDI). The PowerCell was set up as the designated department, tofacilitate private sector investment in the Powersector of the country.Private sector was encouraged to generateelectricity under Public Private Partnership (PPP),Rental Power Producer (RPP), and IndependentPower Plant (IPP) arrangements as well as CaptivePower. Detailed plans were chalked out to produceelectricity from a mix of diverse energy sources,such as fossil fuels including natural gas, coaland LNG; nuclear power; and renewable sources,including wind and solar energy.Boosted by favourable investment policy offeredby GoB, private sector power generation witnessedsubstantial growth in the past one decade. Theprivate sector is contributing about 55% of thetotal electricity produced, against 45% producedby state-owned power plants.Attracted by the investment potentiality, manyforeign companies have been keen to invest inPower sector of Bangladesh. In 2018, Bangladeshreceived a record FDI of $3.61 billion, of which thepower sector alone attracted $1.01 billion, equaling27% of total FDI.Companies from Russia, Britain, Germany,Japan, China, India and the United States havesigned investment agreements with Bangladeshauthorities to set up mega power plants.The Russian state-owned Rosatam AtomicEnergy Corporation is investing US$12.65 billionin the lone nuclear power plant of Bangladesh(2,400MW) at Rooppur. The Russian Federationand GoB signed a strategic co-operation agreementin November 2011. Detailed engineering designand site preparatory works for the project werecompleted by the end of 2013. The BangladeshAtomic Energy Regulatory Authority (BAERA)issued license for the design and construction ofthe Rooppur units one and two in November 2017and July 2018, respectively.As per information uploaded in Energy Banglawebpage, the Coal Power Generation CompanyBangladesh Limited (CPGCBL) signed a contractwith Sumitomo-led Japanese consortium, in July2017, for construction of a 1,200MW coal-firedpower project at Matarbari, worth US$4.5 billion.The Matarbari Coal-fired Power Project is thesecond largest power project in Bangladesh, nextto Rooppur Nuclear Power Project.BPDB signed a joint venture agreement with ChinaHuadian Hong Kong Company Ltd (CHDHK) inMay 2018 to construct a 1,320-megawatt (MW)coal-fired power plant at Maheshkhali in Cox’sBazar, at a cost of U$2.0 billion.Earlier in November 2017, the cabinet approveda joint venture agreement between Bangladesh’sstate-owned Rural Power Company Ltd andNorinco International China to build two powerplants to produce 1320 mw electricity. The plantswill be constructed at Paira in Patuakhali.China’s energy giant PowerChina signed anagreement and a contract in January 2019 withGCM Resources, a leading British resourceexploration company for development of a coalfiredpower plant in Bangladesh’s northern districtDinajpur. The proposed project is reportedly partof a broader strategy by GCM to generate 6,000MW of low cost electricity for the Bangladeshmarket utilizing domestic coal.American company GE signed a deal with BPDB in2018 to build a 3600MW LNG-based power planton Moheshkhali Island in Cox’s Bazar at a cost ofUS$ 2.8 billion.Indian state-owned firm National Thermal PowerCompany (NTPC) formed a joint venture withBangladesh Power Development Board to construct1320 MW Rampal Power Project at estimated costof US$ 1.6 billion.Bangladesh’s North-West Power GenerationCompany signed a deal with Siemens AG ofGermany in February 2019 to build an LNG-based3,600 megawatt power plant in Patuakhali’s Payraat estimated cost of $2.8 billion. Of the total cost,80% is expected to come from loans and restwill remain as equity. Countries like Singapore,Malaysia and Saudi Arabia are reportedly willingto invest in the power sector of Bangladesh.17power & energyDecember, 2019Monthly business magazine
Page 1: MonthlybusinessmagazineDecember 201
Page 4 and 5: Monthly business magazinedecember,
Page 6 and 7: Monthly business magazineNews Snipp
Page 18 and 19: 18In Bangladesh, domestic and indus
Page 20 and 21: Monthly business magazineCover stor
Page 22 and 23: 22COVER STORYGovernment ofBanglades
Page 24 and 25: 24COVER STORYMass Rapid Transit Lin
Page 26 and 27: Monthly business magazineforeign di
Page 28 and 29: 28foreign direct InvestmentSeptembe
Page 30 and 31: Monthly business magazineLeader’s
Page 32 and 33: 32INDUSTRYIn view of thelarge scope
Page 34 and 35: Monthly business magazineeconomic z
Page 36 and 37: Monthly business magazineautomobile
Page 38 and 39: Monthly business magazinePollution
Page 40 and 41: 40Pollution ControlEver-increasing
Page 43 and 44: Women’s EmpowermentMonthly busine
Page 45 and 46: Women in Bangladesh facebarriers an
Page 47 and 48: 47BLUE ECONOMYocean for valueBangla

BE Magazine

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?