Energy & Power

Snapshots

ADB Mission Reviewing Reforms

A visiting Asian Development Bank (ADB) mission has started to review the power sector reforms in Bangladesh prior to signing a $465 million loan agreement, committed earlier for the development of the Bangladesh's power sector.

The review team emphasized that the country's power sector fully comply with their reform proposals. However, the Economic Relations Division requested the mission to expedite their fund release for the power development against the backdrop of prevailing acute power crisis in the country.

The delegation arrived in Dhaka on February 20 from the ADB's headquarters, Manila, and will leave the country March 7 after completion of their review mission. The ADB delegation would meet the Finance Ministry and Power Division officials during their 15-day visit in Dhaka.

Gas Production from One More Well

Gas production from one more well of the state-owned Bangladesh Gas Fields Company Ltd (BGFCL) started adding 16 million cubic feet per day (MMCFD) to the national grid. Energy Advisor Tapan Chowdhury inaugurated gas production from well number 2 of the Narsingdi gas field.

Petrobangla sources said with the initiation of gas production from Narsingdi gas field the country's total gas production capacity increased to 1,556 MMCFD from 1540 MMCFD. Narsingdi's total gas production rose to 48 MMCFD with the supply of gas from the new well.

Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX), the country's lone oil and gas exploration entity, developed the new well.

Saudi Tycoon Mulls $3B Investment

Saudi business tycoon Nagi Al Awad is scheduled to arrive here on March 1 with an investment proposal of US$ 3 billion. Nagi Al Awad, also Chairman of Al Awad Group, is interested to take over Bangladesh Shilpa Rin Sangstha (BSRS), set up a 500 MW power plant and a 100 percent export-oriented oxygen manufacturing plant in Bangladesh.

His representative visited Dhaka in January and expressed the investment interest. They have so far finalized two initial agreements with their local counterparts on the power and oxygen plants.

Al Awad will meet Finance and Commerce Advisor Dr Mirza Azizul Islam on March 1 and officially submit the investment proposal on March 3. They would sign joint venture MoUs with Industry Power Company Limited for the power plant and Bangladesh Welding Electrodes for the oxygen plant.

The Saudi business group has business interest in medical oxygen, medical equipment, banking, leather and hydrocarbon business in different countries of the world.

Donor Likely to Increase Funds for Power Sector

Donor agencies are likely to increase their funds for the power sector to tackle the problem with satisfying a growing demand for electricity across the country. Finance Advisor Dr Mirza Azizul Islam apprised reporters of the possibility of enhanced funding after his meeting with USAID Bangladesh Mission Director and Local Consultative Group (LCG) Chairman Gene V George at his office recently.

Representatives from the World Bank, the Asian Development Bank, the United Nations and DFID were also present at the meeting.

In reply to queries from the funding agencies, the Finance Advisor informed them that power, port, education and health are now on the priority list of this caretaker government. “There are three plans of this government to improve the power-sector situation: short, medium and long-term plans,” Dr Islam told reporters.

Tata Restart Negotiations

A top official of India's industrial giant Tata said they are exploring the possibility of starting off its $3 billion package investment project in Bangladesh through a good conclusion of the final deal.

Tata's package investment proposals include setting up of a 2.4 million-ton steel plant, a fertilizer plant, a 475 MW gas-fired power plant and the development of Barapukuria coal mine through open-cast methodology. The project remained suspended since last July, before the previous government handed over power to the caretaker government.

"We are exploring the possibility of seeing if we can start off again from where we left last time and come to a good conclusion," S Manzer Husain, Resident Director of Tata Group said after meeting with Foreign Affairs Adviser Iftekhar Ahmed Chowdhury.

Asked if he got positive response to the project from the adviser, he said, "We just apprised him, and I think, we should give them time to assess the situation." He, however, said: "Since the benefits of the project are so good, obviously, we hope that they will also be looking at how to take it forward, if possible."

World Bank Calls for Regional Energy Trade within SAARC

A World Bank report has called for energy trade within the SAARC region for overcoming power shortages in South Asia.

The FICCI-World Bank paper points out that broadly, there are two geographic clusters centered around India and Pakistan, the countries with significant energy import needs.

While Bangladesh, Bhutan, India, Nepal and Sri Lanka form the Eastern Cluster, Afghanistan, Pakistan and India form the Western.

India and Pakistan could serve as pillars of regional integration in the Eastern and Western clusters respectively, with subsequent firmer integration of the two clusters into a region-wide integrated energy market, the report says.

The paper points out that electricity and natural gas importing countries should promote sector reforms aimed at making the importing energy sector entities financially solvent and creditworthy trading partners.

Reforms should also encourage internal trade within the countries and enable evolution of the market price signals for the exporters, it notes.

The exporting countries, it says, should ensure a stable and attractive investment environment, as well as stable supply to domestic markets to mitigate the risk of energy exports being diverted for domestic consumption.

Establishing and strengthening transparent, fair and stable sector regulation in both groups would also benefit regional energy trade, it said.

The paper emphasizes the need of investment in cross-country and export-oriented power plants and gas wells also.

Shopping Malls Ordered to Close by 7pm

All roadside shops and shopping centers across the capital and elsewhere in the country have been ordered by the government to close by 7pm from Sunday. The government issued the order as part of its measures to manage the nagging power crisis.

The kitchen markets and drug stores, however, were exempted from the electricity-rationing measure taken last week in a meeting between Power and Energy Advisor of the caretaker government Tapan Chowdhury and representatives of the Shop Owners Association at Bangladesh Secretariat.

To enforce the decision, about 100 mobile teams of Dhaka Electric Supply Authority (DESA) moved and monitored compliance across the capital city.

One of the teams, headed by Power Advisor Tapan Chowdhury, visited the city's different shopping centres from Rapa Plaza at Dhanmondi. Power Secretary AKM Zafrullah accompanied the Advisor.

Another team, headed by DESA Chairman Brigadier General Nazrul Hasan, visited some other shopping malls in different areas of the city. Member (Engineering & Commercial) Ataul Masud was with him.

Witnesses said as soon as the clock struck 7:00pm, the shoppers shuttered down, giving the city a different look.

In the evening, most shoppers were found to be in a big hurry to return home, overcrowding bus stoppages and city inter-sections that led to heavy traffic congestion.

Within nearly two hours of the closure of the shops, the city's main streets and shopping mall premises were deserted.

The government-business agreement on 7pm closure times came under a load-management plan aimed at tackling a chronic power crisis handed down by successive regimes.

At present, the country generates about 2,600 MW showing a power shortfall of about 1,500 MW. The shortfall might exceed 2,000 MW in the coming summer.

The shop owners, however, appealed to the government to re-fix government office timing at 8am-4pm instead of the present 9am-5pm to facilitate shopping an hour early, which can reduce their business losses.

In response, the Power Advisor said the government would strongly consider the proposal for changing the office timing and also consider stopping the use of air-conditioners in public offices to reduce power consumption.

Sports of Petrobangla Held

Titas Gas Transmission & Distribution Company Ltd emerged champions of the inter company Central Sports. Meet 2007 of Bangladesh Oil, Gas and Minerals Corporation
(Petrobangla) held at the Armed Police Battalion ground in Uttara recently.

M Anisuzzaman and Marium Akhter emerged as the men and women groups’ individual champion in meet participated by some 300 sportsmen and sportswomen of Petrobangla’s 16 different companies.

Energy Secretary AMM Nasiruddin inaugurated the day long meet as chief guest. Primary and Mass Education Secretary M Musharraf Hossain Bhuyian was the special guest at the function.