Energy & Power

Snapshots

Tender for 210 MW Plant in Khulna under Process

Tender work is under process to set up a 210 megawatt power plant in Khulna, says Special Assistant to the Chief Adviser for Power, Energy and Mineral Resources Ministry Prof M Tamim. He said the government also has a plan to set up a coal-based a power plant in Khulna.

Addressing a view-exchange meeting at West Zone Power Distribution Company Limited in Khulna city, he said generation of 1000 MW of electricity would start by the end of current year. Besides, the government has a plan to start the work for generating another 1000 MW power, he said.

Prof Tamim said at present 3,900 MW of electricity is being generated against the total need for 4,800 MW in the country. Generation of electricity is being hampered due to sort supply of gas. The situation will improve to some extent in next June or July, he said.

The meeting was attended, among others, by Khulna Divisional Commissioner Md Yunusur Rahman and Managing Director of West Zone Power Distribution Company Limited Md Abu Ishaque.

HSBC Environment Champions Enjoy Field Trip

Hongkong and Shanghai Banking Corporation, Bangladesh recently took the 10 winning students, who participated in the final round of ‘HSBC Environment Champions’ to an environmental field trip at Lawachhara National Reserved Forest in Srimangal of Sylhet.

The students were shown around the parts of the national reserved forest and learned about the eco-system there. They also visited the local indigenous village and saw firsthand the living conditions and livelihoods of the local people.

HSBC Environment Champions was organized to raise awareness about the environment among the students of Bangladesh. The program received a huge response, said a press release.

Surobhi Saha Roy from Mohammadpur Preparatory School won the first prize while Sohel Rana of Rani Bilashmoni Boys High School, Gazipur and Zahidur Rahman from Uttara High School got the second and third prizes respectively.

Rahimafrooz Introduces CNG Batteries

Rahimafrooz has announced the introduction of Lucas Hybrid CNG and Spark Taxi CNG batteries made for CNG fuelled vehicles in Bangladesh.

Yeamin Sharif Chowdhury, general manager of marketing, Jasim Uddin Sarker, national sales manager and Md Mokhlesur Rahman, marketing manger of Tyre of Rahimafrooz Distribution Limited spoke at a press conference on the launching of the CNG batteries.

The Lucas Hybrid CNG and Spark Taxi CNG batteries are the first of its kind in Bangladesh. Due to the surging popularity of CNG driven vehicles in recent times, Rahimafrooz decided to address the new trend by introducing this new automotive battery made specifically for CNG driven vehicles.

The Lucas Hybrid CNG and Spark Taxi CNG batteries are now available in the market through Rahimafrooz’s outlets, dealers and retailers all over the country

Quick Decision about Coal Urged

Prof M Tamin, Chief Adviser's Special Assistant for Power and Energy Ministry said there should be a quick decision on coal sector development for the sake of the country's future energy security.

"We can't wait...whatever the decision is it has to be taken very fast in a transparent and accountable manner," he said at a symposium, ''Mining and Community Livelihood in Bangladesh'', organized by Petrobangla.

Energy Secretary Mohammad Mohsin and Petrobangla Chairman Jalal Ahmed also spoke at the seminar.

Mentioning the environment, local community displacement and choice of energy and food security as the three main issues of concern in coal sector development, Dr Tamim urged the experts to evolve strategies to address the issues.

He said it has to be worked out how the impacts on the environment and local community could be minimized apart from setting the priorities between food and energy security. Dr Tamim said the government needs to ensure that the displaced people in coal mining areas would get more benefits than those who were displaced in the Uttara and Purbachal town development projects, "because coal mining is more profitable business".
Describing the international energy perspective and growing energy demand, he said Bangladesh should look into different options for alternative sources of energy.

The CA’s Special Assistant said there might be more undiscovered gas reserves. "If we want to discover this gas reserve, about US$ 8 billion investment will be required. Can we afford to take risk in this huge investment?" he asked.

"The risk factors and high investment have to be understood... We cannot take risk, so we need foreign investment and new technologies to develop the gas sector."

Mentioning the unaffordable cost involved in gas import from Myanmar and Qatar, he said the cost will be from 5 to 7 US dollars per 1000 cubic feet (mcf) against about 2.5 US dollars in Bangladesh.

Similarly, he said, the cost of coal is going up fast like that of petroleum fuel. He said a few years back the price of per metric ton of coal was 30-40 US dollars, now it has gone up to 160 US dollars.

M Tamim Warns of Energy Crisis

Prof M Tamim, a Special Assistant to the Chief Adviser, underscored quick steps to help the country avoid a severe energy crisis that may strike in five years from now.

"A decision on exploration and production of energy from coal and its conservation has to be made as soon as possible," Tamim, in charge of the Power, Energy and Mineral Resources ministry, told a seminar on "Action Planning Exercise to Address Energy and Power Crisis in Bangladesh" at The Westin Dhaka.

He said the coal policy would be implemented soon and energy prices would have to be reset. UNDP and German firm GTZ organized the seminar in cooperation with the Power Division.

WB to Support Campaign on Gas, Power Consumption

The World Bank will extend its support to the Energy Ministry to start awareness campaign on gas and electricity consumption as the country is facing serious crisis in terms of production and supply.

"They have told us that they are ready to support the government in appointing 'communication consultant' in this regard. Petrobangla is working on it and will give their budget to us in a very short time", said M. Mohsin, Secretary, Energy Ministry.

The World Bank will provide US$ 250,000 for the awareness campaign. "Conservation of energy and tariff rationalizing will be the main focus of the campaign. We want to inform the people about the current situation of gas and electricity and petroleum in the country and abroad as energy is not an unlimited item and consumers should pay appropriate price for energy", said Muktadir Ali, Director PSC of Petrobangla.

Transmission Lines to be Opened to Private Use

Sate-owned Power Development Board's electricity transmission lines will soon be opened to private sector use, said Dr M Tamim, Special Assistant to the Chief Adviser in Power, Energy and Mineral Resources Ministry.

Speaking at a seminar titled 'Better Business through Eco and Energy Efficiency' in Dhaka”, he said the transmission of power, generated by the private entrepreneurs, will help minimize the gap between demand and supply of electricity over the years. Tamim also said the government is working on the structural changes in the power sector.

The German Technical Cooperation (GTZ), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) jointly organized the seminar to discuss efficient usages of energy.

Moderated by Dr. Khursheed-Ul-Islam of GTZ, Director of Rural Electrification Board BD Rahmatullah, GTZ Country Chief Peter Palesch, Professor Ijaz Hossain of BUET, Managing Director of Prakaushali Sangsad Limited (PSL) Asma Haque, Chairman of Dhaka Electric Supply Authority (DESA) Brigadier General Nazrul Hasan, Eco expert Atiq Rahman and Additional Secretary to the Ministry of Commerce Gulam Mustaquim, among others, spoke at the seminar.

“We need gas exploration, and US$20 billion is needed for such exploration,” Tamim said. He said the government has been working for an integrated short and long term energy policy.

Cabinet Body Rejects Waiver Offer for 100 MW Sylhet Plant

The Advisers' Committee on Economic Affairs has rejected a proposal to set up a 100 mw power plant by an Indian company, Bharat Heavy Electricals Limited (BHEL), reports UNB.

In the offer, the Power Ministry sought a waiver so that it does not have to follow the Public Procurement Regulations (PPR) 2003 to award the contract to the BHEL.

Explaining the reasons behind the rejection, Finance Adviser Mirza Azizul Islam said the tender for the project was invited deviating from the PPR 2003, which dictates to follow 'two-stage-two envelop' system in tender invitation process.

"But the system was not followed here. We didn't give waiver as we didn't find proper reasons for it," he told reporters.

After the Cabinet committee rejection, Power Ministry officials said now they would have to go for the 4th time tender, as it was the 3rd tender.

Govt Backs Out of Gas Ration Plan

The government has retreated from its plan to ration gas supply to industrial units as businesspeople agreed to introduce self-monitoring in their factories to check misuse of gas.

The decision came after a closed door meeting between business leaders of different sectors and Chief Adviser's Special Assistant for the Ministry of Power, Energy and Mineral Resources Dr M Tamim at his Secretariat office.

The government owned Titas Gas Transmission and Distribution Company served last month the owners of 250 industrial units letters asking for cutting gas connection from their production units for 6 hours from 5pm to 11pm for the convenience of 'boro' cultivation.

Following the Titas' unilateral decision, the business leaders were demanding of the government to back out from the decision as the industrial plants are gas based.

Bangladesh Garment Manufacturers and Exporters Association President Anwar-Ul-Alam Chowdhury Parvez at a briefing after the meeting said businessmen were really frightened over the gas rationing issue.

He said gas rationing in the industry like textile is not possible since the country's both garment and knitwear industries are largely dependent on backward integration.

“I am hopeful that every member of my association will follow the decision that has been taken today both by the government and business leaders. We will try to prevent the waste of gas as it is our national resource,” he said.

Final Bid Submission Extended to July 15

Final bid submission date for 450-MW Bibiyana Power Plant has been deferred by five weeks, responding to the plea from the prospective bidders. Now the bidders will have to submit their final bids on July 15 instead of June 7, 2008.

A top official of the Power Cell, which will receive the offer, said that the US-based AES Corporation and Chevron have made the requests separately to defer the bid submission date by two months. "But we have deferred by 37 days," he said.

After the pre-qualifying round bidding, held in December last year, four international firms emerged to be eligible to submit their final tender-offers for the proposed plant.

The pre-qualified bidders are Korea Electric Power Corporation (KEPCO) of South Korea, AES Corporation of the US, Chevron Corporation of the US, the consortium of Powertek Berhad of Malaysia and Siemens Project Ventures GmbH of Germany. Later, the KEPCO and Powertek made a joint venture move to submit their bids.

Fresh Move in $3b Tata Investment Plan

The government and Tata have agreed to restart talks over the Indian conglomerate's stalled US$3 billion, power, steel and fertilizer investment proposal.

The move is a response to a letter from Tata to the Finance Adviser in which Tata asked for a resumption of talks that have been on ice since August 2006.

In 2005 the Tata Group initially proposed setting up a 1,000 MW power plant, a steel mill with an annual production capacity of 420,000 tonnes and a one million tonnes capacity fertilizer unit in Bangladesh.

Following the letter, the Finance Ministry instructed the Board of Investment (BoI) to invite Tata's representatives for fresh dialogue.