EditorMollah M Amzad Hossain

Advisory EditorAnwarul Islam TarekMortuza Ahmad FaruqueSaiful Amin

International EditorDr. Nafis Ahmed

Contributing EditorsSaleque SufiDr. A RahmanIslam SharifKhondker Rezaur Rahman

Managing EditorAfroza Akther Pervin

ReportersJannatul FerdushyArunima Hossain

Design & GraphicsMd. Monirul Islam

PhotographyBulbul Ahmed

Magazine AdministratorAKM Shamsul Hoque

ProductionMufazzal Hossain Joy

Computer GraphicsMd. Uzzal Hossain

Technical SupportLaser Scan/Colour Touch

Circulation AssistantKhokan Chandra Das

Editorial, News and CommercialRoom 509, Eastern Trade Center56 Inner Circular Road (VIP Road)Naya Paltan. GPO Box : 677Dhaka-1000, BangladeshTel & Fax : 88-02-8354532Email: ep@dhaka.net

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PriceBangladesh: Tk 30, SAARC: US$ 3,Asia: US$ 5, Europe: US$ 6, NorthAmerica, Africa & Australia: US$ 7.5

A new revolution could bestarted in using renewable ener-

gy in the country through introducingsolar systems in irrigation pumps androoftops, the views expressed bygeneral manager of RahimafroozRenewable Energy Limited SohelAhmed in an exclusive interview withEP.

37

9Petrobangla is working on sign-ing production sharing contract(PSC) during March-April peri-od next year to explore hydrocarbonin the deep offshore Bangladesh. It isexpected that bids from the intendedcompanies, who already procuredthe bid documents, would be invitedby this month. The bid winnerswould operate in the deep sea underthe amended PSC 2012. The bidderswould be given shortest possible timeto submit the bids. Petrobangla isconsidering the deadline to be some-time in November. The Cabinet onSeptember 3 amended the PSC withchanges, including increased pricefor the gas to be produced from thedeep sea.

he cabinet on September 3 approved the amended Production SharingContract (PSC) of gas sector with changes, including increased price for thegas to be produced from the deep sea. However, there is apprehension overthe chances of getting bid response at the fag end of the present government.Civil society group OGPC said the amendment went against the interest ofthe country and demanded cancellation of it. Petrobangla suggestedincreasing price for the gas before approving the amendment to the contract.But policymakers were against increasing the price. Experts, however,suggested that the IOCs would not take part in the bids at the gas pricedeclared in the PSC. So there is already a dilemma for the government overincreasing the price of gas. Although the cabinet okayed the amendment,there is still scope of reconsidering, if it is really needed. The governmentmust scrutinize every aspects before going for such an important amendment.But national interest should be on top of everything. This is what the nationexpects in the final days of this government.

T

COVER

FORTNIGHTLY MAGAZINE, VOL 11, ISSUE 7, SEPTEMBER 16-30

The Energy & Powerhad introduced GreenPage marking its step-ping into the 7th year tocampaign for efficientuse of energy, energyconservation and usingenvironment-fr iendlyenergy. Encouraged bythe readers andpatrons, the EP decidedto continue with thepages as it is steppinginto the 10th year. TheEP would make its besteffort to keep up thecampaign

Page: 29, 31, 32

Green Page

5 WORLD WATCH

Latest Development in World

6-7 SNAPSHOT

Latest Development

9 COVER

PSC: Is The PSC Amendment Enough?

COVER ARTICLE

15 Bid to Explore Offshore Without Speculative Survey

SPECIAL ARTICLE

17 Comprehensive Strategy for Gas Value Chain

REPORT

20 Global Solar PV Module Installations to Face

Stable Increase by 2020

21 DoE Tags 50 Conditions For Rampal Power Plant

23 Bangladesh May Propose JV Hydroelectric Project in India

24 China Takes Away TAPI Pipeline From USA

25 Iran Holding 3rd Largest Crude Reserves in World

MANAGEMENT

26 Corporate World: Reading For Continuous Learning

MEMOIRS

27 Pilgrimage to PETRONAS II

GREEN PAGE

29 Improved Cooking Stove for All

31 Govt Outlines $2.76bn Fund Requirement

For Solar Projects

32 Solar Powered City Traffic Signals to Be Delayed

ARTICLE

33 Hope, Tale & Reality

COLUMN

35 Dhaka Residents Are At Odds With Cooking Gas

INTERVIEW

37 Sohel Ahmed,

General Manager of Rahimafrooz Renewable

Energy Limited

5WORLDWATCH

Chinese oilgiant Sinopecwill pay $3.1

billion for a one-third stake in the Egyptian oil and gasbusiness of US firm Apache Corp. as China builds up itsaccess to global energy reserves.

The deal, which is still subject to regulatory approval,marks Sinopecs first entry into Egypts upstream oil andgas sector, according to a company statement.

It is the latest major Chinese resources acquisition abroadand comes after CNOOC, another Chinese state-ownedenergy giant, bought Canadas Nexen in a $15 billion deallast year despite political opposition in that country.

The Apache move comes despite political strife in Egypt assupporters of the countrys deposed president MohamedMorsi clash with the new government installed after themilitary overthrew him last month.

Beijing has encouraged Chinese companies to go abroadto secure supplies of energy and raw materials to keep theworlds second largest economy moving.

Through this partnership, Sinopec is able to enter theupstream oil and gas sector of Egypt for the first time andexpand its international upstream portfolio, the companystatement said.

Sinopec BuysEgypts Apache Corp

After petrol and diesel, price ofCNG was today hiked by a steepRs 3.70 per kg in the national

capital, the second increase in rates in two and a halfmonths.

Price of Compressed Natural Gas (CNG) sold to automo-biles in the national capital has been increased from Rs41.90 to Rs 45.60 per kg with effect from September 10.

Also, the price of piped cooking gas, called PNG, forhouseholds has been hiked from Rs 24.50 per standardcubic meters to Rs 27.50 per scm.

CNG price was last hiked on June 25 when rates went upby Rs 2 per kg - from Rs 39.90 to Rs 41.90 per kg.

India HikesCNG Prices

State-run Power Gridof India is preparing aroad map for setting

up an electricity grid to connect SAARC nations includingPakistan and Sri Lanka.

The feasibility study for an under sea line with Sri Lanka isbeing finalized, according to transmission utility PowerGrid Corp.

In its annual report for 2012-13, the company said it con-tinues to play an active role in "preparing a road map fordeveloping South Asian Association for RegionalCooperation (SAARC) market for electricity to develop across country power grid".

The proposed cross country grid is being envisaged forharnessing each SAARC nation's capacities and resourcesto address growing energy needs in the region. India,Afghanistan, Bangladesh, Bhutan, Maldives, Nepal,Pakistan and Sri Lanka are part of SAARC.

Among others, India plans to export electricity to Pakistan. discussions at government level are being held forinterconnection between India and Pakistan throughAmritsar (India)-Lahore (Pakistan) line," the report said.

For interconnection between India and Sri Lanka, feasibil-ity study for a 400kV, 500/1,000 MW under sea HVDCbipole line is under finalization, the report said.

Besides, a transmissionline between India andNepal for transfer of bulkpower is under finaliza-tion. An electricity trans-mission line withBangladesh which is beingimplemented, is expectedto be completed by 2013.

Already, India has electric-ity inter connections withBhutan and Nepal.

SAARC ElectricityGrid

Energy-starved Nepalneeds to further strength-en cooperation with Indiafor harnessing its abun-dant hydro-power poten-tial that would benefit

both the countries, experts said.

The remark was made by energy experts, governmentofficials and politicians during a panel discussion aspart of a two-day Power Summit 2013 held recently.

They stressed on the need to hasten the pace of powerprojects being constructed by Nepalese and Indiancompanies and speed up completion of the cross bor-der transmission lines along the Nepal-India border.

Former Finance Secretary Rameshwor Khanal under-lined the need to develop a South Asian power grid anddevelop hydel power projects with a view to exportingpower not only to India but also to Pakistan,Bangladesh and Bhutan by setting up regional transmis-sion lines.

There should be multiple buyers and multiple sellers ofthe hydro-power and more foreign investment shouldbe attracted in the power sector by creating conduciveenvironment, he said.

The power developers should be allowed to sell surpluselectricity wherever there is a market, Khanal added.

Experts ForNepal-IndiaCooperation onHydropower

6SNAPSHOT

Titas GasTransmission andD i s t r i b u t i o n

Company Ltd (TGTDCL) disconnected illegal gas connec-tions to 11 residences and one commercial gas connectionin Savar and 21 illegal burners in Dhaka recently.

The 11 residences and one commercial gas connectionwere linked with illegally installed 750-foot gas pipelinewith one-inch radius at HemayetpurSchoolpara of Savararea, said a press release.

On September 5, the connections were disconnectedthrough mobile court in presence of an executive magis-trate and the gas flowing source was permanently closed.

On September 3, the TGTDCL divisional inspection teamvisited AhsanUllah Road and BecharamDewri in Dhakawhere 21 burners were illegally using gas.

TGTDCL said taking new gas connections by extendingthe existing gas distribution pipeline is totally illegal and apunishable offence as per the Bangladesh Gas Act 2010.

The company requested people concerned to refrain fromdoing this sort of illegal activities.

Disconnection Driveby Titas Gas

As part of theimplementationof energy andwater saving

promotion program for textile dyeing process of textile andgarments industries in Bangladesh, Green Project WSTLimited signed an agreement with PEAR Carbon OffsetInitiative Ltd. in the city recently.

By this agreement, both parties have agreed that PEAR willprovide assistance in preparing Project Design Documentand later they will purchase the CERs (Certified EmissionReduction), says a press release.

Green Project WST, a social business of William EngelHolding Limited, has its aim to reduce emission of C02and to mitigate the effect of climate change by savingwater, electricity and steam in the textile dyeing industries.

Green Project WST is the worlds first CME (coordinatingand managing entity) of CDM (Clean DevelopmentMechanism) project which focuses on working in the tex-tile wet processing. Its first CPA-1, Grameen KnitwearLimited, has finished validation and is in the process ofregistration of the project by CDM executive Board.

After this registration, Green Project WST targets to add 20more factories as CPAs within this year.

Green Project WST will provide all the technical andlogistical supports to all CPAs by their water saving tech-nology which covers from fibers to ready-made garments.

PEAR, Green ProjectWST to Work inTextile Sector

Petrobanglahas suggestedthe govern-

ment for signing the model production sharing contract(PSC)-2012 to explore oil and gas in shallow sea (SS) blockno-11 under the joint venture initiative of Santos andKrisEnergy Limited.

Perobangla Chairman Prof Hussian Monsur recently for-warded a recommendation to the Energy and MineralResources Division secretary.

Earlier, the government received poor response from theinternational oil companies (IOCs) to its re-tender offer forsix shallow onshore blocks as only Santos-Kris Energy sub-mitted a bid for a single block in the Bay of Bengal on thelast date of submission of documents on July 29, 2013.

Petrobangla Chairman previously said the neighboringIndia and Myanmar gave more facilities to explore oil andgas in the offshore blocks. So they became more interest-ed to do business there, he said.

A total of six shallow water blocks were placed for biddingin the re-render due to poor response to last years tenderinvitation.

Oil, Gas Exploration inSS-11 in The Bay

Residents of Bhola town finally gotpiped gas connections for domes-tic use, nearly 18 years after a gas

field was discovered there. Ruling Awami LeaguePresidium Member and MP Tofail Ahmed and PetrobanglaChairman Hossain Mansur inaugurated the gas supply byconnecting the city's orphanage and the Dargah ofJainpuri Peer.

Marking the occasion, Prime Minister Sheikh Hasinathrough cell phone told the local people that AwamiLeague has fulfilled its electoral pledge through providinggas connection to Bhola.

Speaking on the occasion, Tofail, on behalf of the localpeople, thanked the Prime Minister and expressed hopethat the southern district would turn into an industrially-developed area in the near future by utilising the gas.

The Petrobangla chairman said so far, 20 kilometres of gasdistribution line have already been set up in Bhola munic-ipal area while another 50 km of gas distribution line willbe established. The field was opened in 1995 and startedsupplying gas to Bhola's 34.5 megawatt rental power plantin 2008. However, the residents did not get gas for house-hold use. The government in 2010 formed the SundarbanGas Distribution Company and gave it the responsibility tosupply gas for domestic use.

Bhola GetsPiped Gas

7SNAPSHOT

The authorities proposed twooptions for extending thetenures of rental and quick-

rental power projectsone is no electricity, no payment,and another revision of tariffs.

We have proposed the two separate options to the spon-sors of the five rental and quick-rental power producers,said an official of the Power Division, who attended anegotiation meeting with the sponsors of five rental andquick-rental power projects.

Though the power sponsors strongly opposed the options,they agreed to submit their proposals, the officialinformed.

Power Division will receive feedback regarding theoptions from the private power producers within the nexttwo weeks, Power Division officials informed.

No Power, NoPayment

Government is nowworking to produce1000mmcfd of addi-tional gas with joint

effort of the local and international firms by the year 2015,raising the fossil fuel production to 3300mmcfd, EnergyDivision officials said.

But the gas supply gap would rise to 700mmcfd by then,they said.

Petrobangla has a target to raise 45 percent gas productionfrom the state-owned gas fields in 2015 while the rest 55percent gas production would be raised from the fieldsoperated by international oil companies.

Petrobangla would disclose its next gas production plan ata seminar recently in observance of the National EnergyDay. The government will sign deals on three shallowblocks with US companies ConocoPhillips and Indiancompany ONGC next month.

The government is now facing huge trouble due to gassupply shortage as Petrobangla failed to import 500mmcfdof LNG. It also failed to implement series of gas fielddrilling projects in time.

Govt to ProduceExtra 1000mmcfdGas by 2015

Titas GasTransmission andD i s t r i b u t i o nCompany Ltd (TGT-

DCL) has identified 26,950 feet illegal gas pipelines ofone-inch, two-inch and three-inch radius in the city'sMohammadpur, Hazaribagh, Rayerbazar, New Marketand Kamrangirchar areas.

General diaries (GDs) were filed in this connection at thepolice stations concerned and necessary steps are beingtaken to remove these illegal gas pipelines, said a pressrelease.

The TGTDCL team recently removed 2,000 feet gaspipelines of two-inch radius illegally set at Amulia andMendipur of Demra in association with local representa-tives.

TGTDCL got complaints of 46 illegal gas distributionpipelines in Chandra area of Gazipur district. Amongthese, 95 feet pipelines of one-inch radius and 220 feetones of two-inch radius were removed after visits to nineareas and GDs were filed over six complaints.

The TGTDCL release said taking new gas connectionsfrom the existing gas distribution pipelines is an illegal andpunishable crime as per the Bangladesh Gas Act 2010.

The company requested people to refrain from doingthese sorts of illegal activities.

26,950 Feet IllegalGas PipelinesIdentified

The National Committee forSafeguarding Oil, Gas, MineralResources, Power and Ports

observed the Phulbari Day in Dinajpur district recently.

Various programme including commemorative meeting,hoisting of black flags, and wearing black badges havebeen taken marking the day. The committee held the com-memorative meeting at Nimtala Crossing inPhulbariupazila.

National committee convener SheikhMuhamadShaheedullah, member secretary AnuMuhammad and central leaders of left leaning politicalparties took part in the program.

Phulbari DayObserved

Bangladesh andMalaysia will sign adeal to set up a

1320MW joint venture coal-fired power plant on equalshare basis at Moheshkhali Island in Coxs Bazar districthere, an official said.

The two countries reached a mutual understanding andministry of law has given consent on setting up the coal-fired power plant. The Bangladesh Power DevelopmentBoard (BPDB) and the TenagaNasionalBerhad (TNB) andPowertakNasionalBerhad (PNB), Malaysia will sign theMemorandum of Understanding (MoU).

Finance Minister AMA Muhith, Prime Ministers Powerand Energy Adviser DrTawfiq-e-ElahiChowdhury, StateMinister for Power and Energy MuhammedEnamulHuqand concerned senior officials are expected to attend thesigning function.

The Power Division in an official order signed by deputysecretary MdFarukuzzaman directed concerned officialsto take necessary preparations on signing the MoUbetween Bangladesh and Malaysia.

The Malaysian government is interested in injecting itsproposed Padma Multipurpose Bridge investment to thepower project as the government has decided to constructthe bridge by using its own fund, concerned officialsources said.

Dhaka-KL Deal on1320MW Plant

9COVER

Petrobangla is working on signing pro-duction sharing contract (PSC) duringMarch-April period next year to explorehydrocarbon in the deep offshore Bangladesh.It is expected that bids from the intendedcompanies, who already procured the biddocuments, would be invited by this month.The bid winners would operate in the deepsea under the amended PSC 2012. The bid-ders would be given shortest possible time to

submit the bids. Petrobangla is consideringthe deadline to be sometime in November.The Cabinet on September 3 amended thePSC with changes, including increased pricefor the gas to be produced from the deep sea.However, there is apprehension over thechances of getting bid response at the fag endof the present government. As did in past onseveral occasions, civil society group OGPCsaid the amendment went against the interest

Mollah Amzad Hossain

of the countryand demanded tocancel it.

P e t r o b a n g l a ,h o w e v e r ,instructed theauthorities to setincreased pricefor the gas beforeapproving theamendment tothe MPSC 2012.But policymakerswere againstincreasing theprice. Experts,however, sug-gested that theIOCs would nottake part in thebids at the gasprice declared in the MPSC 2012.After inviting tenders, 19 IOCs pur-chased the bid documents and in thepre-bid meeting they viewed that theoffers, including the gas price, are notrealistic. They made it clear that theywould not submit the bids unless thechanges are made.

Under the circumstances, the authori-ties extended the bid submission dead-line and, at the same time, suspendedthe process of deep offshore bid.Earlier, US company ConocoPhillipssigned a PSC for deep sea blocks DS10and DS11 in accordance with PSC2008 that offers a price of US$4.5 perthousand cubic feet plus corporate tax.

In the MPSC 2012, changes brought inissues includedthe ceiling priceof gas and pre-vention of gasexports. Underthis PSC,ConocoPhillipsand ONGC ofIndia submittedtenders for shal-low blocks, fol-lowed by Santosand KrisEnergyJoint venture.After evaluation,

the authorities initialed PSC withConocoPhillips on September 2 forexploration of block SS 7. ONGC wasalso scheduled to initial the PSC forblock SS 4 and SS 9 on September 5,but they could not sign it. Petrobanglais expecting that the PSC would bepossible to initial in the second half ofthis month. The proposal by the jointventure of Santos and KrisEnergy hasbeen sent to the energy ministry afterevaluation by Petrobangla, which isexpecting that the proposal would beapproved by the middle of this monthand the PSC would be possible to beinitialed by this month.

The deadline for submitting offshorebids, invited on December 17 last, wasMarch 18. But at the pre-bid meeting,

the companiesinformed that theh y d r o c a r b o nexploration in thedeep sea has nowbecome muchexpensive, mak-ing it difficult forthe companies tosubmit the bidsunder the pack-age offeredthrough theMPSC 2012.Energy expert DrIjaz Hossain atthat time had toldthe Energy &Power that itwould not bepossible for thecompanies to

explore hydrocarbon in the deep off-shore at this price. Special assistant tothe chief adviser of the last caretakergovernment Dr Tamim said the thePSC should be amended in accor-dance with other countries in theregion if we have to bring the IOCs into explore deep offshore.

Petrobangla was convinced with thearguments, but failed to make the pol-icymakers understand the reasons.They, however, suspended the bid sub-mission deadline and Petrobangla senta proposal to amend the MPSC 2012.

The main issues of the amendment tothe MPSC 2012 are gas price increasedto $6.5 per thousand cubic feet from$5.5 with a provision to increase the

price by 2%since commis-sioning of pro-duction. TheIOCs will nothave to pay thecorporate taxwhile annualcost recoveryrate increased to70% from 55%and they havebeen allowed tosell 50% sharegas directly to

11

third party within the country. Thecompanies will not have to paywheeling charge for gas from offshoreto onshore through the pipeline to beconstructed under the cost recoveryarrangement.

I hope well now get desiredresponse for deep offshore blocksfrom the IOCs, PetrobanglaChairman Dr Hossain Mansur toldthe Energy & Power. He said the PSCis now competitive as compared toother countries in the region and theworld. He said: We do not have thescope to invest in this type of riskyjob other than the IOCs.

Following the approval to the amend-ment by the Cabinet, FinanceMinister AMA Muhith told journaliststhat there is no alternative to massiveexploration to ensure the countrysenergy security. And we do not havethe financial and technologicalcapacity to explore deep sea,prompting us to amend the MPSC2012 in consistent with the othercountries of the region.

Bay of Bengal & Oil,Gas Exploration

Bangladesh is the first country in thisregion to start exploration of hydro-carbon in the Bay of Bengal.Bangabandhu first formulated thePSC in consistent with Indonesia toexplore hydrocarbon in the Bay con-sidering the consequence of volatileoil market in 1970 and thenPetrobangla invited bids for the first

time. Six IOCs signed PSCs for sixblocks, but they got back within fewyears as they did not get oil.However, Bangladesh got some dataon the situation of oil and gas in theBay for the first time. After that it was1994 when Cairn started working intwo blocks under a PSC and discov-ered the Sangu gas field. Two morePSCs were signed for two blocks in1998, but there was no success.According to Petrobangla, there isonly two success from 20 exploratorywells drilled in the Bay. Under thePSC 2008, ConocoPhillips conducted

12

seismic survey inthe blocks DS10and DS11. Theystarted conduct-ing new surveyfor getting morei n f o r m a t i o nbefore drillingwells.

A seismic surveywas conductedbefore the mar-itime boundarycases, but theinformation keptwith Petrobanglacannot berevealed as thecase with Indiaremains to be set-tled. As a result,P e t r o b a n g l acould not provideinformation thatcould attract IOCsto bid for the deep offshore blocks. Itwas in 2004 when the then govern-ment had initiated non-speculativeseismic survey as it started working onoffshore bidding. But it could not bedone due to lack of approval by thehigh-ups of the government as theydecided to go for the bidding directlyand taken initiative to finalize the PSCdocument. Later the caretaker govern-ment finalized the PSC in 2008 andinvited bids, which received a goodresponse but only two proposals byConocoPhillips have been approved.The present government signed PSCsin 2011 with the US company in lightof the PSC 2008.

Based on the PSC 2008, the MPSC2012 was formulated with bringingsome changes including raising the gasprice and restricting conditional gasexport. Both the PSC had a commonprovision that the IOCs willpay the corporate tax.However, the latest amend-ment to the PSC 2012increased the deep offshoregas price to US$6.5 per thou-sand cubic feet from $4.5 in

2008 PSC and $5.5 in MPSC 2012.

Nobody will come to work here witha PSC that is different from other coun-tries, Petrobangla Director (PSC) ImadUddin told the Energy & Power,explaining the need for the latestamendment to the MPSC 2012. Hesaid the MPSC 2012 had offered $5.5plus corporate tax for per thousandcubic feet of the deep sea gas, which is$7-$8 in South and East Asia, $7.2 plusa tax rebate in Myanmar and $7 in SriLanka, Thailand, Indonesia, Malaysiaand India. Recently, India increasedthe gas price to $8 per MCF.Considering the market situation, wedid not have any alternative to makethe bidding package attractive, hesaid, arguing that a better price shouldhave been offered. What we didinstead we tried to make the packageattractive with a facility to increase the

gas price by 2%every year. Wehope well getresponse as perthe new pack-age.

Former Directorof PetrobanglaMaqbul-E-Elahisaid if the govern-ment thoughtright, it couldhave increasedthe price of gascommensura tewith the level ofother countries.But, it has notbeen appropriateto exempt fromthe corporate taxand make a pro-vision for increas-ing gas price by2% every year.

Prof M Tamim, however, said the pricethis time taken to a rational level and itwould be cheaper to get gas as com-pared to LNG or importing gas throughpipeline. But Prof Anu Muhammed,convenor of civil society activist groupOGPC, said the PSC goes against theinterest of the country and should bescrapped. He, however, did not makeany economic analysis or present anystudy that explains why the PSC isagainst the interest of the country.

Petrobangla sources said the IOCswhich already procured request forproposal for the deep sea blockswould be notified about the amend-ment by the third week of this monthand invite them to submit bids within3-4 weeks. Petrobangla is expecting toget the bids by November so it cancomplete the bid evaluation by the

end of this year. The target isto sign the PSCs for dispute-free three deep offshoreblocks by March next yearand start working in the win-ter.

EP

13

Bangladesh is located to the southof the Himalayan Orogenic belt,wholly within the Bengal Basin,which is the largest delta basin in theworld. The potential of oil and gas hasalready been proved through the dis-covery of 25 gas fields including oil,discovered in two gas fields for which82 exploration wells were drilled overa period of 100 years of explorationactivities. In spite of slow explorationactivity, the combined success ratio is3.3:1 which is very good but if we con-sider only for offshore, the success ratiois 10:1, which is not a sign of good suc-cess ratio. Till now, a total of 20 explo-ration wells have been drilled in theshallow offshore, out of which, discov-eries of two gas fields were made, thesebeing Sangu and Kutubdia. Sangu wastreated as a commercial discoverywhereas Kutubdia as a contingentresource.

Currently a number of International OilCompanies_(IOCs) are working inBangladesh -- both offshore andonshore. The IOCs are Chevron,Santos, ConocoPhillips and Tullow.Though the present government is try-ing to accelerate explo-ration activities underPSCs for shallow anddeep offshore,_ there hasbeen no remarkableprogress made so far. Oneof the reasons for this isthe lack of adequateinformation provided forbidding rounds. Somereputed IOCs expressedinterests to theBangladesh governmentduring the year 2000,2002, 2006 and 2013 toconduct speculative seis-mic surveys (otherwise

known as MultiClient surveys) prior tothe bidding round for offshore oil andgas exploration.

In mid 2005, Petrobangla took the ini-tiative for carrying out multi-clientspeculative geophysical survey in1,06,500 square kilometer area in theBay of Bengal but unfortunately itdidn`t receive cabinet approval forfloating a tender at that time. The mainpurpose was to carry out speculativegeophysical survey by foreign compa-ny to upgrade the available data onhydrocarbons potential in the offshoreBangladesh and to attract IOCs.

Necessity of Speculative Survey DataUpstream companies will use the spec-ulative survey data as a reliable tool bywhich they can understand the region-al geology of the Bay of Bengal. Byworking with these data, IOCs canundertake geological evaluations ofblocks to be offered in the bid rounds.If we encourage the acquisition ofspeculative seismic surveys throughreputed geophysical companies, thenwe will gain knowledge of potentialhydrocarbon leads and prospects in theoffshore Bangladesh area as well as

whether there is a presence of anystructure(s) for trapping of oil and gas ornot, the likely availability of hydrocar-bon resources, potential size of thetrap, distribution of such traps, exis-tence of cap rock and four way closurewhich are very important for the bidderas well as for us. Because if we knowour prospects, that will certainly helpus to formulate fiscal terms for biddinground and for long term planning.

Such data will make the decision forbidders to invest in Bangladesh far eas-ier. It should be remembered thatBangladesh is competing with manyother countries and investment deci-sions will be based on fiscal terms,prospectivity and a detailed knowledgeof the area -- the latter being providedprimarily through the availability ofseismic data. A lack of knowledge willeither lead to a company not bidding,or bidding a less aggressive work pro-gram with more reasonable terms.

However Petrobangla went for biddingrounds in 2008, 2012 and 2013 with-out any prior survey and ended theprocess with a low response. Thus, it isnot wise for the government to invite

the international compa-nies to bid without havingadequate seismic data. Itis suggested to take prop-er initiative to conductmulti-client speculativegeophysical survey priorto next round biddingprocess. It is very neces-sary that oil and gasexploration activity in theshallow and deep off-shore should be acceler-ated under PSC. It isexpecting that there is agood prospect in the deepoffshore.

Bid to Explore OffshoreWithout Speculative Survey

Mortuza Ahmad Faruque

15

COVER ARTICLE

Vessel used for Multi-Client survey

Benefits of Multi-client SurveyThere are some key benefits for allstakeholders in having modern multi-client speculative data available. Someof these are as follows:

An increase in oil companies inter-est, attracting new entrants, and gener-ating more geological ideas andprospects.Greater data availability results inmore competitive acreage biddingrounds and generally results in moreaggressive bids and exploration activi-ty.

As multi-client surveys are notrestricted to individual blocks, theyprovide a regional framework allowingthe exploration geologist to work fromthe bigger picture and gain an under-standing of potential source rocks,reservoir distribution and migrationpathways.

The existence of data will result in ashorter exploration to productioncycle.

Survey data will provide a betterunderstanding of the Bengal Fanincluding basin thickness and its geom-etry, development of different facies,sediment provinces and also on thereservoirs, presence of source rocksetc.

Geoscientists shall gain a betterunderstanding of resource potentialabout our offshore areas, which willlead to formulate better fiscal terms.

Aspects of Multi-client SurveyPrior to the advent of the multi-clientinvestment model, host governmentsusually invest their own capital inacquiring a geological/geophysicaldatabase to encourage investment byIOCs. These days, necessity to investpublic money is substantially obviated.Some of the aspects of multi-clientspeculative survey are as follows;

Usually instigated by interested seis-mic contractor and survey cost borneby them, financial risk both cost andrevenue borne solely by seismic con-tractor and large volume of data can beacquired quickly.

The availability of multi-client dataallows oil companies to quickly move

onto the first phase of their exploration,thus being able to move faster into thedrilling and production phases. Theearlier production phase brings earlierbenefit to the country.

If data is available ahead of biddingrounds, the greater knowledge allowsfor more aggressive bidding by theIOCs. This may result in higher signa-ture bonuses as well as more aggressivework programs.

IOCs generally work within theirown acreage only and have problemsunderstanding regional geology. Multi-client surveys can span multiple blocksand even cross national borders, thusproviding all oil companies the oppor-tunity to study the regional geologicalsetting. The greater understanding willprovide a better chance of successfulexploration.

Under many multi-client agree-ments, there are opportunities of train-ing for the Regulators personnel bothonboard the seismic vessel and duringprocessing & interpretation of the data,so in the Bangladesh context this pro-vides a good opportunity forPetrobangla personnel.

Multi-client survey data is typicallymarketed by the license holder atnumerous international oil and gasconferences around the world throughwhich more bidders usually participatein the bidding round, and this comple-ments the marketing efforts of the hostgovernment.

Questions may arise Are there anynegatives in allowing seismic compa-nies to invest their own risk capital in

acquiring multi-client surveys at nocost to our country? And if we cantcome up with any negatives, then whyare we missing out on all the positives?

Offshore Exploration Capabilityof BAPEX

Our national oil and gas explorationand production company, BAPEX hasdeep constraints of technical and finan-cial capabilities to carry out explo-ration activity in the offshore area. Alloffshore wells drilled so far are byIOCs. Our country needs to explorehydrocarbon in the offshore areas. Nooffshore wells have been drilled so farin the deep marine environment. IOC'swith their expertise and capital base areneeded to carry out such a task in ourcountry. Besides, we need to build upBAPEX capability to work in the off-shore, for which proper attention needsto be taken by the government to buildup its capability, to facilitate scope andto engage BAPEX personnel to workwith IOC(s) through forming JointVenture Agreements or Joint OperatingCompany with national or reputed pri-vate oil company by which active par-ticipation in the offshore survey anddrilling can be ensured and their off-shore capability can be developed. Aseparate incentive package should beconsidered for BAPEX personnel butunfortunately, it was lying with the gov-ernment more than two years for theirkind consideration as a frozen food andnicely kept in the refrigerator.

Mortuza Ahmad Faruque;Former Managing Director of BAPEX

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Natural gas as mono fuel playedthe pioneering role forBangladesh energy security forseveral years. It provided the energysupply backbone for maintainingsteady economic development for thelast several years. Relatively cheaperand subsidized gas to urea fertilizerproduction greatly assisted in attainingfood self-reliance. Cheaper gas supplyalso provided for the cost of gas basedpower generation cheaper. Cheap gas& power as well as easy availability ofcheap labor created revolution in theindustrial development.

Bangladesh could maintain a healthycompetitive edge over contenders inexport market for RMG, textile, ceram-ic, pharmaceutical and other exportcommodities. All these mainly con-tributed in achieving and maintainingcommendable steady GDP Growthrate. It also kept Bangladesh economyinsulated from global and regional eco-nomic meltdown.

But lack of perspective planning forexploration and exploitation ofresources, lack of required actions fordeveloping economic pricing of gasand energy, absence of workable gassystem master plan, absence of gasresources depletion and utilization pol-icy triggered crisis over gas valuechain. Unplanned expansion of gasmarket caused mushrooming of gasconsuming energy inefficient industriesin one hand and rapid depletion ofproven gas resources on the other. Poorgas pricing failed to create necessaryfunds for gas companies for reinvestingin exploration of resources and devel-opment of gas transmission and distri-bution infrastructures. Consequently,the excessive reliance on borrowedmoney from development partners andgovernment incapacitated domestic

gas companies in reinvesting in explo-ration and development resources.The technical and managerial capacityof gas companies and Petrobangla alsoeroded from massive uncontrolledbrain drain of gas sector professionalsmostly going abroad.

Bangladesh had to introduce ForeignDirect Investment [Engagement ofIOCs through PSCs] in exploration anddevelopment in gas resources inonshore frontiers and off shore. Even inthat area Bangladesh lacked requiredcompetence in managing and monitor-ing IOC operations. In a matter of adecade or so Bangladesh dependenceon IOC operated gas fields rose from15 % to over 50%. Bangladesh failingto upward adjust its gas price at con-sumer level in a rational way andrequirement of buying IOC share ofPSC gas at international price causednegative balance of payments forPetrobangla owned gas companies.The uncontrolled growth of gas usingindustries and failure of planned diver-sification of fuel mix created uncertain-ty in security of supply in the nationalgas grid.

Bangladesh now struggles with a pro-duction capacity of about 2240MMCFD against a cumulative demandof 2800 MMCFD + and a depletingultimate recoverable reserve of gasbelieved to be barely enough for adecade or so. More than any timebefore Bangladesh requires top priorityattention for an appropriate utilizationstrategy for its remaining recoverablegas.

How should Bangladesh continue touse the remaining gas reserve resource?What should be the pricing structure?How can it control the uneconomicuse and illegal use of gas? These mustbe the strategic areas Bangladesh gas

sector policy makers address withoutany delay.

How Much Gas Resources We Have?What is Our R/P Ratio?

Bangladesh has finite gas reserve --resource. The days of striking gas atevery third exploration is way past.Whether we have 10 or 15 Tcf UltimateRecoverable Reserve we cannot let itdeplete irrationally. While we mustexpedite our exploration campaign inonshore frontier areas and vast poten-tial offshore through BAPEX efforts andengaging competent IOCs throughWin-Win PSCs we must also rational-ize gas utilization ensuring propervalue addition of the depletingresource. We must be very pragmaticin diversifying fuel mix.

Actual gas reserve resource was a pop-ular debate in late 1990s and early2000s when UNOCAL after discoveryof Bibiyana was pressing for exportingpart of the discovered resource ofBibiyana Gas Field through pipeline toIndia? Whether or not it was a smartdecision by Bangladesh not to accedeto export decision is not the intentionof this write up. But one thing for surethat market signal mattered a great dealin required exploration of newresources in frontier areas. AfterBibiyana Bangladesh has not discov-ered a major gas field till now. Srikailand Sundalpur discoveries are margin-al at best and cannot be relied upon fora long-term supply security. BAPEXacquiring 3D seismic survey capabilityhas mapped some new resources butthere is still no guarantee that the baseof proven gas reserve has expandedsignificantly. We need to prove addi-tional gas resources in already discov-ered fields through further appraisalcum development works. Even at thepresent rate of gas production 2240

Comprehensive Strategyfor Gas Value Chain

Engr. Khondkar Abdus Saleque

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SPECIAL ARTICLE

MMCFD the proven reserve may com-pletely run out in about a decade.

A responsible person like the StateMinister of Power and Energy toldParliament of increasing gas produc-tion by 1100 MMCFD within a year.Wherefrom such additional gas will beproduced? Which gas field can sustainhigher rate of flow consistently overlonger time? Chevron operatedBibiyana gas field now produces @850 MMCFD. There is a plan to addabout 300 MMCFD more soon. HowPetrobangla is assured that evenBibiyana would sustain that flow for aconsiderable time? The largest of thefields Titas production may increase byabout 150-180 MMCFD. But with themassive leakage problem notaddressed technically till now uncon-trolled higher rate of production fromthis gas field also may not be sustain-able. Most of the other fields are on theverge of depletion and cannot be can-didates for mentionable additional pro-duction. We suggest carrying outextensive reservoir study by accreditedReservoir Engineering Company andadopting an appropriate depletionstrategy bringing in secondary and ter-tiary recovery into play. The presentstrategy of unprofessional gas extrac-tion from Petrobangla and IOC operat-

ed fields must change. None but thegas reservoir professionals only shouldtalk about reserve resource andexploitation strategy.

Gas Production Scenario From Petrobangla Daily Report of 6-7July states, of 2240 MMCFD gas pro-duction from 84 wells of 21 producingfields. Of these three Petrobanglaowned Companies BGFCL, SGFL andBAPEX from 58 wells of 15 gas fieldsproduced 1002 MMCFD while 4 IOCsChevron, Santos, NIKO and Tullowfrom 26 wells of 6 fields produced1237 MMCFD against a Petrobanglastated capacity of 1169 MMCFD (?).Sangu of Santos producing only 4.3MMCFD on the day is surviving at ICU,Feni of Niko is not producing andChevron from 20 wells of three fieldsproduced 1138 MMCFD againstPetrobangla stated capacity of 1160MMCFD. Is there any reservoir engi-neering concern of higher rate of pro-duction from Chevron operated fields?

Pricing of GasWhen we compare gas and power tar-iff with even regional countriesBangladesh price is among the lowest.It was possible for a long time to sur-vive with very low gas price from avery smart action of Bangabandhuinspired Bangladesh government after

1972. Six major gas fields Titas ,Habiganj, Rashidpur, Bakhrabad,Koilahtilla and Feni owned and oper-ated by Shell BV could be taken overby a throw away price of 4.5 MillionPounds Sterling in 1974. Readersthese 6 gas fields are the backbone ofBangladesh gas sector. Imagine ifBangabandhu did not have the farsight of getting these at a cheap bar-gain what could be our gas securitynow? ADB, WB, CIDA subsequentlygave soft lending support for develop-ment of production, transmission anddistribution infrastructures. Cheap gasand soft loan using gas infrastructuredevelopment kept gas price to con-sumers well below economic pricinglevel. While it was a blessing to theextent that cheaper production ofpower helped supporting rapid indus-trial growth, the mushrooming ofenergy inefficient small, medium and

large industries in the transmission --distribution infrastructure congestedgas franchise areas created demandsupply imbalance. Gas marketing com-panies also failed to effectively controlsystem loss [theft, pilferage and illegaluse of gas]. All these contributed toserious gas crisis making energy securi-ty unsustainable. In this scenario gov-ernment achievement of adding over500 MMCFD + new gas went unno-ticed. Government also embarked onadjusting gas price in phases to differ-ent category of consumers. If this couldbe done earlier it could have doublebenefits by this time. Users would havebeen forced to use gas efficient tech-nology and marketing companiescould earn the right price of the com-modity. BERC authorized to set pricesfor different category of consumersmust act proactively through transpar-ent manner. The remaining gas reservemust be utilized in the best economicway through value additions and ateconomic price only. Gas is a com-modity and must be used as such. Wesuggest conducting a professional eco-nomic gas pricing strategy and adjust-ment of pricing over several smallerrational steps by BERC.

Gas Utilization ScenarioThe above table 2 speaks of itself. One

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wonders as to why after adding over500 MMCFD additional gas overthe last 4.5 years and keeping newgas connections suspended whythere remains huge deficit? Policymakers and Petrobangla are nowacknowledging of huge illegal andunauthorized gas connections anduncontrollable gas theft and pilfer-age in industrial, domestic andcommercial sector. Can we let ourprecious gas resource get wastedand depleted like this? What are theremedies? Who are to be madeaccountable for these? We have 5gas distribution companies withmanaging directors, general man-agers, senior officials. We have avery heavy headed Petrobangla; wehave Energy Division in MOEMR.All company board of directorshave representation from theMinistry, Petrobangla, and some ofPMO. Still gas theft goes on unabat-ed. Who to account for resourcesplundering?

There is a gas act. We must imple-ment it without fear or favor for anyquarter. Milestone achievement of thepresent government is wasting unno-ticed for the abysmal performance ofPetrobangla companies in gas market-ing segment.

Gas Utilization Strategy We must now adopt a rational gas uti-lization strategy. What are our prioritysectors? In order of preference we sug-gest -- fertilizer, industrial [CNG to beconsidered as an industry sector],power, domestic & commercial.

Fertilizer: Bangladesh has to supply gasif required at subsidized price to ureafertilizer plants. But we must makeeconomic use of gas. Plants like PUFF,NGFF, and UFFG have become fuelinefficient. These should be replacedwith modern plants. Chittagong areamay need access to gas from Myanmaror LNG import at a reasonable distantfuture for meeting the gas crisis. But forthe time being Bakhrabad-ChittagongGas Transmission Loop line must bebuilt on top priority basis.

Industrial Sector: Gas to industrial sec-

tor must get second priority and ofthem export oriented industries mustget priority attention. But gas use inindustries must come under seriousscrutiny. Availing cheaper gas andexploiting dishonest nature of gas mar-keting companies huge volume of gasin Industrial sector is either pilfered orwasted. A high level techno-economiccommittee must review gas price toindustrial consumers and also checkimproved pilfer proof metering sys-tems. Vigilance teams must step uptheir efforts and works of vigilanceteams must also be monitored.

Gas for CNG: A noble effort of CNGnosedived for poor planning and mis-management. Introduction of CNG sig-nificantly improved ambient air qualityof Dhaka and major cities. But it creat-ed mushrooming of CNG stations andconversion workshops. Only publicsector vehicles and mass transports likeArticulated NGVs should have comeunder CNG. Three-wheelers and smallprivate transports should never havebeen converted to CNGs as theseacted as double edged swords. Thesecreated huge gridlocks and also added

to huge gas deficits. We must phaseout CNG using small vehicles andgradually minimize CNG conversionworkshops. NGV rapid transports[Articulated Buses] and public sectorvehicles must continue to get gas sup-ply for CNG. Gas price to CNG mustbe economically adjusted and CNGprice must be indexed as 75% of alter-nate fuel. All kinds of CNG use otherthan automobiles and irrigation mustcome to a full stop now.

Gas to Domestic &Commercial Consumers

We recommend pipe line gas supply tothese two sectors should be graduallyreplaced in a planned manner withLPG and coal. People of North-westernand Southern region may get pipelinesupply say for 5 years as these areasare being penetrated now. But by 2018all domestic and commercial con-sumers must be converted to LPG. Forthis government has to create requiredincentives for LPG sector. There mustbe regulatory control of LPG pricingand distribution. Government mustalso expedite exploration of coal.People in the Northern and Southern

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region can use domestic coal oncePhulbari and Barapukuria start eco-nomic production at capacity.

Gas to PowerWith so many alternatives fuel supplyoptions we must not continue to burndepleting gas resources for power gen-eration. Even Power Sector Master Plandictates using coal on priority basis forpower generation. We have enoughhigh quality coal resources to let 50%of the power generation by 2030 and30% by 2021 to rely on domestic coal.Side by side wherever feasible we candevelop coal import infrastructure andLNG import infrastructures for longterm reliance on imported fuel. Owngas supply to power generation mustbe restricted. With 900 MMCFD gassupply it is very much possible to gen-erate 6000 MW power if fuel efficientCombined Cycle plants replaces mostof our aged dilapidated power plants.No new power plants other than thoseare implementation should be gasbased till we have assured future sup-ply from new offshore discoveries andimport. Gas supply to all captivepower generation plants must bestopped with a years notice. There isno logic of supplying gas for captivepower generation.

ConclusionNation got a rude shock from produc-tion glitch of Bibiyana Gas Field forless than a day in the recent past. Atleast the situation could be retrievedwith some panic. But the way we aretrying to exploit our depleting gasresources now, we may embracedemise our own gas resources in nottoo distant future unless we plan theappropriate strategy. Government poli-cy makers and planners must sit forextensive home works and utilize theline professionals and experts in mak-ing the appropriate and workable strat-egy for own gas utilization and prepareimplementable roadmap.

Engr. Khondkar Abdus Saleque; Advisor, Ministry of Mines,Afghanistan

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EP

Solar module installationsenjoyed a significant increasefrom approximately 1.4 GW in2006 to 29 GW in 2011, but theindustry has started to move awayfrom the initial spur, according toresearch and consulting firmGlobalData.

The companys latest report statesthat the growth of the solar PV mod-ule installation market in 2012 wasm u c hl o w e rw h e nc o m -pared tothe previ-ous year,with only3 0 . 2 5G Winstalled.In 2013,ins ta l la -tions arefo r eca s tto fall slightly to 25.4 GW, due toreduced government support in sev-eral countries, such as Spain, Italyand Germany. From 2014 onward,annual additions are expected toremain stable until 2020.

Germany was the largest consumerof solar modules in 2012, with annu-al installations of 7.6 GW, followedby China with 5 GW. China contin-ued to be the largest manufacturer ofsolar modules in the world, boasting66% of the total global module pro-duction in 2012.

Harsha Nagatham, GlobalDatas

Analyst covering Alternative Energy,says: With domestically availablepolysilicon, a favourable regulatoryenvironment and an easily availableinexpensive labor force, companiessuch as Yingli Green Energy, TrinaSolar, LDK Solar and Jinko Solarhave been leading solar modulemanufacturing with annual produc-tion capacities of over 1,000 MWeach.

According to the report, solar PVm o d u l ep r i c e shave alsodroppeddrastical-ly since2 0 0 6 ,when thea v e r a g eprice was$ 3 . 8 / W.In 2012,the priceof a mod-

ule was $0.91/W, and it is expectedto fall further over the coming years,reaching $0.25/W in 2020.

Solar PV is the third-largestdeployed renewable technology interms of installed capacity afterhydro and wind. Emerging countriesin the regions of Asia-Pacific, LatinAmerica, the Middle East and Africaare expected to be the major marketsin the future due to an increasingfocus on green energy to help fueleconomic growth, concludesNagatham.

Global Solar PV ModuleInstallations to Face Stable

Increase by 2020 EP Desk

REPORT

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REPORT

Bangladesh will seek further assis-tance from Russia to develop thecountry's power and energy sector as ahigh-powered team left Dhaka Sundayfor Moscow to seek technical andfunding cooperation, a top official said.

"We will seek both technical and fund-ing assistance from Russia during ascheduled meeting to be held inMoscow this week," EconomicRelations Division (ERD) SecretaryAbul Kalam Azad said before departingfor Moscow.

He said the Bangladeshi team will dis-cuss issues of bilateral interest with thetop government officials and top offi-cials of state-owned Gazprom duringthe meeting.

An official said the country is eyeing

assistance of US$2.0 billion at less than2.0 per cent interest rate from Russia tocarry out several onshore gas sectordevelopment projects to augment theoverall supply to meet the mountingnatural gas demand.

The country will be seeking theRussian fund for drilling a total of 41wells which include 13 developmentwells, 8 appraisal wells, 13 work-overwells and 7 exploratory wells in theTitas, Bakhrabad, Kamta, Bhola,Haripur, Koilashtila, Biani Bazar,Chittagong and Rashidpur gas fields,said the official.

The country also expects to set up 14natural gas processing plants in thesegas fields.

Bangladesh to Seek $2.0bRussian Loan For Gas Projects

Although it had earlier given envi-ronmental clearance to set up theproposed Rampal Power Plant near theworld heritage Sundarbans, theDepartment of Environment (DoE) nowhas tagged over 50 conditions forimplementing the thermal power plantproject in the awake of widespreadcriticism.

The DoE has already put forward theconditions to the project director of theKhulna 1320 MW Coal Based ThermalPower Plant Project (BangladeshPower Development Board) and otherauthorities concerned to follow theconditions, said officials at the DoE.

Violation of any of the conditions andany injunction on this project from thehigher court will render the environ-mental clearance void.

According to the conditions, the pro-posed Khulna 1320 MW Coal BasedThermal Power Plant Project cannotrelease any pollutant because of itsactivities that can affect human healthor will have damaging impact on the

environment or natural resources.

Proper and adequate mitigation meas-ures must be ensured throughoutpreparation, construction and opera-tion period of the power project. Anyheritage site, ecologically critical area,and other environmentally, religiousand archaeologically sensitive placesmust be kept protected during the proj-ect construction phase.

In order to control noise pollution,vehicle and equipment shall undergoregular maintenance and locatingmachinery close to sensitive receptorshall be avoided. Proper and adequateonside precautionary measures mustbe ensured so that no habit of flora andfauna is endangered or destructed.

As per the conditions, the power plantauthorities must deign an enclosedconveyor system to address the entirecoal handling system and there shouldbe an integrated dust control systemwith dust extraction and bag filters atuploading areas and each transferpoint on the conveyor system.

DoE Tags 50 Conditions ForRampal Power Plant

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Dhaka has decided to approve atechnical report on allowing Indiato lay power transmission line its twonorth-eastern provinces to PashchimBangla through Bangladesh in exchangefor some of the power.

The transmission line will transporthydro-electricity produced in IndiasArunachal province to Pashchim Banglaand in exchange, Bangladesh wants ashare on the electricity at theBarapukuria substation, officials said.

The prime ministers energy adviserTawfiq-E-ElahiChowdhury at a recentmeeting asked power division officialsto approve a report prepared by a joint-technical team, which includes sixpower officials of Bangladesh and India,said an official.

Dhaka OpensPower Corridor toNew Delhi

Barapukuria Coal Mine CompanyLimited (BCMCL) has sought fivepercent surcharge from the BangladeshPower Development Board (BPDB) ifthe board fails to pay coal prices withinthe next three months.

The Energy and Mineral ResourcesDivision (EMRD) recently sent a propos-al to the Prime Ministers Office toinclude the provision of paying sur-charge in the proposed coal marketingpolicy.

The BCMCL is selling 3000-4000 tonnesof coal to the BPDB daily for coal-firedpower plant at Barapukuria, aPetrobangla director said. We, so far,have sold coal worth Tk 20 million to Tk25 million to the BPDB.

The BPDB is receiving five percent sur-charge from the BCMCL in case the coalproducing company fails to pay elec-tricity bill in three months, he informed.We will get the surcharge as like as theBPDB charges, if the Premier approvesthe proposal, he said.

BCMCL SeeksSurcharge onOutstanding CoalBills

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REPORT

State-owned Maddhapara GraniteMining Company Ltd (MGMCL) hassigned a cooperation and developmentcontract with Germania-TrestConsortium (GTC) to boost its produc-tion. Germania-Trest is a joint venturecompany comprising Bangladesh-based Germania Corporation Limitedand Belarus-based JSC Trest ShakhtosPetsstroy.

The MGMCL is the countrys only hardrock company, which has been miningrocks from Maddhapara mine inDinajpur district since 1998. The com-pany is a sub-sidiary ofPetrobangla.

MGMCL compa-ny SecretaryShah Md RezaulHaque andSerajul Quazi ofGTC signed thecontract on

behalf of their respective sides at afunction at Sonargaon Hotel in the city.

MGMCL officials said the GTC willwork as a contractor to develop andoperate the mine, increasing hard rockproduction to 5000 metric tons (mt) perday from the present the 1000 mtthrough upgrading its technology andalso using modern machinery.

The GTC will work under a contract of6 years at a contract value ofUS$171.86 million. They will produce9.2 million metric tons of hard rockduring the contract period.

MGMCL manag-ing directorM o h a m m a dMoinuddin saidthat per ton ofproduction costwill be aboutUS$17.23.

Maddhapara Mining Co, GTCSign Deal to Boost Production

Bangladesh is likely to propose theIndian government to set up jointventure (JV) hydroelectric power proj-ects at Arunachal and Tripura.

The government will make the propos-al as per the recommendation of a jointtechnical team (JTT) report formed ear-lier comprising experts of two coun-tries, an official said. The PowerDivision took a decision in this regardrecently.

There is huge prospect of producing186,000MW of electricity from hydro-electric power plants in Indian north-western states of Arunachal Pradeshand Tripura, the official said.

We have received positive responsefrom JTT regarding import of electricityfrom Arunachal and Tripura throughthree separate points, two in

Barapukuria and one in Bheramaraarea, an official said.

The government would raise the issueduring the coming secretary-levelmeeting between the two countrieshere Dhaka late of December next, hesaid.

During the secretary-level discussionon June last, Bangladesh also raised theissue of exploring the possibility ofpower exchange between Bangladeshand India through interconnectionbetween eastern side of Bangladeshand Tripura of India.

Bangladesh also sought support fromIndia on power exchange as per theinitial finding of the Joint TechnicalTeam (JTT) formed at the Indo-Banglajoint steering committee held earlier onFebruary, 2012.

Bangladesh May Propose JVHydroelectric Project in India

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State-owned Petrobangla has sought'advance' permission from the ener-gy ministry for seizure of the assets ofCanadian Niko Resources inBangladesh as part of compensationfor two blowouts at the Niko-operatedTengratila gas field, said an official.

"We sought permission from theEnergy Division under the Ministry ofPower, Energy and Mineral Resourcesto seize the Niko assets," PetrobanglaChairman Hussain Monsur told a localnewspaper.

The ministry, however, askedPetrobangla to wait for the court's final

verdict for seizure of Niko's assets, saidMonsur.

He earlier said an international arbitra-tor has ruled it has no jurisdiction tohear Canadian Niko Resources' chal-lenge to a Bangladesh governmentdemand for payment of $106 millioncompensation for two consecutiveblowouts at the Tengratila gas field.

The ruling by the International Centrefor Settlement of Investment Disputes(ICSID) meant Bangladesh's domesticcourt system has jurisdiction in thecase, the Petrobangla Chairman said.

He said Washington-based ICSID in itsverdict stated it had no jurisdictionover Bangladesh, meaning the casecould be settled in the local court sys-tem.

PetrobanglaSeeks to SeizeNiko's Assets

EPMaddhapara Granite Mining Company

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REPORT

Viable energy storage is fast becom-ing a reality, thanks to recent proj-ects and new rulings in Japan, SouthKorea and the US.

According to PV Magazine, theJapanese Ministry of Economy, Tradeand Industry (METI) has announced thecompanies that will introduce large-scale storage batteries into electricitygrid substations.

The idea of grid storage is simple.When electricity demand is less thanproduction, energy is stored in batteriesfor use when consumption increases.The system has the benefit of smooth-ing out production patterns and there-fore does not have to be scaled up or

down meaning fuel based powerplants can be more efficiently man-aged.

Hokkaido Electric Power, SumitomoElectric Industries and Tohoku ElectricPower have been chosen to explore theJapans first attempt at large-scale stor-age. Tohoku will install what is report-ed to be the worlds biggest large-scalestorage batteries (lithium-ion batteries)at the Nishi-Sendai substation.

PV Magazine reported METIs goals,within the project, are to boost capaci-ty of the supply-demand adjustmentfunction by 10 per cent in the areaalong with continued expansion ofrenewable energies in the area.

Japan & US Ramp Up EnergyStorage Investment

With a subtle motion of the handChina took away theTurkmenistan Afghanistan Pakistan India (TAPI) pipeline project fromUSA and became recently the chiefcontroller of gas resources in Centraland South Asia.

Somebody elses ideas and plans havebeen expropriated by means of con-tract for sale of 25 bn cu m of gas peryear concluded between State ConcernTurkmengas and Chinese CompanyCNPC. The deal will increase the totalvolume of Turkmen gas supplied toChina up to 65 bn cu m. At the same

time the agreement is achieved on theplanned new direction of Turkmenistan China pipeline (D direction) for addi-tional supplies.Gas agreements enabled Xi Jinping, theGeneral Secretary of PRC andGurbanguly Berdimuhamedow, thePresident of Turkmenstan, to adoptmutual Declaration on establishmentof strategic partnership relationsbetween Turkmenistan and PRC.

The Declaration was supported by theagreement between Turkmengas andState Bank of Development of Chinaon cooperation in financing the second

stage of Galkynyshgas field develop-ment, as well as bythe contract betweenTurkmengas andCNPC on designingand construction ofplant producingcommercial gas involume of 30 bn cum annually at the gasfield Galkynysh.

China Takes Away TAPIPipeline From USA

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India's Oil and Natural Gas Corp hasagreed to buy 10 percent in a gas fieldoffshore Mozambique from AnadarkoPetroleum Corp for $2.64 billion, as theexplorer looks to offset diminishing sup-plies from domestic gas fields by buyingoverseas assets.

The purchase of U.S. oil companyAnadarko's stake is the latest in a hand-ful of overseas assets that ONGCVidesh, the overseas business unit ofstate-controlled ONGC, has bought inthe last couple of years to boost India'senergy needs.

In June, ONGC and state-run Oil IndiaLtd signed a deal to buy a 10 percentstake in a Mozambique gas field fromVideocon Group for $2.48 billion.

"There is a lot of energy demand andwhatever volumes of gas we are able tobring to the country are of utmost signif-icance," said A. K. Srinivasan, ONGC'sgroup general manager for finance."Mozambique will be a big LNG hub forthe future."

India's ONGC toBuy $2.64B Stakein AnadarkoMozambique GasBlock

China will add some 1,500gigawatts of power productioncapacity by 2030, or the equivalent ofBritain's existing capacity every year, astudy showed.

Although the world's biggest carbonemitter will continue to draw consider-able capacity from coal-fired plants,about half of the new capacity will begenerated from renewable sources.

China to Add 1,500GW of PowerCapacity by 2030

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REPORT

Berlin-based subsidiary of Gazpromhas signed an agreement underwhich it acquired the natural gas fuel-ing network from Bavarian energy sup-plier Ferngas Nordbayern (FGN) onSeptember 1, including 12 sites insouthern Germany.

With this acquisition, we are expand-ing our CNG filling stations in thecountry and strengthening our commit-ment to the use of natural gas as envi-ronmentally-friendly motor fuel, saidVyacheslav Krupenkov, Senior

Managing Director of GazpromGermania GmbH.

The agreement with FGN will helpGazprom Germania jump from eight to23 natural gas stations by the end of2013.

The companys latest CNG fuelingfacility became operational in Augustand it is located in the German BalticSea resort town of Ribnitz-Damgarten(Mecklenburg-Western Pomerania).

Gazprom Germania Plans toOperate 23 CNG Filling Stations

Bhutan is looking at attracting moreforeign investments and greater pri-vate participation in expanding thecountry's hydro power sector.

"We encourage private sector partici-pation in the hydro power sector. Weencourage Foreign Direct Investment(FDI)," Bhutan's Prime MinisterTshering Tobgay said recently, address-ing industry chambers - CII, Ficci andAssocham.

"For smaller projects, we will be

encouraging aggressively the privatesector and FDI," Tshering said.

Tata Power, among others, is alreadyworking on a hydel project in theneighbouring nation.

At present, many of the hydel projectsbeing developed in Bhutan are underan agreement between the two coun-tries. The Indian government hasagreed to develop 10,000 MW ofhydro power in Bhutan by 2020.

Bhutan Seeks ForeignInvestment in Hydropower

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Ir a nr a n k sthird inthe worldand sec-ond int h eM i d d l eEast interms ofc r u d ereserves,an annu-al OPECreport announced.

The Organization for PetroleumExporting Countries (OPEC) in itsAnnual Statistical Report announcedthat the volume of Irans oil reservesamounted to 154.58bln in 2012,showing an increase of more than 1.8percent as compared with the figuresin the year before.

Venezuela with 297.735bln barrels ofcrude and Saudi Arabia with265.85bln barrels precede Iran in theOPEC list as the states holding thelargest and second largest crudereserves.

According to the OPEC report, theworlds crude reserves stood at1.478211trln in 2012, showing a 0.9percent increase compared with thepreceding year.

In April, National Iranian OilCompany (NIOC) Director forExploration Hormoz Qalavandannounced that the country discov-ered 15 oil and gas deposits in the lastIranian year (ended on March 20).

Speaking to reporters, Qalavand saidthat NIOC focused its oil and gasexploration activities on border areaslast Iranian year, adding that the coun-try found a total number of 15 new oiland gas layers last year.

Iran Holding3rd LargestCrude Reservesin World

Norway's government is cutting itsprojections for oil prices by 4 per-cent for next year and 11 percent for2015, reflecting higher supply andlower demand from the world's twobiggest economies, its prime ministersaid recently.

The Nordic country is the world's sev-enth-largest oil exporter. It can use upto 4 percent of its oil and gas revenuesin its national budget, so it runs oilprice projections to establish howmuch money it can count on.

The government now expects the aver-age per barrel price for oil to fall to 600

crowns ($98.4) in 2014 from its earlierview of 625 crowns. It expects prices todrop further to 535 crowns in 2015.

"There is growing uncertainty about oilprices. There is great uncertaintybecause the United States producemore (oil) ... In addition, China is buy-ing less than before," Prime MinisterJens Stoltenberg told public broadcast-er NRK.

"We must be prepared for more falls (inoil prices)," he said during a break innegotiations for the 2014 budget.

Norway Cuts Oil PriceForecasts for 2014, 2015

EP

Hormoz Qalavand

EP

One CEO of Bangladesh oncetold me I am so busy that Ihave no time for readingbooks. I only read newspapers andmatters relating to my job. But I foundanother CEO who in spite of his tightschedule still makes time for readingbooks for bliss and recreation.

Nowadays business scholars believethat for successful career developmentcontinuous learning is a must. The dayyou stop learning, you begin tobecome obsolete. In this globalizedworld if you want to survive, if youwant to be competitive, continuouslearning is a must. In this regard read-ing is a major option. So, today ouremphasis is on reading particularly onreading books. Books as we know areat the heart of any continuous learningeffort. Mark Twain once said, A personwho wont read has no advantage overone who cant. So, it is the obligationof any literate person to read and read.

It is said that people who have no tasteor desire for reading are to be pitiedsince they miss one of the top pleasureof life. But mere reading is not sufficient

what is important is selection of prop-er books. There are good and poorones on almost any subject. Also theway that books are read will influencehow much harvest one can get out ofthem and the ease with which theacquired learning can be applied. Forthis what is required is to build anorganized and systematic reading pro-gram. Generally the books can be readthrough two approaches. The first iscore subject reading and the secondapproach is scanning approach i.e. get-ting something out of everything.

Ruskin divided books into two classes-books for the hour and books for alltime. A book for the hour is simply theuseful or pleasant talk of some persons.For example, bright travel stories, wittyand wise discussions on current topics,light fiction and so on. There is noharm in reading such books but it is agreat mistake to allow such light read-ing take the place of the study of truebooks for all times. By true books wemean the books which have stood thetest of the time and preserve the highestthoughts of the worlds great thinkers.Many years back Rene Descartes said,The reading of all good books is like aconversation with the finest minds ofthe past.

Once your books are lined up, thequestion of how to best read themremains. But the ultimate objectiveshould be to get the maximum benefitas quickly and expeditiously as possi-ble.

In reading a book the main job shouldbe to find the key ideas of the bookands understand their application toones own situation. The preface andtable of contents as well as summariesof book help one to do this quickly.One may read the detail only whensomething really meaningful seemsinvolved. In this way one can gain

much benefit in a surprisingly shorttime.

The above method can help one to up-grade the quality as well as increase thequantity of books read. With largerexposure of different books one is morelikely to come across ones worth care-ful study. In case of serious reading oneshould understand that since we canremember little it saves time to readonly what is most likely to be worthremembering. This is in unison withBacons words where he says, Somebooks are to be tested, some to beswallowed and some few chewed anddigested that is read wholly and withdiligence and attention.

A book that is worth reading is alwaysworth reading with care and thought.The art of reading is to think whilereading so as to digest thoroughly thethoughts expressed. For this somepages may be gone through again andagain.

Reading can be both pleasure and illu-minating. Though people can get infor-mation and learning from many othermedia it is only reading which fostersan imaginative dialogue between thetext and readers mind that actuallymake people think. Hence at this age ofinternet reading is still very popular.When top executives in the 500 largestUS companies were asked to rate theirfavorite leisure time activities, most ofthem put reading at the head of the listfollowed by golf, hunting, tennis, run-ning and fishing. So, get into the habitof reading for your own survival anddevelopment. Even sometimes youmay turn the TV off and read a book.

Naseer Ahmed;Energy & Management ConsultantE-mail:bizex@bangla.net,naseer2553@yahoo.com

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MANAGEMENT

Corporate WorldReading For Continuous Learning

Naseer Ahmed

EP

The socio-economic background ofBangladesh and Malaysia is almostsame. Bangladeshi gas professionalscould be extremely benefitted learning les-sons from Malaysian experience.PETRONAS and Petrobangla can be mutu-ally benefited sharing experience and act-ing as Joint Venture partner in planning,developing petroleum resources, explor-ing and exploiting Bangladesh resourcesin the adopting the most appropriate tech-no-economic cost effective strategy.PETRONAS and Malaysia are almost syn-onym and so could be Bangladesh andPetrobangla. But that did not happen andnow even Petro Vietnam comes toBangladesh to venture resources explo-ration. A professionally managedPetrobangla could now be working allover the world like PETRONAS, ONGC,SINOPEC and likes.

Given the importance of the visit andopportunity of learning lessons fromPETRONAS this writer does not believethat Bangladesh could select the teamsmartly. While the technical team was allright, policy group should have personshaving another three to year service andwere involved in strategic planning of thesector. The inclusion of ChairmanParliamentary Standing Committee onPower, Energy and Mineral Resources wasright choice and so was Joint Secretary(Development). But it could be muchmore useful if some Managing Directors ofoperating companies who later were pro-moted as director Petrobangla could beincluded. After this entire visit was envi-sioned learning from PETRONAS experi-ence, planning and implementing replica-tion of the same wherever feasible inPetrobangla system operation and man-agement. USAID personnel accompany-ing the team made professional assess-ment of the visit and perhaps submitted itMoEMR.

Technical team visited a major compressorstation of PETRONAS gas transmission sys-tem and the gas export station toSingapore at Zohurbaru. The giant gaspipeline compressor station was designedto state-of-the-art modern technology andoperated very efficiently by own profes-sionals of PETRONAS. We had extensive

interaction with PETRONAS professionals.The present MD GTCL Engr. AminurRahman and ex-Petrobangla Director[Operation] Petrobangla Engr. MahabuburRahman were with us. I am sure they wereextremely benefitted from the day longvisit and made significant contribution toGTCL initiative of gas pipeline compressorstation project. As Director [Operation]GTCL and Project Director GTCL com-pressor station at that time this writer wasimmensely benefitted. However, theextensive plans that I made for design,implementation and operation manage-ment of pipeline compressor stationscould not be materialized due my invol-untary dissociation from Bangladesh gassector. PETRONAS has excellent trainingfacilities for gas compressor stations oper-ation. GTCL may plan to send its engineersand operators for real time training atPETRONAS facilities.

Gas District CoolingAnyone who has visited Malaysia or tran-sited through massive Kuala LumpurAirport must have seen the excellent cool-ing system. The similar cooling system isin place at Putrajaya major installationsand KLLC tower. Believe it or not these arenatural gas cooled. The Bangladesh teamhad rare opportunity of visiting the gas dis-trict cooling facility of PETRONAS atPutrajaya. This writer had a plan to repli-cate this for international airports atDhaka, Chittagong and Sylhet. I hope theteam members who are in active service inPetrobangla will try to do this. This willmake economic use of gas and save lots ofenergy now being wasted in those installa-tions. Even major mega malls in Dhakalike Bashundhara City and Jamuna FuturePark can have gas district cooling.

Training & Capacity BuildingPETRONAS has excellent recruitment pol-icy of fresh professionals, training andcapacity building strategy before inductingthem to PETRONAS system. Petrobanglacan take a clue from it. We understandPetrobangla and its company now suffersfrom lack of competent professionals.Petrobangla can be extremely benefittedfrom PETRONAS experience of develop-ing BHUMIPUTRAS for its system devel-opment and operation.

Presentation of Bangladesh OpportunitiesOn the penultimate day of PETRONASvisit the writer had the honor of opportu-nities for PETRONAS in petroleum sectorin Bangladesh. The power point presenta-tion was made at the 43rd floor ofPETRONAS tower and was attended bysenior professionals of PETRONAS. Theyshowed lot of interest in all segments ofgas value chain .A win-win joint ventureof PETRONAS with Petrobangla couldonly serve the greater interest ofPetrobangla and Bangladesh.

Visit to Mine ResortThis writer with some PETRONAS friendsvisited Mine Resort Centre in the outskirtsof Kualampoor City. This is huge recre-ation Centre and alluring lake made on thecompleted open pit copper mine. I wasreally very much moved to witness howthe mining has changed the life and livingof the mining community. The lake hasthousands of rare fish and birds. A megamall has been also set up on the rehabili-tated section of the mine where mostly themine affected community is running busi-ness. Thousands of visitors every day vis-its the resort. Anyone who stays in KL for aday or two can visit Mine Resort Centre.Similar facilities can be set up atBarapukuria or Phulbari taking lessonsfrom the resort centre.

This writer often visited Malaysia forattending seminars and networking andhad opportunities of visiting other touristresorts. Those experiences will be sharedin future with EP readers.

Presentation to ParliamentaryStanding Committee

This writer was advised by ChairmanParliamentary Committee throughPetrobangla to make an exclusive presen-tation to the committee sharing the lessonslearned. On two meetings we were readywith the presentation and almost started it.But the honorable MPs were not interestedin the presentation. They were rather inter-ested to visit PETRONAS to see for them-selves. As such an excellent opportunitywas lost to share experience withBangladesh power and energy sector thinktank. We hope after the ensuing generalelections the new government will try tolearn lessons from regional petroleumcompanies like PETRONAS, PERTAMINA,SINOPEC, ONGC and try to replicate thebetter strategies for Petrobangla.

Engr. Khondkar Abdus Saleque;Advisor, Ministry of Mines, Afghanistan

27

MEMOIRS

Pilgrimage to PETRONAS IIEngr. Khondkar Abdus Saleque

EP

29

Though Improved Cooking Stoves[ICS] was innovated by the localscientist in 1970s yet in morethan three decades the use could notbe popularized significantly. Onlyabout 1 million families out of 30 mil-lion now have ICS. Government ordevelopment partners have no definiteinformation about what percent of theabove ICS are in use. But Germandevelopment partner GIZ in endeavor-ing its efforts for popularizing the localscientists innovated high quality ICS inthe name of suspended usestoves.Government has also givengreater attention considering its posi-tive impacts on public health, environ-ment friendliness and conservation offire woods.GrameenShaktiwhich pioneersrenewable ener-gy developmentthrough solarenergy use andother NGO havealso joined thism o v e m e n t .USAID has final-ly joined this ini-tiative withfinance and tech-nology support.All these worksare now pro-ceeding under anational initia-

tive.

Recently Catalyzing Clean Energy inBangladesh (CCEB) and GlobalAlliance for Clean Cook stoves (GCC)of USAID jointly organized a seminarat Bangabandhu InternationalConference Center to popularize use ofImproved Cooking Stoves for all. Thisprogram is named Market facilitationplatform. Dan D Mazena USAmbassador attended the program aschief guest.

This seminar was arranged for popular-izing the use of clean energy usingstoves, marketing and improving quali-ty.

This seminar created opportunity for

discussion among local and interna-tional stove makers, NGO, develop-ment Partners, local entrepreneur andgovernment officials towards creatingmarket for new and efficient cookingstoves.Various clean energy usingstoves manufactured by internationalcompanies were on display.

US Ambassador Dan D Mazena reiter-ated the renewed pledge of USA forworking shoulder to shoulder with theGovernment and other developmentpartners for popularizing the use tocooking stoves which cause no harm tohealth, reduce cooking time, use lessfuel and cause less emission.

Special guest Taposh Kumar Roy addi-tional Secretary PowerDivision informed thatgovernment is working ona plan for setting up of 7million ICS in 5 years. Forits effective utilization weare waiting for organizingresidential fuel supplyplatform. All stakeholdersinvolved in the processwill be its members. Wehave firm belief that ICSwill also be a successfulventure like solar homeheating. Government isworking with politicalcommitment and hastaken initiative to involvepeoples representatives.

Imporved CookingStove for All

EP Report

US Ambassador Dan D Mazena & Taposh Kumar Roy additional Secretary Power Division

visit the stall after inaugurate the exhibition

31

The program was organized as part ofUSAIDs 5 years term 15 million worthCCEB project. CCEB will assistBangladesh in creating an institutionalenvironment for market developmentof clean fuel using cooking stoves,expanding energy efficiency in indus-trial sector, and integrated develop-ment of clean energy.USAID in associ-ation with GSCC launching partners,its alliance and US Government willwork intimately for supplying world-wide about 100 million clean cookingstoves.

Richard Green USAID Mission Chief inDhaka, Paul Evans Country DirectorSNC Paul Stevens and Sabrina Amjad

acting team leader of CSEB.

The program included a day long tech-nical session. The experts talked aboutissues, opportunities and ways of driv-ing the initiative to success. Theystressed upon effective campaigningfor changing the mindset the rural pop-ulation for using improved cookingstoves instead of traditional ones. Theyalso stressed upon strict monitoringand regulation of quality for eliminat-ing the possibility of using substandardcooking stoves.

A day long exhibition was also held fordisplaying various types of ICS. Thechief guest also inaugurated the exhibi-tion. EP

Bangladesh finally outlined a fundrequirement of $ 2.76 billion forimplementing its 500MW solar powerprogram by 2017.

Power Division under the Ministry ofPower, Energy and Mineral Resources(MPEMR) published a booklet lastweek outlining this fund requirementand sourcing arrangement.

In 2010, the government announcedthe 500 MW solar power program inline with the Asian DevelopmentBanks (ADBs) Asia Energy SolarInitiative to develop 3000MW solarpower in Asia and Pacific Region by2013.

As per the outline, the 500MW solarprogram has been divided into twoparts 340 MW commercial solarprojects and 160 MW social sectorsolar projects.

The commercial projects include solarirrigation of 150 MW, solar mini grid of25 MW, solar park of 135 MW, solarrooftop of 30 MW.

The social projects include 50 MW forsolar-powered healthcare centers, 40MW for remote educational centers, 7MW for union E-centers, 12 MW forreligious establishments, 10 MW forremote railway stations and 41 for gov-

ernment and semi-government offices.

As per the Power Divisions estimate, ofthe total required $ 2.76 billion fundfor this 500 MW, the commercial proj-ects need $ 1.77 billion and the rest isrequired for the social projects.

Of the total commercial and socialprojects requirement, $ 1.38 billion isexpected as financial support fromdevelopment partners in the form ofgrant of and another $ 0.85 billion inlow interest credit. The remaining fund0.53 billion will be arranged from thegovernment and private sector.

Sources said that despite repeatedappeals from the stakeholders in thecountrys renewable energy sector,until recently there was no specificfund-outline, strategies and guidelinesfrom the government side to imple-ment the gigantic program.

Now through publication of this doc-ument, the government expresses itsseriousness about the solar program,said an official, who is in-charge ofsolar-related programs. He said thepublication of the document will helpdelineate the features of the govern-ment strategies and programs to inter-national donor agencies to seek theirsupports for the program.

Govt Outlines $2.76bn FundRequirement For Solar Projects

EP

Bangladesh has recorded the fastestgrowing solar home systems (SHS)program in the world with 24 lakhhomes being lighted under the projecttill June this year, officials said. WorldBank has hailed Bangladeshs programas the fastest growing SHS initiative.

SHS has been producing 105megawatt (MW) of electricity inde-pendent of the national power grid,saving large quantities of gas, coal andoil. Experts said the country has suc-cessfully tapped into the potential ofsolar power following more incentivesto cut costs.

According to the latest data of state-

owned Infrastructure DevelopmentCompany Limited (IDCOL), the coun-try has an average of 80,000 new SHSinstallations each month.

The IDCOL, a non-banking financialinstitution under the finance ministrysEconomic Relations Division (ERD),has installed SHS with financial sup-port from the World Bank and otherdonor agencies in partnership with pri-vate sector business entities and NGOsacross the country.

The other agencies include AsianDevelopment Bank (ADB), JICA ofJapan and KfW of Germany.

According to the World Bank, the aver-age SHS installations rate was 50,000per month in February this year. TheWB has been supporting the programunder the Rural Electrification andRenewable Energy DevelopmentProject (RERED) since 2002.

BangladeshLeads in SolarPower Project

EP

32

Bangladesh finally outlined a fundrequirement of $ 2.76 billion forimplementing its 500MW solar powerprogram by 2017.

Power Division under the Ministry ofPower, Energy and Mineral Resources(MPEMR) published a booklet lastweek outlining this fund requirementand sourcing arrangement.

In 2010, the government announcedthe 500 MWsolar powerprogram inline with theA s i a nDevelopmentBanks (ADBs)Asia EnergySolar Initiativeto develop3000MW solarpower in Asiaand PacificRegion by2013.

As per the out-line, the500MW solarprogram hasbeen dividedinto two parts 340 MWc o m m e rc i a lsolar projectsand 160 MWsocial sectorsolar projects.

The commer-cial projectsinclude solar irrigation of 150 MW,solar mini grid of 25 MW, solar park of135 MW, solar rooftop of 30 MW.

The social projects include 50 MW forsolar-powered healthcare centers, 40MW for remote educational centers, 7MW for union E-centers, 12 MW forreligious