Committee formed to look for fuels for mega power plan

by energybangla.com

The power and energy ministry has assigned a committee to recommend ways and means to arrange fuels for generating 7000MW electricity by 2014. The decision came at a meeting Tuesday as uncertainty over availability of fuels like gas and furnace oil for future generation plants ran deep after Petrobangla expressed its inability to ensure gas supply to all planned gas-based power plants. Bangladesh Petroleum Corporation also said it lacks infrastructure to import additional oil at present. The meeting was attended by adviser to the prime minister Tawfiq-e-Elahi Chowdhury and state minister for power and energy Enamul Haque. Energy division additional secretary Syed Manjurul Islam will head the committee, which will look for alternative arrangements for fuels. Replying to a question, Tawfiq said, ‘Our plan is ambitious. We might not be able to achieve one hundred per cent success, but we will continue trying.’ Officials discussed the plans earlier explained to prime minister Sheikh Hasina for installing power plants to be fuelled by furnace oil, diesel and coal, along with the gas-based power plants which are in the pipeline, to materialise the vision to free Bangladesh from load-shedding by 2014. The PDB projected that around 752MW of power would be added by 2009 from the power plants initiated by the previous government. However, officials of Petrobangla said earlier that gas supply to the under-construction 2×120MW Siddhirganj and 150MW Shikalbaha power plants is uncertain. Petrobangla currently faces gas shortage of more than 400 million cubic feet per day and the existing power plants suffer from shortage of around 150mmcfd. PDB also projected that around 1,350MW of power would come in the 2011-2013 period from some power plants including the 450MW Bibiyana independent power plant, the 300MW Siddhirganj plant, and five 150MW plants in Bhola, Sylhet, Chandpur, Sirajganj and Khulna. Apart from Bhola and Sylhet, gas supply to other plants is uncertain. Besides, gas shortage can also affect the plan to install power plants capable of producing 1,445MW in 2012-2014. A high official of Petrobangla, however, told New Age that the fuel stock review committee would go through the annual projection of gas production and recommend how much gas the power sector would get. ‘The committee will recommend the percentages of gas the power, fertiliser or industrial sectors will get. Suppose the PDB gets 50 per cent of gas, then PDB will decide which power plants it wants to run with the gas,’ he said. The PDB also apprised the meeting of its plan to install furnace oil-based short-term rental power plants to produce around 500MW by June 2010 and get 800MW from furnace oil-based peaking power plants and 1,000MW from coal-based power plants by next two to three years. The meeting was told that the country would need to import around 2.5 lakh tonnes of furnace oil annually to run the rental power plants and around 21 lakh tonnes of coal would be needed for coal-based plant every year. PDB projected around 12 lakh tonnes of furnace oil will be needed annually by 2014 to run the oil based plants. BPC officials told the meeting that the corporation currently imports around 36 lakh tonnes of fuel oil a year and it has a storage capacity for only 58,000 tonnes. They said more infrastructure and storage and transportation capacity would be needed to import and use additional furnace oil for power plants. Besides, there is no infrastructure and storage capacity for importing coal, the meeting was told. ‘The fuel stock review committee, which will be represented by PDB, Petrobangla, BPC and other relevant organisations and departments, will consider all these aspects while finalising its recommendations in next few weeks,’ said a source present at the meeting.

WB approves $130m credit to Bangladesh for solar power

The World Bank on Friday approved a $130 million credit for Bangladesh to finance a project which was designed to support installation of affordable solar home systems in rural areas to increase the people’s access to electricity.
The amount of credit is additional financing for the Rural Electrification and Renewable Energy Development project which has so far provided 320,000 consumers with solar home systems.
The project is said to have connected 600,000 consumers to the power grid since 2003.
‘Investing in grid electricity alone will not realise the government of Bangladesh ’s goal of universal access to electricity by 2020,’ said Robert L Floyd, acting World Bank country director.
This additional financing will be used to provide electricity to 300,000 households through solar home systems. ‘Many of these households in poor areas are too remote to connect to the electricity grid and would never receive electricity through conventional electrification methods,’ he added.
The lending agency will provide the credit through its soft-lending window the International Development Agency, said a WB news release.
The credit has a 40-year maturity time with a 10-year grace period and it carries a service charge of 0.75 per cent.
A portion of the additional financing will be used to purchase and install about 10 million energy efficient compact fluorescent lamps in the densely populated areas replacing the equivalent number of incandescent lamps.
‘Lighting coincides with the peak load hours and contributes over 20 per cent of the demand,’ said Raihan Elahi, senior energy specialist and task leader for the project.
‘Replacing these lamps, which will be free of charge for residential consumers, is expected to reduce the peak demand by about 360 MW,’ he added.
The project will support an ongoing renovation of the electricity distribution network as well as provide financing for renewable energy projects such as biomass and biogas power plants, solar water pump for irrigation, and solar mini grids.
Despite progress, the access to power in Bangladesh still remains at low which is around 40 per cent, according to an official statistics.
However, a severe power shortages and load shedding hit the rural areas also pulling back the economic growth and industrial development.
Growing population, industrialisation, additional connections, and rise in the use of modern electrical appliances have boosted the demand for electricity, currently growing at a rate of over 500MW a year.

Source: http://www.energybangla.com/index.php?mod=article&cat=GreenPage&article=1953

PM seeks German help in energy sector

ET Report
Prime Minister Sheikh Hasina on Wednesday last sought German assistances for tapping all sources of renewable energy in the country and facing the challenges of global climate change.
She wished for the cooperation when German Ambassador Frank Meyke made a farewell call on her at the Prime Minister’s Office in the morning.
“Germany as a big producer of renewable energy with advanced technology and expertise stands in a unique position to support Bangladesh in its dire need of tapping all sources of renewable energy. Bangladesh expects Germany will assist in a big way in the field,” the Prime Minister said.
The outgoing German Ambassador assured the Prime Minister of continued German support to Bangladesh in attaining sustainable development.
Foreign Minister Dipu Moni, Prime Minister’s Office (PMO) Secretary Mollah Waheeduzzaman and former Ambassador Ziauddin were present at the meeting.

Bangladesh becomes gas chamber by Indian coal

by Torun Khan
Solving air pollution is a big challenge for Bangladesh. Environmentalists and NGOs have been active on climate change issue. Unfortunately they aren’t focusing on Indian low quality coals that are used in hugely in our brick fields.
Bangladesh’s brick fields use Indian low grade coal. Around 4000 brick fields are producing bricks consistently by using waste coal of India. Local brick fields use 15 lac metric ton coals each year. These coals contain 8 to 10 % sulpher and 65 % carbon, though law permits containing of only 1% Sulpher. These sulpher and carbon is very detrimental to environment.
The energy experts say Bangladesh isn’t using its rich and good quality coals but using environment killer Indian coal. They asked government to stop exporting these detrimental coals. They opined that we should use our coal.

JS panel chief for finalisation of coal policy

ET Report

The country needs to finalise the national coal policy to facilitate extraction of coals from the five coalmines it has with a proven reserve of around 2.55 billion tonnes for easing the worsening power crisis.
Subid Ali Bhuiyan, Chairman of the Parliamentary Standing Committee on Power, Energy and Mineral Resources, made this observation while talking to reporters on Wednesday.
“We’ve recommended that government finalise the coal mining policy immediately for utilisation of coal resources in power generation to meet the growing demand for electricity,” he said.
Bhuiyan said the country is getting offers from many countries for production of wind and solar power. A Swedish company has offered to generate 400mw electricity using wind, he added.
About 80 percent of electricity in Bangladesh is produced from natural gas, but at present the country with 13.54 trillion cubic feet of proven and recoverable gas reserves faces up to 250 million cubic feet of gas shortages a day, officials say.
The government says it is exploring various means, including nuclear power generation, to overcome the problem, which is one of the key constraints to growth.
Frequent power failures cut gross domestic product by around $1 billion annually, according to the World Bank
The taka 1.14 trillion ($16.5 billion) budget for the current fiscal year allocated taka 43.10 billion for the power and energy sector, 48 percent higher than the previous budget.
Barely 45 percent of Bangladesh’s 150 million people have access to power but they still face frequent power cuts that often trigger protest.
The country set its clocks one hour ahead from last month to use more daylight time to cope with the nagging power shortfall.
Officials have said the shortfall will reach 8,000mw a day by 2011.

Iran keen to develop Bangladesh energy sector

ET Report

Iran has shown deep interest to develop the energy sector, particularly in restructuring Easter Refinery and producing hydropower sector to improve power generation in the country.
Iranian Ambassador in Dhaka Hassan Farazandeh said this while briefing some newsmen at his residence recently.
He said Iran has vast experience in developing oil refinery fields with low cost and urged Bangladesh to consider their proposals deeply. He said Iran has vast experience in energy and power sector and Tehran will transfer technological support to Dhaka in setting hydropower plants in a bid to ease the power crisis.
He also regretted that bilateral trade between the two countries does not reflect the potentials of the two OIC countries and urged the business leaders of the both countries to identify specific sectors of mutual cooperation with an objective of inviting investment and transferring technology.
He also laid emphasis on regular basis change information on their respective national economies, investment regulations, export possibilities and import requirements.
He also said that Iran is also interested to set up silk and light engineering industries, water and electricity generation plants and transmission plants.
He said both Iran and Bangladesh enjoy warm and excellent relations and expressed the hope that brotherly relations between the two countries will be strengthened in the days to come.
Hassan Farazandeh expressed the hope that Prime Minister Sheikh Hasina will visit Iran at her convenient time that will help bridge the relations between the two OIC member-countries.
To a question of combating terrorism, Hassan told the press that Tehran is pledged-bound in establishing peace and harmony in the world as Iran is the main victim of global terrorism.
US President Barack Obama has offered “a new beginning” of engagement with Tehran in an unprecedented direct video message to the Iranian people. Relations between Iran and the US have been strained over Tehran’s controversial nuclear activities.
In 2007, business leaders of Dhaka and Tehran agreed to develop mutual and beneficial cooperation, assist the development of economic, trade and investment relations, and establish favourable conditions to interact between member-enterprises of two countries. In 2007, Mashhad Chamber of Commerce, Industries and Mines (MCCIM) President Golam Hossein Shafeai and Dhaka Chamber of Commerce and Industry (DCCI) President Hossain Khaled also signed a memorandum of understanding (MoU) at the DCCI office in the city.
Regarding the Presidential election held in Iran 2009, Hassan Farahzandeh said that participation of 85 per cent voters in the 12th June’s Presidential election of the Islamic Republic of Iran in comparison with 30 per cent turnout in the European democracies shows the manifestation of interest and ‘conscious will’ of Iranian citizens to determine the future of their country.
According to the law of the Presidential Election besides representatives of the candidates, 14 persons including representatives and observers of the Guardian Council, Home Ministry, Attorney General Office, Birth and Death Registration Organization and some local trustworthy persons of various tastes and trends remained present in all the election booths, executive organizations and at the time of counting of ballots.
“Therefore it is evident that the structure of observation of the election has such a multi-level arrangements that reduce possibility of any kind of rigging or violation to the lowest level.
According to articles No. 99 and 118 of the Constitution of the Islamic Republic of Iran, the Guardian Council is the appropriate and legal authority for observation of the election and investigation to the complaints of the candidates.
‘The only way to establish the rights of the citizens is to resort to law, not to instigate violent activities in contravention to the spirit of the Constitution that creates instability and takes away the peace and tranquillity from the society and the people.
Terming the Presidential Election of Iran as rigged or staged one by some of the foreign media and officials exhibit their political motivation and one kind of insult to the intellect of the Iranian people and one kind of open interference in the internal affairs of other countries which is violation of democratic standards and principles and internationally accepted manners, he said.
“Therefore we advise the western media and officials who are harbingers of democracy that they honour the democratic values and incomparable capability of the Iranian society,” he said.
According to internal law of the country and democratic principles and also paying respect to others’ rights including article No. 27 of the Constitution holding of any kind of gathering is free provided that no arms should be carried and basic Islamic principles should not be violated, but such gathering should be arranged with prior permission of the relevant legal authorities.
Accordingly, the government of the Islamic Republic of Iran tolerated all kinds of peaceful protests and shown the maximum patience and tolerance regarding the protesters to the extent that at the result of this extraordinary tolerance 7 members of the security forces have been killed and 400 members of police have been wounded at the attack of disturbing elements and damages worth billions of rials have been inflicted upon banks, bus-stops, metro-stations, mosques, houses and shops of the people. But according to law of protection of public safety, which is the primary duty of every government, the disturbing elements and those who set fire and destroyed the public properties and attacked the innocent people have been treated according to law and Islamic kindness. According to the article No. 80 of the Presidential Election Law if anybody has any complaints regarding manner of holding of the election he should go to the executive organizations or the Guardian Council within three days. So from the beginning of protests against the election result Iranian authorities always treated them, particularly with other candidates with softness and tried to convince all the three protesting candidates so that they place their complaints to the Guardian Council and the Council extended the legal date of submission of complaints and started necessary analysis.
Recently the Guardian Council has formed a special body consisting of neutral representatives, organizations and legal-political personalities including Dr. Ali Akbar Velayyati, Hujjatui Islam Dorri Najafabadi, Dr. Gholam Ali Haddad Adel, Hujjatui Islam Rahimiyan, Dr. Gudarz Eftekhar Jahrami and Hujjatui Islam Abu Torabi to count ballots of sporadically selected 10 percent ballot-boxes at the presence of representatives of the candidates, this body and representatives of the mass media and examine the submitted complaints and publish its result for public information. Regarding killing of a lady named by Neda Agha Soltan it may be mentioned that she was not killed at the time of disturbance. The area wherefrom the film was taken is very far from the spot of demonstration. Moreover the bullet used to kill her was not of any kind of bullets used by security forces of Iran. Also the cameras set for taking video-films and other signs and document show that there are many reasons to believe that those video-films were pre-planned for a motivated propaganda; in this regard investigation is going on.

Mega plan to generate more 5,000mw power

by R. Akter

The Ministry of Power and Energy has been mobilising taka 40,000 crore (400 billion) to generate 5,000mw of electricity to reduce load-shedding to a tolerable level in next four and a half years.
The ministry has placed its mega plan of power generation to Prime Minister Sheikh Hasina at her office Wednesday. Under the plan, the Power Development Board (PDB) would produce 500mw gas-fired electricity between July and December this year to overcome load-shedding.
The PDB would hire furnace-oil based 1,000mw of electricity from private sector from January to June 2010, the plan said. In 2011, the government would install furnace-oil based 800mw capacity of power plant.
The PDB officials would seek suitable place to establish the plant, a senior official of the PDB said.
Besides the government would also hire another diesel or furnace oil-based power plant having capacity of 700mw in 2012 to keep load shedding at mild level, the official said.
However, the government also contemplates establishing four coal-fired based power plants with capacity of producing 500mw of electricity each with public and private partnership (PPP).
The government has initially tried to create fund of taka 6,000 crore to implement the plan, sources said.
The power division has tried to utilise the government’s budgetary allocation of taka 2000 crore for PPP in this regard, sources added.
During the meeting, Prime Minister Sheikh Hasina permitted the power division to implement the PDB plan to reduce load-shedding to a tolerable level.
Prime Minister’s Adviser for Power and Energy Dr Tawfiq-e-Elahi, State Minister for Power and Energy Shamsul Haque Tuku, Power Division Secretary Md Abul Kalam, PDB Chairman ASM Alamgir Kabir were present.

Mega plan to generate more 5,000mw power
R. Akter

The Ministry of Power and Energy has been mobilising taka 40,000 crore (400 billion) to generate 5,000mw of electricity to reduce load-shedding to a tolerable level in next four and a half years.
The ministry has placed its mega plan of power generation to Prime Minister Sheikh Hasina at her office Wednesday. Under the plan, the Power Development Board (PDB) would produce 500mw gas-fired electricity between July and December this year to overcome load-shedding.
The PDB would hire furnace-oil based 1,000mw of electricity from private sector from January to June 2010, the plan said. In 2011, the government would install furnace-oil based 800mw capacity of power plant.
The PDB officials would seek suitable place to establish the plant, a senior official of the PDB said.
Besides the government would also hire another diesel or furnace oil-based power plant having capacity of 700mw in 2012 to keep load shedding at mild level, the official said.
However, the government also contemplates establishing four coal-fired based power plants with capacity of producing 500mw of electricity each with public and private partnership (PPP).
The government has initially tried to create fund of taka 6,000 crore to implement the plan, sources said.
The power division has tried to utilise the government’s budgetary allocation of taka 2000 crore for PPP in this regard, sources added.
During the meeting, Prime Minister Sheikh Hasina permitted the power division to implement the PDB plan to reduce load-shedding to a tolerable level.
Prime Minister’s Adviser for Power and Energy Dr Tawfiq-e-Elahi, State Minister for Power and Energy Shamsul Haque Tuku, Power Division Secretary Md Abul Kalam, PDB Chairman ASM Alamgir Kabir were present.

Coal-based production to help energy crisis

Coal-based production to help energy crisis
ET Report

The political parties should have a minimum consensus on national issues in a bid to speed up economic development of the country, said Syed Ershad Ahmed, President of American Chamber of Commerce in Bangladesh while talking to this correspondent recently.
He expressed the view that politicians should reduce their differences of opinion on energy issue and work together to develop this sector protecting national interest.
He opined that the government should have a short-, mid- and long-term strategy to overcome the nagging power crisis that is seriously hampering industrial production and civic life.
He suggested that a committee comprising professionals should be set up that will send recommendations to the parliament standing committee on energy and power.
The treasury and opposition benches would discuss the matter in detail in the national parliament and should recommend necessary steps to develop the energy sector.
The economic development of the country is highly linked with the expansion and development of power sector, he said.
On deep sea port, he said that Bangladesh economy would be immensely benefited by becoming a regional hub of shipping business in the region.
Laying stress on the parliamentary democracy in the country, Ershad opined that a vibrant parliament should be the focal point of discussing issues related to the national interest.
Criticizing the culture of boycotting Parliament by MPs on mere excuses, he clearly stated that the people of Bangladesh have elected them to discuss national issues relating to education, health, social security, job creation, national security, environment, etc. in the assembly.
Laying stress on water transportation, he said the government should mull over setting up whole markets in Sadarghat, Waiseghat, Gabtali and Turag by protecting the rivers flowing round the Dhaka city.
He demanded that the government should dredge existing rivers and canals that will speed up and expand transportation of goods through waterways. The price of consumer goods will come down, provided goods are carried through waterways.
He expressed the view that industries set up in the Dhaka and outside the capital should have effluent treatment plants (ETPs) to protect water bodies as well as environment.
Expressing concern on pollution of rivers, he said civic life is in great danger and demanded exemplary punishments to culprits polluting water bodies and grabbing land to develop housing plots.
Opposing recruitment of diplomats on political consideration, he said this is era of the economic diplomacy and suggested that career, seasoned and skilled diplomats should be posted abroad to serve the nation.
He suggested a diplomat should be groomed up with culture and language with the country concerned where he or she going to be posted.
For example, if a diplomat is posed to Paris, he or she should have minimum orientation about French language and culture.
Lamenting poor services provided by Bangladeshi diplomats abroad, Ershad said embassies concerned should extend necessary support to Bangladeshi workers.
Citing examples of ASESN diplomats and even western diplomats in Dhaka, he said the traditional mindset of the Bangladesh diplomats should be changed with a view to serving national interest of the Bangladesh as well as its workers.
Nearly 80 lakh Bangladeshis are working in different parts of the world and keeping local economy vibrant. Last year expatriate Bangladeshis sent over nine billion dollars to the country.
On keeping an option of whitening black money in the forth-coming budget, Ershad opined the government can consider this option in the light of the global recession. But he suggested that this money should be invested in productive sectors, such as industries, and not in non-productive sectors, like real estates business or in purchasing cars.
That will encourage corruption, and the corrupt people will take the advantage, the way they did in the past.
This democratically elected new government came into power with the people’s mandate. They promised that they would ensure good governance and continue the fight against corruption.
He praised the government plan to introduce daylight saving time by advancing the clock by one hour from June to save electricity during the evening hours.
He also said that the government might consider introducing Saturday-Sunday as weekends, as this could bring Bangladesh in line with the global business community as well as this would meet the growing demand for it, by the business community.
He said that countries like Malaysia, Indonesia, Pakistan, and others where the Muslims are the majority of the population keep Sunday as the weekend holiday.
Many countries of the world, including some Asian states, as well as some major corporations have now resorted to austerity measures to help overcome economic meltdown.
“We hope that the Bangladesh government would also seriously consider austerity measures towards spending the public money”, Ahmed said.
The government has to face bigger challenges in preparing the budget against the backdrop of global recession. The revenue collection may drop in the coming year. Export earnings as well as remittance flow are likely to witness slower growth.
On nagging traffic congestion in the city, he said the government can mull over handing over Bangladesh Road Transport Authority (BRTA) to the private sector to efficiently handle the traffic management in the city.
“Today play-grounds are being occupied by interest groups. Rivers are being grabbed, thus putting pressure on the environment. Building codes are not being followed properly, which leads to worsening traffic situation. There are numerous examples of clear violation of building codes. After gaining permission, parking lots are being rented out for other purposes than parking,” he said.

Coal-based production to help energy crisis

ET Report

The political parties should have a minimum consensus on national issues in a bid to speed up economic development of the country, said Syed Ershad Ahmed, President of American Chamber of Commerce in Bangladesh while talking to this correspondent recently.
He expressed the view that politicians should reduce their differences of opinion on energy issue and work together to develop this sector protecting national interest.
He opined that the government should have a short-, mid- and long-term strategy to overcome the nagging power crisis that is seriously hampering industrial production and civic life.
He suggested that a committee comprising professionals should be set up that will send recommendations to the parliament standing committee on energy and power.
The treasury and opposition benches would discuss the matter in detail in the national parliament and should recommend necessary steps to develop the energy sector.
The economic development of the country is highly linked with the expansion and development of power sector, he said.
On deep sea port, he said that Bangladesh economy would be immensely benefited by becoming a regional hub of shipping business in the region.
Laying stress on the parliamentary democracy in the country, Ershad opined that a vibrant parliament should be the focal point of discussing issues related to the national interest.
Criticizing the culture of boycotting Parliament by MPs on mere excuses, he clearly stated that the people of Bangladesh have elected them to discuss national issues relating to education, health, social security, job creation, national security, environment, etc. in the assembly.
Laying stress on water transportation, he said the government should mull over setting up whole markets in Sadarghat, Waiseghat, Gabtali and Turag by protecting the rivers flowing round the Dhaka city.
He demanded that the government should dredge existing rivers and canals that will speed up and expand transportation of goods through waterways. The price of consumer goods will come down, provided goods are carried through waterways.
He expressed the view that industries set up in the Dhaka and outside the capital should have effluent treatment plants (ETPs) to protect water bodies as well as environment.
Expressing concern on pollution of rivers, he said civic life is in great danger and demanded exemplary punishments to culprits polluting water bodies and grabbing land to develop housing plots.
Opposing recruitment of diplomats on political consideration, he said this is era of the economic diplomacy and suggested that career, seasoned and skilled diplomats should be posted abroad to serve the nation.
He suggested a diplomat should be groomed up with culture and language with the country concerned where he or she going to be posted.
For example, if a diplomat is posed to Paris, he or she should have minimum orientation about French language and culture.
Lamenting poor services provided by Bangladeshi diplomats abroad, Ershad said embassies concerned should extend necessary support to Bangladeshi workers.
Citing examples of ASESN diplomats and even western diplomats in Dhaka, he said the traditional mindset of the Bangladesh diplomats should be changed with a view to serving national interest of the Bangladesh as well as its workers.
Nearly 80 lakh Bangladeshis are working in different parts of the world and keeping local economy vibrant. Last year expatriate Bangladeshis sent over nine billion dollars to the country.
On keeping an option of whitening black money in the forth-coming budget, Ershad opined the government can consider this option in the light of the global recession. But he suggested that this money should be invested in productive sectors, such as industries, and not in non-productive sectors, like real estates business or in purchasing cars.
That will encourage corruption, and the corrupt people will take the advantage, the way they did in the past.
This democratically elected new government came into power with the people’s mandate. They promised that they would ensure good governance and continue the fight against corruption.
He praised the government plan to introduce daylight saving time by advancing the clock by one hour from June to save electricity during the evening hours.
He also said that the government might consider introducing Saturday-Sunday as weekends, as this could bring Bangladesh in line with the global business community as well as this would meet the growing demand for it, by the business community.
He said that countries like Malaysia, Indonesia, Pakistan, and others where the Muslims are the majority of the population keep Sunday as the weekend holiday.
Many countries of the world, including some Asian states, as well as some major corporations have now resorted to austerity measures to help overcome economic meltdown.
“We hope that the Bangladesh government would also seriously consider austerity measures towards spending the public money”, Ahmed said.
The government has to face bigger challenges in preparing the budget against the backdrop of global recession. The revenue collection may drop in the coming year. Export earnings as well as remittance flow are likely to witness slower growth.
On nagging traffic congestion in the city, he said the government can mull over handing over Bangladesh Road Transport Authority (BRTA) to the private sector to efficiently handle the traffic management in the city.
“Today play-grounds are being occupied by interest groups. Rivers are being grabbed, thus putting pressure on the environment. Building codes are not being followed properly, which leads to worsening traffic situation. There are numerous examples of clear violation of building codes. After gaining permission, parking lots are being rented out for other purposes than parking,” he said.

No gas to run new Siddhirganj power plant

Staff Correspondent,New Age

The government has asked the Electricity Generation Company of Bangladesh to convert the under-construction gas-based 2X120MW Siddhirganj plant into a dual-fuel plant as Petrobangla said it would not be able to supply gas to run the power plant. With the government giving the latest directive last week, the EGCB, a subsidiary of the Power Development Board, has found itself in deep trouble as it would take months to convert the power plant into a dual-fuel plant and the cost of electricity generation will increase eight times if fuel like diesel is used, said officials. Petrobangla officials at a meeting at the Power Division on Tuesday said that with the existing daily gas extraction, Petrobangla would not be able to supply gas to the ‘peaking power plant’, which is being installed at a cost of Tk 1133 crore, and expected to go into test run in June. They said that they could supply gas to the Siddhirganj plant if gas supply to other power plants was curtailed. The ‘peaking plant’ is supposed to operate during peak hours. Petrobangla currently supplies around 780 million cubic feet of gas to power plants against a demand for around 900mmcfd. Another 210MW plant at Siddhirganj now faces gas shortage regularly. Although Petrobangla earlier committed that it would supply gas to the Siddhirganj plant, which would need around 30-40mmcfd of gas, installation of some unplanned rental power plants by the interim government has pushed the demand for gas up. The meeting, chaired by the prime minister’s adviser Tawfiq-e-Elahi Chowdhury, then asked EGCB to convert the under-construction power plant into a dual-fuel power plant. Officials of PDB and EGCB, however, told New Age that installation of the power plant would be further delayed if it was converted into a dual-fuel plant as the Indian contractor had failed to install the plant six months after deadline. The Bharat Heavy Electricals Limited in January 2007 won the $113 million turnkey contract from the EGCB to install the two-unit plant and it was supposed to go for commercial operation on November 7, 2008. ‘The company, however, failed to install the power plant in time. It is now supposed to complete installation of one of the units in June and go for test run. But the plant is unlikely to start operation in June because of gas shortage and the contractor will have no excuse for any further delay,’ said a PDB official. Officials of EGCB said that they had started talks with BHEL for converting the Siddhirganj plant into a dual-fuel plant, especially to keep an option to run the plant with diesel along with gas. ‘But we do not know how much time it will take to convert it into a dual-fuel plant. Besides, it may not be economically viable to run the power plant with diesel,’ said a high official. He said that they had estimated that an additional fund of around Tk 200 crore would be required to convert the plant and install the facilities to store diesel. ‘Apart from technological changes in the power plant, we will have to arrange facilities to bring about 1,000 tonnes of diesel to run the power plant for 16 hours a day and huge storage facilities will be needed for diesel,’ he said. The country’s overall demand for diesel is around 8,000 tonnes a day. ‘The main problem, however, will be the generation cost of electricity. The initial estimate was that the production cost of electricity would be Tk 2.01 for per kilowatt hour or one unit if gas was used as fuel. But we have estimated that the production cost will be around Tk 16-20 per unit if diesel is used. The government will have to give hundreds of crores of taka as subsidies to consumers if it wants to purchase electricity from us,’ he said. Apart from some small power plants, no large plants in the country is run by diesel which is priced at Tk 44 per litre while around 200MW of electricity is being generated by furnace oil, which is priced at Tk 26 per litre. The EGCB official said that they would request the government to supply gas to the power plant at least 3-4 hours a day. ‘We will place a position paper on the cost and benefit of converting it into a dual-fuel plant,’ he said. The government has recently taken a move that all the proposed power plants will have dual-fuel option as the country is facing a gas shortage of around 400mmcfd.