CHAPTER 4: POWER GENERATION
4.1 Background and Trends
Significant efforts aimed at adding new generation capacities characterized the power sector of
Bangladesh in recent years. As a result, installed capacity and evening peak electricity generation
have increased over the period of 1994-2011. Compound Annual Growth Rates (CAGR) during this
period were 5.81 percent, 7.17 percent and 5.62 percent for installed capacity, derated capacity and
evening peak generation respectively. A significant portion of this addition in generation came from
liquid fuel based(Diesel, HFO) power plants rising the overall contribution of liquid fuels in power
generation to 12.6 percent in 2011 compared to only 5 percent in 2010. However, the addition in
installed capacity is not reflected in terms of proportional increase in power generation. More
power plants have become non-operational in recent years resulting in huge gap between derated
capacity and evening peak generation since FY 2005-2006 as evident from figure 4.1. Moreover,
increase in generation costs resulted in huge budgetary subsidy. The government has estimated USD
366 million as subsidy in the energy sector for the fiscal year 2011-12 which is 333.33 percent higher
than that of the FY 2009-10.1 The government has proposed to allocate USD 872 million in the power
sector as the development budget for FY 2011-12 which is 340 percent higher than that of FY 200910.
Installed, derated capacity and evening peak generation as of December 31, 2011 was 8,033 MW,
7,413 MW and 4,728 MW respectively.
Figure 4.1: Installed, Derated Capacity and Evening Peak Generation 1994-2008 (in MW)
Source: Power Cell
1
1 USD = 82 BDT (as of December 29, 2011)
In line with the increase in generation capacity, average daily electricity generation has increased
steadily from 25.26 M kWh in FY1994-1995 to 72.26 M kWh in 2009-2010 as shown in Figure 4.2.
This represents a CAGR of 7.70 percent over the period.
Figure 4.2: Average of Daily Electricity Generation 1994-2010 (in M kWh)
Source: Powercell
As of June 2011, household electrification rate increased to 50 percent of the total population
compared to 47 percent in April 2010. Considering the captive generation as well per capita
consumption of electricity grew by 7.2 percent during this period and now the consumption stands
at 252 kWh per capita. Electricity generation in Bangladesh is overwhelmingly gas based. More than
82 percent of evening peak electricity is generated by using natural gas (Figure 4.4). This is followed
by liquid fuel and coal with generation shares of 12.61 percent and 2.49 percent respectively. Hydro
accounts for 2.78 percent of generation. Compared to previous year’s (2010) power generation mix,
contribution of natural gas decreased by approximately 8 percent and contribution of liquid fuel
increased by 152 percent in the mix of total generation of electricity. Around 1,169.88 M kWh of
electricity generated in 2010 was attributed to coal whereas in 2011, only 780.74 M kWh of
electricity was generated from coal based power plants.
Figure 4.3: Energy Generation (FY 2010): 29,247 M kWh
Figure 4.4: Energy Generation (FY 2011): 31,355 M kWh
Source: Powercell
Public and private sectors equally share the power generation sector of Bangladesh. 51 percent of
Bangladesh’s total power plants are owned by the state. The Government, in face of the country’s
current power crisis envisions electricity for all by 2021 while ensuring a reliable supply at affordable
prices. The target has been particularly set in line with the United Nations Millennium Development
Goals (MDG) for economic development and poverty alleviation. Empirical data on electricity
generation and GDP growth reveals a correlation of 1.5 to exist between the two variables. Thus, an
increase in GDP by 7 percent requires power generation to increase by 10.5 percent. According to
the government’s Election Manifesto, power generation targets include 5,000 MW by 2011, 7,000
MW by 2013 and 20,000 MW by the year 2021. Maximum power generation stood at 5244 MW in
2011. The government of Bangladesh claims to progress according to its plan and projects the
possibility of generating 7,000 MW and 8,000 MW by years 2013 and 2015 respectively.
4.2 Nature of the market
The market for electricity includes households, agriculture, industries, and transport. In Bangladesh,
about 50 percent of the population currently has access to electricity. The remaining 50 percent
represents the market yet to be brought under the national grid. The present generation capacity
(derated) of 7,413 MW cannot be realized to its fullest due to the events of forced outage,
maintenance activities and particularly fuel constraints i.e. gas supply shortage. One-fourth of the
generation plants of the power system are more than 20 years old, which causes higher
maintenance costs and regular plant outages. In addition, gas supply shortfall forced the power
plants to operate at a reduced capacity in recent years. Hence, even the demand originating from
within the grid remains unmet. Against the demand of 6,454 MW (with DSM) in the year 2011, the
actual generation capacity falls short by 1,000-1,200 MW, which reaches around 2,000 MW during
the summer months.
Figure 4.5: Planned Electricity Demand-Supply Balance
Source: Power Division
As the country suffers a shortage of dependable electricity generation, the ongoing power system
development programs emphasize capacity addition. However, the implementation trends do not
provide a promising picture of this development program. In order to meet the demand on shortterm basis, a number of plants on the quick rental basis have been contracted and commissioned.
The share of the quick rental in the added capacity was 32.3 percent in 2010 and in the next year the
projected contribution by these plants was 67.9 percent. Such a high dependence on quick rental
power plants does not provide the assurance that the power supply scenario is becoming more
reliable and stronger any time soon. Nevertheless, the government’s projection of the demandsupply trend of the power sector draws an optimistic picture that includes having surplus generation
capacity from the year 2013 onwards.
4.2.1 Demand forecast for electricity
Over the last ten years, net energy demand has grown at an average compound annual rate of 8.1
percent. The Power System Master Plan 2010 (PSMP) forecasted year wise demands for electricity in
Bangladesh up to 2030 (Appendix 4A). According to the projections by PSMP, Grid system demand
with Demand Side Management for 2015, 2020 and 2030 would be 10,283 MW, 17,304 MW and
33,708 MW respectively as opposed to the current (2012) demand of approximately 7,518 MW.
Captive demands for areas where grid is not likely to reach within the projected years are estimated
to be 1,335 MW, 1,515 MW and 2,951 MW for 2015, 2020 and 2030 respectively.
The Power System Master Plan 2010 forecasts the demand for electricity on the basis of GDP growth
and the elasticity of electricity demand. The projection also considers the possible impact of
demand-side management (DSM) programs. DSM programs involve using energy-saving equipment
and machinery, holiday staggering programs in the industrial segment, and avoiding wastage of
electricity.
The power demand forecast shows that the demand for electricity will be growing at around 10
percent over the next decade. The growth will slow down after that and will stabilize at a rate of 7
percent from the year 2028 onwards. However, considering the reinforcement from DSM, demand
for electricity is projected to be growing at a comparatively slower rate. A noteworthy fact is that the
off-grid demand goes up over the forecasting horizon. The power system master plan does not seem
to have any plans in connecting the entire population to the national grid in the near future, which
casts doubt about the government’s commitment to their stated vision of providing electricity to all
by 2020.
The impact of DSM is very significant in the power sector analysis as the master plan estimates up to
a 15 percent reduction in demand for power due to appropriate practice of DSM projects. In
Bangladesh, a number of initiatives have already been taken to popularize DSM for both primary
energy and power usage. The initiatives include: holiday staggering program in the industrial
segment (reduced 150 MW of demand), closing the shopping malls at 8 pm (reduced 350 MW of
demand), distributing over 10 million energy saving CFL bulbs at free of cost among the subscribers
(reduced 150-160 MW of demand), providing advice on DSM, and encouraging DSM through mass
promotions. However, the DSM measure, supplying energy efficient CFL bulbs, failed due to poor
quality of bulbs procured under the program.
For power system development analysis, Bangladesh is divided into five geographical regions: the
Central, Northern, Southern, Western and greater Dhaka regions as shown in figure 4.6
Figure 4.6: Geographical Segmentation in Power System Development Program
Source: Power System master Plan 2006
The load distribution factor for a region is that region’s percentage of total national demand. Table
4A.2 in Appendix 4A presents estimated electricity demand for each area for the Base Case of the
Power Sector Master Plan 2006.
The regional substation load based on the results of the Power System Master Plan -2010 is shown in
the figure 4.7 below. The substation load of Dhaka region is approximately 40 percent, which is the
highest. In addition, the substation load of the east region is approximately 70 percent. If the
amount of the power generation is equally located in both the east and west, the power flow from
the west to the east will be approximately 20 percent. As the Jamuna River divides the country into
eastern and western zones, a huge amount of investment will be required to construct the rivercrossing transmission line. Therefore, it is important that the power development plan be consistent
with the regional load balance.
Figure 4.7: Substation Load by Region
Source: Power System Master Plan 2010
4.2.2 Supply plan to meet the demand
In order to meet the growing demand for electricity, 15,000 MW of new generation capacity has
been planned. The plan involves commissioning a number of quick rental and rental power plants as
immediate measures to meet the demand in the short run. Once the generation scenario is
strengthened after the completion of large power projects, small generation units will be gradually
uninstalled. The generation expansion program of GoB is planned to be implemented in the
following phases:
-
-
Immediate: 6 -12 Months
 Rental and Quick Rental Plants (liquid fuel)
Short term: 18 - 24 Months
 Peaking Plants (liquid fuel)
Medium term: 3 - 5 years
 Combined Cycle Plants (Gas or dual fuel)
 Peaking Plant (Gas or dual fuel)
 Coal fired steam plants
Long term: beyond 5 years
 LNG based Combined Cycle Plants
 Domestic/Imported Coal Power Plant
 Gas/Oil based Peaking Plant
 Nuclear Power Plant
 Renewable Energy
Anticipated completion of the new power generation projects up to 2016 are illustrated in Table 4.1.
Table 4.1: Calendar-wise Project Completion (from 2010 to 2016)
YEAR
2010
2011
(MW)
(MW)
2012 (MW)
2013 (MW)
2014
(MW)
2015 (MW)
2016 (MW)
TOTAL
(MW)
Commissioned
Public
255
1107
582
1040
1270
450
1500
6204
Private
270
105
1319
1134
1053
1900
1300
7081
Quick Rental
250
1238
Total
775
2450
1488
1901
2174
2323
2350
2800
14,773
Source: Bangladesh Power Development Board
Indigenous natural gas, coal, LPG, LNG, nuclear, and hydro resources are mainly considered as fuel
for the additional generation plan. It also includes cross-border trade. Other factors such as
availability of fuel, cooling water, transportation of heavy equipment, proximately to grid network
and load center etc. are also considered for plant placement. The generation plan up to 2030
segmented by fuel type is illustrated by the following figure:
Figure 4.8: Power Generation Plan till 2030 by Fuel Type
Source: Power System Master Plan 2010
The plan heavily relies on coal based power generation in the future, while the contribution of the
gas based plants are expected to decline over time. Both domestic and imported coal resources are
given equal priority in the generation plan. However, the prime minister has recently declared its
intention to conserve domestic coal for future generation and meet present demand through
imports. Moreover twelve noted citizens protested the proposal of a coal-fired power project near
the Sundarbans. They expressed their worries over a move to sign an agreement with the NTPC of
India for setting up the proposed 1,300-megawatt plant at Rampalupazila in Bagerhat. The other fuel
types and cross-border power trade will be undertaken as acting in a supporting role in meeting the
national demand.
The year wise detailed power development plan according to the PSMP 2010 is given in table 4B.1 in
Appendix 4B. The name of each power plan indicates the region where it is planned to be
commissioned.
4.2.2.1 Region wise supply (existing and planned)
Summary of BPDB’s supply forecast up to 2016 is given in the table 4.2 below. According to the plan,
Khulna zone in the western grid will have greatest addition of up to 2,743 MW of installed capacity
while no capacity addition will be made in the Rajshahi zone in the coming 4 years. Two detailed
Tables of existing and planned power plants up to 2016 divided into different regions are provided in
Appendix 4B table 4B.2 and 4B.3.
Table 4.2: Summary of Existing and Planned Power Supply (Regional Breakdown)
Eastern Grid
Western Grid
Existing
Dhaka
Chittagong
Comilla
Mymens
ingh
Sylhet
Khulna
Barisal
Rajshahi
Rangpur
Installed
Capacity
(MW)
3333
937
1167
232
571
959
78.5
483
340
Derated
Capacity
(MW)
3164
887
1054
197
563
864
68
463
306
2743
450
Planned
Installed
Capacity
(MW)
1853
1246
265.5
145
1524
1052
Source: Keystone Study
4.2.3 Mix of plants, e.g. Large, CHP, Peaking etc.
In Bangladesh there is no system for combined heat and power (CHP) service. The Peak and Base
load power generation addition depend upon the demand fluctuation in the daily load curve. Figure
4.9 below depicts the general demand fluctuation and generating operational conditions in a typical
day. Gas based combined cycle power plant, nuclear and coal-fired power stations demonstrate
several advantages over a stable fuel supply system as well as economic efficiency making the
systems suitable for baseload generation power. Gas (LNG) power stations are more suitable for
middle load generation power due to environmental adaptability and operations capability as
compared with other generations. Oil and hydro powers are able to operate flexibly over demand
fluctuations; hence these powers are suitable for peak load generations.
Figure 4.9: Optimum Mix Generation
Source: TEPCO Annual Report
To set the long-term power source configuration driving the peak and base load power plants,
screening analysis for the power system is done analytically. The screening analysis consists of a
combination of the fuel/cost graph and the electric power demand duration curve. It shows what
demand uses which power supply, i.e., economically optimal combination of power supplies. The gas
price in Bangladesh is much lower than the international price. If fuel prices are assumed to increase
because of tight demand of the primary energy, the optimal power supply configuration ratio would
be- oil 10 percent, gas 20 percent, and coal 70 percent.
To estimate the mix of power plant, it is necessary to find out the actual peak demand and base load
demand. In Bangladesh, the power supply has constantly remained constrained in peak hours.
Potential demands have not been met, and rotational outage has frequently occurred.
Table 4.3 depicts the characteristics of base load, middle load and peak load generation.
Table 4.3: Characteristic of Base-Middle-Peak Generation
Base
Hydro
Economic
Condition
Operational
Condition
Fixed
Middle
Nuclear
Coal
Gas/LNG
High
Variable
-
Start up
duration
Fast
Slow
Load
Control
-
-
Peak
Hydro(Pumped
Storage
Oil
Hydro(Dam/pndage)
Low
Low
Middle
Middle
Slow
Middle
High
High
Fast
Fast
Source: PSMP Study Team
The following figures (4.11 and 4.12) illustrates power development plan by BPDB up to 2010 for
Base load generation by fuel type for base scenario in MW and percentages respectively.
Figure 4.11: Power Development Plan by FY 2030 (MW)
Source: Power Division
Figure 4.12: Power Development Plan by FY 2030 (%)
Source: Power Division
4.2.3.1 Year wise plan till 2016
According to Bangladesh Power Development Board’s Planning for the next 4 years, the following
mix (Table 4.4) of Peaking, Large and Combined Cycle Power Plants will be commissioned
throughout 2012 to 2016.
Table 4.4: Mix of Plants (Large, Peaking, CCPP) 2012- 2016
2012
2013
2014
2015
2016
Peaking Plants
Large Plants
Combined Cycle PP
No. of Plants
11
4
1
Capacity (MW)
1287
295
163
Contribution in Total additions
in Generation
44%
16%
4%
No. of Plants
15
2
8
Capacity (MW)
3027
199
1726
Contribution in Total additions
in Generation
91%
6%
52%
No. of Plants
16
0
15
Capacity (MW)
3054
0
2463
Contribution in Total additions
in Generation
93%
0%
75%
No. of Plants
8
0
8
Capacity (MW)
2032
0
1410
Contribution in Total additions
in Generation
93%
0%
65%
No. of Plants
3
0
1
Capacity (MW)
2350
0
750
Contribution in Total additions
in Generation
100%
0%
32%
Source: BPDB
4.2.3.2 Long term plan (2010-2030)
According to the PSMP-2010, the maximum demand in 2015, 2021 and 2030 will be 10,000; 19,000
and 34,000 MW respectively. To meet the demand with reliability, installed capacity needs to be
increased to 24,000 MW and 39,000 MW by the year 2021 and 2030 respectively. Generation
capacity from different primary fuel in the year 2030 would be:

Domestic and imported coal based ST- 19,650 MW (Base Load)

Nuclear power- 4,000 MW (Base Load)

Gas and LNG- 8,850 MW regional Grid- 3,500 (Middle)

Regional Grid- 3,500 MW (Peaking)

Liquid Fuel, Hydro, Renewable- 2,700 MW (Peaking)
4.2.4 Projects under pipeline
As of December 2011, 39 power projects were in the pipeline with 6,784 MW of installed capacity in
the private sector and 5,098 MW of installed capacity in the public sector. Detailed list of the
projects in the pipeline is provided in Appendix 4C. The list includes the name, location, capacity,
fuel type and expected commissioning date of the projects.
4.2.5 Rental and quick rental projects under pipeline
There are no projects under pipeline for rental and quick rentals. The last were commissioned in
2011.
4.2.5.1 Mix of fuel for rental and quick rental
No new rental or quick rental projects are in the pipeline. Figure 4.13 shows the fuel mix for rental
projects that were recently commissioned i.e. in 2010 to 2011.
Figure 4.13: Fuel Mix for Rental Projects Commissioned in 2010-2011
4.2.6 Commercial arrangement of contracts
The nature of commercial arrangements varies depending on the ownership structure of the power
projects. Commercial arrangement of contracts of BPDB owned power plants follow the Public
Procurement Rules (2008) which is discussed in a later section (4.2.9).
Commercial arrangement of contracts in case of Independent Power Producers (IPP) is guided by the
Private Sector Power Generation Policy of Bangladesh (IPP) whose tenure could be anything from 7
to 22 years. IPPs are characterized by three contracts. The Power Purchase Agreement (PPA) is a
contract between BPDB and the IPP where BPDB is bound to purchase the power produced by the
IPP. The Fuel Supply Agreement is between the IPP and the Fuel Supplier (namely Petro Bangla)
where the IPP is guaranteed uninterrupted fuel supply. The Implementation Agreement (IA) is a
direct contract between the IPP and the Government backstops BPDB’s payment commitment,
provides fiscal incentives to facilitate the project.
Rental Power Plants again follow PPR or a competitive bidding process whereas contracts for quick
rentals are awarded based on negotiation. Price determination in such cases either requires the
single buyer to supply fuel where the vendor only gets the capacity payment or the vendor is
allowed to import the necessary fuel directly, provided the fuel is a pass through item. Payment is
made by the single buyer on a monthly basis in Bangladeshi taka, unless otherwise specified in the
contract. The duration of the contract may vary from a minimum of three years up to twelve years.
However, contracts have extended beyond twelve years in the past.
Rental power plants have a ‘must dispatch’ obligation under the contract up to the declared capacity
with an acceptable level of variance. A default results in penalty. But if directed by the load dispatch
authorities to produce a lower amount of electricity or go for a complete shutdown, the vendor is
entitled to receive capacity payment only.
According to the power generation expansion plan, the GoB intends to phase out rental power
plants shortly with the commissioning of gas or coal-based large scale steam turbine or combined
cycle power plants. Any delay in execution of the plan will compel the government to extend the
rental contracts resulting in the government either choosing to continue providing high subsidies or
seek alternatives measures e.g. tariff inflation, extensive load shedding, etc.
4.2.6.1 Future challenges that power sector (especially national government) could face because
large amounts of very high cost rental power has been contracted
The addition of new power facilities to the national grid for the last few years has come at a
significant cost to the economy and the government as much of the new electricity comes from the
use of expensive fuel oil-fired rental plants which produce power at over six times the prices charged
by the standard gas-fired plants. The financial burden imposed by rental power plants has
contributed to a troubling decline in the country’s scarce foreign exchange reserves because of
import of capital machinery and additional fuel oil for the rental power plants and make hefty
increases in the price of fuel oil and power to ordinary consumers.
Since January 2009, there has been an increase of 2,900 MW in power. However, net gain in power
is only about 1,500 MW due to the lack of maintenance and old age of already existing plants. About
1,088 MW out of the 1,944 MW created by the GoB has come from the use of untendered rental
power plants. The rental power plants run on expensive imported liquid fuel — either furnace oil or
diesel. The government buys 2 million tonnes more than it had to, three years back. Moreover, the
power produced by these plants is more than six times the cost of power from the standard gas-fired
power stations which have in the past produced most of the country’s power.
Within a year, till August 2011, BPDB has more than doubled the amount of energy it buys from
rental plants which produce electricity at USD .162 a kilowatt-hour (unit) which is over six times what
the public sector plants sell power for, USD .024 a unit. At the same time, there has been a 25
percent decrease in the level of low-cost power generated in the public sector plants. Consequently,
according to the BERC, the power board will spend more than double the amount of money on a
unit of power in February than it did when the government first assumed office — USD .065
compared with USD 0.029. In order to deal with these significantly higher costs, the government
increased the retail prices of both fuel oil and power. The price of power was increased by
approximately 25.5 percent whilst the cost of diesel and kerosene went up by 39 percent,
compressed natural gas by 79 percent and furnace oil by 131 percent.
Economists of the country say that the increase in fuel oil and power prices has contributed to the
surge in inflation which has risen from 7.5 per cent in November 2010 to 11.6 per cent in November
2011. They accuse the government of failing to consider the consequences of this policy on an
2
1 USD = 82 BDT (as of December 29, 2011)
economy which already had a large budget deficit and claim that it will take a long time for the
economy to recover. The economy is trapped in a cycle where inflation is increasing whilst at the
same time local businesses are not able to invest as banks have lent significantly to the government.
The government has exhausted its borrowing limit, around USD 2.26 billion, for the financial year
2011–12 from the banking channels and thus created a liquidity crisis for the entrepreneurs. Few
steps have been taken thus far by the power board to decrease the use of its low-cost power
generating plants through renovation of its old plants to replace the use of expensive rental plants.
The power board is yet to formulate a guideline for the release and use of the Power Maintenance
and Development Fund which was created with some of the additional money it collected from an
increase in electricity tariffs in February 2011.
The rental power plants together have emerged as a serious challenge for the government. The GoB
is left with no option other than spending a substantial amount from its reserve to run the rental
plants, which has again come under strain of late because of the less-than-expected inflow of foreign
assistance and remittance income, on the import of additional quantity of diesel and furnace oil.
Apart from the foreign exchange expenditure, what is worrying the government more is the subsidy
that it would have to provide on account of the supply of fuel to the rental power plants and the
gross mismatch between power procurement and selling tariffs. There are confusions about the
subsidy estimates since varying disclosures are made from to time by men in-charge of the ministry
and agencies concerned. However, according to the latest estimates, if selling tariffs remains
unchanged both in the case of petroleum products and power, the government would have to
provide subsidies worth USD 2.8 billion - USD 1.7 billion on oil marketing by the Bangladesh
Petroleum Corporation (BPC) and USD 1.1 billion on power purchase, mainly from rental power
plants, by the Power Development Board (PDB) in the current fiscal. If the 'subsidy' estimates are
right, the government will have difficulty in meeting those, particularly when the allocation against
all types of subsidies in the national budget for this fiscal is little over USD 1.1 billion. In such a
situation, the government will take recourse to what most governments do; it would borrow from
banks in excess of the amount projected in the budget, thus, adding more fuel to an already high
inflationary pressure (point-to-point inflation, according to the Bangladesh Bureau of Statistics, was
12 per cent in last September).
4.2.7 Conversion efficiency of existing plants
One fourth of the generation plants of the power system are more than 20 years old causing higher
maintenance costs and plant outage. The current status of existing gas-fired power plants Facilities
under BPDB control can be roughly classified into 4 groups. The current state of each is shown in the
following table 4.5.
Table 4.5: Classification of Gas-fired Power Plants under BPDB Control
Source: Power Division
The capacity of a conventional facility using steam turbines (ST) ranges from 55 MW to 210 MW. For
adopted steam conditions, the pressure is 13 MPa for a 210 MW unit (maximum capacity) and 9.0
MPa for a re-heat type with a temperature of 540 °C and non-re-heat type with a temperature of
535 °C. The design performance (thermal efficiency) of such a facility is approximately 30 percent;
lower than that of a coal thermal power generation plant. The oldest facility was produced in 1974.
Almost all gas turbine facilities (GT) are old, small-capacity, and with low thermal efficiency except
for the recently installed large-capacity plants in Tongi and Baghabari. Manufacturers supplying the
facilities include GE (USA), ALSTOM (France), Mitsubishi (Japan), and Hitachi (Japan).
Figure 4.14 illustrates the current state efficiency of each gas-fired power generation facility.
Figure 4.14: Actual Efficiency of Gas fired Power Plant
Source: BPDB, System Planning
Lack of inspection, funds and regular maintenance leads to “break down maintenance” and lower
efficiency. Moreover, the reduced efficiency of the steam turbine facilities was caused by steam
leakage from turbine, absence of a high-pressure heater, difficulty to maintain a vacuum in the
condenser, and leakage from thin pipes in the condenser. Some gas turbines reduced in efficiency
with age. To improve the efficiency BPDB prepares retirement plans for the existing power
generation plants. Higher efficiency may be achieved through re-powering of the existing power
stations, construction of higher efficient gas combined power stations and allocation of gas to more
efficient power stations. The retirement plan by BPDB for the gas fired facilities is given in Appendix
4D.
4.2.8 Realistic addition in power supply
The BPDB plan for the next 4 years (2012-2016) is provided in appendix 4O, table- 4O.1. The likely
Fuel combination of the additional power projects according to the plan is illustrated in table 4.6.
Table 4.6: Planned Fuel Mix of Additional Capacity Installed
Gas
6169 MW
48.78%
Gas/LF
1501 MW
11.87%
FO
1691MW
13.37%
LNG
225 MW
1.78%
Coal
2938MW
23.23%
Solar
23 MW
0.18%
Wind
100 MW
0.79%
Realistically, actual addition rarely reflects government’s plans. If taken the example of India,
according to a KPMG study on power sector of the country, historically India exhibited failure to
meet targets on the power generation capacity additions. Variance with the target has been as high
as 50 percent in the past. India is a manufacturer of power equipment and has more qualified
engineers and technical personnel and capabilities compared to Bangladesh. Bangladesh faces
several challenges in terms of unavailability of domestic coal, rising international prices of coal and
liquid fuel, inability to raise electricity prices to the level of full cost recovery and fiscal constraints.
Moreover, absence of deep pocket-financiers and long term financing limits the full realization of
plans. While the government has been quite successful in implementing short term rental power
plants, the performance in relation to longer based load plans are disappointing. Thus expectations
regarding realistic addition in Bangladesh could be revised down to approximately 30 to 40 percent
(5059 MW to 3794 MW) as opposed to what is planned (12647 MW) by BPDB for the next four
years.
4.2.9 Procurement procedures for parts, repairs and services
Procurement procedures of goods (parts) and repair maintenance & expert services of power plants
usually follow the Public Procurement Rules-(PPR) 2008 and Public Procurement Act-2006 of GOB.
For procurement purposes of projects funded by development partners, partner’s or donor’s
guidelines are followed. State owned power plant projects specifically follow the PPR 2008 rules.
Privately owned power plants also follow a competitive bidding process unless required otherwise
for specific goods. Equipment/parts suppliers are usually responsible for repair and services of parts,
usually bound by Engineering, Procurement and Construction (EPC) contracts, for a certain period of
time.
The procurement processes under PPR are briefly discussed below. A detailed summary as well as a
copy of the Public Procurement Rules are attached in Appendix 4L.
Table 4.7: Procurement Procedures under PPR 2008
Open tendering
competition open to all interested firms
Limited tendering
competition limited to those invited to tender
Two stage tendering
Similar to open tendering but proceeding in two stages
Single-Stage Two Envelope tendering
Similar to open tendering but Technical and Financial Proposals submitted
in two separate sealed envelopes simultaneously.
Request for quotations
a simplified method of smaller purchases
Direct procurement
sole source procurement when competition is inappropriate
Request for proposals
used for the procurement of intellectual and professional services
4.3 Key Players
4.3.1 Main customers today and in the future
A Single Buyer System prevails in the power sector making. Almost 100 percent or all of the
electricity generated is either produced or purchased by Bangladesh Power Development
Board (BPDB) making it the sole customer of power generation companies. Nevertheless, a
small portion of electricity produced by rather small IPPs and RPPs are directly synchronized
to the 33kV distribution line of selected PalliBidyutSamity (PBS) of the Rural Electrification
Board (REB). Unless a cost-based or economic tariff structure is operational in the country, a
”Power Exchange” or open market system or other improved methods for trading electricity is
not likely to be introduced in Bangladesh anytime soon. As such, the buyer-seller dynamics is
expected to remain the same.
Customers for GE would comprise of power generation companies that have been awarded or
will be awarded contracts to set up power projects in the future. Both private and public
sectors actively participate in the power generation scenario of Bangladesh. The Public–
Private ratios of additional capacity a BPDB plan for the next four years are summarized in
table 4.1. The public private ratio for new projects commissioned up to 2016 stands at 5:7. This
indicates an increase in private sector involvement in the power generation sector than the current
(September 2011) 51 to 49 scenario. GE Customers in the future can thus be expected to largely
comprise of private power generation companies.
4.3.1.1 Vendors awarded contracts for power generation services for the past 5 years
The list of vendors and Machine OEMs that were awarded to set up Power Plants in the last 5 years
are given in Appendix 4F.
4.3.1.2 Key buying criteria for customers
Tariff for electricity is determined by the Government or the single buyer through the Bangladesh
Energy Regulatory Commission (BERC). Customers are bound to procure electricity at the fixed rate.
Grid electricity, being cheaper, is preferred by retail customers as alternative sources usually cost
more.
Suppliers of equipment for both Public projects and IPPS are more or less chosen by a competitive
bidding process. Suppliers are initially shortlisted given they meet all technical standards. The bidder
offering the most competitive price i.e. the bidder offering the lowest tariff is finally awarded the
contract.
4.3.2 Vendors awarded contracts for power generation services for the past 5 years.
Vendors awarded contracts for different power generation services are provided in Appendix 4 E.
Names of equipment/spare parts/ services and corresponding manufacturers, local agents and
contract winning companies are enlisted according to capacity and type of power plants.
4.3.3 Operating expenses for existing plants
Operating, Maintenance, administrative and Personnel expenses of BPDB Power plants during FY
2007-2008, 2008-2009 and 2009-2010 are given in the Appendix 4G(table 4G.1-4G.4). Operating
costs and maintenance cost may vary across power plants depending on type, size and plant
utilization factors. Fuel costs, fixed O&M costs and variable costs of existing power plants are also
provided in Appendix 4G, table 4G.5.
4.3.3.1 Maintenance practices
Absence of any specific regulations regarding routine inspections of public power units calls for
generators to independently carry out inspection activities at their discretion. Stringent supply
demand situations make it difficult to halt operations for maintenance purposes. Lack of inspection
funds is also a probable reason for less frequent inspections. Thus operations continue non-stop
until the equipment breaks down leading to greater damage and longer repairing periods; a classic
case of “break-down maintenance.” In order to ensure implementation of regular inspections, the
Power System Master Plan -2010 recommends the revision of existing rules and regulations and
enables the maintenance scheme to shift over from break-down maintenance to time-based or
condition-based maintenance.
Figure 4.15: Conceptual comparison of three different maintenance strategies
Source: PSMP 2010
One of the reasons why majority of the plants today are incapable of reaching designated
performance levels of capacity and efficiency is restorative nature of maintenance activities instead
of preventive. As such, most repairs take place after something breaks down. Meeting the stable
power demand would require a transition to the concept of “take care before break down” in place
of the current “repair after break down” philosophy. In other words, proceed with regular
inspections regardless of whether something is broken or not such as “Time Based Maintenance
(TBM)” or heeding equipment predictors during monitoring Condition Based Maintenance (CBM)”.
4.3.4 Sales channel for GE competitors
Power Procurement Rules-(PPR) 2008 are followed in case of public power plants as discussed
earlier. Selection of sponsors for power plants in case of IPPs follows a similar competitive bidding
under private sector power generation policy where BPDB issues a Letter of Intent (LoI) to the
awarded company. The sponsor company then starts selection procedures of Engineering and
Procurement (EPC) contractor and the Operation and Maintenance (O&M) contractor. The EPC
contractor and the O&M contractor directly select the major equipment suppliers and spare parts
suppliers respectively who either sell their products directly or through local agents. Sometimes
equipment suppliers provide the equipment directly to the project sponsors. Suppliers are usually
required to present price quotations to the EPC/ O&M contractor or to the project company. Based
on the quoted prices and quality assurances vendors are awarded contracts for the supply of specific
equipment/spare parts. In some instances, BPDB specifies the major equipment suppliers or the
specific criteria for the major equipment suppliers in the “Request for Proposal” for a project.
The sales channel for a typical private power project equipment supplier follows the following
pattern in Bangladesh.
Equipment Supplier
Local Agent
EPC Contractor
Project Sponsor
Or,
Or,
4.3.4.1 SWOT analysis of GE competitors
Competitors of GE for the purpose of a SWOT analysis in the power generation sector are identified
from the major vendors that were awarded contracts for supplying large machines to power projects
in the past few years. In this regard, a brief SWOT analysis for ABB, Siemens, Hitachi and Rolls-Royce
is discussed in the following section.
4.3.4.1.1 ABB
ABB is a global provider of power and automation technologies. The power technologies division
serves electric, gas and water utilities, as well as industrial and commercial customers. The
automation technologies division provides products and services for automating and improving
industrial and commercial processes. The company primarily operates in Europe and Asia. It is
headquartered in Zurich, Switzerland and employs about 112,000 people. The SWOT for ABB is
discussed below.
Table 4.8: SWOT Analysis for ABB
Strengths

Strong market position and brand strength

Broad product portfolio

Strong R&D capabilities
Opportunities
Weaknesses

Has contingency payment obligations due to asbestos
litigation

Weak performance of all business divisions in recent
years
Threats

Increasing demand for electricity in Bangladesh

Government expansion plans and concessions such as
tax incentives and guaranteed purchase of electricity

Possibilities of importing additional power from India
and Myanmar

Highly competitive environment in Bangladesh.
Several Chinese companies offer more competitive
prices.

Falling gas supplies in Bangladesh

Delays in project implementation due to lack of
transparency, bureaucracy and fund arrangement

Lack of quality investors in Bangladesh

Weakening financial capabilities of single buyer, BPDB
Source: Keystone Team
4.3.4.1.2 Siemens
Siemens is a global group in electronics and electrical engineering, operating primarily in the
industry, energy, and healthcare sectors. The group operates in about 190 countries. It is
headquartered in Munich, Germany and employs about 427,000 people.
Table 4.9: SWOT Analysis for Siemens
Strengths
Weaknesses

Strong market position and brand strength

Increasing debt to equity ratio/ Highly leveraged

Broad product portfolio

Weak internal control

Strong R&D capabilities

High dependence on third party providers

Major presence in Bangladesh

Allegation of improper payments resulting in
Black Listing by the World Bank even though
recently lifted.
Opportunities
Threats

Increasing demand for electricity in Bangladesh


Government expansion plans and concessions
such as tax incentives and guaranteed purchase
of electricity
Highly competitive environment in Bangladesh.
Several Chinese companies offer more
competitive prices.

Falling gas supplies in Bangladesh

Delays in project implementation due to lack of
transparency, bureaucracy and fund
arrangement

Lack of quality investors in Bangladesh

Weakening financial capabilities of single buyer,
BPDB

Possibilities of importing additional power from
India and Myanmar
Source: Keystone Team
4.3.4.1.3 Hitachi
With full-scale of Hitachi group, Hitachi pursues the compatibility of stable supply of energy and
environmental preservation. Hitachi focuses not only on the various power generation systems but
also power distribution system and next generation energy development. The SWOT of Hitachi
follows as below.
Table 4.10: SWOT Analysis for Hitachi
Strengths
Weaknesses

Strong brand recognition

High Costs

Advanced R & D capabilities

Lack of service quality and breadth

Tendency for brand loyalty worldwide

Tendency to develop specific capabilities based
on advantages present in region of operation
Opportunities
Threats

Increasing demand for electricity in Bangladesh


Government expansion plans and concessions
such as tax incentives and guaranteed purchase
of electricity
Highly competitive environment in Bangladesh.
Several Chinese companies offer more
competitive prices.

Falling gas supplies in Bangladesh

Delays in project implementation due to lack of
transparency, bureaucracy and fund
arrangement

Lack of quality investors in Bangladesh

Weakening financial capabilities of single buyer,
BPDB

Possibilities of importing additional power from
India and Myanmar
Source: Keystone Team
4.3.4.1.4 Rolls-Royce
Rolls-Royce Group plc is a global power Systems Company headquartered in London, United
Kingdom. It is the world’s second-largest maker of aircraft engines behind General Electric) and also
has major businesses in the marine propulsion and energy sectors. SWOT for Rolls-Royce:
Table 4.11: SWOT analysis for Rolls-Royce
Strengths
Weaknesses

Cost Advantage

Low R&D

Strong reputation

Weak Supply chain

Strong financial position

Strengths in gas-based generation
Opportunities
Threats

Increasing demand for electricity in Bangladesh


Government expansion plans and concessions
such as tax incentives and guaranteed purchase
of electricity
Highly competitive environment in Bangladesh.
Several Chinese companies offer more
competitive prices.

Falling gas supplies in Bangladesh

Delays in project implementation due to lack of
transparency, bureaucracy and fund
arrangement

Lack of quality investors in Bangladesh

Weakening financial capabilities of single buyer,
BPDB

Possibilities of importing additional power from
India and Myanmar
Source: Keystone Team
4.3.4.1.5 Chinese suppliers
Chinese suppliers of power plant equipment offering competitive prices have been prevalent in
Bangladesh in recent years that are quite popular. SWOT for such companies in general are
discussed below.
Table 4.12: SWOT Analysis for the Chinese Suppliers
Strengths
Weaknesses

Low prices

Low quality

Cost advantage

Delay in implementation
Opportunities
Threats

Increasing demand for electricity in
Bangladesh

Highly competitive environment in
Bangladesh.

Government expansion plans and
concessions such as tax incentives and
guaranteed purchase of electricity

Falling gas supplies in Bangladesh

Delays in project implementation due
to lack of transparency, bureaucracy
and fund arrangement

Lack of quality investors in Bangladesh

Weakening financial capabilities of
single buyer, BPDB

Possibilities of importing additional
power from India and Myanmar
Source: Keystone Team
4.4 Environmental Regulation for Existing Plants and Current Emission Levels
The regulatory framework for the whole of energy sector has been discussed in chapter 2.
Regulations specific to the environmental standards for the power sector especially power plants
can be found in the Environmental Conservation Rules (ECR) 1997 of Bangladesh. The ECR(1997)
elaborates the environmental standards applicable in the country for all industries. Item falling
under the regulation include air quality; water quality; (surface water, drinking water); noise
(boundary, source); emissions from motor vehicles or ships; odor; sewage discharge; waste from
industrial units and industrial effluents or emissions. Standards for these items pertinent to the
power sector are given in Appendix 4 H.
4.4.1 Relevant policies
National Energy Policy 1995
The National Energy Policy (1995) addresses both energy conservation and environmental issues.
The policy suggests utilization of energy for sustainable economic growth, development of the
indigenous energy sources and assurance of environmentally sound and sustainable energy
development programs causing minimum damage to the environment.
The Environment Policy and the Energy Policy have seven recommendations; of which the following
three are relevant to the power plants.
a. “Environmental Impact Assessment should be made mandatory and should constitute an
integral part of any new energy development project.”
b. “Use of economically viable environment friendly technology is to be promoted.”
c. “Popular awareness to be promoted regarding environmental conservation.”
National land Use Policy 2001
According to the national Land use Policy, 2001, the following objectives could be relevant to power
plants.






Prevention of the current tendency of gradual and consistent decrease of cultivable land for
the production of food to meet the demand of expanding population;
Ensuring usage of land in harmony with natural environment;
Usage of land resources in the best possible way
Protection of natural forest areas, prevention of river erosion and destruction of hills;
Prevention of land pollution; and
Ensuring minimal use of land for construction of both government and non-government
buildings.
Environmental Conservation Rules (ECR) 1997 amended 2003
These are the first set of rules, promulgated under the Environment Conservation Act 1995. The
rules set, among others, (i) the National Environmental Quality Standards for ambient air, various
types of water, industrial effluent, emission, noise, vehicular exhaust etc., (ii) requirement for and
procedures to obtain Environmental Clearance, and (iii) requirements for Environmental Impact
Assessment (EIA) according to categories of industrial and other development interventions.
Obtaining Environmental Clearance
"EIA Guidelines for Industries" published by the Department of Environment (DoE) and the
"Environment Conservation Rules 1997”are the formal documents providing guidance for
conducting Environmental Assessment. Any proponent planning to set up or operate an industrial
project requires obtaining an “Environmental Clearance Certificate” from the DoE, under the
Environment Conservation Act 1995 amended in 2002.
The application for Environmental Clearance includes a project feasibility study report, the EIA
report, No Objection Certificate (NOC) of the local authority; Mitigation Plan for minimizing potential
environmental impacts; and appropriate amount of fees in ‘treasury chalan’ (in the present case the
amount is BDT = 100,000). The DOE authority reserves the right to request additional information,
supporting documents, or other additional materials for the proposed project.
The ECR (1997) focuses on the classification of industries into three main categories i.e. Green,
Amber and Red; based on their pollution potential. Red listed industries are those that can cause
'significant adverse' environmental impacts and are, therefore, required to submit both Initial
Environmental Examination (IEE) and an EIA report. These industrial projects may obtain an initial
Site Clearance on the basis of an IEE based on the DoE’s prescribed format, and subsequently submit
an EIA report for obtaining Environmental Clearance.
Power Plant projects fall under the “Red” category according to ECR’97, and would therefore
require, among others, an EIA for obtaining Environmental Clearance from the DoE. This involves
three steps. First, obtaining site clearance to permit pre-construction and construction activities;
second, obtaining approval of the EIA study and third, obtaining Environmental Clearance. This
permit is required before the power station can be operated.
Refer to the “Environmental Regulation for Existing Plants and Current emission Levels” section
under the power generation sector study for policies around particulate and gaseous emissions
levels.
4.4.2 The policy on selection of a plant size for a particular location
The determination of the size of a power plant in Bangladesh usually precedes the selection
of a suitable site. Demand for power and a least cost expansion plan is the basis for the
generation expansion planning procedures. Fuel availability and cost drives the selection of
generation options. Optimal locations for power plants are then ranked considering the
following factors:









Proximity to the load centers and their forecast load demand.
Transmission to the load centers.
Availability of adequate space at the site.
The value of the land for other uses.
The suitability of the ground and geotechnical conditions for construction of the
plant.
The possibility of flooding or seismic events.
Potential sources of cooling water and makeup water.
Fuel deliverability at the site.
The impact of the facility in a positive or negative manner on the local environment.



Sources of fill and construction materials.
Access to the site for transportation of heavy equipment and construction materials.
Availability of social facilities near site.
Apart from the policy requirements mentioned above, political influences often determine
the selection of plant sites.
4.5 Future Issues and Challenges
4.5.1 Impact of global demand-supply dynamics on the Bangladesh market
Increase in the price of major equipment in the international market eventually impacts the
investment cost for setting up of a power plant in Bangladesh, resulting in cost overrun.
Delays in the procurement of such equipment may result in a time over-run for a project.
Moreover increase in fuel prices in the international market will eventually increase the
generation costs. Although supply of gas is heavily subsidized in Bangladesh making the price
one-tenth of the international market, international prices of liquid fuel result in increased
expenses for power generation companies.
4.5.2 Impact of current gas availability and low gas pressures
The power generation scenario of Bangladesh heavily relies on natural gas as fuel source. The share
of other fuel sources is negligible. At present fuel consumption for power generation is as follows:
Table 4.13: Present Fuel Consumption Scenario
Total
D-Coal
I-Coal
Gas
FO
HSD
Others
D-Coal
I-Coal
Gas
FO
HSD
[GWH]
[GWH]
[GWH]
[GWH]
[GWH]
[GWH]
[GWH]
[1,000t/y]
[1,000t/y]
[mmcfd]
[1,000t/y]
[1,000t/y]
792
882
405
35,474
659
0
28,885
3,948
1,564
416
239
0
Source: Power Division
About 82.12 percent of the annual power supply is currently being generated from indigenous
natural gas reserves. The gas demand ratio of the power sector (grid Power and captive power) to all
sectors used to be around 45 percent, but the consumption pattern started declining from the 2007.
The trend of the Gas Demand Ratio is shown in table 4.14 below:
Table 4.14: Gas Demand Ratio of the Power Sector
Source: Power Division
The following figure shows the month-wise availability of gas in the power sector for the years 2009,
2010 and 2011 (up to July). It is clear from the trend that the supply of gas was reduced in the latest
years even during the peak season. Due to this gas supply shortfall a number of plants could not
operate at their usual capacity. This causes an average generation loss of around 500-800 MW
currently.
Figure 4.16: Month-wise Average Gas Availability for Power Generation in MMCFD
Source: Power Division
Production loss due to the gas shortage and low gas pressure reached 792 MW as on November 1,
2011 (Appendix 4 I, Table 4I.1). Two of the plants had to be kept inactive and the Haripur NEPC GT
110 MW plant had to be converted to a liquid fuel based plant because of the lack of adequate gas
supplies.
4.5.3 Plan to address low gas pressure at power plants
The generation expansion plan undertaken by the government reduces the power system’s reliance
on natural gas as the primary fuel. However, a large portion of the future demand of power is still
planned to be met by gas based generation. The projection of the status of the gas based power
production scenario is shown in the Appendix 4 I, Table 4I.2.
Gas Requirement will rise up to nearly twofold by 2018. In order to meet the projected demand for
gas in power generation, the following plans of actions have been undertaken:

New gas based plants are planned where gas is available (Sylhet, Bhola).

At least 50 percent allocation of total produced gas is planned for power generation.

Enhanced exploration activities to ensure gas supply to power plants.

All the new gas based power stations are designed with gas booster compressor.

To meet additional gas demand for the gas based proposed power plants in Meghnaghat,
Haripur and Siddhirgonj areas and also to ensure gas supply with requisite presser in existing
power plants in Siddhirgong area, GTCL has taken up Bakhrabad - Siddhirgonj Gas
Transmission Pipeline project under WB loan. Additional 380 MMSCFD gas will be required
to be transported to the proposed and existing power plants. The pipeline has designed to
supply 400 MMSCFD with a pressure 1000 psi (g). This pipeline would also be the initial
source to supply gas to the southern part of the country. Tender evaluations for the pipeline
project have been completed and GTCL expected to place work order within June, 2011 and
this pipeline project will be commission by June, 2013.

To overcome the acute gas
shortage with low presser TGDTCL has taken up MonohNorsindi gas pipeline project which
will bring benefits to the gas consumer of Demra, Siddhirgonj and Narayangonj areas.
TGDTCL has given work order but there is case in the court against this work order, for which
contractor could not start the work. They expected the contractor will start work very soon
and the project will be completed by June, 2012. After completion this pipeline gas flow &
pressure will be increased in some extent in Siddhirgonj RMS which can be used to operate
gas based power plants in this area.

CHEVRON Bangladesh has started installation of Gas Booster Compressor at Muchai near
Rashidpur gas field and installation and commissioning work will be completed by
September, 2012. The inlet and outlet pressure of the compressor is 1000 ps (g) and 1300
psi (g) respectively. Gas pressure at the subsequent area will be improved.

GTCL has also taken up a project to install the Gas Booster Compressor at Ashuganj (AGMS).
Tender evaluation has been completed and they expected to give work order in the month
of May, 2011 and probable date of completion by end of 2012. This will also help to increase
gas flow and pressure in Dhaka area.

CHEVRON Bangladesh has started exploration of gas in Moulovibazar and they have a plane
to supply additional 900-1000 MMSCFD gas from Bibyana and Jalalabad gas field by 2013.
4.5.4 Significance of financing as a bottleneck for power projects
Power Generation is a capital-intensive sector requiring substantial investment for setting up power
plants. Therefore, financing is always a major drawback in the growth of the power sector. Large
multilateral financing institutions like the World Bank or the Asian Development Bank have rarely
showed any interest in financing prolific power generation projects in Bangladesh until recently.
These organizations have, in recent years, sanctioned loans to a few public sector power generation
companies to install medium size (120/150/335/360 MW) power plants. Recently, the Government
has invested an amount equivalent to more than one billion US Dollars in a single project for setting
up of 820 MW diesel-based peaking power plants in various locations of the country. These
instances indicate that financing of large projects will get positive responses from relevant quarters
in future. However, bureaucracy involved both in the donor and recipient ends make the
implementation time of the projects unpredictable lengthy.
On the other hand increased government borrowing from the commercial banks is aggravating the
liquidity crisis faced by banks suppressing funds available for private sector investments. Moreover
an implementation of the Basel III by 2014 would require banks to follow more stringent standards
of maintaining capital adequacy and liquidity which might prove getting financing from the
commercial banks more difficult.
4.5.5 Scope for bundled sales and sales dependent financing of equipment
Equipment sales are usually not a package for procurement. Power generation projects are
procured on an Engineering Procurement and Construction (EPC) basis. The vendor bidding for the
project will be responsible for Engineering, Procurement and Construction of the project as a
whole.
Normally the turn-key EPC contractors are awarded a certain power project with the condition that
the turn-key contractor will supply goods from reputed companies like, ABB, Alsthom, GE or
equivalent. The turn-key contractor will engage reputed civil construction companies like Hundai,
Marubeni etc. The EPC contact will have mentions of the companies from whom equipment and
other things will be procured.
The power projects in Bangladesh are financed in the following ways: (i) grants and low-interest
loans provided by the donor agencies; (ii) inter-governmental finance in the forms of grants, soft
loans or supplier’s credit; and (iii) commercial loans from the domestic banking sector. The first two
sources provide the project sponsors with low-cost financing solution, while the commercial loans
charge high interest rates. The recent removal of the ceiling on the commercial interest rates has
made the rate go even higher. Also, the local firms are now allowed to seek financing from foreign
credit market directly at the rate of LIBOR + 4-5 percent. So it is likely that the power project
companies will be looking for financing solutions other than the local commercial loans.
Under these circumstances, if GE wants to create a competitive edge over the competitors by
providing financing solutions along with equipment supply, the interest rate needs to be
competitive. Examples of attractive interest rates would be LIBOR based interest rates or the
refinancing rates quoted by the local financial institutions participating in the donors’ fund
disbursement process.
4.6 Scope for GE
4.6.1 Current market situation for GE to leverage its product portfolio
The power system development plan of the government mainly involves capacity development
programs along with the expansion of access to electricity all over the country. As mentioned earlier,
the recent advancement of the domestic power generation subsector is being heavily reinforced by
the government’s initiatives for encouraging private sector participation on both stand-alone and
public-private partnership basis. Tax incentives, guaranteed purchase of the generated electricity
and refinancing schemes in low-cost financing for the renewable energy based projects are some
examples of the government’s efforts in the power sector development programs.
In line with government’s vision, substantial capacity addition plans are underway and substantial
investments are due in the power sector. As such, GE may leverage its power generation product
portfolio in the upcoming power projects.
Since GE wants to leverage its turbines especially gas turbines in the market, an approximation of
market shares of major players in terms of turbines are is given in table 4.15. Contribution of each
company to the market has been calculated based on the capacity of plants for which the company
is providing the turbine. Projects that have been considered in the calculation include both plants
that have started operation in the last five years and plants that are under construction.
Table 4.15: Market Share of Turbine Suppliers of Power Projects
Steam Turbine
Capacity (MW)
Share
Fuji Electronic System (Japan)
335.4
15%
GE (USA)
335.4
15%
Alstom (Western Europe)
335.4
15%
Fuji Electronic System (Japan)
360
16%
Siemens AG Germany
225
10%
Shanghai Turbine Co. Ltd.
250
11%
Fuji Electronic System (Japan)
450
20%
Harbin Turbine Co. Ltd.
60
Total
2291.2
100%
Gas Turbine
Capacity (MW)
Share
GE(USA)
335.4
16.42%
BHEL, India
240
11.75%
MHI Japan
360
17.62%
Siemens AG Germany
375
18.35%
Ansaldo, Italy
592.25
28.99%
Alstom, France
34.5
1.69%
Ge, France
106
5.19%
Total
2043.15
100%
Source: Keystone Study Team
An overall Idea about companies supplying all sorts of equipment to all power plants and who are
currently prevalent in the market can be obtained from the vendors that have been awarded
contracts for power generation services and power plants (Appendix 4 F and 4 G). Moreover, the
highlighted columns of table 4J.1 in Appendix 4J depict an approximation of the equipment costs and
installation costs associated with each type of power plant in Bangladesh. These costs could be taken
as a close estimation of prevalent market prices of equipment in lump sum for power plants in
Bangladesh.
4.6.2 Merger and acquisition opportunity
A prominent example of shifts in ownership structures among the power generation companies in
Bangladesh include that of the $300 million, 450MW Combined Cycle gas-fired power station,
operating in Meghnaghat. The plant was initially built by AES (Allied Energy Systems) Corp, the USbased producer. It was later sold to British company CDC Globeleq, which also took over a 22-year
Power Purchase Agreement (PPA) with Bangladesh Power Development Board (BPDB). The CDC
Group, through its subsidiary CDC Globeleq Holdings Limited sold the entire share of Globeleq Ltd to
Pendekar, a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih Automotive Company
(Saudi Arabia) in 2007. Pendekar Energy Ltd is currently one of the biggest players in the power
generation sector in Bangladesh.
Other power generation companies prevalent in Bangladesh are quite established in themselves to
opt for strategic moves to the extent of an acquisition or merger. However, many inexperienced
companies have recently been awarded contracts. Some of these companies have quoted low
unsustainable tariff to procure the contracts. It is quite possible that these companies could be
acquired by other mature players in the power sector sooner or later.
CHAPTER 5: COAL SECTOR
5.1 Introduction
Bangladesh depends heavily on natural gas for energy, and in order to reduce the dependence on
gas, GoB has initiated the development of the domestic coal sector by preparing a domestic coal
delivery system and investigating ways of improving coal fired power plant operations. In the near
future, if significant gas discovery cannot be made in and if LNG prices in the Asian market continues
to remain high, coal will likely dominate the fuel-mix of power generation in Bangladesh.
5.2 Background and Recent Trends
The only coal based power plant to date was established on Jan 31, 2006 by BPDB in Barapukuria,
Dinajpur. It has two units of 125 MW each. At present its derated capacity is 220 MW. The coal
comes from the Barapukuria Coal Mine. The historical data of coal production from this mine is given
in the Table 5.2.
5.2.1 Current situation of coal based power generation
At present only 3.66 percent of the installed capacity and 3.52 percent of the derated capacity of all
the country’s power generation comes from this coal based power plant. Table 5.1 shows the fuel
mix scenario as of November 2011. The contribution in terms of both installed and derated
capacities of Coal, F.Oil, Gas, HSD and Hydro power plants of BPDB are presented in the table as
well:
Table 5.1: Present Fuel Diversification Scenario (November 2011)
Unit Type
Percentage of Usage According to
Actual Capacity
Percentage of Usage According to
Derated Capacity
Coal
3.66 percent
3.52 percent
F.Oil
6.51 percent
5.86 percent
Gas
75.22 percent
75.03 percent
HSD
11.25 percent
11.91 percent
Hydro
3.36 percent
3.68 percent
Source: Bangladesh Power Development Board
The Barapukuria Coal Mine (BCMCL) is the only coal mine in Bangladesh. It was developed jointly by
Petrobangla and CMC of China (agreement concluded in 1994). According to “the Management,
Production and Maintenance” (M&P) Contract, CMC was supposed to transfer technology including
the facilities, to Bangladesh by June 2011. In addition, the coal mine has concluded a consultancy
agreement with IMC Consulting Ltd. of UK in June 2011. The underground equipment and
technology for coal mining are mostly sourced from China.
Coal production has been stable in recent years. The coal mine produced 0.84 million tons of coal in
2008. The coal production in 2009 remained stable, but mining rates decreased due to a lack of
demand from power plants. , Mining operations have been suspended since August 2010due to an
accident involving a collapsed roof. This accident highlighted the difficulty of underground mining
operations.
Table 5.2 lists coal production in tons during 2006 to 2011 period. Coal is supplied to two adjacent
125MW Thermal Power Stations in Barapukuria. At present, 250 tons of coals are used every day for
power generation. The remaining coal is primarily supplied for brick farms and other industries. The
Barapukuria coal mine has an annual production capacity of approximately one million tons. A study
is underway to determine ways to enhance the capacity to an annual production of 1.5 million tons.
Table 5.2: Coal production Records at Barapukuria Coal mine
FY
Planned Coal Production (t)
Coal Production Result (t)
2006
500,000
362,470
2007
770,000
348,200
2008
970,000
611,674
2009
1,020,000
904,659
2010
930,000
709,155
2011
560,000
712,683
Source: PSMP Study
The total reserves in the 5 coal fields of Bangladesh are estimated to be 2.9 billion metric tons. This
is the energy equivalent of 67 tcf of gas. The recovery rate of coal from reserves varies with the
choice of technology used and the method of mining. Assuming a modest recovery rate of 30
percent coal, the available reserve will translate to about the energy equivalent of 20 tcf of natural
gas. The following Table 5.3 gives an overview of present coal production situations and issues in
Bangladesh.
Table 5.3: Coal in Bangladesh Present Production Situations and Issues
Coal field name
Depth
(m)
No.
of coal
Av. thickness of
Measured coal
Measured+
composite coal
reserve (million
probable coal
seams (m)
tons)
reserves (million
seams
Remarks
tons)
Barapukuria
118 -506
6
51
(Dinajpur)
303 (Minable
390

coal reserve by


U/G: 64 million
tons)

Phulbari,
(Dinajipur)
Khalaspir,
(Rangpur)
150 -240
2
15-70
572
572


257 -483
8
42.3
143
685


Dighipara,
(Dinajipur)
328 -407
Jamalgonj,
640-
(Bogra)
1,158
5
62
150
600
7
64
1053
1053
Petrobangla and China National Machinery Import and Export Corporation (CMC) in China
concluded a development agreement in 1994. BCMCL was founded in 1998. Capacity designed:
One million ton /year
A small-scale open-cast mining project is feasible
A 250MW coal-fired thermal power station is in operation, and a study is on the table to build a
new 125MW power station.
Asia Energy has completed a feasibility study. When the company was going to engage in a
large-scale open-cast coal mine development, the development project was suspended in
August 2006.
Although Global Coal Management has succeeded to the development interest, the project is
yet be progressed.
The measured coal reserve is 277 million tons. Since only 14 borings were made, the reliability is
low. The developer has submitted a feasibility study for coal mine development by underground
mining to the GoB.
The annual coal production plan ranges from two million to four million tons.

GSB made five borings in a 1.25 km2 area and found five coal seams. The initial probable coal
reserve is 600 million tons.
A Korean syndicate has approached Petrobangla for development and investment.


Largest coal field in Bangladesh
Targeting coal seam gas of CBM (coal bed methane) in deep underground
Source: PSMP Study
The fields discovered have depths ranging between 118-506 meters and 150-240 meters in Barapukuria
and Phulbari respectively. The depth of the coal field discovered in Jamalganj is 640-1158 meters. The
coal fields cover an area of about 70-80 square kilometers.
5.2.2 Formalization of Coal Policy for Bangladesh
The Coal Policy is currently being prepared, and in order to cope with the rapid increase of energy
demand, privilege measures for coal mine development are to be introduced so that the efficient use of
coal can be promoted and coal fired power stations can be developed.
The first version of Draft Coal Policy was published in December 2005 by the Energy and Mineral
Resources Division of Ministry of Power, Energy and Mineral Resources. After that it was revised several
times. The latest one was the “Bangladesh Draft Coal Policy –June2007”, which outlined impact of the
gas shortage, the status of the power generation sector, coal development, investment in the coal
sector, the importing of coal, and other environmental factors in Bangladesh. Therefore this policy will
be a useful point of reference in understanding the domestic coal supply in the context of this study.
This policy states that coal will be used as an alternative fuel for power generation instead of gas to
maintain national energy stability.
A fifteen-member committee was formed during the first week of October 2011, headed by a former
chairman of Petrobangla, to prepare the eleventh draft of the coal policy. The committee was given four
months time. Thus it is expected that by early February 2012, the draft report will be submitted to the
government. After the submission of the report it will necessarily go through rounds of scrutiny, debate
and review. However, as the gas reserve is depleting fast and power generation using imported fuel is
hitting the economy hard, there is a definite urgency in finding alternative sources of primary
commercial energy. However, given the contentious debate over the coal policy : open versus deep
shaft mining, royalty payment to the government, and resettlement of affected people; coal policy is
unlikely to be finalized soon. The Prime Minister has recently announced that domestic coal will be
preserved for future generation. Clearly the government has opted for imported coal based power
generation in the near future.
5.3 Nature of the Market
5.3.1 Demand supply dynamics for Coal based power plant
The demand for coal based power plants in the next 20 years (2011-2030) was estimated in the Power
System Master Plan (PSMP). According to the PSMP Fuel Diversification Scenario the demand for coal
based power plant will be 1325 MW between the years 2011 to 2016 and 18,000 MW henceforth (20172030). These power plants will be fueled using both domestic and imported coal. The main objective of
the PSMP study was to formulate a Master Plan for the attainment of stable power supply in Bangladesh
up to the year 2030. The plan was devised taking into account the diversification of fuel resources for an
optimum power development plan, the power system plan, and identification of potential power plant
sites. In regards to the issues of decreasing gas supply (and depleting reserves) coupled with the lead
time needed for the construction of gas-fired power stations, the PSMP Study suggests that the power
development scenario should include coal and oil as primary fuel sources as well. According to this
scenario, if the fuel price were to increase because of the tight demand for primary energy, the optimal
power supply configuration ratio would be- Oil: 10 percent for peak, gas: 20 percent for middle and
peak, and coal: 70 percent for base generation. Therefore, power generation will be the most
economical when 70 percent of the total power plants is coal based.
5.3.1.1 Upcoming coal based power plant (up to 2016): supply plan of BPDB
BPDB already initiated plans to meet the demand for coal based power plants between 2011 and 2016.
It aims to do so by utilizing three (under construction) power plants to produce 2,850MW of coal-based
power. One of them is the Barapukuria 3rd unit (250 MW), a public sector project, which is expected to
be commence operations in June 2014. As of now the in-house feasibility study of the project has been
completed and its DPP is being prepared.
Table 5.4: Status of the New Coal Projects
Sector
Public
Description
1.
Barapukuria 250-300
MW Coal (3rd Unit)
2.
Khulna 150-300 MW
Coal Fired Power
Plant
Capacity
(MW)
250
Expected
Fuel
Status
COD
Coal
June, 2014
• In house feasibility completed.
• DPP is under preparation.
• PQ & RFP invited: 03.11.2010
150
Imp.
Coal
Sept. 2014
• PQ & RFP Received: 31.01.2011
• PQ & RFP invited: 03.11.2010
3.
Private
Chittagong 150-300
MW Coal Fired Power
Plant
150
Imp.
Coal
Sept. 2014
• Draft Agreement for Joint
Venture between NTPC & BPDB
is under preparation. NTPC will
start feasibility study soon.
Imp.
4.
Khulna South
5.
Maowa, Munshigonj
300-650 MW Coal
Fired Power Plant
6.
Chittagong 300-650
MW Coal Fired Power
Plant
1300
• PQ & RFP Received: 31.01.2011
March 2015
Coal
• 1834 Acres of land acquisition
at Chalna, Bagerhat under
process
• PQ invited: 03.11.2010
300
Imp.
Coal
300
Imp.
Coal
Sept. 2015
• PQ Received: 27.01.2011
• PQ invited: 03.11.2010
Sept. 2015
• PQ Received: 27.01.2011
7.
Chittagong 1300 MW
1300
Imp.
Coal
June , 2016
• Feasibility Study will start soon.
• 3188 Acres land acquisition
under process
Source: BPDB
Two large projects will are also planned for the Khulna and Chittagong areas. In November 2010, BPDB
started the bidding process for two smaller projects in the 150MW to 300MW range for Chittagong and
Khulna, and as well as two larger projects in the 300MW to 650MW range for the Chittagong Coastal
Area and the Maowa-Munshiganj area; i.e. a total of four imported coal fired power projects on a BOO
basis. These projects are expected to be commissioned by 2016. The implementation status of the coal
based power projects is shown in Table 5.4.
According to BPDB’s plans a total 3,750 MW is to be generated using coal based power plants which are
expected to be commissioned by June 2016. The PSMP team estimates that the projected demand for
coal power in this period will be about 1,325 MW. Thus, the supply plan is well above the projected
demand, but it is hard to say whether these projects will be implemented on schedule.
5.3.1.2 Supply of coal based power plants according to Power System Master Plan (PSMP) analysis
(2016-2030)
To meet the increased demand for coal based power, the PSMP teams suggested specific year-wise coal
based power plant additions between 2011 and 2030. Some of the power plants have already been
added to the BPDB plan and their procurement process has started as well, as described in the previous
section. These projects are in the locations which the PSMP considered for optimal for potential sites for
coal power station projects.
According to the PSMP, 14 new domestic coal based power plants with the capacity of 10,800 MW and
12 new imported coal based power plant with the capacity of 7,200 MW will be needed within the years
2016 to 2030. So in this period the total supply for coal based power plant would be 18,000 MW. The
Table 5A.1 of Appendix 5A gives the detailed list of the projected 18,000 MW coal based power plants
planned for the years 2017 to 2030. The commissioning and the retirement years are also given for each
power plant.
It should be mentioned that the two units of Chittagong’s 1,200 MW power plants are already included
in the BPDB plan and are expected to start operations by 2016. The total supply would be 16,800 MW
against a demand of 18,000 MW. This demand-supply discrepancy will be compensated by the
additional supply generated between 2011 and 2016
The following Table 5.5 summarizes the PSMP projections for Coal based power plant additions with
respect to the total demand between the years 2017 to 2030.
Table 5.6: Coal based Power Plant Additions
FY
Unit Addition, Numbers of unit
Peak Load [MW]
Domestic Coal
Domestic Coal
Import Coal
600 MW
1,000 MW
600 MW
2017
12,644
3
2018
14,014
1
2019
15,527
2
2020
17,304
1
2021
18,838
2022
20,443
1
2023
21,993
1
2024
23,581
2
2025
25,199
2026
26,838
2027
28,487
1
2028
30,134
2
2029
31,873
2
2
2030
33,708
1
1
6
12
1
Total
Total MW
1
2
8
4,800
6,000
2
7,200
Source: PSMP Study
5.3.2 Key players
The Barapukuria Coal Mine (BCMCL) is the only coal mine in Bangladesh. It was developed jointly by
Petrobangla and CMC of China (agreement concluded in 1994). In addition, the coal mine has concluded
a consultancy agreement with IMC Consulting Ltd. of UK in June 2011. The underground equipment and
technology for coal mining are mostly sourced from China. In January 2006 CMC in association with SEEC
commissioned two 125 MW units of coal based thermal power plants (250 MW).
A list of model and manufacture names for the different equipment for the coal fired thermal power
plant is given at the Table 4E.6 of Appendix 4E. In this project Shanghai Turbine Generator Co. Ltd.
supplied the turbine and generator, and Shanghai Boiler Factory / Works Ltd. supplied the boiler
equipment. Different pumping, coal & ash handling, transformers, breakers and motors were supplied
by several companies. Most of them are based in China except for KAY international Ltd. Haryana India,
which supplied the blower for ash handling.
8.3.2.1 Sales channel for GE competitors
In case of public power plants the procurement is done according to the Power Procurement Rules(PPR) 2008. This procurement procedure is already discussed in the Power Generation Chapter (Section
4.2.9).The PPR 2008 is also attached to the Appendix 4L.
In case of IPPs a competitive bidding process is followed by BPDB to select the sponsors for the power
plants. Once the Letter of Intent (LOI) is issued by the BPDB to the awarded company, the company
starts the selection of Engineering and Procurement (EPC) contractor and the Operation and
Maintenance (O&M) contractor. The EPC contractor and the O&M contractor then select the major
equipment suppliers and spare parts suppliers respectively. Sometimes major equipment suppliers
provide the equipment directly to the project company. All the equipment suppliers have to give the
price quotation to the EPC/ O&M contractor or to the project company. Then the supplier is chosen
according to the cost and quality basis. Sometimes BPDB also specifies the major equipment suppliers or
the specific criteria for the major equipment suppliers. The detailed IPP policy is attached to the
Appendix 4N.
5.3.2.2 SWOT Analysis of Major Competitors
Strength, Weakness, Opportunities, Thereat (SWOT) Analysis in respect of Shanghai Turbine Generator
Co. Ltd and Shanghai Boiler Factory / Works Ltd. is presented below:
Table 5.7: SWOT Analysis of Shanghai Turbine Generator Co. Ltd
Strength




Weakness
Enhanced financial strength and professional expertise
because of formerly being a joint venture of Shanghai
Machinery Manufacturing Works (SEMMW) and
Westinghouse Electric Co. Ltd. (WEC). and at present a
joint venture with Siemens.
Transportation advantage for being located near the
main railroad of the country and on the upstream of a
large river.
Highly educated and trained workforce.
Efficient HR department that keeps the employee
motivation high.



Huge backlog of orders from different clients making it
particularly risky and difficult to manage.
Difficulty of managing a diversified culture because of
the joint venture with Siemens.
No external quality control procedures.
Opportunities





Threats
Equipment manufacturing companies that already
have experience in setting up power plants, would be
given priority in future power plant construction
contracts.
Increasing demand for electricity in Bangladesh
Government expansion plans and concessions such as
tax incentives and guaranteed purchase of electricity
Possibilities of importing additional power from India
and Myanmar
Falling gas supplies in Bangladesh




Highly competitive environment in Bangladesh. Several
Chinese companies offer more competitive prices.
Delays in project implementation due to lack of
transparency, bureaucracy and fund arrangement
Lack of quality investors in Bangladesh
Weakening financial capabilities of single buyer, BPDB
Source: Keystone Team
Table 5.8: SWOT Analysis of Shanghai Boiler Factory / Works Ltd.
Strength






Weakness
Diversified and customized product line to meet the
clients’ demand accurately.
Campus recruitment program and extensive training
on-the-job facilities to build up a tailored workforce.
International exposure by becoming one of the top 500
Asian brands.
Huge and highly efficient manufacturing facilities as its
production of elevator per single factory per day ranks
first in the world.
Employee motivation through a wide range of
entertaining and social activities.
Increasing presence in providing and manufacturing
the renewable energy services and equipment.


Difficulty of management because of extensively
diversified manufacturing operation and fast growth.
Particularly newer in the industry compared to the
long-established competitors.
Opportunities





Threats
Equipment manufacturing companies that already
have experience in setting up power plants, would be
given priority in future power plant construction
contracts.
Increasing demand for electricity in Bangladesh
Government expansion plans and concessions such as
tax incentives and guaranteed purchase of electricity
Possibilities of importing additional power from India
and Myanmar
Falling gas supplies in Bangladesh




Highly competitive environment in Bangladesh. Several
Chinese companies offer more competitive prices.
Delays in project implementation due to lack of
transparency, bureaucracy and fund arrangement
Lack of quality investors in Bangladesh
Weakening financial capabilities of single buyer, BPDB
Source: Keystone Team
5.3.3 Main customers of GE today and in the future in the coal power sector
At present, the only coal based power plant is operated by BPDB itself and the electricity is directly
synchronized to the national grid. Recently, Orion Group, Bangladesh has been awarded to build two
300 MW and one 650 MW coal based combined cycled power stations on a Build Own Operate (BOO)
basis. Off the power plants, one will be in Chittagong with a capacity of 282.67 MW, one in Khulna of
282.67 MW capacity and one in Mawa of Munshiganj of 522 MW capacity. So the Orion Group is the
only potential customer for GE at present in this sector. BPDB signed a joint venture deal with Indian
state-owned National Thermal Power Corporation (NTPC) for the Khulna South Power Plant with the
capacity of 1300 MW. In October 2011, the Bangladesh government sent a technical team to India to
prepare an outline on its plan to develop this power plant. A high-level technical team from NTPC is
likely to arrive in Bangladesh in the last week of January, 2012 to finalize technical terms and conditions
for setting up the power plant. So BPDB, NTPC and other IPPs might be the main customers in future.
5.3.4 Key buying criteria for the customers in the coal power sector
BPDB has the policy of buying power (by initiating a tender) in such a way that the least cost generation
expansion is ensured, but due to the acute shortage in gas supply and the absence of coal policy, BPDB
had to make a generation expansion plan based on expensive liquid fuel (HSD, HFO etc.). In future, for a
specific area if there is an adequate gas supply and gas infrastructure BPDB will go for gas based power
because of its low fuel cost and low tariff rate. If gas is not possible it will opt for coal power and if there
is no possibility of getting domestic and imported coal in that area, then BPDB may go for Liquid fuel
based power. So tariff will be the most important criterion for BPDB in buying private coal power. For
instance, BPDB will buy coal power from the Mawa plant at USD 0.0499 per KWh, from the Chittagong
plant at USD 0.0463, and from the Khulna plant at USD 0.0463. This kind of low tariff will influence BPDB
to go for more coal based power plant in future. So to quote a competitive tariff the customers (bidders)
might look for prospective suppliers who can provide equipment at the lowest cost ensuring the
technical compatibilities.
5.4 Issues and Challenges for Coal based Power Plant
5.4.1 Requirement of coal in the upcoming years
The PSMP team projected the coal demand for the next twenty years according to their projected
generation capacity. The following table shows the projected domestic and imported coal based energy
generation and the yearly consumption of both of these types of coal.
Table 5.9: Net Electricity Generation and Coal Consumption (Fuel Diversification Scenario)
8
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Net Generation
Total
D-Coal
I-Coal
[GWH]
[GWH]
[GWH]
35,474
39,467
43,882
48,713
54,047
59,945
66,457
73,671
81,610
90,950
99,838
108,636
118,485
127,368
137,964
147,245
158,456
167,938
180,089
190,752
659
659
659
2,306
2,306
2,300
2,086
1,652
9,474
12,931
13,443
17,025
20,407
25,722
26,453
30,166
37,319
48,404
60,352
66,286
Coal Consumption
D-Coal
[1,000t/y]
0
0
0
0
0
8,081
19,496
18,966
18,539
16,075
18,830
17,883
17,992
17,016
17,885
23,577
28,891
28,456
31,473
35,130
Source: PSMP Study
239
239
239
792
792
789
722
588
2,810
3,795
3,938
4,962
5,923
7,470
7,669
8,728
10,748
13,924
17,327
19,023
I-Coal
[1,000t/y]
0
0
0
0
0
3,188
7,705
7,590
7,432
6,517
7,542
7,192
7,320
6,964
7,286
9,584
11,740
11,581
12,882
14,335
So according to the fuel diversification scenario, from 2011 to 2030 an additional 19,325 MW coal based
power plants will come into operation which will require 110.7 million tons of domestic coal and 128.86
million tons of imported coal. It should be mentioned that as BPDB plans for 250 MW domestic coal
based and 3,500 MW imported coal based power plants within 2016, the coal demand in this period
might be higher than the projected PSMP demand.
5.4.2 Financing challenges in coal based power plant
Due to issues of high carbon emissions, World Bank, ADB and other multilateral entities are reluctant to
finance coal based power plants. Moreover, bureaucracies involved in both of the donor and recipient
ends, the implementation of the projects may become unpredictably lengthy.
As both the GE Financial Service and the equipment for coal power are expensive, providing
financing/services might not create a distinct value proposition for GE. But if they could provide
financing with long term maturity in the coal power project, it might be attractive to the customers of
GE.
5.4.3 Current price of domestic and imported coal
Bangladesh currently imports coal only from India at a price of USD 60 per MT which is used by the brick
fields. For power generation, BPDB collects domestic coal from Barapukuria Coal Mining Company
(BCMC) at a price of USD 84 per MT. However, the cost of domestic coal mining is higher than the price
as it takes approximately USD 116 per MT for coal mining at BCMC. Hence the government subsidized
the domestic coal sector for power generation.
The coal that is collected from BCMCL has a Gross Calorific Value (GCV) of approximately 6200-6300
Kcal/Kg and it is used for electricity production in Bangladesh. The Indian coal with same the same GCV
is priced at USD 80 per MT while Indonesian coal is priced at USD 110 per MT.
5.4.4 Challenges with Indian coal and Indonesian coal
Indian coal and Indonesian coal is different in their quality because of presence of sulfur and ash. Indian
coal is low in sulfur, but contains much higher amount of ash than Indonesian coal. Indian coal contains
30 percent to 45 percent ash in contrast to coal from developed countries that contains 15 percent to 20
percent ash. Currently 85 percent of the coal mining in India is done through Open Cuts (OC) mining,
which has been causing the quality of coal to deteriorate over time. At present the average heat
contents generated by Indian coal is 3500-4000 kcal/ kg.
In contrast, the Indonesian coal is ultra-low in sulfur with only 0.5 percent on average and contains 2
percent to 12 percent of ash which is also much lower than Indian coal. However, depending on the
presence of ash, sulfur, moisture and other volatile matters, Indonesian coal is ranked as bituminous
and sub-bituminous. Coals with as-received heat contents in excess of 5300 Kcal/kg are generally
regarded as bituminous coal while coals with as-received heat contents of 4100 kcal/kg to 5300 kcal/kcal
are classified as sub bituminous coal. Indonesia typically exports the bituminous and higher heatcontent sub-bituminous coal while it supplies the lower heat content sub-bituminous coal in the
domestic market.
Hence the major challenges with the Indian coals are low productivity and high negative environmental
impact. Indian sulfur & ash mixed coal is already being used in brick fields of Bangladesh which has been
causing high level of environmental degradation. High amount of ash can also affect the power plants in
a negative way by reducing their life-time and efficiency while increasing pollution.
In contrast to the Indian coal, quality is not a concern with Indonesian coal as it exports different grades
of coal. The major concerns with Indonesian coal to use in Bangladeshi power sector are hence the price
and transportation cost. Indonesian coal Free on Board (FOB) price ranges from USD 50 to USD 130 per
MT depending on the quality compared to the price of Indian coal ranging between USD 40 to USD 70
per MT. India’s geographical proximity with Bangladesh also makes it convenient to import coal from
India as the import cost from Indonesia would be much higher because of the shipping and
transportation cost. However, India itself is short of domestic coal and to meet their increasing power
demand India imports huge amount of coal. Therefore, availability of Indian coal is also uncertain.
5.4.5 Transportation challenges for imported coal
At present, there is no Jetty facility of Chittagong and Mongla port to handle coal. The shipping system
for imported coal will have to be freight by ship using a bulk coal carrier. It is growing in size recently and
the payload (PLD) increases to 300,000t class. However, the depth of the Bay of Bengal in Bangladesh is
overall shallow and the big vessel has difficulty reaching the shore. The draft is about 8 to 9m in
Chittagong and Mongla ports, and about 28,000-30,000t will be limited to the ship that can enter the
port, though it differs by the ship type. Therefore, it will be necessary to require the ship of about
28,000-30,000t when considering the import of coal. For this reason the PSMP study suggested the
construction of a coal center in the deep sea to accept larger vessels. So the port facility development
(construction of deep sea port) will be the most challenging factor in case of imported coal.
Regarding domestic vessels, according to Bangladesh Inland Water Transport Authority (BIWTA), the
levels of operation capability are determined in the Bay of Bengal according to weather conditions, and
the largest size of the ship which can pass through the worst level area is 5,000 tons. So only 5,000 ton
class domestic vessels with 5m draft and 1,000 tons class Berge with 2m draft could be used to unload
coal from the deep sea port to the power plants.
5.4.6 Comparison of the costs of electricity generation for different fuels
A comparative study of electricity tariff for different fuels based on the international price of Indian coal,
Indonesian coal and Natural Gas and on the national price of domestic coal and natural gas is done by
the team. Though at present BCMCL is selling coal at the rate of government fixed 84 USD/ MT, its
production price is almost 116 USD/ MT. The average calorific value of the Barapakuria Coal is almost
6,200 kcal/ kg. The Free on Board (FOB) price of this type of Indonesian Coal is 110 USD/ MT. Including
the fright and handling cost the total cost will be 170 USD/ MT.
In 2007, Barapakuria Thermal Power Plant imported some Indian coal as the domestic production was
shut down at that time. The Calorific Value of that coal was 5000 kcal/ kg. The present cost of this
graded coal is 70 USD/ MT including the transportation cost.
We assumed the plant efficiency is 32 percent for less than 600 MW plant and 42 percent for higher
capacity plant. With these assumptions the tariff was calculated to USD 0.05 per kWh, USD 0.038 per
kWh and USD 0.074 per kWh respectively for domestic coal, Indian coal and Indonesian coal in case of
32 percent efficiency. Again in case of power plant greater than 600 MW, the tariff was calculated to
USD 0.038, USD 0.029 and USD 0.056 respectively for domestic coal, Indian coal and Indonesian coal.
In case of gas based power plant we considered 32 percent efficiency for the open cycle power plant
and 56 percent efficiency for the combined cycle power plant. Using the local and international prices of
gas, in case of open cycle power plant the tariff was calculated to USD .011 and USD .082 and in case of
combine cycle power plant it was calculated to USD .006 and USD .047 respectively. The following table
summarizes the comparative tariff study.
Table 5.10: Comparison of Tariff for Different Types of Coal and Gas
Primary Fuel
Price (USD/ MT
or USD/ MCF)
Calorific Value
(kcal/ kg or kcal/
CF)
Efficiency
Tariff (USD/
kWh)
Tariff (BDT/
kWh)
Domestic Coal
116.00
6200.000
0.320
0.050
4.122
Indian Coal
70.00
5000.000
0.320
0.038
3.085
Indonesian Coal
170.00
6200.000
0.320
0.074
6.041
Domestic Coal (> 600 MW)
116.00
6200.000
0.420
0.038
3.141
Indian Coal (> 600 MW)
70.00
5000.000
0.420
0.029
2.350
Indonesian Coal (> 600 MW)
170.00
6200.000
0.420
0.056
4.603
Natural Gas (Local Price)
1.00
236.925
0.320
0.011
0.930
Natural Gas (International
Price)
7.20
236.925
0.320
0.082
6.695
Natural Gas (Local Price) (CC)
1.00
236.925
0.560
0.006
0.531
Natural Gas (International
Price) (CC)
7.20
236.925
0.560
0.047
3.826
Source: Keystone Calculation
5.5 Main Strategy: Technology/Solutions or a Lowest Cost Game
Neither the procurement procedures provided in the ADB-WB guidelines, nor the same of PPR 2008 of
GoB recommends only the lowest cost method. Theoretically, bidding methods suggested by all of the
above aim at ensuring quality first and that is why only technically qualified bidders are identified and
then among these technically qualified bidders, the lowest cost bidder is awarded the bid. That is why
the procedure is termed as a ‘Quality Cost Based Selection (QCBS)’ process. However, the shortcoming
of this procedure is that it cannot always guarantee the best technology/solution. It is often observed
that the technical criteria set by the procuring entity can be met by many mid-level companies and
consequently the best technology/solution providers do not participate at all in the tender process.So
the lowest cost game would be the major criterion in the selection of Vendors/ Equipment suppliers in
public power plants.
In case of IPPs negotiation plays an important role in finalizing a contract. So a lowest cost game would
be more effective to penetrate the market of private power plants.
APPENDIX TO THE CHAPTER 4: POWER GENERATION
4A ELECTRICITY DEMAND FORECAST
Table 4A.1: Demand Forecast up to 20303
Year
GDP
Growth
Rate
(percent)
Elastic
ity
Electricity
Growth
Rate
(percent)
Total
Demand
without
DSM
Effect of
DSM
(percent)
Total
Demand
with DSM
Electricity
Growth
Rate
(percent)
Grid
System
Demand
with DSM
Off-grid
Captive
Demand
2010
5.5
1.50
8.25
7,454
0.0
7,454
4.5
6,454
1,000
2011
6.7
1.50
10.1
8,203
5.0
7,793
10.5
6,765
1,027
2012
7.0
1.50
10.5
9,064
5.0
8,611
10.5
7,518
1,093
2013
7.0
1.50
10.5
10,016
5.0
9,515
10.5
8,349
1,166
2014
7.0
1.50
10.5
11,068
5.0
10,514
10.5
9,268
1,246
2015
7.0
1.50
10.5
12,230
5.0
11,618
10.5
10,283
1,335
2016
7.0
1.50
10.5
13,514
5.0
12,838
10.5
11,405
1,433
2017
7.0
1.50
10.5
14,933
5.0
14,186
10.5
12,644
1,542
2018
7.0
1.50
10.5
16,501
5.0
15,676
10.5
14,014
1,662
2019
7.0
1.50
10.5
18,233
5.0
17,322
10.5
15,527
1,794
2020
7.0
1.40
9.8
20,020
6.0
18,819
8.6
17,304
1,515
2021
7.0
1.35
9.5
21,912
6.5
20,488
8.9
18,838
1,649
2022
7.0
1.30
9.1
23,906
7.0
22,233
8.5
20,443
1,790
2023
7.0
1.25
8.8
25,998
8.0
23,918
7.6
21,993
1,925
2024
7.0
1.20
8.4
28,182
9.0
25,645
7.2
23,581
2,064
2025
7.0
1.15
8.1
30,450
10.0
27,405
6.9
25,199
2,206
2026
7.0
1,10
7.7
32,795
11.0
29,187
6.5
26,838
2,349
2027
7.0
1.05
7.4
35,205
12.0
30,981
6.1
28,487
2,494
2028
7.0
1.00
7.0
37,670
13.0
32,773
5.8
30,134
2,638
2029
7.0
1.00
7.0
40,306
14.0
34,664
5.8
31,873
2,790
2030
7.0
1.00
7.0
43,128
15.0
36,659
5.8
33,708
2,951
Source: Power System Master Plan 2010
3
Certain Assumptions:
Demand in 2009 =5500 MW; GDP growth rate =5.5%; Elasticity =1.5; Electricity growth rate =8.25%
Demand in 2010 =5500 MW*(1+0.0825)=5954 MW; Captive power =1500 MW; Stand-by = 500 MW; Process industry+ Swing
capacity =1000 MW; Waiting demand=500MW
Total demand in 2010 including Captive + Waiting =7454 MW
Table 4A.2: Demand for Electricity by Regions
Central Region
Northern Region
Southern Region
Western Region
Dhaka Region
Net Peak
Net Peak
Net Peak
Net Peak
Net Peak
Load
Load
Load
Load
Load
Year
(MW)
(MW)
(MW)
(MW)
(MW)
2005
369
519
880
516
2,024
2006
402
566
958
562
2,204
2007
438
616
1,044
612
2,401
2008
478
671
1,137
667
2,616
2009
520
731
1,239
726
2,849
2010
567
797
1,349
791
3,104
2011
613
862
1,460
856
3,357
2012
663
932
1,579
926
3,632
2013
717
1,009
1,708
1,001
3,929
2014
776
1,091
1,847
1,083
4,250
2015
839
1,180
1,998
1,172
4,597
2016
902
1,268
2,147
1,259
4,938
2017
968
1,362
2,306
1,352
5,304
2018
1,040
1,462
2,477
1,452
5,697
2019
1,117
1,571
2,660
1,560
6,119
2020
1,200
1,687
2,857
1,675
6,573
Source: Power System Master Plan 2006
CHAPTER 7: TRANSMISSION AND DISTRIBUTION
The Power Division under the MPEMR manages the electricity sector. The power generated by the BPDB
and its generation subsidiaries, the IPPs, is supplied through the PGCB’s power transmission facilities to
the distribution utilities. In the capital city of Dhaka, DPDC and DESCO are responsible for the electricity
supply to retail consumers. In other urban cities, the BPDB, the WZPDCL, and in rural areas the REB
supply electricity to retail consumers.
7.1 Background and Recent Trends
7.1.1 Transmission sector
In the early 1960s the first high voltage double circuit transmission line (132 kV) was built from Kaptai to
Shidhirgonj (near Dhaka). There were substations (132/32 kV) at Chittagong, Feni and Comilla. This
transmission line facilitated the transfer of power from the newly built Kaptai Hydro Station (80 MW)
(commissioned in 1962) to Chittagong, Feni, Comilla and Shidhirgonj. Another 132 kV transmission line
was also built from Shidhirgonj to Ullon, Dhaka. With the help of this transmission line and several other
33 kV lines, power was supplied from Shidhirgonj to the Dhaka area (in addition to the power received
from Kaptai, power was also generated at the Shidhirgonj 30 MW power station). These transmission
lines were followed by the Sylhet- Shahjibazar- Ashugonj- Ghorashal- Shidhirgonj transmission lines,
which connected the newly built Shahjibazar Power Station (1968), the Ashugonj Power Station (1970)
and the Ghorashal Power Station (1974). The liberation war (1971) delayed the commissioning of the
Ghorashal power station. At that time the Goalpara- Bheramar-Ishordi 132 kV transmission line was
built; however it was gradually extended up to Thakurgaon. This line connected the Goalpara and
Bheramara power stations to the load center on the western side of the Jamuna river. Following 1971
newly built power stations and a number of different load centers were connected to the Eastern Grid
(on the Eastern side of Jamuna River) and the Western Grid (on the Western side of Jamuna River) by
new T/Ls.
In 1981 the first 230 kV transmission line from Ghorashal to Ishurdi inter-connecting the eastern and the
western grid was commissioned. This line was initially energized at 132 kV. During the 1980s high
capacity generation units were added to the Ghorashal and Ashugonj Power Stations. To transmit power
from these power stations, new 230 kV transmission lines were built between Ghorashal – Ashuganj and
Ghorashal- Tongi. At the same time the first east west interconnector was energized at 230 kV.
In the nineties, a 230 kV transmission line from Raujan to Hatazari was commissioned to transmit power
from the Raujan Power Station. In 2000, the Hatazari to Comilla North T/L was commissioned. The
Ashuganj- Comilla and the Ghorashal- Haripur 230 kV transmission lines were commissioned few years
earlier. These T/L constituted the backbone of the 230 kV lines of the eastern grid.
After PGCB was formed in 1996, it started construction of a 230 kV backbone line for the western grid
(Khulna- Ishurdi- Bharabari- Shirajganj- Barapukuria). New 230/132 kV substations were constructed at
Aminbazar and Rampura to feed bulk power to the Dhaka area. The Meghnaghat- Haripur- Amin Bazar
and the Amin Bazar- Tongi 230 kV T/Ls were constructed to transmit power from IPP power stations at
Haripur&Meghnaghat and also to feed the Amin Bazar 230/132 kV substation. Between 2002 and 2005
all the above mentioned T/Ls and Substations were commissioned.
In 2008, a second east-west inter connector was commissioned connecting the Ashuganj Substation and
the Shirajganj switching station. From this period till today many other 132 kV lines and substations
were commissioned to feed more load centers, while at some other substations capacities were
increased.
As the acquisition of land is becoming difficult, particularly in city areas, the PGCB has started the
construction of Gas Insulated Substations (GIS) with the extension of the Jaydebpur 132/33 kV
substation using GIS units (2006) and commissioning the Gulshan (132/33 kV) GIS substation (2006).
Another GIS was built in Gallamari, Khulna. There are also 230/132 kV GIS substations in the old airport
area (Agargaon, Dhaka) along with three other 132/33 kV GISs in the Dhaka area.
With the increase of load demands as well as power generation capacities, the PGCB has now started
the construction of 400 kV transmission lines. The first 400 kV double circuit T/L between Aminbazar
and Meghnaghat is expected to be commissioned (initially at 230 kV) in 2012-2013.
Another 400 kV transmission line from Bibiayanabazar to Kaliyakar, with 400/230/132 kV substations at
Kaliyakar is planned to facilitate transmission of power from the under construction IPP power stations
at Bibiyana bazar which are expected to be commissioned during the later parts of 2012-13.
Table 7A.1 of Appendix 7A shows the details of the ongoing projects in the transmission sector being
implemented by the PGCB which are expected to be completed within next two years. The objective/
benefit of these projects as well as number of sub-stations with the number and capacity of
Transformers for each substation are also shown in the table.
7.1.2 Distribution Sector
Though the Power Grid Company of Bangladesh Ltd. (PGCB) is the sole electricity transmission entity in
the country, there are five entities that actually distribute this electricity. They include: (i) the
Bangladesh Power Development Board (BPDB), distribution of power in district towns; (ii) the Rural
electrification Board (REB) responsible for distribution of power in rural areas through 70 rural electric
cooperatives (PBS); (iii) the Dhaka Electric Supply Company (DESCO), responsible for power distribution
in North Dhaka Metropolitan area; (iv) Dhaka Power Distribution Company (DPDC), responsible for
South Dhaka Metropolitan area and Narayanganj; and (v) the Western Zone Power Distribution
Company Ltd, (WZPDCL), which covers the Khulna Division, the Barisal Division and the greater Faridpur
District.
With the addition of additional power generation and transmission facilities all the distribution utilities
have already started various projects for power transmission to their customers. BPDB has undertaken
the ‘Town Power Distribution Project’ in Rajshahi, Pabna, Sirajgonj, Bogra, Joypurhat, Gaibanda,
Nilphamary, Dinajpur, Thakurgaon and Rungpur districts during the 2003-04 period. BPDB has reported
a 87.05 percent completion rate of these projects as of February 2011.
In addition, BPDB has undertaken two power distribution system projects for the ‘Emergency
Rehabilitation & Expansion of Urban Areas’ in its Chittagong and Northern Zones in July 2008. BPDB has
completed 46.18 percent and 35.73 percent of these projects respectively as of February 2011.
A list of BPDB’s ongoing projects along with their implementation time and present status is given
below:
Table 7.1: BPDB Ongoing Distribution Projects
Sl.
No
Name of the Project
Implementation Time
Present Status
01.
10-Town Power Distribution Project (2nd Revised)
Original: 2003-04 To
87.05 percent up to
February 2011
(Rajshahi, Pabna, Sirajgonj, Bogra, Joypurhat, Gaibanda,
Nilphamary, Dinajpur, Thakurgaon, Rungpur)
2007-08
Revised: 2003-04 To
2009-10
02.
Emergency Rehabilitation & Expansion of Urban Areas
power Distribution system under Chittagong Zone
(2nd Revised)
01-07-2008 To 30-062011
03.
Emergency Rehabilitation & Expansion of Urban Areas
power Distribution system under Northern Zone (2nd
Revised)
09-07-2008 To 30-062011
04.
Central Zone Power Distribution Project Mymenshingh
01-12-2009 To 31-062013
05.
Renovation & Augmentation of Distribution Lines & 11/0.4
KV S/S under Sixth Zone of BPDB
01-07-2010 To 31-122011
06.
Pre-payment Metering Project for Distribution Southern
Zone Chittagong (Phase-1)
01-01-2009 To 31-122010
07.
Greater Chittagong Power Distribution Project, SCADA
Rehabilitation
01-01-2009 To 31-122011
46.18 percent up to
February 2011
35.73 percent up to
February 2011
11.00 percent up to
February 2011
21.00 percent up to
February 2011
0.42 percent up to
February 2011
33.00 percent up to
February 2011
Source: BPDB
There are also five ongoing distribution projects under REB, which has the total estimated cost of 357.11
million USD. The detailed list is given below:

28 Nos. 132/33 kV Grid S/S

419 km 132/33 kV X-mission Line

28 Nos. 132/33 KV Poer X-former (Augmentation)

33 KV line with required equipment(6666)

38-Set 33KV River crossing
In North Dhaka Several projects have started for upgrading and expanding their distribution systems by
strengthening the Electric Distribution Network. These projects are expected to cost approximately USD
171 million.
The Upgrading & Expanding Distribution System project in the Gulshan Circle area mainly includes
constructions of 33/11 KV (GIS) substations, installation of 33 KV UG Cables as source lines for new
Substations and the installation of HT/LT Composite Distribution lines. The estimated cost of this
project is USD 80 million with an expected implementation in June 2012.
The distribution company is this zone has also undertaken its own ‘Electric Distribution Network
Strengthening’ project that mainly includes the construction of 33/11 KV (GIS) substations, installation
of 33 KV UG Cable as source lines for new Substations and the installation of HT/LT Composite
Distribution lines. The estimated cost of this project is USD 66 million with an expected implementation
in June 2013.
The construction, augmentation and rehabilitation of eight 33/11 KV (GIS) Sub-stations is an ownfinanced project. It includes: Construction of 33/11 KV (GIS) Substations in Agargoan, Banani, Niketon,
Purbachal and Mirpur-6 and the rehabilitation & reinforcement of the 33/11 KV (GIS) Substations at the
Digun, Joarshahara and Tongi areas. The estimated cost of this project is BDT 12578.2 million with an
expected implementation in June 2013.
The following table summarizes the ongoing projects in this zone:
Table 7.2: Ongoing Projects in North Dhaka
Sl.
Name of the
No.
Project
Procurement of the project
Implementati
Estimated
on Period
Cost (in
million BDT)
1
Upgrading &
i) Construction of 33/11 KV (GIS) Substations.
June 2012
5949.00
Expanding
ii) Installation of 33 KV UG Cable as source line for new
Fund : GOB,
Distribution
Substation
ADB and Own
System in
iii) Installation of HT/LT Composite Distribution line
Fund
Gulshan Circle
iv) Installation of 11 KV UG Cable
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
2
Strengthening
i) Construction 33/11 KV (GIS) Substations.
June 2012
4859.20
DESCO’s Electric
ii) Installation of 33 KV UG Cable as source line for new
Fund : GOB,
Distribution
substation
ADB and Own
Network
iii) Installation of HT/LT Composite Distribution line
Fund
iv) Installation of11 KV UG Cable
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
3
Construction,
i) Construction of 33/11 KV (GIS) Substation at Agargoan,
augmentation
Banani, Niketon, Purbachal and Mirpur-6
and
ii) Rehabilitation & Reinforcement of 33/11 KV (GIS)
rehabilitation of
Substation at Digun, Joarshahara and Tongi
June 2013
1770.00
Own fund
08 Nos 33/11 KV
(GIS) Sub-station
Total
12578.2
Source: Keystone Database 2011
In the South Dhaka and Narayanganj there are five ongoing projects, including the reinforcement,
renovation and augmentation of 33/11 kV sub-stations project financed by ADB, development of new
132/33 kV and 33/11 kV sub-stations project financed by ADB and KFW, procurement and installation of
132/33 kV 50/75 MVA transformers financed by ADB, the upgrade of the Shyampur BSCIC 11 kV
switching station financed by ADB and the rehabilitation and augmentation of the distribution network
of the DPDC financed by the GoB. These projects are expected to cost approximately BDT 8001 million.
The detailed statuses of these projects are shown below:
Table 7.3: Ongoing Projects in the South Dhaka and Narayanganj
Sl.
Name of the Project
Procurement of the
Implementation
Estimated Cost (in
project
Period
Million BDT)
No.
1
Comments
Reinforcement,
Replacing of 19 nos. of
01/07/2006-
1335.0576
210 MW capacity
Renovation and
old 10/14 MVA X-mers
30/06/2011
(PA USD
increase in 33 KV
Augmentation of
by 20/28 MVA X-mers
12.811M)
level
33/11 kV Sub-station
(GOB 438.2846)
(ADB financed)
2
3
Development of New
Construction of 2 nos.
01/07/2006-
4246.155
224 MW & 240 MW
132/33 kV and 33/11
2X50/75 MVA ,
30/06/2012
(PA USD 36.773M)
capacity increase in
kV Sub-station
Construction of 5 nos.
(GOB 1772.02)
33 KV & 132 KV
(ADB &KfW financed)
2X20/28 MVA
Procurement and
3 nos. 132/33 kV 50/75
01/09/2006-
544.156
180 MW capacity
Installation of 132/33
MVA X-former.
30/06/2011
(PA USD 4.943 M)
increase in 132 KV
(GOB 198.095)
level
level respectively
kV, 50/75 MVA
Transformer Project
(ADB financed)
4
Up-gradation of
2X20/28 MVA
01/07/2006-
184.809
45 MW capacity
Shyampur BSCIC 11
Transformer
30/06/2011
(PA 1.787 M)
increase in 33 KV
(GOB 59.699)
level
kV Switching Station
to a regular 33/11 kV
Sub-station Project
(ADB financed)
5
Rehabilitation and
29 km 11kV line, 38 km
01/01/2010-
1690.712
Improve
Augmentation of
11.4 kV line & 73 km 0.4
30/06/2012
(PA 0)
Distribution
Distribution Network
kV line
(GOB 1690.712)
network. Ensure
of this zone
Reliable Power
(GOB financed)
Supply
Total
Source: Keystone Database 2011
BDT 8001 Million
In order to reduce system loss and increase consumer satisfaction through more accountability
measures, the WZPDCL was established and incorporated as a public limited Company on the
4th November, 2002 under the Companies Act 1994. It started operating from April, 2005 when it signed
Vendor Agreements (VA) & Power Sale Agreements (PSA) with BPDB.
The WZPDC has undertaken several projects which will cost approximately USD 76 million. Among these
projects, the Power Distribution Projects in the 21 districts will cost approximately USD 63 million and
will be financed by the GoB and the WZPDCL. Another large project: a prepaid e-metering System
includes a total of 105,000 1-Phase and 10,000 3-Phase meters installations. This project is expected to
cost approximately USD 12 million. The detailed statuses of the ongoing projects under the WZPDC are
given in the following table.
Table 7.4: Ongoing Projects in the West Zone
Sl.
Name of the Project
Procurement of the project
No.
1
Implementatio
Estimated Cost
n Period
(in Million BDT)
21 Districts Power
For 10 Nos. 33/11KV S/S 20 Nos. 5 MVA X-
01/01/2011-
Distribution Project,
former,14 Nos 10/13.33MVA X-former,63
31/12/2013
Financed by GOB &
KM 33 kV New line & 148Km Rennovation
WZPDCL
line,1210 Km LT New & 1250 Km
4691.8
Rennovation,1100Nos. 3-Phase
Distribution X-former
2
Prepaid e-metering System
3
Solar Energy
105000 Nos.1-Phase Meter,
01/01/2011-
885.5
10,000 Nos.3-Phase Meter
30/06/2014
20 KW SOLAR PANEL AT WZPDC OFFICE &
2011-2014
10
2012-2014
10.8
2012-2014
2
Total
5598.1
SUB-STATION
4
SCADA SYSTEM
10 NosScada for 33/11 kV Sub Station
under WZPDCL
5
VIDEO CONFERENCING
Installation of Video Conferencing
SYSTEM
System
Source: Keystone Database 2011
7.1.3 Level of compensation in T&D
Transmission lines in Bangladesh are not long and series compensation has so far not been used. Shunt
compensation of 450 MVAR at the 132 KV level and 770 MVAR at the 33 KV level have so far been
installed at different grid substations. Another 500 MVAR at different grid substations are also being
installed. Installation of further shunt compensation units in next 3/4 years is not planned. A list of
Capacitor Banks already in operation at different grid circle is shown below in the Table 7.6.
Table 7.5: Grid Circle wise Capacitor Bank Information
Sl No.
Circle Name
At 33KV
Capacity (MVAR)
At 132KV
No Of Units
Capacity (MVAR)
No Of Units
01
Chittagong
220
44
45
1
02
Comilla
20
4
-
-
03
Dhaka
185
39
180
2
04
Khulna
80
16
180
4
Sl No.
Circle Name
At 33KV
Capacity (MVAR)
05
Bogra
Total
At 132KV
No Of Units
Capacity (MVAR)
No Of Units
265
53
45
1
770
156
450
8
Source: PGCB
In the distribution sector only DESCO (60 MVAR) uses shunt compensation at their substations and lines.
Previously BPDB installed 170 MVAR shunt capacitors which are not presently operative. There is no
level of compensation in use in the other distribution companies’ substations. But at consumer level the
customer has to install shunt capacitors to improve its power factor according to the load. The customer
has to maintain a power factor of 0.9521 to get exemption from a penal tariff.
7.1.4 Technical and commercial losses in T&D
Energy losses occur in the process of supplying electricity to consumers due to technical and commercial
losses. The technical losses are due to energy dissipated in the conductors and equipment used for
transmission, transformation, sub- transmission and distribution of power. These technical losses are
inherent in a system and can be reduced to an optimum level. The commercial losses are caused by
pilferage, defective meters, and errors in meter reading and in estimating unmetered supplies of energy.
Reasons for high technical losses
The following are the major reasons for high technical losses in our country: 






Inadequate investment in transmission and distribution, particularly in the sub-transmission and
distribution sectors. Low investment has resulted in an overloading of the distribution system
without commensurate strengthening and augmentation.
Haphazard growth of sub-transmission and distribution systems with the short-term objective of
extension of the power supply to new areas.
Large scale rural electrification through long 11kV and LT lines.
Too many stages of transformations.
Improper load management.
Inadequate reactive compensation
Poor quality of equipment used in agricultural pumping units in rural areas, cooler airconditioners and industrial loads in urban areas.
Reasons for commercial losses
Theft and pilferage account for a substantial part of the high distribution losses in Bangladesh. Theft /
pilferage of energy is mainly committed by two categories of consumers i.e. non-consumers and
bonafide consumers. Antisocial elements avail unauthorized/unrecorded supplies by hooking or tapping
the bare conductors of L.T. feeder or tampered service wires. Some of the bonafide consumers willfully
commit pilferage by way of damaging and / or creating disturbances in measuring equipment installed
at their premises. Some of the modes for illegal abstraction or consumption of electricity are given
below:








Making unauthorized extensions of loads
Tampering the meter readings by mechanical jerks, placement of powerful magnets or
disturbing the disc rotation with foreign matter.
Stopping the meters by remote control.
Willful burning of meters. Changing the sequence of terminal wiring.
Bypassing the meter.
Changing the C.T. ratio and reducing the recording.
Errors in meter reading and recording.
Improper testing and calibration of meters.
7.1.4.1 Losses in transmission sector
Transmission loss consists of only technical loss as there is no scope malpractice. Over the years the
transmission loss has come down from 3.44 percent in 2005-06 to 2.66 percent in 2010-11 with the
construction of more 230 kV transmission lines, the installation of more capacitor banks for shunt
compensation, replacing old transformers with higher capacity transformers and also with the
construction of new 132 kV lines. Metering systems have also greatly been improved by replacing old
meters with three phase four wire programmable digital meters which have also negated or reduced the
scope of malpractice. The meter readings for the energy transmitted are taken by committees consisting
of engineers from PDB, concerned Power Station personal and the PGCB. Similarly energy received by
the distribution companies is taken by committees consisting of representatives of PDB, PGCB and
concerned distribution agencies, which further safeguards reduces the issue of malpractice.
The following table summarizes the transmission loss for the last five years.
Table 7.6: Technical Losses in Transmission Sector
Year
2010-2011
2009-2010
2008-2009
2007-2008
2006-2007
2005-2006
Transmission
(percent)
2.66
3.07
3.23
3.55
3.15
3.44
loss
Source: PGCB
7.1.4.2 Losses in distribution sector
In the distribution sector the loss has also come down to less than 50 percent in the last ten years. This
is because of the planned expansion of the distribution lines, the introduction of efficient metering
system (prepaid meters, digital meters, AMI meters etc.) and improved billing and collection efficiency.
The following table summarizes the distribution loss in the last 12 years.
Table 7.7: Losses in Distribution Sector
Fiscal Years
System loss ( percent)
Fiscal Years
1999-2000
2000-2001
System loss ( percent)
26.09
25.34
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
23.92
21.64
20.04
17.83
16.53
17.14
2007-2008
2008-2009
2009-2010
2010-2011
15.56
14.33
13.49
12.75
Source: Power Cell
The authorities want to reduce system loss by installing new digital meters, AMI meters and prepaid
meters. At the 33 KV level, the target is to reduce loss from 12.10 percent to 9.50 percent within the
next 5 years. In case of T&D, the target is to reduce system loss from 14.40 percent to 11.70 percent
gradually by the 2015-16 financial year. The following table summarizes the expected system loss in the
Transmission and Distribution sector.
Table 7.8: Target Loss in T&D Sector
Fiscal Years
System loss (percent) at
33 kV level
Transmission System
loss (PGCB)
Total T&D Loss
2011-2012
12.10
2.65
14.40
2012-2013
11.45
2.60
13.70
2013-2014
10.80
2.55
13.10
2014-2015
10.20
2.50
12.40
2015-2016
9.50
2.40
11.70
Source: Power Cell
7.1.4.3 Value of aggregated technical and commercial loss and the issue of theft
High technical losses (9percent) in the system are primarily due to inadequate investments over the
years for system improvement works, which have resulted in unplanned extensions of the distribution
lines, overloading of the system elements like the transformers and conductors, and a lack of adequate
reactive power support.
The commercial losses (currently 3.5percent) are mainly due to inefficient meter reading and billing
systems, theft & pilferages. This may be eliminated by improving metering efficiency, proper energy
accounting & auditing and improved billing & collection efficiency. Improving the accountability of the
personnel / feeder in-charges may help considerably in the reduction of aggregated technical and
commercial losses.
The following table summarizes the amount of technical and commercial losses in the past five years.
Table 7.9: Historical Loss in the Distribution Sector
Organization
DESCO
DPDC
Technical Loss
8.86
9.00
Commercial Loss
0.00
8.50
Total Loss
8.86
17.50
REB
BPDB
WZPDCO
9.00
9.00
9.00
5.40
12.20
2.50
14.40
21.20
11.50
Source: Power Cell
7.2 Policy, Regulation and Regulators
7.2.1 Regulatory product compliance
Products used must comply with relevant IEC standard or any other standard as mentioned in bid
document. Power Grid Company of Bangladesh (PGCB) is the only organization/utility/company engaged
in transmission sector requires license from Bangladesh Energy Regulatory Commission (BERC). Also
while undertaking new projects clearance certificate from Department of Environment must be
obtained. But license from Explosive authority/similar organization is not necessary. Frequency
allocation for wireless communication is to be obtained from Bangladesh Telecommunication
Regulatory Commission (BTRC).
Any imported T&D products that are sold in the local market must be certified by the Bangladesh
Standard Testing Institute (BSTI) under the Ministry of Industry. But in case of products that are
procured by the bidding procedures in the distribution sector BSTI certification is not needed. Though
there is no specific standard is mentioned in the bidding documents the products are always checked to
see whether they have any environmental and health hazards.
All the distribution entities follow International Electro technical Commission (IEC) and Institute of
Electrical and Electronic Engineering (IEEE) standards; moreover the REB also follows the American
National Standard Institute (ANSI) guidelines for purchasing all sorts of electrical equipment. All
distribution entities also look for ISO certified manufacturers.
7.2.2 Predominant maintenance philosophy
Preventive maintenance is the predominant maintenance philosophy in the transmission and
distribution sector of Bangladesh. The preventive maintenance schedule is drafted on the basis of the
manufacturer’s instruction manual and working experience. Condition monitoring is also in practice
which is based on operational data, periodical inspection, tests etc. However, breakdown maintenance
cannot be avoided altogether.
But due to a shortage of distribution substation capacity, it is very difficult to conduct scheduled
maintenance. Consequently, industries have adopted the break-fix maintenance philosophy. If the
substation has an excess capacity then the authorities opt for preventive maintenance.
7.2.3 Adoption rate for communication protocols
HART/FF/FDT protocols are not yet in use in transmission sector of Bangladesh. In every Measurement
Instrumentthe distribution entities use the communication protocols RS 285 and RS 485.
7.3 Nature of the Market
7.3.1 Market size of T&D sector
The transmission network in Bangladesh transmits power generated by Power Stations to the
distribution network. Total installed generation capacity connected to grid system at present is 8,033
MW (derated capacity 7,413 MW (BPDB Website 31st December, 2011)). However, the maximum power
generated is 5,244 MW (as of August 2011). This is excluding the captive generation by industries which
is estimated to be about 1,500 MW (installed capacity). Per capita consumption of electricity is about
220 kWh per annum (with captive generation taking into account). It is estimated that 50 percent of
population is getting the facility of electricity. There will be an additional generation capacity of 11606
MW by 2015 against the forecasted demand of 10283 MW (Power system master plan 2010).
The existing Transmission network consists of following Transmission lines & Substations
1. Transmission line:A)
400 kV Transmission line length: 0 ckt.km
B)
230 kV Transmission line length: 2,647.3 ckt.km
C)
132 kV Transmission line length: 6,015 ckt.km
2. Sub-station :A)
400/230 kV Substation Capacity: 0
B)
230/132 kV Substation Capacity: 7,225 MVA
C)
132/33 kV Substation Capacity: 10,492 MVA
As per present planning Transmission network in 2015 will be as follows.
1. Transmission line:A)
400 kV Transmission line length: 1,400 ckt.km
B)
230 kV Transmission line length: 3,018.3 ckt.km
C)
132 kV Transmission line length: 6,445 ckt.km
1. Sub-station :A)
400/230 kV Substation Capacity: 5,360 MVA
B)
230/132 kV Substation Capacity: 12,525 MVA
C)
132/33 kV Substation Capacity: 12,457 MVA
In addition to power generated by the BPDB, it is also the single buyer of power generated by all IPPs.
Small IPPs, Rental P.S and Quick Rental P.S. sells to BPDB and the PGCB transmits power to the
distribution entities. PGCB also transmits power to distribution divisions of BPDB (who sell power
directly to consumers in places not covered by the distribution companies).
At present 50 percent of the population is covered by the national grid and there is a plan for full
coverage by 2021. Presently the transmission lines are (230 kV and 132 kV) 8,662 km long and
distribution lines (up to 33 kV) are 278,000 km long. And the total capacity of transmission substations is
17,717 MVA and the capacity of distribution substations is 11,515 MVA. The expected load addition up to
2016 is approximately 12,000MW. As such, two times more distribution lines are required to distribute
additional 12,000 MW i.e. 556,000 km extra distribution lines are needed by 2016. Hence as the
generation capacity addition will be almost 1.5 times to the current capacity, about 19,000 MVA capacity
additions to the distribution substations will be required. The supply plan of the distribution entities are
given in the distribution expansion plan table.
7.3.2 Market analysis of T&D products
7.3.2.1 Transformers for transmission (230/ 132 kV and 132/33 kV)
At present two voltage levels 230 kV and 132 kV, are in use in the Bangladesh transmission network.
Therefore, the transformers used are of 230/132 kV and 132/33 kV voltage ratings.
Transformers used in the system are of following capacity:
Table 7.10: Different Types of Transformer in the Transmission Sector
A. 230/132 kv
B. 132/33 kv
3 phase 150 MVA
Single phase 75 MVA i.e. 3x75MVA
80/120MVA; 66/100MVA; 50/75MVA;
48/64MVA; 35/50MVA; 25/41MVA;
25/33MVA; 15/20 MVA
Source: Keystone Research
The capacities of the transformers of a new sub-station are determined on the basis of forecasted
demand of electricity for the next 5 years of the area to be served by that substation. When
transformers of an existing substation are fully loaded, it is replaced by transformers of a higher
capacity. Transformers thus relieved are shifted to another sub-station where lower capacity
transformers are already overloaded or almost fully loaded.
Transformers are procured against new sub-station projects or via the upgrade of old sub-station
projects. These projects are done on a turnkey basis. Sometime transformers are also procured
separately if urgently needed for sub-stations which are in operation.
All procurements are done through International competitive bidding (ICB) following the Public
Procurement Act 2006 (with its amendments). In case of the foreign aid projects, donors’ guidelines are
also followed.
PGCB selects Turnkey contractors through International competitive bidding (ICB) for project work
/large supply and generally follows some technical and nontechnical conditions, which are included in
the tender document. A Turnkey contractor/ Bidder must fulfill the following conditions:

General experience: Bidder should have construction project management experience of at least
1(one) turnkey project (contract amount should be similar to present contract) outside their
own country within the last 10 (ten) years as of the date of opening of technical proposals. The
experience should be supported by user’s certificates indicating their address, telephone & fax
numbers and detail of projects.

Specific experience: Bidder must have the experience of the successful completion of at least 2
(two) similar or higher capacity projects including engineering, erection, testing and
commissioning within the last 10 years as of the date of opening of technical proposals. The
experience should be supported by user’s certificates in their letter head indicating address,
telephone & fax numbers of the users and detail of projects.

Bidder must furnish copies of ISO 9001/1992 or equivalent certificates of proposed
manufacturers of individual equipment.

Bidder must provide a supply record of at least 10 (ten) years of equipment of the proposed
manufacturers.
The said equipment should in satisfactory service of similar or higher specification for a
minimum of 3 years as of the date of bid opening. At least one evidence report from end users
of satisfactory service should be mentioned as above. Evidence of satisfactory service shall be in
the end user’s respective letter head stationary indicating address, telephone & fax numbers of
the users.
The bidder should submit satisfactory type test certificates of all equipments except
transformer’s from independent testing laboratory.
Typed test certificates or reports of Power Transformer shall be from independent testing
laboratory or manufacturer’s own testing laboratory. Test carried at manufacturer’s own testing
laboratory must have been witnessed by any one or more of the following persons:
• A representative from independent testing authority/laboratory




•
A representative from independent inspection agency
•
An employer’s representative
The bidder should provide(in case bidder himself is not manufacture of equipment)
manufacturer’s authorization
showing the bidder has been duly authorized by the
manufacturer or producer of related plant and equipment or component to supply & install that
item in employer’s country.
Only Tape changers manufactured by MR, Germany or ABB Sweden are accepted and it is specified in
tender document.
The prices of some of the HV Power Transformer purchased in the recent period against different
projects/supply through International Competitive Bidding (ICB) are given in the following table.
Table 7.11: Recent Purchase of HV Power Transformer
Name of
Project
Name of
Turnkey
contractor
Date of
contract
Name of
Manufacturer
Voltage
rating &
capacity
Unit Price
FOB
CIF
Constructio
n
&Extension
of Grid
Substations
including
transmissio
n line
facilities
(Phase-1)
230 kV
Transmissi
on Line
230 kV
Transmissi
on Line
Supply of
Transforme
rs
China National
Electric wire
&cable
corporation,
China
Lot-2 24
24.05.2009
ABB, INDIA
Lot-3
21.12.2009
ABB, INDIA
132/33 kV,
25/41 MVA
___
Euro 600,752
ABB, INDIA
Do
ABB, INDIA
132/33 kV,
66/100 MVA
___
Euro 675,055
Hyosung, Korea
Lot-1
02.02.2009
Hyosung, Korea
230/132 kV,
3x75 MVA
Euro
2,513,292
Euro
2,602,937
Hyosung, Korea
Lot-1
02.02.2009
Hyosung, Korea
230/132 kV,
150 MVA
Euro
1,431,284
Euro
1,482,336
Consortium of
GS ,Korea &
Crompton
Greaves, India
Sept.,2010
Crompton Greaves
,India
230/132 kV,
225/300
MVA
JV of Shandong
Wuzhou
Electrical co. ltd.
& Shandong
Takaoi Power Co
ltd.
Dec.,2010
Crompton
Greaves, India
Shandong Dachi,
China
132/33 kV,
25/41 MVA
USD
869,910
USD
915,146*
132/33 kV,
50/75 MVA
USD
869,910
USD
915,146*
USD
1,403,500___
Shandong Takaoi
Power Co ltd.
230/132 kV,
225/300
MVA
USD
1,176,591
____
Crompton Greaves,
India
132/33kv
50/75MVA
____
USD
6,62,939-
Source: Keystone Database 2011
*M/s China National Electric wire & cable corporation, China (CCC) quoted same price for 132/33kv,
25/41 & 132/33kv,50/75 Transformers.
It is observed that the price quoted by turnkey contractors for equipment/transformers for project work
are generally higher than the price quoted by contractors for supply of equipment/transformers.
It is also observed price of equipment/transformers from European/USA manufacturing factories are
higher than those (with identical specification) manufactured in Indian/Chinese factories. For this reason
it is difficult to get European/USA manufactured equipment/for transformers through ICB particularly
when Indian/Chinese turnkey contractors participated in bidding.
It is necessary to have the approval of executive committee of the National Economic Council headed by
Prime minister through via the Planning commission for any project where government financing is
involved including for projects that have a foreign aid component. For evaluation of bids received trough
ICB, the concerned organization forms a Tender evaluation committee(TEC) which include
representatives of the Design, Project and Finance offices of the organization, two representative of
different ministries/ organizations and a consultant, if any. Therefore for Govt. financed projects the
Ministry of Power, Energy & Mineral Resources (MOPEMR), MO Planning, the Planning commission all
have influence with regard to the approval of the project. Concerned donor agencies also have influence
in case of a project with a foreign aid component.
Generally in PGCB consultants were not engaged in the majority of projects. However the following
consultants were in engaged in few projects:a) M/s Mott McDonald, UK
b) M/s Nippon-Koei, Japan
c)
M/s Fitchners ltd, Germany
d)
M/s AE Com (former/s Maun sell), New Zealand for NLDC project.
e)
Korean Electric Power co. ltd.(KEPCO),Korea
7.3.2.2 Transformers for distribution (33/11 kV and 11/.4 kV)
Initially the projects were financed by Official Development Assistance (ODA) from Japan and UK, the
equipment were procured mostly from UK and Japan. In the case of REB, as it was US financed; most of
its equipments were procured from US and Canada.
In case of ADB financed projects, the competition was open to all and all the entities followed PPR 2006
and PPR 2008 guidelines. In the case of open the tendering process, most of the equipment were
procured from China and India.
For the last five to six years the key suppliers/ bidders of transformers were CCC, China; GIETC, China;
Heavy Electric, India; CGL, India etc.
Some parts of transformers like OLTCs (On load tap chargers) and protection devices were procured
from European and US companies like MR, Germany; Alstom UK, ABB Switzerland, SEL USA etc.
Key customers are the different the distribution entities like BPDB, DPDC, DESCO, WZPDC and REB. Of
course, there are a few private customers; IPPs purchase the above items.
There are several methods of purchasing these transformers. These are open tendering, limited
tendering, two-stage tendering, single stage two envelope tendering, request for quotations, direct
procurement and request for proposals. In contrast to open tendering which is open for all competitors,
the limited tendering is open to only the parties who are invited to participate in it. In the single step
stage two envelopes tendering process the technical and financial proposals are submitted separately in
two different envelopes. For smaller purchases, the authorities use request for quotations process and
for procurement of intellectual and professional services they use the request for proposals process.
Direct procurement is used as sole source procurement in cases where competition is considered
inappropriate. As all the products are procured through these methods the price is market driven.
7.3.2.3 Substation automation and protection
Due to the standardization of operating performance and facilities in spare parts requirements, the main
protective relays manufactured only by ABB (Switzerland/Sweden), Siemens (Germany), and Areva T&D
(France) are procured in the transmission sector. All the products must follow IEC 61850 protocol.
Equipment for sub-station automation is the responsibility of concerned Turnkey contractor. But in
general, protective relay manufacturer is entrusted by the Turnkey contractor in design, manufacture,
supply & commissioning of Sub-station automation equipment. Remote tap changer control of
transformer is provided by the transformer manufacturer.
Alftom, UK; CGL, India; ABB, Germany and SEL, USA are the major manufacturers of the relays in the
distribution substations.
7.3.2.4 EMS/DMS/GIS software
M/S Areva, France constructed the National Load DispatchCentre in Bangladesh. All the software
including the software for EMS is supplied by M/S Areva, France.
ABB, Sweden constructed Supervisory Control and Data Acquisition (SCADA) for DPDC with the help of
SPIDER SCADA Software.
7.3.2.5 Meters/AMI
PGCB always purchases 3 phase 4 wire programmable digital energy meters with class of accuracy 0.2
for the transmission sector particularly for inter organizational metering. PGCB prefers meters
manufactured by EDM Sweden, Landys Gear Germany, and CWE USA. Supply of energy
meters are
generally finalized during pre-contract negotiation meetings.
DPDC has been recently purchasing 3 phase 4 wire programmable digital energy meter (AMI/ AMR) with
class of accuracy 0.2 for the HT (11 kV) consumer. Key suppliers of these meters are: Secure Meters,
India; L&T, India; EDMI, Singapore; Landis+Gear, Singapore; Shanghai Meter, China; Fae, Brazil; Dengly,
China
7.3.2.6 Communication
Till 2000 PDB/PGCB were using power line carriers for internal communication and load dispatching, but
from 2000, OPGW were installed along with all new transmission lines and ground wires of almost all old
transmission lines were replaced by OPGW. A communication system using OPGW was introduced. NKT,
Germany; Prysmian, Spain; LS Cable, Korea; ZTT, China and Taihan Cable are the manufracturer of most
of the OPGW cables in the transmission network.
At the initial stage, communication equipment manufactured by ABB were used. These were used till
the NLDC was constructed by Areva, France. All equipments, software, hardware for NLDC were from
Areva including communication systems. Now, the Areva and the ABB equipments/ software are in use
in the transmission system but in the future, communication systems compatible with the NLDC
software and hardware will be used.
The distribution entities use the available communication systems of Transmission network. Other than
that, wireless communication (Motorola Equipment) and PSTN/ cell phones are also used.
7.3.2.7 UPS
NLDC uses UPS supplied by Areva, France. Important sub-stations are provided with emergency diesel
generator sets.
7.3.3 Market analysis of monitoring and control solutions in T&D
Products of Bentley Nevada are not in use in transmission sector. However, it is learnt that automated
data acquisition, analysis and decision support system of Bentley Nevada is in use in some of Gas
Turbine Power Stations of BPDB. In addition Vibration monitoring & protection instruments of Bentley
Nevada are in use in many combined cycle & Gas Turbine Power Stations in Bangladesh.
Measurement solutions, Inspection technologies, Dresser and Control solution products are not in use in
electric power transmission industry of Bangladesh.
7.3.4 Market analysis of industrial solutions
7.3.4.1 Medium voltage switchgears (UP TO 33kV)
ABB, India; Areva (Germany/ India), Compton Greaves Ltd., India; Energypac, Bangladesh; Siemens,
India; TBEA, China; TAMCO, Malaysia etc. are the manufacturers of most of the 132 kV and 33kV
switchgears of the distribution substation. Besides them, some local companies like Powerman,
BETELCO, ADEX and GEMCO also supplied 11 kV breakers to the distribution entities. The current
average price of 33 kV GIS Indor Switchgear with relay control panel is 630 USD and 11 kV Switchgear
with CT & PT is 173 USD.
Most of the Ring Main Units (RMU) is procured from local companies, except Compton Greaves Ltd.,
India. They provided RMU in some distribution projects. There is no Compact Substation in the
distribution sector of Bangladesh.
7.3.4.2 Low voltage switchgears (up to 415 V)
Low Voltage or Low Tension (LT) Switchgear equipment that include Air Circuit Breakers (ACB), Molded
Case Circuit Breaker (MCCB), Contractors & Relays (C&R), Miniature Circuit Breaker (MCB), Disconnetors
and Switching devices are manufactured by a number of local companies including Adex Corporation
Bangladesh Ltd., Energypac, Betelco, Gemco, Mirco Electronics Ltd., TNS Engineering & Consultants Ltd.
Among these, Gemco is government-owned and the others are privately owned equipment
manufacturing companies. Prices for some of the equipment for low voltage switchgears are provided in
the following table:
Table 7.12: Average Price of Low Voltage Switchgears
Equipment Name
11 KV 630 AMPS Vacuum Circuit Breaker with
Cubicles (Indoor Type) for outgoing feeder
11 KV 1250 AMPS Vacuum Circuit Breaker with
Cubicles (Indoor Type) for Bus coupler fade outgoing
feeder
11 KV 1250 AMPS Vacuum Circuit Breaker with
Price per unit (USD)
5,200
5,142
5,330
Cubicles (Indoor Type)
33 KV Disconnector with Earth Switch 2000A
33KV Isolator without Earthing Blade gang operated
Vertical Mounted Vertical Break.
11 KV 100 A Drop-out fuse
L.T. Switchgear
550
865
30
2630
Source: Keystone Database, 2011
7.3.4.3 Low voltage panels
Low Voltage Panels manufactured by Adex Corporation, TNS engineering & consultants and Energypac
are available in the distribution sector of Bangladesh. The average price if AC Distribution Panel is 47
USD and DC distribution Panel is 13 USD.
7.3.4 Key Players
7.3.4.1 Transmission sector
The Ministry of Power, the Energy and Mineral resources (MPEMR) and the PGCB are the most
important players in the transmission sector. BPDB as the single largest electricity producer and single
buyer is also an important player. Distribution entities as receivers of electricity transmitted by PGCB
also play important roles.
The list of Turn Key Contractors who were awarded to different contracts to implement different
projects in transmission sector during last five years is given in the Table 7.12. The detailed list of
contract awarded to different vendor is given in Table 7B.1 of Appendix 7B. From the detailed list it can
be seen that Siemens, India (along with Siemens, Germany & Siemens, Bangladesh), China National
Electric wire & cable Import/ Export corporation, China (CCC) & ABB Ltd., India won maximum numbers
of contract in the substation side. The following table lists the major turnkey contractors in the
transmission sector:
Table 7.12: Turnkey Contractors in the Transmission Sector
Turnkey Contractors
11.
Consortium of
Hyosung Corporation & Samsung Corporation
12.
JV of Samsung
&Handbeak co. ltd., Korea
1.
Energypac, Bangladesh.
2.
ABB Ltd., India
3.
JV of Energypac, Bangladesh & ABB, India.
4.
Basic Engg. Bangladesh
13.
5.
China National Electric wire &
cable Import / Export Corporation, China (CCC).
14. Crompton Greaves, India (CGL).
6.
7.
Siemens, India.
Consortium of Siemens,
Germany, Siemens, India & Siemens, Bangladesh
KEC , India.
15. Consortium of GS E&C,Korea& Crompton
Greaves, India.
16. Consortium GS &E C
17. JV of Shandong Wuzhou Electrical co. ltd. &
8.
Consortium of Siemens,
Germany & Siemens, Bangladesh
9.
HG Power, Malaysia.
10.
Hyosung Corporation, Korea.
Shandong Takaoi Power Co ltd. China.
18. Marubeni, Japan
19. Cobra Instalaciones Y Servicios S A, Spain
20. Jyuoti Structure Ltd., India
21. Sanergy, Iran
Source: Keystone Database 2011
Although, there are no dominant player in Transmission line construction, M/S H.G. Power, Malaysia
won highest number contract .ide. Overall, it is observed that Indian companies dominate the list of
vendors. It needs to be mentioned that although M/S H.G. Power, Malaysia registered in Malaysia, the
company is in Indian ownership.
Indian & Chinese manufacturers dominate the list of manufactures of different equipment & materials.
This is due to fact that they are near to Bangladesh & prices are more compatible in comparison to
manufacturers of other countries particularly European countries. However, Circuit Breakers
manufactured by Areva Germany, Siemens Germany & ABB Sweden are also supplied. Bibyana-Kaliakor
400 kV Transmission line and Kaliakor 400/230kV & 400/132 kV Substations are financed by EDCF, Korea
and being a tied loan the most of the equipment/materials to be supplied in this projects are from
Korea.
Before 2005, the situation was a bit different. At that time most of the manufacturers from India &
China didn’t qualify to supply equipment & materials due to lack of operational experience particularly
in 230 kV system. However, with passage of time they gained the required operational experience and
became qualified to supply equipment/materials to Transmission sector.
The main protective relays manufactured only by ABB (Switzerland/Sweden), Siemens (Germany), and
Areva(France) are used in transmission network for better co-ordination and to
facilitate
standardization of operating performance & spare requirements.
The following table lists major manufacturers of equipment, which were supplied by the Turnkey
Contractors of Substation:
Table 7.13: Manufacturers of Substation Equipment
Product Type
Products
Manufacturers
400/132 kV Transformers
230/132 kV Transformer
Hyosung Corporation, Korea
i)Daian, Japan
ii) Hyosung Corporation, Korea
iii) Crompton Greaves Ltd. (CGL), India
iv) ABB Ltd., India
v) Shandong Takaoi Transformer Co ltd., China
i) TBA, China
ii) Crompton Greaves Ltd. (CGL), India
iii) ShangdongDachi, China
iv) ABB Ltd., India
Siemens, Germany
i) Siemens, Germany
Transformers
132/33kv Transformer
Circuit Breaker
400 kV Circuit Breaker
230 kV Circuit Breaker
Product Type
Products
Manufacturers
132 kV Circuit Breaker
Instrument
Transformer (CT &
PT)
400 kV Instrument Transformer (CT &
PT)
230 kV Instrument Transformer (CT &
PT)
132 kV Instrument Transformer (CT &
PT)
230 kV GIS unit
GIS unit
132 kV GIS unit
Protective Relay
ii) Crompton Greaves Ltd. (CGL), India
iii) New Northeast Electrical (Shenyang) High Voltage
Switchgear Co. Ltd., China
i) Areva, Germany
ii) ABB India
iii) Siemens, Germany
iv) Crompton Greaves Ltd. (CGL), India
v) Shandong Takaoi High Volt Switchgear Co. Ltd., China
vi) ABB, Sweden
CGL, India
i) Crompton Greaves Ltd. (CGL), India
ii) ABB, India
i) ABB, India
ii) Energypac, Bangladesh
iii) HenghyangNagfang,China
iv) Crompton Greaves Ltd. (CGL), India
v) Shandong Takaoi High Volt Switchgear Co. Ltd., China
vi) ABB, Sweden
i)Siemens, Germany
ii)Shandong Takaoi High Volt Switchgear Co. Ltd., China
Siemens, Germany
i)ABB, Switzerland
ii) Areva T&D, France
iii) Siemens, Germany
Source: Keystone Database 2011
The following table lists major manufacturers of Transmission Line equipment/material:
Table 7.14: Manufacturers of Transmission Line equipment/material
Equipment Type
Tower
Conductor
Underground Cable
Insulator
OPGW
Manufacturers
i) Steel Products, India
ii) KEC ,India
iii) Bosung, Korea
iv) WeifangChangian Steel Tower Stock co., Ltd. China
v) Confidence Steel, Bangladesh
vi) K2Engg., Korea ( Proposed )
vii) Samwoo , Korea ( Proposed )
i) Sterlite, India
ii) ZTT , China
iii) Hangzhou ConductorCo.Ltd.
iv) Apar, India
v) Taihan, Korea
TBA Cable Co Ltd.,China
i) Dalian, China
ii) NGK, Japan
iii )NGK, China
i) NKT, Germany
ii) Prysmian, Spain
iii) LS Cable, Korea
iv) ZTT, China
v) Taihan Cable
Source: Keystone Database 2011
7.3.4.2 Distribution sector
There were four major procurements in the last five years in the south zone of Dhaka and Narayanganj.
The details of these procurements along with their contract values are given in the Table 7.15. From the
table it can be shown that Energypac Engineering Ltd., Bangladesh is the main contractor for these
projects. Out of the four procurements they were involved in three of them. ABB Ltd., India was involved
with one project with Energypac by forming a consortium. Another project was also solely contracted
by them. ArevaEnergietechnik GmbH, Germany was also involved in a project by forming a Joint Venture
with Energypac.
Table 7.15: Distribution Efficiency Improvement in the in the south zone of Dhaka and Narayanganj (2009-2011)
SI No
Name of Package
Name of
Contractor
Contract Price
Foreign (USD)
Contract
Price Local
(BDT)
Total Contract
Price (BDT)
1
Design, Supply, Installation,
Testing and Commissioning of
10 nos. upgraded substations.
Energypac
Engineering Ltd.
12,144,880.87
11,35,36,769
.50
95,63,91,501.88
2
Design, Supply, Installation,
Testing and Commissioning of
33/11 kV Substation at Existing
Switching Station
Consortium
of
Energypac
Engineering Ltd.,
Bangladesh and
ABB Ltd., India
1,715,282.10
1,59,91,020
13,50,31,597
3
Design, Supply, Installation of
132/33 kV Transformers and
Associated Materials at various
132/33 kV Substations
ABB Ltd., India
4,920,404.64
39,991,986.6
0
38,14,68,068.88
4
Design, Supply, Installation,
Testing and Commissioning of 5
nos. of new 33/11 kV
Substations.
Joint Venture of
ArevaEnergietech
nik
GmbH,
Germany
and
Energypac
Engineering Ltd.,
Bangladesh
9,391,215.55
14,35,70,418
.75
79,53,20,778.60
Source: Keystone Database 2011
The list of major manufacturers of distribution breakers and transformers is given in the Table 7.16. CGL,
India is the manufacturer of all types of breakers and power transformers of the projects in this zone.
132 kV breakers are also manufactured by Pinggago, China; Siemens, Germany and ABB, Germany. Most
of the 33kV and 11 kV breakers are manufactured by CGL, India; Siemens, India; ABB, India; Areva,
Germany; TBEA, China and TAMCO, Malaysia. Local companies’ (Energypac, Powerman, Betelco etc.) 11
kV breakers are also procured. Power Transformers (132/33 kV and 33/11 kV) are mostly manufactured
by TBEA, China; CGL, India; Hocker Sidley, UK and BHEL, India. Only one local company i.e. Energypac’s
33/11 kV transformers are found in these projects. Again, all the distribution transformers (11/.4 kV) are
procured from local manufacturers.
Table 7.16: Manufacturer of the different components of the Substations in the south zone of Dhakaand Narayanganj
Item
Manufacturer
132 KV Breaker
Pinggago, China; CGL, India; Siemens, Germany; ABB, Germany
33 KV Breaker
CGL, India; Siemens, India; ABB, India; Areva, Germany; TBEA, China;
TAMCO, Malaysia; Energypac, Bangladesh
11 KV Breaker
CGL, India; Siemens, India; ABB, India; Areva, India; TBEA, China;
TAMCO, Malaysia; Energypac, Bangladesh; Powerman, Bangladesh;
BETELCO, Bangladesh;
132/33 kV Power Transformer
TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India
33/11 kV Power Transformer
TBEA, China; CGL, India; Hocker Sidley, UK; BHEL, India; Energypac,
Bangladesh; ABB, India
11/.4 kV Distribution Transformer
Local Manufacturers like GEMCO, Energypac, BETELCO, ADEX,
POWER-MAN etc.
Source: Keystone Database 2011
The detailed lists of Last five years procurements in the north zone of Dhaka are given in the Appendix 7C.
33 kV GIS breakers are mainly manufactured by Areva, Germany. Other 33 kV breakers are from Compton
Greaves, India; Areva, India and Energypac, Bangladesh. Again, 11 kV breakers are mainly manufactured
by Tampco, India; Areva, India and Siemens, India. Compton Greaves, India is the major manufacturer of
most of the transformers. Recently, some 25 kVA Single Phase transformers from GE, Bangladesh are
procured also. In case of metering equipment, most of them are either Chinese or Indian products.
Secure, India is a major manufacturer for most of the 11 kV metering equipment. The following table
gives the list of major equipment manufacturers for these projects:
Table 7.17: Manufacturer of the different components of the projects in the North Dhaka
Item
Manufacturer
33 kV GIS Breaker
Areva, Germany
SF6/VCB Breaker (33 kV)
Compton Greaves, India; Areva, India
33 KV RTC Panel/OLTC
Compton Greaves, India; Energypac, Bangladesh
33 kV RTC Panel, outdoor Breaker
Compton Greaves, India; Energypac, Bangladesh
11 kV Breaker
Tampco, India; Areva, India; Siemens, India
Item
Manufacturer
20/28 MVA Transformer
Compton Greaves, India; Energypac, Bangladesh
200 KVA Station Transformer
Eaglerise, China; Compton Greaves, India; Energypac,
Bangladesh
500KVA 3-Phase Transformer
Compton Greaves, India
25 KVA Single Phase Transformer
General Electric, Bangladesh
11 KV Metering (Different Ratings)
Secure, India
Source: Keystone Database 2011
The detailed lists of Last five years procurements by BPDB in various distribution projects are given in
the Appendix 7D. Most of the equipments including the distribution transformers (100 kVA and 250
kVA) are procured locally. In some projects a few Indian and Chinese equipments are procured. For
instance, South China Electric Dev. Co Ltd, China was the manufacturer of the 100 kVA and 250 kVA
distribution transformers of the Central Zone Power Distribution Project of BPDB.
In most of the REB projects of last five years, different equipments are locally procured and most of the
manufacturers are local companies. There was no major procurement in the west zone of Bangladesh in
this period.
7.4
Future Investment and Opportunities
7.4.1 Yearly plan to meet generation addition
The transmission company has prepared an outline of at least 15 projects that are to be completed by
2017 to upgrade and expand the transmission network throughout the country. Eight of the projects are
scheduled to be finished by 2012-13. These include both construction of new transmission lines and new
substations in different areas to reduce the shortage of electricity supply. An important project that is
currently on going is the electricity interconnection between Bahrampur, India and Bheramara in the
Western region of Bangladesh. Under this project, there will be construction of 30 KM 400 KV double
circuit transmission line and a back to back 400kV HVDC station at Bheramara. When completed this will
be first electrical interconnection with a neighbouring country and will allow an import of up to 500mW
(the present commitment is 250 mW) from India. In the future Bangladesh may export surplus (if, any)
electricity through this T/L.
The projects to construct and expand new transmission lines include the Raozan-SikalbahaAnowara&Hathazari-Khulshi 60 KM 230 KV transmission Lines, the Ishurdi-Rajshahi 70 KM 230 KV
transmission Lines, the RPCL Mymensingh-Tangail via Bhaluka 180 KM 132 KV double circuit K
transmission lines, Goalpara-Bagerhat 45 KM 132 kV 2nd Single Circuit transmission lines and
Chandraghona-Rangamati-Khagrachari 80 KM 132 KV Transmission Lines. After completion these
T/Lswill meet the power demand in their respective areas.
There are also projects to build new substations by 2012-13 including 230/132 KV Substations in
Shyampur, Jhenaidah and four new 132/33 kV substations with interconnecting lines in MymensignTangail.
There are two more transmission line projects to be finished by 2014-15 which are the AminbazarMaowa -Mongla 400 kV, Mongla -Khulna(S) 230 kV Transmission lines and the Anowara - Meghnaghat
400 kV Transmission lines. These will transmit the power generated by proposed large coal fired Power
Stations at Mongla, Khulna &Anowara, Chittagong to Khulna, Dhaka, Chittagong and other areas.
Along with these short-term projects, there are three longer term projects to be completed within 2017
including the Khulna(s)-Barisal (N) 230 kV transmission line project, the Ruppur-Bheramara-Zajira 400 kV
transmission line project and the Ashuganj-Joydebpur 400 kV transmission line.
In the Table 7A.2 of Appendix 7A, projects planned for transmission sector to be implemented during
next five years are shown.
7.4.2 Distribution expansion planned to get all of the power generation to consumers
At present the distribution utilities have a total distribution line of 278,000 KM serving over 12 million
customers. They suffer a system loss of 12.75percent. To reduce the system loss and to expand and
improve the distribution network different distribution entities have plan for several upcoming projects.
BPDB currently has six projects with completion dates within 2013-14 for the construction of
distribution lines, substations and renovation works at Mymensingh, Chittagong, Comilla, Sylhet,
Rangpur and Rajshahi. The total cost of these six projects is approximately USD 535 million.
Table 7.18: Upcoming Projects of BPDB
Sl
No
Name of the Project
Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
01
Power Distribution Development
project, Mymenshingh Zone
2013-14
637.00
Construction the distribution lines,
substations and renovation works
02
Power Distribution Development
project, Chittagong Zone
2013-14
1088.00
Construction the distribution lines ,
substations and renovation works
03
Power Distribution
project, Cumilla Zone
Development
2013-14
756.00
Construction the distribution lines ,
substations and renovation works
04
Power Distribution
project, Sylhet Zone
Development
2013-14
410.00
Construction the distribution lines ,
substations and renovation works
05
Power Distribution
project, Rangpur Zone
Development
2013-14
710.00
Construction the distribution lines ,
substations and renovation works
06
Power
Development
2013-14
693.00
Construction the distribution lines ,
Distribution
project, Rajshahi Zone
substations and renovation works
Source: Keystone Database 2011
In the rural areas of Bangladesh, there are another six projects which are to be completed within 201213. These projects will connect one million new consumers in the rural areas with the distribution
network through the construction of 14500 KM of new distribution lines in the Dhaka, Chittagong,
Sylhet, Khulna, Barisal and Rajshahi division. These will cost approximately USD 4.75 billion.
Table 7.19: Upcoming Projects in the Rural Areas under REB
Sl
No
Name of the Project
Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
01
One million new connections project
2012-13
34800.00
To connect one million new consumers
02
Rural Electrification extension project
(Rajshahi, Rangpur, Khulna and
Barishal area)
2012-13
1322.00
Substation and distribution lines extension
03
Rural Electrification extension project
(Dhaka Division-1)
2012-13
498.00
Construction of 4100 km distribution lines
04
Rural Electrification extension project
(Chittagong-Sylhet Division-1)
2012-13
498.00
Construction of 4500 km distribution lines
05
Rural Electrification extension project
(Rajshahi-Rangpur Division-1)
2012-13
407.00
Construction of 3400 km distribution lines
06
Rural Electrification extension project
(Barishal Division-1)
2012-13
268.00
Construction of 2500 km distribution lines
Source: Keystone Database 2011
Year wise detailed procurement plan for these projects is given in the Appendix 7E.
In the south zone of Dhaka and Narayanganj at least 20 projects including both short-term and longterm ones with several objectives. These projects will increase substation capacity by building new
substations, ensure quality power supply, rectify system loss and provide better service to a wide range
of customers. The estimated total cost to implement these projects is USD 580 million. The upcoming
project list is shown in the Appendix 7F.
The detail procurement plans for different projects are shown in the Appendix: 7G.
To extend the distribution network in North Dhaka and to serve electricity to at least 600,000 new
customers there has seven planned projects that are currently in operation. These projects will upgrade
their existing mechanisms, strengthen distribution lines, electrify some new areas in Uttara, and install
new prepaid meters all around Dhaka and install SCADA systems. Three of the projects have already
started. Their combined cost is approximately 330 million. The following table lists all the upcoming
projects up to 2015 and their respective procurements.
Table 7.20: Upcoming Projects in the North Zone of Dhaka
Sl
No
Name of the Project
Compl
etion
Date
Project
Cost (Tk
Crore)
Procurements
i) Construction 33/11 KV (GIS) Substations.
ii) Installation of 33 KV UG Cable as source line
for new substation
iii) Installation of HT/LT Composite Distribution
line
iv) Installation of11 KV UG Cable
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
i) Construction 33/11 KV (GIS) Substations.
ii) Installation of 33 KV UG Cable as source line
for new substation
iii) Installation of HT/LT Composite Distribution
line
iv) Installation of11 KV UG Cable
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
i) Construction of 33/11 KV (GIS) Substation at
Agargoan, Banani, Niketon, Purbachal and
Mirpur-6
ii) Rehabilitation & Reinforcement of 33/11 KV
(GIS) Substation at Digun, Joarshahara and
Tongi
Installation of 11 KV Underground 16 KM Cable
DESCO
01
Strengthen of distribution line project
201112
486.00
02
Extension and renovation of
distribution system project (Gulshan
Area)
201112
595.00
03
Construction, augmentation and
rehabilitation of 08 Nos 33/11 KV
(GIS) Sub-station
20112014
177.00
04
Replacement of existing 11 KV
overhead line by underground
cable in 04 routes
Electrification of Uttara 3rd Phase
&Purbachal Model Town
20112014
180.00
June
2015
1000.00
06
Prepaid Metering (200000 Nos)
110.00
07
SCADA System
20112014
June
2015
05
100.00
1) Construction of 33/11 KV (GIS) Substations.
ii) Installation of 33 KV UG Cable as source line
for new substation iii) Installation of HT/LT
Composite Distribution line iv) Installation of11
KV UG Cable
v) 11/.4 KV 200 KVA X-former
vi) 11/.4KV 25 KVA X-former
Installation of 2,00000 Prepaid meter at Uttara,
Mirpur, Baridhara and Gulshan.
Equipment for Real Time data acquisition and 33
KV & 11 KV feeder control
Source: Keystone Database 2011
According to the three years development plan of DESCO the total year-wise procurement of different
equipments is given below:
Table 7.21: Year-wise Procurement Plan for the North Dhaka
Sl
Particulars
2011-12
2012-13
2013-14
1
Source line (33 KV) (km)
25
30
27
2
Distribution line (11 KV) (km)
250
300
270
3
No of substation (33/11 KV) (Nos)
10
0
5
4
No of 11 KV switching station (Nos)
2
2
1
6
Distribution Transformer (11/0.4KV) (Nos)
400
490
327
7
No of feeder (11KV) (Nos)
29
34
35
8
132/33 KV Grid SS (Nos)
0
0
3
9
Prepaid metering (Nos)
20000
80000
100220
Source: Keystone Database 2011
In the west zone of Bangladesh there has been one project to extend the distribution system and
substations in 21 districts within 2012-13 that will cost approximately USD 57.2 million. In this period
there is also plan for prepaid metering system expansion, solar energy projects, SCADA system and
Video conferencing system.
Table 7.22: Upcoming Projects in the West Zone of Bangladesh
Sl
No
Name of the Project
Completi
on Date
Project
Cost (Tk
Crore)
Objective of the projects
01
21 district
project
2012-13
469.00
Extension of distribution
substation
02
Pre-paid e-metering System
2012-13
88.55
03
Solar Energy
2012-13
1.00
04
SCADA System
2012-13
1.08
05
Video Conferencing System
2012-13
0.20
electricity
distribution
Total Cost
559.81
Source: WZPDC
The detailed equipment procurement plan of WZPDC for these projects is given below.
Table 7.23: Procurement & Installation Item from 2011 to 2013 for the West Zone of Bangladesh
systems and
Sl No.
Item Description
Quantity
01
5 MVA X-former
20 Nos.
02
10/13.33 MVA X-former
14 Nos.
03
33 KV Line( New+ Renovation)
211 KM
04
11,11/.4,0.4 KV line( New & Renovation)
2460 KM
05
11/.4,3-Phase Distribution X-former
1100 Nos.
06
1-Phase Meter
105000 Nos.
07
3-Phase Meter
10,000 Nos.
08
Solar Energy
20KW
09
SCADA System
12 nos.
10
Video conferencing System
L/S
Source: Keystone Database 2011
Further procurement plan for projects like system efficiency improvement, pre-paid e-metering system
and SCADA System is also given in the following Table 7.25.
Table 7.24: Procurement & Installation Item from 2014 to 2017 for the West Zone of Bangladesh
Sl No.
01
Item Description
Quantity
5 MVA X-former
18 Nos.
02
10/13.33 MVA X-former
18 Nos.
03
33 KV Line( New+ Renovation)
215 KM
04
11,11/.4,0.4 KV line( New &
Renovation)
2500 KM
05
11/.4,3-Phase Distribution X-former
1700 Nos.
06
1-Phase Meter
140000 Nos.
07
3-Phase Meter
14,000 Nos.
08
SCADA System
36 nos.
Total Cost
Source: Keystone Database 2011
Estimated Cost In Crore TK
585.0
118.58
3.24
706.82
7.4.3 Asset mapping in the transmission and distribution utilities
Asset mapping in not very popular in the transmission and distribution utilities. Asset mapping
technologies like Dissolve Gas Analysis (DGA) is completed only for the testing purpose before the
purchase of the transformer and after that this is done only once in a year.
7.4.4 Unmanning of substation in T&D
At present there are no unmanned substations in the transmission and distribution network except for
the ones in REB. From inception, all the substations of REB were unmanned. But these substations are
still controlled manually and there is no remote control in these substations. At present there is no plan
for unmanning the substations of other distribution entities or PGCB.
7.4.5 Distribution automation
Still the utilities are aware of the benefits of distribution automation. Substation wise automation has
already started in some areas. There are plans to improve the real time monitoring of the all the
substations. DESCO has already introduced 33/11 KV Substation Automation programs. DPDC and BPDB
are also taking similar initiatives.
7.4.6 Software for outage detection and workforce management
DESCO and DPDC are also using a Complaint Management database which was developed by using
Microsoft access with help of in-house IT experts.
7.4.7 Use of billing and CIS Software along with Meter Data Management (MDM) Software
All distribution utilities of Bangladesh DESCO, DPDC, REB and BPDB are using billing software and Meter
Data Management Software.
7.4.8 Smart Meter technologies in the distribution utility
The distribution utilities have plans to convert all conventional meters to smart meters. Some of the
companies that are supplying these meters are: Secure Meters, India; L&T, India; EDMI, Singapore;
Landis+Gear, Singapore; Shanghai Meter, China; Fae, Brazil; Dengly, China. DESCO has already explored
a Remote meter pilot project at Mirpur and Prepayment meters in Uttara.
7.4.9 Market for power backup/power quality
Market for power backup i.e. UPS is discussed in section 7.3.2.7.
7.5 Issues and Challenges
7.5.1 Finance required to build the transmission capacity
Financing is always a challenge for the transmission sector. Since the establishment of PGCB in 1996, this
state-owned organization has implemented many projects. In the initial period, Asian Development
Bank (ADB) was the major financier of many the PGCB projects. In addition, KFW also came forward by
financing a transmission line. Other foreign financiers include: NDF (Nordic fund, Scandinavian
countries), SIDA (Sweden), DANIDA (Denmark) and JICA. Two transmission lines were implemented with
suppliers’ credit (one Chinese and two Indian companies). Furthermore, PGCB has also implemented
few projects through their own financing. In addition, one project was financed by the PalliBidyutSamity
(PBS), Dhaka 1. The Government of Bangladesh has always supported PGCB by financing the local
currency portion of the total project costs (on the basis of 60 percent equity and 40 percent loans). At
present, different projects are being financed by the ADB, JICA, World Bank, EDCF (Korea) and the KFW.
Negotiations are going on with the local branch of a foreign commercial bank for financing the BarisalBhola-Bahauddin 230 KV double CKT Transmission Line.
The ongoing projects of PGCB are being financed by the ADB, the JICA, the KFW and the EDCF (Korea).
The Bibiyana-Comilla (N) 230 kV transmission line project is being financed by the GoB & PGCB itself.
Negotiations are currently taking place a foreign commercial bank (Local Branch) for financing the
foreign currency portion of the Barisal-Bhola-Burhanuddin 230 kV Transmission Line project. The local
currency portion of all the above projects is being financed by the GoB.
JICA is almost certain to finance National Power Transmission Network Development Project. ADB and
World Bank also have shown the indication of financing a few projects respectively.
For financing other projects, discussions are going on with the ADB, World Bank and the JICA through
the EconimicRealtions Divisions (ERD) of the GoB. One or two small projects may be funded by the PGCB
itself. There is also a possibility of financing via suppliers’ credit, though recent experiences in this regard
have not been encouraging. Financing projects by taking loans from commercial Bank is also an option
but it is difficult to get long term loans from commercial banks. Lately, the Government of Bangladesh
has been trying to promote Public-Private Partnerships (PPP). However, no policy has yet been formed.
In future, PPPs may play an important role in financing the transmission sector. However, this will largely
depend on the tariff structures of the country.
As per present planning, a total of USD 713.84 million and USD 958.82 milion in local and foreign
currency will be required to implement the upcoming next five years’ projects.
7.5.2 Financing challenge to distribution expansion
As per present planning a total of 6948 million USD is needed for the distribution facilities, out of which
2759 Million USD is in foreign currency. If there are any additions to the generation capacity there must
be some financing arrangements will be required for the T&D sector.
To meet the finance for the upcoming distribution projects utilities are still looking for donors. But the
common donors of Bangladesh like the ADB, the WB, the KFW, the IDB etc are placing a lot of conditions
which are proving to be very difficult to fulfill. Hence the utilities are now looking for alternative
financers.
7.5.3Grid connection with neighboring countries and amount of imports planned
The first Electrical Inter Connection between Bangladesh and India is under construction. This Inter
connection consists of a 85km (30 km In Bangladesh part & 53km in Indian part) Bahrampur (India) to
Bheramara (Bangladesh) 400kV double circuit Transmission line, one 400kV switching station at
Bahrampur and one 500MW HVDC back to back 400/230kV sub-stations at Bheramara. The switching
station at Bahrampur and the 53km Transmission line in the Indian part is being constructed by Power
Grid Corporation of India (PGCI), whereas 500MW HVDC back to back 400/230kV sub-stations at
Bheramara and 30km transmission line in Bangladesh part is being constructed by Power Grid Company
of Bangladesh (PGCB). When completed it is expected that Bangladesh will initially import about
250MW of power from India.
There is also a plan for constructing a 13km 230kV double ckt. transmission line between Comilla North
switching station in Bangladesh and Palatana in Tripura, India. However this has not been finalized with
India yet. The main objective of this project is to import power from the Combined Cycle Power Station
being built at Palatana, Tripura, India.
In addition PGCB also prepared proposals for constructing the following 3 radial lines.
1. Bongaon (India) - Jessore (Bangladesh) 132 kV 50km (10 km in India & 40 km in Bangladesh)
Transmission line.
2. Krishnanagar (India) - Chuadanga (Bangladesh) 132 kV 46km (24 km in India & 22 km in Bangladesh)
Transmission line.
3. Dalkhola (India) - Thakurgaon (Bangladesh) 132 kV 46km (24 km in India & 22 km in Bangladesh)
Transmission line.
Proposals of above 3 lines are yet to be discussed with India. It is likely that India will want back to back
HVDC connection to prevent disturbance in one side affecting other side and also to have control over
the power flow. On the other hand Bangladesh will want AC connection for transferring of small amount
of power. The cost also does not justify construction of back to back HVDC connection.
The Power System Master Plan (PSMP) also envisages following Interconnections.
1. Myanmar- Bangladesh Transmission line.
Anowara, Chittagong is the likely to be the location for substation in Bangladesh side. This line is
proposed to be built by 2020 and will allow transfer of 500 MW.
2. Shilchar (India) –Fenchuganj (Bangladesh) Transmission line.
This line is proposed to be built by 2025 and will allow transfer of 750 MW.
3. Kishanganj (India) –Bogra (Bangladesh) Transmission line.
This line will facilitate import 500 MW power from Nepal and proposed to be built by 2025.
4. Alipurdua (India) –Bogra (Bangladesh) Transmission line.
This line will facilitate import 500 MW power from Bhutan and proposed to be built by 2025.
However no plan has been done yet regarding these transmission lines.
7.5.4 Plans being formulated for distribution to incorporate variable distributed generation
There is not specific plan to incorporate distributed generation system (solar, biogas, micro-grid etc.).
Still BPDB has some upcoming projects planned on grid connected solar PV. The Government also has
recently published the Renewable energy policy. It is taking different steps by which 5 percent of total
generation by 2015 will be met from renewable energy and 10 percent by 2020. According to the GoB
plan 500 MW from Solar, 200 MW from wind and 100 MW from biomass, in total 800 MW of distributed
generators will be added within the next five years. Some of these projects are outlined below.
Table 7.26: Upcoming Renewable Energy Projects
Sl. NO.
1
2
3
4
5
Location of the Project
Parki Beach, Chittagong[Pilot Basis]
Parki Beach, Chittagong
Moghnamoghat, Cox’s Bazar
Hatia, Sandwip, St. Martin and Monpura Islands
Kaptai, Rangamati
Capacity
20 MW
100-200 MW
10 MW
4 MW
5 MW
Type of Project
Wind Power
Wind Power
Wind Power
Wind Power
Grid Connected Solar PV
6
7
8
9
10
11
Sarishabari, Jamalpur
RTC, Rajshahi
Rajabarihat Goat Development Farm, Rajshahi
Kaptai Grid S/S [Pilot basis]
St. Martin Island
Wind Mapping Study for Coastal Region
2-4 MW
1 MW
2-4 MW
500 kW
1 MW&200 kW
-
Grid Connected Solar PV
Grid Connected Solar PV
Grid Connected Solar PV
Grid Connected Solar PV
Wind and Solar Hybrid
FS
Source: BPDB
These distributed generator systems are planned in different areas based on the Government 2020 plan
for energy saving, solar home system (privately), Clean Development Mechanism (CDM) through
renewable energy and the policy for new grid connection (3 percent of total load for domestic and 5-7
percent for commercial).