1. ENERGY AND POWER  Bangladesh Development Forum 2010  DHAKA Ministry of Power, Energy & Mineral Resources Government of the People’s Republic of Bangladesh  15 February, 2010

2. 22  Electricity Growth : 7.0 % Av. since 1990  Present Generation Capacity : 5250 MW  Total Consumer : 11.5 Million  Transmission Line : 8,300 km  Distribution Line : 2,60,000 km  Distribution Loss : 14.6 %  Per Capita Generation : 220 kWh / annum  Access to Electricity : 47 %  Current Avg. Daily Gas Prod. : 1970 MMCF  Curr. Daily Actual Gas Demand : 2200 MMCF  Remaining Gas Reserve (P1+P2) : 12 tcf  Estimated Coal Reserve : 3.3 billion tons

3. 3  To make electricity available for all by the year 2020  To ensure reliable and quality supply of electricity  To provide electricity at a reasonable and affordable price  Regional energy security through mutual cooperation  Diversification of energy source  Accelerated adoption of an environment friendly policy to harness coal resources

4. 4  National Energy Policy in 1996  Private Sector Power Generation Policy in 1996  Policy and Vision Statement in 2000  Regulatory Commission Act in 2003  Renewable Energy Policy in 2008  Enhancement of Private Participation in Power Sector in 2008  Updating of Energy Policy along with Coal Policy is being finalized  CNG opened to Private Sector

5. 5  Rationalize Tariff  Strengthen BERC  Strengthen BAPEX  Strengthen Power Cell and Hydrocarbon Unit  Make SEDA functional to facilitate investment in renewable energy  Implement cross border power trading  Implement Power Sector Financial Restructuring & Recovery Plan  Introduce e-governance to ensure transparency and accountability  Petroleum Import and Distribution

6. 6 IndicatorJanuary 2009December 2009 Gas production (MMCF)17641945 Coal Production (ton)677,000858,000 IndicatorPRS Target (2005-2007) Achievement (2005-2007) Achievement (2009) Distribution loss of BPDB (%) 2116.5814.6 No. of consumers of REB increased (million) 1.81.7 (total: 7.3)7.9 (total) Access to electricity (%)474547 Installed Capacity (MW)700052695700 B. Power: A. Energy:

7. 7  Public Sector : 480 MW  Private Sector: 272 MW Subtotal: 752 MW (Commissioning expected by March 2010) UNDER CONSTRUCTION  Public Sector : 1720 MW  Private Sector : 980 MW Subtotal: 2250 MW (Commissioning expected by FY11-FY13) UNDER PROCUREMENT PROCESS COMMITTED  Public Sector : 995 MW  Private Sector : 450 MW Subtotal : 1445 MW (Commissioning expected by FY13-FY14) Total : 4897 MW

8. 8 YearFY-09FY-10FY-11FY-12FY-13FY-14 Demand-Supply Gap (MW) 175014001800185015001750

9. 9 Mid term: Additional 300 mmcfd by 2012  Drilling of 7 appraisal/ development wells  Work over of 8 existing gas wells  Drilling of 4 exploration wells  DSM measures Long Term: Additional 300-500 mmcfd by 2017  Drilling of 9 appraisal/ development wells  Drilling of 4 exploration wells under offshore bidding 2008  Steps taken to establish LNG terminal Energy

10. 10  Steps taken to add around 9000 MW to the grid  Reached understanding with India for cross border trade  Renewable energy development through strengthening SEDA  Development of new transmission facilities e.g. 400 KV lines, NLDC, shunt compensation project etc.  Development of distribution network  DSM measures Power

11. 11  Short term: 6-12 Months - Rental Plants (liquid fuel) : 530 MW  Medium term: 18-24 Months - Peaking Plants (liquid fuel): 820 MW  Long term: 3-5 years - Combined Cycle Plants: 1100 MW - Peaking Plant (Gas or dual fuel): 200 MW - Coal plants: 2000-2600 MW

13.  13  Shifting peak load by changing shop closer time reduce 350 MW demand  Staggering holiday: reduce 150 MW demand  Replacing ‘incandescent lamp’ by CFL: reduce 200 MW demand by June 2010  Introduction of DST  Steps to reduce ‘air-conditioning’ load  Energy efficiency improvement program by enhancing ‘Energy Auditing’  Ensuring efficient use of gas in all sector  Domestic use of gas would be gradually restricted and ultimately phased out by replacing it with LPG

15. 15  Establish LNG terminal project to import LNG  Installation of Mega Power Projects through imported coal  Ensure regional energy security through mutual cooperation and import of energy  Use of liquid fuel to mitigate demand within short period  Nuclear power plants for future base load  Renewable energy as alternative energy resources

16. 16  BERC is authorised to review and fix downstream price of energy products.  Refixation of gas price by BERC on 30 July 2009.  Gas Price increment : 10 -1 5 %  “Gas Development fund” created  Unbundling the entities of the energy sector  Energy entities are being operated on commercial basis.

17. SLName of the ProjectFuelCapacity (MW) 1.Bibiyana 2nd UnitGas300-450 2.Meghnaghat dual Fuel CCGas and HFO 300-450 3.Bhola 2nd CCGas150-225 4.Savar Peaking (near tannery industry) Gas and HFO 100 5.Kaliakoir Peaking (near IT park) Gas and HFO 100 6.Imported Coal Based Steam Plant Imported Coal 2000-2600 Total3925 MW  17

18.  18 DescriptionTotal Investment (Million US$) Equity (Million US$) Debt (Million US$) New Initiative 530 MW Rental Projects 424 106 ( 25 % ) 318 ( 75 % ) New Initiative 820 MW Public Sector Peaking Plant 1000 400 ( 40 % from GOB) 600 ( 60 % ) Combined Cycle and Peaking Plants in Private Sector: 1325 MW 1500 375 ( 25 % ) 1125 ( 75 % ) Solar and Wind Projects: 110 MW 200 50 ( 25 % ) 150 ( 75 % ) 2600 MW Coal PPP 40001000 ( 25 % ) 3000 ( 75 % ) Total7.1 billion US $19255175

19. 19 DescriptionLengthEstimated Cost (Million Tk.) 400 KV Line from Bahrampur, India to Bheramara, Bangladesh 45 km (Bangladesh) 11,013 400 KV Line from Khulna to Dhaka 200 km 9,960 400 KV Line from CTG to Dhaka 260 km 16,870 400 KV Line from Sylhet to Dhaka 226 km 20,102

20.  20  Generation : 7,000 M US $  Transmission: 1,000 M US $  Distribution: 1,500 M US $ Total for Power: 9,500 M US $  LNG terminal : 320 M US $  20-26 tcf Gas by 2025: 7,700 M US $  Gas Transmission : 1,500 M US $ Total for Gas: 9,520 M US $

21. 21  Sustained primary fuel supply: gas, coal and petroleum products  Financing capital intensive projects  Enhancing operational and financial efficiency and transparency  Improving sector efficiency by strengthening regulation capacity and ensuring good governance

22. 22  Establish LNG terminal to mitigate present gas crisis  Strengthening of BAPEX  Accelerate exploration and production drilling  Develop cross border pipeline under PPP  Coal fired power generation under PPP to reduce burden on natural gas  Make SEDA functional to facilitate investment in renewable energy  Implement cross border power trading  Strengthen Power Cell and Hydrocarbon Unit  Implement Power Sector Financial Restructuring and Recovery Plan  Reduce extreme dependence on natural gas through diversification of energy

23. 23  Continued funding, including technical assistance for public sector projects  Assistance in capital mobilization for private sector projects, particularly from IFIs  Continued technical support for energy sector reforms and restructuring  Exchange of information and experience, technical cooperation and human resource development

24.  24  Government is committed to realize it’s ‘Vision’  Government is committed to ensure transparency in the procurement process  Private Sector will play a key role to meet the challenge of huge amount of financing requirement  Continuous efficiency improvement ensuring good governance is key for sustainable development  Concerted efforts from all quarters can ensure affordable and quality power supply to the people of Bangladesh  Role of DPs is important

25.  25