4'~ ~~0 n. NP Bank0
~oilt NDPWorldBn Public Disclosure Authorized Energy.S,ector management Program
~~~ . ~~~Activity, Coi6ip!etiik*epor't
9 ~~ .No. (0I83
14 Public Disclosure Authorized
Aciiy:,PA10RITY wMSTmW PROGRAM F~OR ENRGY
Public Disclosure Authorized ,~~aC MaIgy1983I Public Disclosure Authorized
portte oin LNDP/WorMdBanik Energ Stor ManagemnentPr6gram Thisdocument has a restricteddistribution. Rts contents may not be disclosed 0 wvhut authoriition from the Government,the -UNDPbor the Word~Bank. Ct N4 d i
Energy Sector ManagnmentProgram
The Joint UNDP/WorldBank Energy Sector Management Program is designed to provide a rapid and flexible response to governmentswho request assistancein implementingthe policy,planning and institutional recommendationsof the Energy AssessmentReports producedunder another Joint UNDP/WorldBank Program, or in carryingout prefeasibilitystudies for energy investmentsidentified in these reports.
The Energy $ector Management Program can provide the following types of assistancefor countrieswhich have had assessments:
o assistanceto improve a government'sability to manage its energy sector, for example by defining staffing and work programs, evaluating management information needs, identifying sources of public and private finance, developinga medium-terminvestment plan;
o prefeasibility work on priority investment plans, especially those which will improve the efficiency of energy use, bring about economic fuel substitution,or provideenough affordableenergy to rural areas;
3 specific short-term assistance in institutional and manpower development, both at the sectoral and agency levels.
The Program aims to supplement, advance and strengthen ths impact of bilateral or multilateral resources already available for technicalassistance in the energy sector.
Fundingof the Program
The Program is a major internationaleffort and, w'hilethe cere finance has been provided jointly by the UNDP and the World Bank, important financial contributionsto the Program have been made by the Governments of the United Kingdom, the Netherlands,Denmark, Finland, Norway,Sweden, Australia and New Zealand. a
BANGLADESH
PRIORITY INVESTMENTPROGRAM FOR ENERGY
May 1983
'V
.;~~~~~~ 0
BANGLADESH
PRIORITY INVESTMENTPROGRAM FOR ENERGY
PART I
INTRODUCTORYREPORT TO THE INVESTMENTPORTFOLIO
. Table of Contents
Page No.
Bangladesh:Priority Investment Program for Energy...... 1
Scopeand Aim of PriorityInvestment Program...... 1 Overviev...... , 3 Explorationfor Hydrocarbonin Bangladesh...... 4 Historical Back4round...... *.... 4 Present ExplorationActivities ...... 5 ExplorationDrilling Proposed by Petrobangla...... 7 GasUtilization in Bangladesh...... 7 Development#Transmission and Distributionof Natural Gas ...... 9 Developmentof Gas FieldsProposed by Petrobangla....o....11 Transmissionand DistributionNetwork Proposed by GOB.... 12 Refinery Subsector...... 15 Power Subsectoro...... o. 16 ExternalAssistance ...... 17 PotentialSmaller Scale Projects ...... 22 Rankingof the Projects...... 23 Benefit-CostAnalrsis...... 25 Observationo...... 26 Recommandations...... o. 29 Part II InvestmentPortfolio...... 32 PowerProjects:
1. Upgradingof East-WestInterconnector Co 230 KV operationo...... 33
2. Ashuganj-Comilla230 KV Transmission Line...... 42
3. KaptaiHydro Power Station EatentionDhaka...... Pour 45
4. GreaterDhaka Power DistributionProject, Phase II...... o ...... oo ...... 48
5. Power DistributionProject West Zone ooo...oo...0....000...... 50
6. Ghorasal-Tongi230 KV TransmissionLine o...... 55
7. GreaterChittagong Power DistributionProject Phase IIo...... 58
8. Augmentationof GridSubstations..oo ...... 61 Table of Contents
Page No.
9. Power DistributionProject East Zone...... * 64 10. SystemLoss ReductionScheme...... 68
11. Barisal- PatuakhaliBhola 132 KV Transmission Line ...... 71 12. Area CoverageRural Electrification Phase Ift.A 73 13. FeasibilityStudy for Ashuganj ThermalPower Station,2nd Extention...... 76
14. BPDB Tariff Study.... ftuytfttt ... f 79
15. Pre-stressedconcrete Pole Manufacturing Plant at Aricha...... 81
16. 60 MW Gas Turbine Power Station (East Zone) Land Baseda...... 83
17. 60 MW Gas TurbinePower Station(East Zone) BargeMounted ...... 85
18. Pre-feasibilitystudy for MinihydroPower Generation...... 87
19. Canal drop small hydro power plant at Teesta...... 89
20. Feasibilitystudy for a 100/150MW Steam Power Stationin West Zone o .f ne.. 92
NATURALGAS PROJECTS
1. Development of Kauta Gas Field and Interlinking with Titas System 94
2. Greater Dhaka Gas Distribuition...... 97
3. Developmentof RashidpurGas Field and interlinkingpipelines to Titas System...... ft 102 4. Gas Transmission and Distribution to Mymensing and Jamalpurvia Kishorganj...... 105
5. Syihet Tea Estate Gas (Supply) Distribution(Phase II) 109 Table of Contents
Page No.
. Gas Grid System in Eastern Zone (study) ...... 113
7. Feasibilitystudy of convertingraiLlway and river transportto CompressedNatural Gas (CNG)... 115
4U BANGLADESH
. 'PIOXIsTV INVEMSTMNTPROGRAM FOR ENERGYIN BANGLADESH
-Introduction
1. The purpose of this study is to establish a priority ranking of
energy projects In Bangladesh, as well as to: (a) ensure that implemen- ** . tation of critical projects is not inhibited by a lack of financial
resourceo, (b) eliminate duplicate and parallel projects in order to
optimize future energy investment in Bangladesh; and (c) to promote a co-
ordinated approach toward a priorit" investment program for energy (PIPE) in Bangladesh. All the available projects were reviewed with the domes-
tic executing agencies' planning staff in Dhaka. The present exercise is
based on GOBenergy policies as well as the World Bank report No. 3873-BD
'Ianladesh:* Issues and Options in Energy Sector."' It is hoped that IDA
will provide assistance and support towards promoting an investment plan
for the energy sector in consideration of the overall financial con- straints prevailing in Bangladesh.
Scope and Aim of Priority Investment Program for Energy (PIPE)
2. The PIPE was assigned to translate specific energy projects and
pr9gramsinto an investmentportfolio, with a three-foldobjective to:
(a) provide a comprehensive and det-lled schedule of investments needed in the energysector, for which investmentdecisions are
to be made during 1983-85;
(b) preparea specificportfolio of investmentprojects and programs
includingranking the prioritiesbased on the economicsof the
projects;
(c) assist donors in the selectionof projects for their support
within the framework of the sector investment priorities. -2-
3.. The Government of Baugladesh gave its full support to the World
Bank representatives In the process of the project Inventory and ce.lcula- tiohiof the net present value of the projects. All the information preeented in the project briefs was prepared and supplied by various exe- cuting agencies in Bangladesh. The Secretary of Petroleum and Natural resources devoteda great deal of his valuabletime in chairingseveral lengthymeetings and coordinatingthe work for preparationof this docu- ment. The sub-sectors covered in PIPE are representedby the main energy supplyagencies;
(i) for power, the BangladeshPower DevelopmentBoard (BPDB), and Rural ElectrificationBoard (REB)
ii) for oil and gas, the Ministryof Energy,Petrobargla, and,
the Yariousgas companies
iii) for refineryoperations, Bangladesh PetroleLm Corporation
(BPC) The Power DevelopmentBoard and the Rural ElectrificationBoard submitteda total of 33 projects out of which 20 were selected and thought to have merit which could be considered for inclusion in the portfolio. Petrobangla proposed 17 projects, seven of which could be de- velope&'for inclusionin the portfolio,and the seven projects proposed by the BangladeshPetroleum Corporation should be consideredlate in 1984 when the result of the consultants'study on the ERL is available. The projectsto be consideredfor inclusionin the portfolioare summarized in Table 5 and 6. The total investmentcost of the projectsselected is a&boutTaka 18,498million (US $804.3million), of which Taka 9,191.62 -3
million '(US$ 1.1)0 millioun would be in foreipn exchange. Individual
p;oject proform-a are enclosed as the complementary Part II of the report.
Overview
4. Commercial energy sources (petroleumi products, coal, gas and
electric power) in Bangladesh amount to about thirty-four percent of
total energy demand. Import of petroleum products accounted for about 522 of total commercialenergy in 1980/1981. Tlhe net petroleum imports
of around 1.6 million tons in 1980-1981 cost about US 460 millionusing
* - ~about60%-70% of the country'sa foreign exchange earnings .I/ According to
Petrobangla, the quantity of imported oil has not changed considerably in
1982 from that of previous year however the foreign currency is expected
to cost US $ 600 million. 2/ The imported oil accounts for 46% 3/ of the ... . total commercial energy, while natural gas will be 47%,, Imported coal 5%
and hydropower contributes the remaining 2% 4/. Since the quantity of
imported fuels have remaiued unchanged and oil prices remained stable or
even lower in the spot market in 1982, it would be safe to assume that
I/ World'Baik report No. 3873-BD, Oct. 1982.
2/The sharp increased cost of imported oil of US$600 million for 1982, as projectedby Petrobanglacompares to US$460 million as cited in the World Bank EnergyAssessment Report. Such increase could only bkt attributedto Increaseddemand but not to price escalation.However, Petrobangladoes not forecasta sharp increasein demand for 1982. The US$600 million projection should be treatedwith reservation.
3/ The World Bank EnergyReport #5873-BDstates that, 52% of total com- mercial energywas importedin 198 0/1981, while Petrobangla'sprojec- tion for 1982 is 46Z in 1982. This is probablydue to increased naturalgas consumptionin 1982.
4/ Petrobanglaproject information for Saudi Assistance,Oct. 1982. -4-
,theforeign currency cost for the countrywould be in the rsnje of 1981 and not the amount indicated by Petrobangla. tn either case, the finan-
cial burden of hydrocarbon imports,even with nominal growth, is untenable
for the government and expeditious strategies have to be adopt-d focused on the development of indigenous energy sources, to replace imports. The only lndigenous comercial energy aource presently available in
Bangladesh is natural gas discovered in thirteen fields, twelve of which are locatedin the eastern part of the country and one offshore. Five fields are producing with a total offtake of 237 MMCFD, supplying gas to four independent gas distribution systems; 1- Titas-Habiganj,2- Sylhet,
3- Chhatak and 4- Bakhrabad. f
Explorationfor Hydrocarbonin Bangladesh HistoricalBackground
5. Since 1910 there have been numerousexploratory attempts in searchof hydorcarbondeposits in Bangladesh. Early drilling activitieswere abandoned in 1914, after the first three wells did not encounter hydrocarbondeposits. In 1933, however,two wells were drilledby Burma
Oil Companyin the Pathariadistrict, penetrating depths of 2871 feet and .3436 feet where oil and gas showe were recorded. From 1951 to 1960
PakistanPetroleum Limited drilled tight exploration wells which resulted in discovery of the Sylhet and Chhatak gas fields and subsequently drilled five appraisasL ells on these structures. A total of seven wells drilled on the Sylhet structure, two of which are gas producers at present. Standard Vacum Oil Company drilled three exploratory wells during 1959 and 1960, penetratingto the total depth of 12,521feet, all of which were completed as dry holes. Pakistan Shell Oil Company drilled eleven wel1s curing1960 to 1969, which resulted in discoveryof the Titas, H.biganj,Rashidp4r, Bakhrabad and Xailashtiliagas fields. AtlanticRichfield Company (ARCO) drilled one explorationweU in 1976, to,a total depthof 12,804feet, which was, abandoned as dry hole. In 1977Union Oil Companydrilled one we.l on the off shoreKutubde struc- tureand encounteredgas. The Beanibazarand Kastagas discoverieswere made through financial and technical assistance of the FRG and the USSR in 1982. (See Annex I1 for details).
6. Since prospects of liquid hydrocarbon occurrences have not been ruled out in Bangladesis and various investigations indicate probability of finding oil; GOBofficials have given top priority to further exploratory endeavours. However, the Bangladesh government authorities, at all levels, believe that the major (multi-national) oil companies have no further interest to invest in exploration drilling. They also have given up hope of obtaining financial support from multilateral institutions.
GOB presently is seeking financial support for eyploratiou from Saudi
Arabia as well as Eastern Europe.
Present Exploration Activities
7. Presently, GOB lacks a clear cut exploration strategy. Considering the fact that exploration is a capital intensive and high risk investment undertaking, the government is not in a position to use its own limited e resources for that purpose. Soliciting foreign aid has not been successful, especially after the unsuccessful termination of the German multiwell drilling program. Petrobangla, under the directive of the
Ministry of Energy and Mineral Resources, intends to pursue exploration drilling, using its own manpower and equipment. At the same time, -6-
however, Petrobangla encourages foreign private participation. Final decisionsshould be made on eitheralternative and a clear cut course of action shoulld be adopted.
8. Studies and research on the hydrocarbon accumulation in Bangladesh have been or are anticipatedto be carriedout by the followingentities.
(a) USSR: geologicaland drillingactivities have been carriedout
in Bangladeshsince 1972. A total of 23.2 millionRuble have been allocatedfor these activitesof which 17.7 million Ruble
have been disbursed. Six exploratory wells have been drilled
but the resultsof the studiesare not availablein English.
(b) U.S. AID: has supportedan investigationof "Tectonicset up of
Bangladesh and its relation to hydrocarbon accumulation"; a
joint study by Bangladesh Center for Policy Research represented
by Prof. Monirul Hoque of Dhaka University and Mr. Lynn Watney,
chief subsurface geology division of Kansas Geological Survey.
According to the US AID representatives in Dhaka, the result of
the second phase will be available in 1983.
(c) The World Bank: The Second Hydrocarbon Project also includes a
comprehensive study on the Habitat of Hydrocarbon in Bangladesh; (d) France: GOB has recently asked the French government for tech-
nical assistancein planningexploration drilling anticipated by
the new French rig Petrobanglahas acquiredthrough French fi-
nancing. A protocolhas been signed and the Institute Francais
du Petrole (IFP) will be sendinga team of oil and gas experts
to assistthe GOB in this field,early in 1983. -7-
(e) FederalRepublic of Germany: Germangeological and geophysical
expertshave also been occupiedwith separateexploration drill-
ing, seismic and geological investigations in Bangladesh which
is going to continue at least for. another year, with the excep-
tion of multiwelldrilling which terminatedin December,1982.
ExplorationDrilllng Proposed by Petrobangla
9. The Government of Bangladeshis pursuingoil explorationdrill-
ing intensively. A projecthas been submittedby Petrobanglato inten-
sify the search for oil and consequently offset the country's adverse
balanceof paymentposition. It proposes the drilling of three explora-
tory wells, each to about 5,000 meters depth. The total cost is esti-
mated at about US$32 million of which roughly US$26 million would be
foreign exchange. The government rationale for such a high-risk and
capital intensive venture is based on. following:
i) consideration of the fact that previous exploratory drilling
has resulted in an impressive success ratio of one gas
discovery for every three wells drilled;
ii) geological and geophysical conditions in Bangladesh do not
preclude presence and possibility of finding oil;
iii) the burden of foreign exchange drain used for import of fuel.
Gas Utilization In Bangladesh
10. It is imperativethat import of commercialfuels be reducedas much as possible and replaced by indigenous natural gas. Every 100 NMCFD
of gas utilized from local sources implies a savings of about US$150 million of foreign exchange. The status of current production of gas
fields in Bangladesh is summarized in the following table. -8-
TABLE1 - PRODUCINGGAS FIELDS IN BANGLADESH
GAS SYSTEM NO. OF WELLS CAPACITY OFFTAKE PRINCIPAL OF DISTRIBUTION PRODUCING MMCFD MMCFD CONSUMERS
1- Titas;- 5 Wells/ 150 150 Domestic: Dhaka, Ghorasal, Habiganj Titas Ashuganj towns, Power Ashuganj, Shahibazar, 2 Wells/ 60 56 Hubiganj Tea Valley Habiganj Ashujang Fertilizer Factory
Total 7 210 206
2- Sylhet 1/ 2 21 21 Sylhet Tea Estate Towns in Sylhet District Sylhet Fertilizer Plant Cement and Pulp Factories 3- Chhatak 2/ 1 30 7.5
3 51 28.5
4- Bakhrabad- 5 150 -- Power, Fertilizer, Indus- Feni tries, Commercial, Domes- tic in the Chittagong, Bakhrabad and Feni areas
1/ The two fields are not connected - they are two separate systems.
2/ Due to water encroachzent into the gas zone in Chhatak field, GOB is in the process of constructing a 30 mile pipeline from Kailashtilla to the Chhatak cement and paper mill to replace the gas supply source - Chhatak - which has to be shut down for reservoir testing and possible workover operations.
Source: Petrobangla -9-
11. In the past the power subsectorhas been the largestnatural gas
consumerin the country,38% of the total in 1981, followedby Fe:tilizer
Industrywith 36%. Other industrieshad a share of 16%, while domestic
and commercial sectors together accounted for the remaining 10%. The
projected rate of growth for the two major consumers, power and ferti-
lizer up to the year 1985 is estimatedto be 29.6% and 41.8% respective-
ly, consumingabout 70% of the total supply. See Table 2.
Table 2
Projected Natural Gas Demand by Major Consumer Group
Summary
M4MCF
Annual Percentage Percentage Average Growth Category 1980/81 Share 1984/85 Share Rate, X 1980/81-1984/85
Power 18,619 38.0 28,458 29.6 11.2% Fertilizer 17,730 36.0 40,170 41.8 22.7% Industry 7,891 16.1 20,506 21.4 27.0 Commerce .1,282 2.6 1,888 1.9 10.2% Households 3,429 7.0 5,020 5.2 10.2% Totals 48,951. 100.0 96,042 1GO.O 18.4% Source:World Bank EnergyAssessment Mission
Development,Transmission and Distriibution of Natural Gas
* ^ 12. In an effort to replace imported fuel by natural gas,
Petrobangla plans to extend the gas distribution network countrywide.
Gas utilization promotion in recent years has resulted in 165,560
domestic gas connections 1/, and connections of three fertilizer
factories, four power stations, one cement plant, 581 small industries, - 10 -
106 brick kilns and 3,774 commercialenterprises. Table 2 shows natural gas consumptionby sector. More than 1,100miles of gas transmissionand distribution pipeliUe have been constructed in the eastern part of
Bangladesh. The following table summerizes the specifications of the transmission pipelines constructed or under construction for each of the independent distribution systems.
Table 3
Existing and Under Construction Gas Transmission Pipelines in Bangladesh
Pipeline and Diameter Length Line Flow Working Distribution System Inches Miles Capacity Pressure MMCFD psig Already Constructed
A- Titas-Habiganj System 1- Titas-Dhaka 14" 60 170 1000 2- Iabiganj-Shahjibazar 8" 1.5 36 450 3- Rabiganj-Ashuganj 12" 35 90 1000
B- Sylhet-Chhatak System 4- Sylhet-Fenchuganj 8" 33 25 650 5- Chhatak-Cement 4" 12 9 650 6- Sylhet-Kailashtitta- 8" 8 30 650 Under Construction A- Titas-HabigsnjSystem 1- Habiganj-Sylhet 6"&4" 60 7 - Tea Estate 2- Titas-Narshingdi 16" 31 197 1000 3- Narshingdi-Joydevpur 14" 26 60 1000 B- Sylhet-Chhatak System 1- Kailashtitta-Chhatak 6" 25 20 650 2- Chhatak-Sunamganj 4" 12 9 - C- Bakhrabad System 1- Bakhrabad-Chittagong 24" 110 336 960 2- Bakhrabad-Comilla 6" 11 24 900 3- Bakhrabad-Chandpur 4" 31 9 900
Source; Petrobangla
1/ Source: Petrobanglapcsition paper on NaturalGas, October1982. - Ul -
Development of Gas Fields Proposed by Petrobangla
13. In view of the expected shortfalls in gas supply for the Titas
Habiganj system, ADBhas committed its support to the drilling of three
new developmentwells in the Titas field, which would add 90 MMCFDto the
system. Two wells resultingin an additional 60 MMCFDto the Titas-
Habinganj system, are planned through, French financing, FF 50 million in
the Eabiganj Field, raising the total supply to 360 MMCFDby 1985. How-
ever, GOB feels that in the greater Dhaka region, the main industrial
area, there will be greater demand in the immediate future, and therefore
according to GOBthe development of Kampta and Rashidpur fi0lds would be
justified. The proposed drilling of a new well in Kampta and workover of the existingwell will add an additional25 MMCFD to the Dhaka area, this
is believed by Petrobangla to be sufficient to stabilize gas storageand eliminatelow pressure problemswithin the area's distributionsystem.
In Rashidpur, there are two existing wells which GOB proposes to bring into production, after workover with a 55 mile, 18' pipeline to be con- structed for transport of the Rashidpur gas to the Ashunganj area and connection to the Titas System, resulting in an additional supply of 60
MMCFD. See Annex I, Peak Gas Demand and supply position based on Petrobangla'sestimates.
14. Petrobangla'snatural gas expansion program under implementation or plannedis shown in Table 4. - 12 -
Table 4
Additional Gas Production Capacity Anticipated or Planned in Bangladesh
Field No. of Wells Capacity (MMCFD) Financed by: Titas 3 90 Asian DevelopmentBank Subiganj 2 60 France Bakhrahad 5 150 World Bank Rashidpur 2 60 None Kuata 2 25 None
Total 1a; _
15. At present the supply position in the Chhatak-Sylhetand
Bakhrabadsystems should satisfy the demand for the next five to ten years, except for the recentcritical water encroachmentin Chhatakwhere the.amount of water has Increasedfrom 3.1 gallons to 25 gallons per
MMCF. ConsequentlyPetrobangla is constructinga new pipeline 30 miles long to transportgas from Kailashtillato the cement and paper plants preventing shut down of the two industries. However,the Titas-Habiganj system is facing a critical shortfall, with a present gas demand of about
230 MMCFD against a supply of only 210 MMCFD. Petrobangla expects the future demand in the system to rise to 270 MMCFD by mid-1983, mainly due to increaseddemand by the power subsector, industries and brick manufac- turers. By 1989 demand is projected to rise to about 500 MMCFD. Con- sequently, Petrobangla believes that the four additional gas wells at
Kamta and Rashidpurshould be developedas soon as possible.
Transmission and Distribution Network Prop.osed by GOB
16. There are three gas transmission and distribution projects that have been proposed by the GOBin parallel with implementation of gas de- velopment projects: - 13 -
T. The Greater Dhaka gas distributionproject. This would follow the construction of two transmission pipelines(Narsingdi-Ghorasaland
Titas Narsingdi) which have been financed recently by ADB. The proposed network covers Jinjira, Kaliganj, Ianiganj and Tangail.
II. The Mymensing, Jamalpur and .shorganj project. Its main ob- jective is the extensionof gas distribution facilities for Lndustrial, commercial and domestic purposes. Also envisaged is extension to the East Bank of the Jamuna River for gas supply to the fertilizer factory anticipated to be built in that area.
III. The Sylhet Tea Estate Phase II project. This is the contin- uation of the SyDhet Tea Estate distribution network which is under im- plementation with Belgian financing, supplementary fund requirements are being negotiated with the British ODA. The project objective is to replace fuel oil by gas as the main source of energy for the Tea industry in that area, and also to supply gas to commercial and domestic con- sumers. - 14 -
Table 5:
List of Projects Proposed for Development of Gas Proposed -
In Million Taka 1/ Total Foreign Cost s Exchange 1. Development of Kmata Gas Field 264 180
2. Development of Rashidpur Gas Field 531 298
3. Greater Dhaka Gas Distribution vf351 108 V
4. Transmission and Distribution to 478 213 Hymensing, Jamalpur & Kisborganj 5. Distribution Network Gas Supply to 154 46 Sylhet Tea Estate Phase I
6. Gas Grid System in Eastern Zone (Study) 5.00 4.00 7. Feasibility Study of Converting rail and river transportation to CNG 3.45 3.45
Total 1,786.45 852.45 (US$77.2) (US$37.1)
I/ TK. 23 - US$1)
17. Since gas distribution and transmission are carried out under four independent systems (Bakhrbad, Sylhet, Chhatak, and Titas-Habiganj) each has to be dealt with separately in respect to the demand and supply position within each system. (See the gas demand and supply positions attached as Annex I). If the projectsfinanced by ADBand the French for the Titas-IlabiganiSystem are implementedon time, the gas industry will be temporarilyrelieved of impendingshortfalls. The GOB proposalfor development of wells in Kamta and Rashidpur will result in an additional - 15 -
supply of 85 MMCFD to the Titas system sufficientto satisfythe pro-
jected demand growth up to 1987.
Refinery Subsector
18. Several projects for developmentand conversion of the Eastern
Refinery Limited (ERL) were supplied for inclusion in the Priority
InvestmentProgram for Energy. Only one projectwas identifiedto be in
an advancedstage. It is already in the pipelinefor financingand will
probably be presentedto the World Bank Board prior to July 1983. The
Project consists of five components: (a) rehabilitation of the Eastern
RefineryLimited (ERL) facilitiesin Chittangong- to restoreits mecha- nical integrity,increase capacity utilization by 22%, improveits opera-
tions, reduce its energy consumption-- and the execution of a techno- economic study to determine further modifications required to ensure that
the refinery's yield pattern would be in balance with the changing long-
term demand profile for petroleum fuels in the country; (b) technical assistance to improve the accounting, financial and management informa- tion systems of the Bangladesh Petroleum Corporation (BPC), the parent companyof ERL; (c) an energy conservation and diversification program to identifyand prepareprograms to improvethe efficiencyof energyuse in the industrial and power sectors as well as financing of energy conver- sion facilities to enable selected industries in the Chittagong area currently using imported petroleum fuel to switch to natural gas; (d) the carrying out of detailed feasibility studies on gas-based export-oriented projects to provide a basis for Bangladesh to capture the foreign ex- change potential of its abundant natural gas resource; and (e) research and development on the possibilities of using natural gas-derived metha- - 16 -
nol an an extenderof middle distillatepetroleum products and in other non-conventionalapplications. Implementationof the RefineryRehabili- tationComponent is expectedto be completedby March 1986;the technical assistanceto improveBPC's accountingand managementinformation system is expected to be initiatedby September1983 for completionby March
1985; the energy conservationand diversificationcomponent is expected to begin in March 1983 and scheduledfor completionby September1985.
The detailed feasibility studies of gas-based export-oriented projects would be executed over a 28 month period starting May 1983; while the research and development on methanol use as an extender of middle distil- late petroleum products would support a three-year continuation of the research work in this area being carried out by the Chemical Engineering
Department of the Bangladesh University of Engineering and Technology
(BUET). 1/
Power Subsector:
19. Although the total investment in generation, transmission and dis- tributionof power in Bangladeshhas been greater than in other energy subsectors, still there is much more to be accomplished. According to the World Bank energy report, "electricity demand in Bangladesh has grown at an annual average rbte of 13% bet"eewn 1976 and 1980 and at a rate of slightly over 9% the following years. Consumption is dominated by the industrial sector which accounts for 59% of the public utility sales and an estimated 70% of total electricity' including captively generated electricity by industrial enterprises. The next important user group is
1/ Based on the draft copy of the staff appraisal report No. 4295-BD, January 1983. - 17 -
the commercial sector with a 14% share, followed by the domestic one with
12%. Agricultureand rural areaasuse only 2% of the power generatedin
the country. In those villages, towns and cities that have access to
*- electricity, the number of households connected i8 very small,ranging
from a fraction of 1X to less than 20% in the Greater Dhaka area. 1/
External Assistance:
20e In the past, Bangladesh has been able to secure foreign funds for
implementing power projects, especially for power generation. Presently
several donor agencies are showing interest to finance power projects.
In order to place power system planning on a sound basis, the Government, with the assistanceof Power Board'splanning department adopted a long- range power developmentplan which is based on least cost optionsand
availabilityof indigeneousenergy resources. The Governmentagreed,
under the Greater Khulna Power Distribution Project (credit934-BD), to
an annual review of the plan in consultation with IDA. The plan was
reviewed recentlj by the World Bank power mission to Bangladesh and found
acceptable. The projectssubmitted by BPD8 for the "Priority Investment
Projects for Energy" portfolio are part of the Long-Range Powr Plan.
21. The Power Development Board and the Rural Electricification Board
submitted a total of 33 projects out of which 20 were selected and
thought to have enough merit to be considered for inclusion in the port-
folio. The list of the projects in the power subsector for which the GOB
is seeking financial support, is summarized in the following Table 6:
1/ Source: World Bank Report No. 3873-BD
½' - 18 -
Table 6:
PriorityList of Power ProjectsProposed by BPDB Cost in MillionTaka (TK. 23 - U.S. $1)
Total Foreign Cost Exchange BCR NPV 1. Upgradingof E.W. Inter-Connector to 230 KV1 289.5 155.16 0.98 (-) 105.56 2. Ashuganj-ComillaTransmission Line 875 450 0.69 () 454.45 3. KaplaiHydro Power Extension 1911 1082 0.497 (-) 7357 4. GreaterKhaka Power Distribution Project- Phase It 2783.205 1513.6 0.713 () 1235.61 5. Power DistributionProject (West Zone) 1318.17 440.57 0.781 (-) 726.49 6. Chorasal-Tangi230 KV TransmissionLine 403.7 223^3 0.63 () 248.58 7. GreaterChittagong Power Distribution1588.24 793.35 0.778 (-) 556.60 8. Augmentationof Grid Sub-stations 311.76 171.71 1.0897 4031 9. Power DistributionProject E. Zone 2219 321.02 0.83 () 1142.20 10. Syst" Less ReductionScheme 197 131 11. Barisal-Patukhah132 KV TransmissionLine 348.48 165 0.584 (-) 175.23 12. Rural ElectrificationPhase III-A 2939 1800 Same as Phase II-B 13. FeasibilityStudy- Ashugani Thermal . Power,2nd Extension 6 6 14. BPDB TariffStudy 11 10 15. Pre-stressedConcrete Pole-ProductionPlant 99 47 2.32 (+)3677.27 16. Gas Turbine Power Generation in E. Zone (Land Based) 577.5 412.5 0.96 (-) 23.11 17. Gas TurbinePower Generation in E. Zone (BargeMounted) 559.20 451.50 1.49 351.13 18. Pre-feasibilitystudy for Mlini-HydroPo;wer Generation 2.2 1.2 19. Canal drop smallhydro power plant at Teesta 264.00 158.00 20. Feasibilitystudy for AICO/150MW steak power stationin West Zone 8.64 7.26
Total 16,711.6 8340.14 (US$726.6 (US$362.61)
1/ The costs reflect January 19, 1983 revisionsmade by BPDB and are consistent with those submittedto the SecondFive Year Plan. 22. BPDB considersthe country'sgeneration position to be in a cri-
tical situationboth in the East and West zones. The installed genera-
tion capacity generationcapability and peak demand of the system is
summarizedbelow by BPDB as of May 1982: -19 -
Installed Capability Firm Peak Capacity (May '82) Capacity Demand
East Zone 562 481 366 450 MV
West Zone 295 197 118 ./ 146 MV 2t
Consequentlythe BPDB is operatingthe power systemwithout adequate firm
capacity. Thereforo,load sheddingmeasures are adoptedat the slightest
mishap. BPDB's two grids, East and West have been combinedtogether on
1st December 1982 with the commissioningof East-West Interconnector.
The generatior.capability of the integratedGrid as of December '82 is
812 MW. The maximumdemand of the integratedsystem is 650 MW, recorded
so far.
23. In the context of past experience and local condition BPDB pro-
poses, the following contingencies &re to be recognized by the Power Board planning Division.
(a) The largestmachine on plannedmaintenance.
(b) The second largest on forced outage.
(c) One gas turbine out of service.
On the basis of the above, the presentfirm capabilityof the systemis
812-(60+55+21) = 676 MW. The generation projects under implementation which would be completed by June 1985, would provide 435 MWgeneration capacity in addition to the; present capacity of 812 MW. By June 1985,
1/ Large portion is in-srnal combustion turbine, not suited for base-load.
2/ The peak demand is restricted. - 20 -
the anticipataedpeak demandwould be 936 MW. The generationcapability of PDB system by that time would be 1215 KW and the firm capacitywould be 1215-(210411014603)- 835 MW. Therefore,the firm capacitywill fall short of peak demand by abcut 100 MW. Hence, about 120 NW capacity is additionally required to have the firm capacity above the demsnd line.
The capacity has to be built up very quickly i.e., within next two years. See Generation Addition vs Load Demand, next page. - - - r" N N ( 1 0 s (1At 0 (l 0 0 0 0 0 0 0 0 0 0
East WestInterconnector Commissioned
NJ -. G)< 0) a)! Khulno110 MW ST. G Ca 00 \1 4 Chittogong60MW ST. rn
L1 1<.Ashugonj 30 MWST. r
4 t o\i*p oll 8arisal 25 MWRetirement 32 MW O -4 0 0 Z01 I .CAg East andWest Zone 2 x 60 MWGT.(Not Yet In- en -_ chdudedi In SFYP)0 3> - - 0~ * ~ ~ ~ ~ ~ ~ ~ ~~~~ M _i'@I g _ 1gtoGhorosol 210 MWST. F m 0 East Zone 60 MW GT.G Z &.1M 0E w C< o 'Ri > Ashuganj150 MW ST.(IstUnlt) rf Z Ch N _ 55= > Kaptoi 50MWHyiroO4th.Unit) Z 'a3O Retirement0 \'8 5MW r; C 7 > Ashuganji150MWST1ZndUnit)zo ts a
Z o = o 0 O_MWHydroGth.UnfiXWP _ 3oo N~~~r 0 Ghorosal 210MW ST12ndsp)z m ~ N \ WestZon*45OMW ST.O Z | | | @ 'S, I IRetirement 10 MW
0.
o. 10 ~ ~ 1 \w01 C
0- z 0
>0 -i _ - -- ChittogongI50MW ST. 0 -< * 1} p _ rWest Zone 150MW ST. 0 00 -1 N~~~~ co o ID ^ z 0 2 0 z > _\ \^ 8>> _ Ashugonj150MWO 0 3m zD N(3rd.Unit)Q 1 1> g
- 2
0~~~~~~~~~T - 22 -
Potential Smaller Scale Projects
24. There are several smaller scale projects proposed that may have a high pay-off. These will be of interest to individual donors with lim- ited funds. The followinghave been suggested:
1) A study of energysector institutions.
2) A study for reorganizationof oil and gas agencies.
3) A study of the Gas Grid system in the Eastern Zone. An
engineeringstudy on country-wideGas Grid system has been
carried out by local conoultants in 1981. GOB feels that
additional study is needed, estimated cost of which is about US$200,000.
4) A study of prospectivefuture gas demand. (A US $200,000
project.)
5) A study and equipment of a comprehensive communications system
for BPDB, estimated cost is US $2 million.
6) A pre-feasibility study for mini-hydro power generation,
estimated cost US $100,000. 7) A study of Peat as an anergy source: (The Danish government is
presently involved in a study and experiment on "peat as rural
energy source').
8) Utililationof compressednatural gas for the transportsector
An experimentalprogram is presentlyunderway with IDA financ-
ing. It is thought that this exercise should also cover the
utilizationof CNG on locomotivesand river transportas well.
9) Cost minimizationand risk analysis of electricity supply
alternativesfor the west side. - 23 -
10) A study of Energy conservation/substitution for Xhulna pulp and
paper mill to replace the present 50,000 ton of oil consumed
annually. Project proformas for the first six studies are prepared and could be included in the portfolio. Efforts will be made to collect necessary information for preparation of project briefs for the remaining three studies.
Rankingof the Projects
25. For rankingof the projectsin order of priority investment for the energysector in Bangladesh,the followingcriteria is proposed. i) projects should satisfy accepted economic criteria and be ranked according to the average net present value per dollar of investment required. ii) Each projectshould be checked against financial viability of the venture. iii) All projects should clearly identify foreignexchange flows and local investmentfunds over time including those required for proper operations. iv) Projectsshould be classifiedon the basis of reLiableinformation suppliedand estimatesprovided about the requiredadditional time and resouces needed to arrive at a full feasibility of assessment. v) Projects should identify required governmentsubsidies, if any, duringits operatinglife. vi) Projects should identify potential redundancyor other proposed alternativesthat would have bearing on all or part of its output. - 24 -
vii) Projectsshould identifyneeds for managerial,technical and other physicalinputs (e.g.,cement, transport,operating personnel) and spell out the requiredtraining component of the project.
26. In addition to the above-mentioned,selection of Xhe projects should fit harmoneouslyinto the overall developmentpolicies of the country, within the given resource constraints. All projects should satisfy projected demands and not create excess capacity. They should generallylead to increased productivity and generate additional invest- ment ratherthan increasingconsumption only.
27. It should be stressed that some of the aformentioned cri.-ria cannot be quantified for Bangladesh, in addition there are imperceptible parameters which effect the net present value of various projects. Even though the methodologyemployed for calculationof the net presentvalue and cost benefit ratio is precise, they are not necessarily representing the reality accurately. Theefore it is difficult to measure the vlue of the projects included in the portfolio, for the exact order they are ranked. However, due attention should be paid to two important and quan- tifiablefactors: firstly,the project leads to furtheringutilization of natural gas, and secondly, the project results in replacement of imported fuel by indigenousnatural gas. - 25 -
BENFIT-COST ANALYSES1/
28. The methodologyapplied by Petrobanglafor estimatingthe bene- fits and costs of gas developmentprojects is inappropriate. It is neither an economic nor a financial analysis although it contains elements of both and mixes them up. The following comments are made based on a review of the Kamta project analysis.
The projected output of Kamta is constant throughout the project
life. It is also assumed equal to full flow capacity for 365 days
per year. These assumptionsare inappropriate. All production of the
Titas system in total would have considerable excess capacity rela-
tive to demand, in order to meet peak load requirements. Each well,
on average, therefore, would operate at considerable lower levels
than maximum capacity. This average is the appropriatemeasure.
Furthermore,towards the end of life of the reservoir potential out-
put may decline, reducing average annual production, this should be
considered.
29. The well head price is shown in financial terms, ie.e. by apply- ing the going authorizedtariff per MCF. This is appropriatefor the financial analysis but not for the economic one. The economic value is given by the replacementvalue of the gas eitherin the form of alterna- tive fuels that would be used (e.g. fuel oil, coal, firewood,etc.) or the net value of output minus all production cost, as measured by the value of imported fertilizer for example, minus all gas-based fertilizer
1/ This part was preparedby G. Schrammafter reviewingthe data collected in the field. - 26 -
production costs except gas costs, pro-rated on a MCFbasis. Adjustments
must be made to the net value of gas thus evaluated by accounting for net differencesin systemssupply costs (e.g.gas trausmissinplus distribu-
tion versus fuel oil delieverycosts).
30. It is inappropriate to use annualprice inflators(e.g. 10% for
value of gas and exclsetax), but not for others(e.g. manpower, mainten-
ance, etc). It is also inappropriateto combinecapital costs on the one hand and to add depreciationplus intereston the other. This represents
doublecounting. Furthermore,it is inappropriateto count exciseduties as eithera cost or a benefitin the economicanalysis. Theseare simple transferpayments.
31. Use of a 152 discountfactor impliesa real net of interestof
5%, after 10% per year inflation. Is that an appropriate rate in Bangladesh? The PlanningCommission recommended a 15% discountingreal rate in 1981. The easiest way to undertakethe economicbenefit-cost analysisis to use constant costs and prices; the appropriate real rate of interest;the net value of gas as specifiedunder 29 above; to eli- minate depreciation,excise duty and Interest on loan from the cost categories. cash flow anaysisin currentterms (i.e.inflated prices and costs as projected for all categories). This analysis must include actual interest payments, depreciation charges and all appropriately inflatedoperating costs.
OBSERVATION
32. Bangladeshhas one of the lowest levels of per capita energy consumptionin the world (100-130kg. of oil equivalant)of which over two-thirds comes from traditionalenergy sources like bio-mas, agricul- - 27 -
tural waste, firewood,etc., and the balance makes up the commrcial
energy, i.e., petroleum, natural gas, coal and hydro-electricity.
Natural gas contributes about 46% of annual commercial energy require-
ment. Imports consisting of petroleum (1.6 million toe) and coal makes
up a little over 502 of commercial energy requirement, which is only 18% of tota' energy consumption.Nevertheless, at this low level,import of
fuel swallows up 70% of the country's hard earned foreign exchange earn-
ings. Paymentsfor imports of fuel is already adversely affecting the
country's ailing economy and threatens to become a critical issue in the
near future unless immediate measures are adopted to arrest the looming gap, the country's economywill continueto deteriorate.
33. Natural gas is the only Indigenous commercial energy source with
attractivedevelopment potential, particularly because of its highly comr- petativecost comparedto importedfuels. Use of gas as an inexpensive
sourceof energyis bound to spur some accelerated economic activities in
the country. The responsible authorities in Bangladesh feel that natural gas should be available to consumers where and when the undertaking is
economically feasible. It is against this background that maximum utili-
zation of natural gas has become a national priority.
34. Considering the serious economic and balance of payment diffi- . . culties which Bangladesh has been facing during the past year. It should
be understandable that the government agencies would resort to ad-hoc
decisions in order to remedy the immediate crises which appear regulalry
due to undiversified economic structure of the country as well as clima-
tic arages or other causes. In view of the above, it would be difficult
to implement a medium term development plan without deviating from long- -28 -
term plan goal. In fact, this is true for any developingcountry, espe- ciallv for a newly-borncountry with high aspirationsand hopes of great achievementsbut inheritedwith archaicadministratiave traditions, form-
ing a major hurdle in the course of development.Therefore it is advis-
able to adopt priorityinvestment programs for implementationof projects addressingthe immediateneeds of the country,until a comprehensiveand well plannedlong term scenariois available.
35. In spite of the fact that natural gas have been utilizedas a major source of energy in Bangladesh for several years, and future devel- opment of the country is also dependent on natural gas reserves. No sys- tematic and dependable investigation have been carried out for a precise and accurate evaluation of the gas fields in Bangladesh. Recently GOB has signed an aid agreement with the U.S. AID to the order of US $ 1.2 million to finance Bechtel for a preliminary data collection and study of the existing information as the first step towards appraisal of gas fields in Bangladesh. Another and more useful undertaking is anticipated as a component of the World Bank second hydrocarbon project, for detail development-seismic survey of the major gas fields in the country. Both of the two mentioned projectsare very useful and complemenmtary to the other. Based on the result of the above mentioned two gas field ap- praisalundertakings, a thirdand final reservoirstudy of the gas fields will be needed to give a preciseand dependablegas fieldsperformance, rate of future production, decline of each field and an optimum future production program for each field. Petrobangla proposed a US $ 40 million project for gas fields appraisal to be a part of PIPE investment portfolio. In view of the two projects financedor consideredby U.S. - 29 -
AID and the World Bank, it was agreed to wait after the result of the two
studies are available, and then pursue the project.
36. A recent critical situation is threatening shut down of Sylhet
cement and paper mill plants due to a reservoir problem which has
occurred in the Chhatak gas field. The Chhatak well has been supplying
about 8 MMCFD of gas to the cement and pulp factories in the area. Since
September 1982 to January 1983, the quantity of water produced per MMCF
of gas has increased from 3.1 gallons to 25 gallons. This is either
indicative of the reservoir reaching its depletion stage, or "water
coaning' due to poor production practices. In either case it is evident
that appropriate reservoir engineering study and practices should be
adopted.
RECOMMENDATIONS
37. The most Important constraint hampering the development of the
hydrocarbon industry is the prevailing organizational and administrative
system which is not responsive to Bangladesh's oil and gas operations.
It is recommended that a comprehensive study be carried out in three
phases:
(a) First phase, short period, two to three months, by one or two
experts for diagnosing the shortcomings in general and preparing a scope of work and terms of reference for the comprehensive
*. investigation which would form the basis of a dynamic institu-
tional building.
(b) Second phase of the exercise would require experts'in Technical,
financial and administrative branches of oil and gas field who would undertakepreparation of: (i) job specificationsfor staff - 30 -
members at all levels including managers, supervisors, senior
managers, directors, board members and the highest executive
officers, (1i) job qualifications and also job classification,
(iii)introducing management systemswhich would expedite the
operationsand eliminatebureaucratic hurdles and, (iv) create
various incentiveswhich would attract skills rather than repel
them.
(c) Third phase, is assistingthe agency to Implementthe recommen-
dation and reorganizationof the institutions,as proposedby
Phase II, with the view to revising those recommendations which are not applicable; also create and staff a bureau of organiza-
tion, method and systems in order to carry on the future organi-
zational studies in house.
38. A reservoir engineering study is recommended to commence imme-
diately after the completion of the U.S. AID (Bechtel) gas field appraisalproject and coordinatedwith IDA's s,cond hydrocarbon projects'
- productionSeismic survey. This study should aim to: (a) analyzeall
the previous reservoir studies, (b) the recoverable reserves of the country, (c) give an optimum gas off-take scheme for each field and
(d) prepare a program for updating of reservoir information and reservoir monitoring system.
39. In the absence of a gas off-take scheme developmentof gas fieldsare to be coordinatedwith the result of the detailedproduction seismic survey which is to be implementedunder the IDA second hydro- carbon project. Gas distributionprojects catering to the needs of power - 31 -
and industry rank higher priority. Implementation of such projects
should take into consideration the peak demand supply position of the
area.
40. Since one of the constraints both in power and gas distribution
agencies is shortage of subscriber meters, it is recommended that attempt should be made for assembly and production of these meters in Bangladesh
by formation of joint venture investments with partnership of foreign
producers,the public entitiesand private sector. A task force can be
assignedto investigatethe options and prepare preliminary project to
fulfillthis aim.
a
S - 32 -
BANGLADESH
PRIORITYINVESTMET PROGRAM FOR ENERGY
PARTII
INVESTMENTPORTFOLIO
A stocktaking exercise of potential projects in the energy sector was carried out in Dhaka, Bangladesh from October to December 1982. Part II, represents a selectednumber of projectswith higherpriority for investment.
-U - 33 -
1:1 BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Eaergy
2. Sub-sector : Power
3. Name of Project : Upgradingof East-WestInter- connectorto 230 KV operation.
4. SponsoringMinistry : Ministryof Energyand Mineral Resources
5. ExecutingAgency : BangladeshPower Development Board
6. - Other AgenciesInvolved
7. Location : Ishurdi,Pabna
8. In-houseImplementation : Partly
9. Name and addressof the firm : Not yet decided implementing the project
10. Main objectives : To provide 230 KV sub-station at Ishurdito upgrade the operationof East-WestInter- connectorby December1985;.
11. Brief Description Main : Procurement of equipuent & Components/Activities materials and installation, commissioning of 230KV sub- stationequipment at Ishurdi. 12. EstimatedCost (1982) : Total:Tk. 289.15million F.E.: Tk. 155.16million
13. Financing(donor prospect) : Not known to BPDB
14. ImplementationPeriod : Commencement:January 1984 Completion: December1985 15. ProposedPhysical & Financial Program - 34 -
1:2
Physical Schedule of Works
Procure- ment of Installation Preliminary Work/ materials/ of equipment Testing & Year Engineering Study Equipment & Materials commissioning
1983-84 100% - - - 1984-85 - 30% 40% - 1985-86 - 10% 60% 100X Financial Schedule of Works (In TAKAMillion)
Year Local Foreigu Exchange Total
1983-84 15.61 9.24 24.85 1984-85 32.43 95.00 127.43 1985-86 85.95 50.92 136.87
Total 133.99 155.16 289.15
16. Status of the project and : Project brief for soliciting feasibility studies finance submitted to Govern- ment. Detail project under preparation by BPDB.
17. Contribution & inputs required : None from other agencies
18. Major outstanding policy issues : None
19. Anticipated constraints : (1) Foreign Exchange Finance (2) Local Currency Supply
20. Timetable for completion of : See Item No. 14 the project
21. Estimated reduction in oil : Gross saving due to Inter- demand resulting from project connector 686,000 toe. Saving (Oil savings calcuation, see as result of marginal utility Annex-1) of upgrading 239,000 toe.
22. Economic & Financial Parameters: B.C.R. = 0.8 (rate of return, net present N.P.V. - -105.56 value, etc.) (Detail r-"pulations, Annex-2).
23. Sponsoring agency remarks : None - 35 -
Annex-1 1:4
Preliminary
-Up-gradingof East West Inter-connector
ProjectAnalysis (Financial)
Cost: Total - Tk. 289.15million F.E. - Tk. 155.16 million
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit e 15% @ 15%
1983-84 24.85 - 24.85 21.61 - - 1984-85 127.43 - 127.43 96.36 - - 1985-86 136.87 46.22 183.09 120.42 59.11 38.86 1986-87 - 51.35 51.35 29.36 65.68 37.55 --987-88 - 57.05 57.05 28.36 73.97 36.78 1988-89 - 63.39 63.39 27.40 81.08 35.05 1989-90 - 70.43 70.43 26.48 90.09 33.87 1990-91 to - 78.26 78.26 172.03 100.10 220.04 2004-05 (eachyear) (15 years)(each year) (15 years) 2005-06 to - 77.31 77.31 17.92 98.89 22.93 2014-14 (each year) (10 years) (eachyear) (10 years) Salvage value @ 19% of material cost 9.30 539.94f 434.38
BCR , 434.38 - 0.80
.9 539.94 NPV - 434.38 - 539.94 - -105.56
B Revised costing based on January 1983. - 36 -
ANNEX-1 1:5 Up-gradingof East West Inter-connector
ProjectAnalysis (EconOmic)
Cost: Total - Tk. 289.15million F.E. - Tk. 155.16 million
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 15% @ 15%
1983-84 22.52 - 22.52 19.58 - - 1984-85 115.96 - 115.96 87.68 - - 1985-86 124.55 46.22 170.77 112.28 59.11 38.86 1986-87 - 51.33 51.33 29.36 65.68 37.55 1987-88 - 57.05 57.05 28.36 73.97 36.78 1988-89 - 63.39 63.39 27.40 81.08 35.05 1989-90 - 70.43 70.43 26.48 90.09 33.87 1990-91 to - 78.26 78.26 172.03 100.10 220.04 2004-05 (eachyear) (15 years)(each year) (15 years) 2005-06 to - 77.31 77.31 17.92 98.89 22.93 2014-14 (each year) (10 years) (each year) (10 years) Salvage value @ 10% Of material cost 9.30 521.09 434.38
BCR 434.38 - 0.83 521.09
NPV - 434.38 - 521.09 - -86.71 - 37 -
ANNEX-1 1:6
Up-grading of East West Inter-connector
Project Analysis (Financial)
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 7% @ 7%
1983-84 24.85 - 24.85 23.11 - - 1984-85 127.43 127.43 110.86 - - 1985-86 136.87 46.22 183.09 150.18 59.11 48.47 1986-87 - 51.35 51.35 39.03 65.68 49.92 1987-88 - 57.05 57.05 40.62 73.97 52.67 1988-89 - 63.39 63.39 42.47 81.08 54.32 1989-90 - 70.43 70.43 43.67 90.09 55.86 1990-91 to - 78.26 78.26 443.89 100.10 567.76 2004-05 (eachyear) (15 years) (eachyear) (15 years) 2005-06 to - 77.31 77.31 122.56 98.89 156.77 2014-14 (eachyear) (10 years)(each year) (10 years) Salvagevalue a 10% of material cost ____ 9.30 1016.39 995.07
NPV - 995.07 - 1016.39 - - 21.32
BCR - 995.07 0.979 1016.39 -38-
ANNEX-1 1:7
Up-gradingof East West Inter-connector
Project Analysis (Financial)
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 6% @ 6%
1983-84 24.85 - 24.85 23.36 -- 1984-85 127.43 - 127.43 113.29 - - 1985-86 136.87 46.22 183.09 153.66 59.11 49.59 1986-87 - 51.35 51.35 40.57 65.68 51.89 1987-88 - 57.05 57.05 42.62 73.97 55.46 1988-89 - 63.39 63.39 44.63 81.08 57.08 1989-90 - 70.43 70.43 46.84 90.09 59.91 1990-91 to - 78.26 78.26 505.56 100.10 646.65 2004-05 (eachyear) (15 years) (eachyear) (15 years) 2005-06 to - 77.31 77.31 157.71 98.89 201.74 2014-14 (eachyear) (10 years)(each year) (10 years) Salvagevalue e 10% of materialcost ___ 9.30 1128.24 1131.42 - = NPV - 1131.42 - 1128.24 - +3.18
BCR - 1131.42m1.003 1128.24 - 39 -
ANNEX-1 1:8
Up-gradingof East West Inter-connector
Project Analysis (Economic)
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 7% @ 7%
1983-84 22.52 - 22.52 21.63 - - 1984-85 115.96 - 115.96 101.23 - - 1985-86 124.55 46.22 170.77 140.35 59.11 48.47 1986-87 - 51.35 51.35 39.03 65.68 49.92 1987-88 - 57.05 57.05 40.62 73.97 52.67 1988-89 - 63.39 63.39 42.47 81.08 54.32 1989-90 - 70.43 70.43 43.67 90.09 55.86 1990-91 to - 78.26 78.26 443.89 100.10 567.77 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 122.56 98.89 156.77 2014-14 (each year) (10 years) (each year) (10 years) Salvage value d 10% of material cost 9.30 996.45 995.07 = NPV - 995.07 - 996.45 - - 1.38
BCR = 995.07- 0.998 996.45
9- - 40 -
ANNEX-1 1:9
Up-gradingof East West Inter-connector
Project Analysis (Financial)
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 6Z @ 6%
1983-84 22.52 - 22.52 21.24 - - 1984-85 115.96 - 115.96 102.09 - - 1985-86 124.55 46.22 170.77 143.28 59.11 49.57 1986-87 - 51.35 51.35 40.57 65.68 51.89 1987-88 - 57.05 57.05 42.62 73.97 55.26 1988-89 - 63.39 63.39 44.63 81.08 57.08 1989-90 - 70.43 70.43 46.84 90.09 59.91 1990-91 to - 78.26 78.26 505.56 100.10 646.65 2004-05 (eachyear) (15 years)(each year) (15 years) 2005-06 to - 77.31 77.31 157.71 98.89 201.74 2014-14 (each year) (10 years) (eachyear) (10 years) Salvagevalue fa10% of material cost 9.30 1105.54 1131.42
NPV = 1131.42 - 1105.54 m + 25.88
BCR . 1131.42 - 1.02 1105.54 - 41 -
ANNEX-1 1:10
Up-grading of East West Inter-connector
1. Economical: Discount rate : 7% Net Present Value : -1.38 Discount rate : 6% Net Present Value : +25.88 Internal Rate of Return - LDR + (HIDR-LDR) NPV at LDR * NPVat LDR - NPV at HDR
- 6% +(7X - 5%) 25.88 25.88 + 1.38
- 6% + 25.88 - 6% + 0.45%
- 6.45%
2. Financial: Discount rate 7% NPV - 21.32 Discount rate 6% NPV = + 3.18 IRR - LDR + (HDR- LDR) NPV at LDR NPV at LDR - WV at 1DR
- 6% + (7% - 6%) 3.18 3.18 + 21.38
- 6% + 3.18 - 6% + 0.13
-6.13
3. ARR (Financial)
3 Undiscounted benefit - Undiscounted operating cost Total capital cost (Financial)
6th year - 100.10 - 78.26 x 100% 21.84 x 100 of operation 289.15 289.15
- 7.55% - 42 -
2:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Nam of project : Ashuganj-Comilla230KV TransmissionLine
4. Sponsoringministry : Ministry of Energy & Mineral Resources
5. Executing agency : Bangladesh Power Development Board
6 Other agencies involved : Trading Corporation of Bangladesh for allocation of cement
7. Location : Comilla District 8. In-houseimplementation : Partly. Top supervision& local support.
9. Name & address of the firm implementingthe project
10. Main objectives : 1) To transmitpower to Chittagongarea.
2) To stabilizepower in Dhaka area.
3) Overallsystem reli- ability.
11. Brief descriptionmain : 80 km, 230 KV doubleckt. components/activities transmissionline. Procure- ment & installationof equip- ment/materials for line support, sub-station structure, high voltage switchgear,transformer, etc.
12. Estimatedcost (January1983) : Total:Tk. 875.00million F.E.: Tk. 450.00 million - 43 -
2:2
13. Financing (donor prospect) : Being considered by ADB under 1982-83 country programme. 14. Implementationperiod : 1983-84 to 1986-87 15. Proposedphysical & Financial Program
PhysicalSchedule of Works
Procurement Preliminary of materials Installation Testing and Year Works /equipment of equipment commissioning
1983-84 100% 10% - - 1984-85 - 50% 10% - 1985-86 - 40% 70% - 1986-87 - - 20% 100%
Financial Schedule of Works
Year Local ForeignExchange Total
1983-84 4.09 20.00 24.09 1984-85 1.62 26.00 27.62 1985-86 306.23 356.60 662.73 1986-87 113.06 47.50 160.56
Total 425.00 450.00 875.00 16. Statusof the projectand feasibilitystudies
17. Contribution & inputsrequired : None from other agencies
18. Major outstanding policy issues : Needs to be included in the Second Five Year Plan
19. Anticipatedconstraints : 1) Foreign exchange finance 2) Local currencysupply
20. Timetablefor completionof : See Item 14. the project
21. Estimatedreduction in oil : Eastern Grid is already on demandresulting from project indigenousnatural gas - 44 -
2:3
22. Economic& FinancialParameters : B.C.R. - 0.69 (rate of return,net present N.P.V.- -454.45 value,etc.) Justificationis to utilizethe (Detailcalculations at power generationin Ashuganj Annex-1) Power.
S - 45 -
3:1
BANGLADESH
* PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy 2. Sub-sector : Power
3. Name of project : Kaptai Hydro Power Station Extension
4. Sponsoring ministry : Ministry of Energy & Mineral Resources
S. Executing agency . Bangladesh Power Development Board 6. Other agencies involved : Trading Corporation of Bangladesh for allocation of cement 7. Location : Kaptai,Chittagong Hill Tracts
8. In-house implementation : Partly. Top supervision& construction in-house
9. Name & address of the firm : M/S Tokyo Electric Power implementingthe project ServicesCo. Ltd. - Consultant 10. Main objectives : To build a PowerPlant annexed to existing one, with 2 x 50 MW hydro-turbines project include
11. Brief description main : Procurement,installation & tomponents/activities commissioning of 2 x 50 MW Kaptaitype water turbine generatorsincluding power house,intake channel, excava- tion of penstocktunnel, steel lined concretepenstock tait- race, etc.
12. Estimatedcost (August1982) : Total:Tk. 1911.35million F.E.: Tk. 1081.94million
13. Financing (donor prospect) : Part finance(4 billionyen) committedby OECF (Japan). Balance likely to be financed by OECP - 46 -
3:2
14. Implementationperiod : 6 yeare(inclu-Ing engineering) Commencement:July 1981 Completion: June 1987
15. Proposedphysical & financial program
PhysicalSchedule of Works
Installation Survey/ Land Lease/ Construction of equipment Year Desipn Development Residential Functional & Machinery
1981-82 22.5% - - - - 1982-83 44.2X - - - - 1983-84 33.31 20% 20% 20X 20% 1984-85 - 23% 23% 23% 27% 1985-86 - 27> 27% 27% 30% 1986-87 - 30% 30% 30% 23%
FinancialSchedule of Works
(in millionTaka) Year Iocal ForeignExchange Total
1981-82 3.00 10.30 13.30 1982-83 31.307 148.443 179.75 1983-84 153.798 248.868 402.666 1984-85 193.575 221.843 415.418 1985-86 223.243 216.433 439.676 1986-87 224.494 236.049 460.543
Total 829.417 1081.936 1911.353
16. Statusof the project& feasi- : Projectproposal submitted to bilitystudies govermentfor approval.The projectis based on feasibility studiesby OTCA & JICA of Japan in 1969 & 1980 respectively. YEPSCOof Japan is doing the detail engineering. Tender documentswill be submitted in December1982. 17. Anticipatedconstraints : 1) Shortageof local currency
2) Furthercommitment from OECF (Japan) - 47 -
3:3
3) Skilledworkers for tunnel excavationneed to be imported
18. Estimatedreduction in oil : 58,247 toe demandresulting from project
19. Economic& financlalparameters : B.C.R.- 0.497 (rate of return,net present N.P.V.- -7357.23 value,etc.) 20. Sponscring agency remarks : The extension is primarily aimed at increasing peaking capacity. The evaluation has been done on marginal benefit on account of added energy output. -48-
4:1 BANGLADESH PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of project : Greater Dhaka Power Distri- bution Project, Phase II
4. Sponsoring ministry : Ministry of Energy & Mineral Resources
5. Executing agency : Bangladesh Power Development Board 6. Other agencies involved : None
7. Location : Dhaka District
8.. In-house implementation : Partly. Top supervision and local support
9. Name and address of the firm : Not yet decided Implementing the project
10. Main objectives : To meet growing load demand of the urban areas & bulk supply to R.E.B. sub-stations within Dhaka District
11. Brief description of main : Procurement, installation and components/activities commissioning of equipment/ materials for 132 KV, 33 KyV, 11 KV & 0.4 lines and associated sub-stations
12. Estimated cost (1983) : Total: Tk. 2783.205 million F.E.: Tk. 1513.600 million LC.: Tk. 1269.605 million
13. Finsacing (donor prospect) : Expected part financing from U.K.
14. Imple-pntatton period : 1983-84 to 1987-88
15. Proposed physical & financial : program -49-
4:2
PhysicalSchedule of Work
Installation Survey/ Land Acquisition Construction of equipment Year Design and Development ResidentialFunctional & Machinery
1983-84 10% 20% 5% 10% 5% 1984-85 5O% 30X 10% 30% 30% 1985-86 30% 30% 10% 30% 30% 1986-87 10% 20% 75% 20% 35%
FinancialSchedule of Work
In millionTaka Year Local Foreign Exchange Total
1983-84 5.00 10.00 15.00 1984-85 15.00 15.00 30.00 1985-86 374.881 446.58 821.561 1986-87 624.802 744.30 1369.102 1987-88 249. ^ 297.72 547.641
Total 3' .6fr 1513.600 2783.205 =. , = =. 16. Statusoi the project : Technicaland economicsludy by and feasi,lity studies Ewbank& Partnerof UK in progress. 17. Contribution & inputs required : None from other agencies
18. Major outstanding policy issues : None
19. Anticipated constraints : 1. Foreign exchange finance 2. Shortage of local currency.
20. Timetable for completion : See item 14. of the project
21. Estimated reduction in oil : None Demand Resulting from Project
22. Economic & Financialparameters : B.C.R. - 0.713 (rate of return,net present N.P.V.= (-)1235.61 value,etc.)
23. Sponsoring agency remarks : None - 50 -
5:1 BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Subsector : Power
3. Name of Project : Power Distribution Project (West Zone)
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources
5. Executing Agency : Bangladesh Power Development Board
6. Other Agencies involved : None
7. Location * Western Zone of Bangladesh 8. In house implementation : Partly. Only construction through local contractor
9. Name and Address of the firm : Various local firms. implementing the project
10. Main objectives : To supply power tc the rural areas, district towns and growth centres.
11. Brief description main : Procurement & installation of components/activities equipment & materials for sub- transmission and distribution lines and sub-stations. (For details see Annex ).
12. Estimated cost (1980) : Total: Tk. 1318.17 million F.E. : Tk. 440.57 million
13., Financing (donor prospect) : Partly financed under French Credit (Tk. 165.38 million)
14. Implementation period : 1976-77 to 1984-85 15. Proposed physical & financial program - 51 -
5:2 Ehysical Shaeiie of 1bzks IrtaUlation &u=/ land actd.stion (bwtnctlon of equimnt Year D and jpogn ,atdertial Fuictional and mddmry
Upto Jme '82 20% 5% 5% loX 30N 1982-83 4(2 302 2C2 402 202 1983-84 30% 40% 40% 40% 30X 1984-85 la0 2% 35X 102 20
Financial Schedule of Works In million Taka Year Local Foreign Exchane Total Expenditure Up to June '82 605.84 18.90 624.74 1982-83 172.10 40.00 212.10 1983-84 59.80 229.00 288.80 1984-85 39.86 152.67 192.53
Total 877.60 440.57 1318.17
16. Status of the project : About 30% of physical facilities and feasibility studies proposed under the project has already been built 17. Contribution & inputs required : None from other agencies
18. Major outstanding policy issues : None
19. Anticipated constraints : 1. Foreign exchange finance 2. Local currency supply.
20. Time table for completion : See item No. 14 of the project
21. Estimated reduction in oil : 141,679 tons (rural energy for demand resulting from project lighting & irrigation pumping and milling power).
22. Economic & Financial parameters: B.C.R. - 0.78 (rate of return, net present N.P.V. - (-)-26.49 value, etc.) (Detail calculation at Annex-2) - 52 -
5.3
23. SponsoringAgency remarks : Withoutimplementation of this projectelectrification programme will hamper & dependence for oil import to continue. - 53 -
Annex-1 5:3
Power Distribution Project (West Zone)
Physical.facilities
1. 33 KV lines 1196 Km
2. 11 KV lines 3022 Km
3. 0.4 KV lines 1130 Km
4. 33/11 KV Sub-stations
a) 2.5 MVA 3 Nos.
b) 1.5 NVA 44 Nos.
5. 33/.4 KV Sub-stations
a) 100 KVA 76 Nos.
b) 50 KVA 204 Nos.
c) 25 KVA 308 Nos.
6. 11/.4 KV Sub-stations
a) 250 KVA 3 Nos.
b) 100 KVA 202 Nos.
c) 50 KVA 512 Nos.
d) 25 KVA 1180 Nos. - 54 -
Annex-2 5:4 4
POWERDISTRIBUTION PROJECT (WEST ZONE)
Proect Analysis(Financial) (Basedon LatestTariff)
Total Cost-: Tk. 1318.17million F.E. - Tk. 440.57milllon
BASE YEAR: 1979-80 (IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total valueof total Year cost cost/yr. cost total cost benefit benefit
1976-77 5.96 - 5.96 9.061 - - 1977-78 30.42 - 30.42 40.23 -- 1978-79 115.54 - 115.54 132.87 - 1979-80 105.04 - 105.04 105.04 - - 1980-81 124.19 174.88 299.07 260.06 167.14 144.34 1981-82 243.59 178.33 421.92 319.03 185.52 140.28 1982-83 212.10 269.67 481.77 316.77 287.88 189.28 1983-84 288.80 290.57 579.37 '331.26 319.54 182.70 1984-85 192.53 313.77 506.30 251.72 354.69 176.34 1985-86 - 348.28 348.28 150.57 393.70 170.21 1986-87 - 386.06 386.06 145.13 437.00 164.28 1987-88 - 428.01 428.01 139.92 485.07 158.57 1988-89 - 474.56 474.56 134.90 538.44 153.06 1989-90 - 526.23 526.23 130.08 597.66 147.73 1990-91 to - 526.23x 526.23x 597.66 597.66 2014-15 25- 13155.75 1.587 x 25 x 1.587 - 835.13 - 14941.50 - 948.49 Total: 3301.77 2575.28
NPV - 2575.28 - 3301.77 - (-)726.46 BCR =2575.28 0.78 3301.77
Base Year for Present Worth: 1979-80 - 55 -
6:1
BANGLADESH
PRIORITYINVESTIENT PROGIAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of project : Ghorasal-Tongi 230 KV Transmission line
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources
5. Executing agency : Bangladesh Power Development Board.
6. Other agencies involved
7. Location : Dhaka District.
8. In house implementation : Partly. Top supervision by BPDB
9. Name and address of the firm : Not known yet. implementing the project
10. Main objectives : i. To transmit bulk of power to Dhaka. ii. To relieve East-West Inter-connector.
11. Brief description main : 230 KV transmission line. 17 components/activities miles (27.36 Km.) of 2 x 1 circuit lines. Procurement of poles, conductors, 230/132 KV transformers, high voltage switchgears and sub-stations.
12. Estimated cost (1983) : Total : Tk. 403.70 million F.E. : Tk. 223.30 million
13. Financing (donor prospect) : Being considered by ADBunder 1982-83 country programme.
14. Implementation period : August 1983 - April 1986. - 56 -
6:2
15. Proposed physical & financial program.
. PHYSICALSCHEDULE OF WORK
Preliminary Procurement of Installation Testing and Year Works materials/equipment of equipment commissioning
1983-84 100% 20% 10% - 1984-85 - 40% 40% - 1985-86 - 40% 50% 100%
Financial Schedule of Works In million Taka Year Local Foreign Exchange Total
1983-84 21.16 25.76 46.92 1984-85 14.19 22.10 36.29 1985-86 145.05 175.44 320.49 Total: 180.40 223.30 403.70
16. Status of the project : Project study underway by ADB. & feasibility studies
17. Contribution & inputs required : None from other agencies.
18. Major outstanding policy issues : None
19. Anticipated constraints : 1. Foreign exchange finance 2. Shortage of local currency.
20. Timetable for completion : See item 14 of the prgject 21. Estimated reduction in oil : East Grid is already on demand resulting from project indigeneous fuel
22. Economic & financial parameters: B.C.R. X 0.63 (rate of return, net present N.P.V. -248.58 value, etc.) - 57 -
6:3
23. Sponsoring agency remarks : BPDBneeds this project to meet the increasing load demand of Dhaka Area. At present"East- West Interconnector"is trans- ferringPower from Rongi to Ishurdi. There is a 230 KV doublecircuit transmission line from Ghorasalto Tongi presently energizedat 132 KV to meet load demandof Dhaka ElectricSupply. In order to transferadequate powerand to increasesecurity of power supplyto West Zone, another230 KV doublecircuit transmissionline from Ghorasal to Tongi is requiredwhich will be directlyconnected to existingTongi-Ishurdi line and Tongi-Ishurdiline will then be disconnectedfrom Tongi Sub- station. - 58 -
7:1
BANGLADESH
PRIORJTYINVESTMIENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Subsector : Power
3. Name of projectl : Greater Chittagong Power Distribution Project Phase-II
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources.
5. Executing agency Bangladesh Power Development Board.
6. Other agencies involved : None
7. Location : Chittagong
8. In house implementation : Partly Top supervision and local support.
9. Name and address of the firm : Not known yet. implementing the project 10. Main objectives : To meet the increasing load demnd of Chittagong and Chittagong Hill Tracts.
11. Brief description main : Procurement installation and components/activities commissioning of equipment/ materials for 132 lV, 33 KV, 11 KV and 0.4 KB lines and associated sub-stations. (For details see Annex-1.)
12. Estimated cost (1983) : Total: Tk. 1588.124 million F.E. : Tk. 793.350 million
13. Financing (donor prospects) : Being considered by ADBunder country programme for 1982-83.
14. Implementation period : 1983-84 to 1987-88
15. Proposed physical 6 financial program - 59 -
7:2
Physical Schedule of Works
* IDnstallation Survey/ Land acquisition Construction of equipment Year Des!1n and development Residential Functional and machinery
1983-84 10% 10% 5% 20% 15% 1984-85 40% 30% 15% 30% 30% 1985-86 40% 50% 30% 40% 35% 1986-87 10% 10% 30% 10% 10% 1987-88 - - 20% - 10%
Financial Scheduleof Works
In million Taka Year Local Currency Foreign Exchange Total
1983-84 5.00 5.00 10.00 1984-85 10.00 10.00 20.00 1985-86 233.932 233.505 467.437 1986-87 389.887 389.175 779.062 Total: 155.954 155.670 311.624
16. Statusof the project : Study undertakenby ADB. and feasibilitystudies 17. Contribution& inputsrequired : None from other agencies
18. Major outstandingpolicy issues : To be includedin Second Five Year Plan.
19. Anticipated Constraints : Foreign Exchange finance. Local currency shortage. 20. Timetablefor completion : 1983-84to 1987-88. of the project
21. Estimatedreduction in oil : Not known. demand resulting from project 22. Economic & financial parameters : See Annex-1. (rate of return,net present BCR: 0.778 value,etc.) NPV: (-)556.60
23. Sponsoringageacy remarks : None - 60 -
Annex-1 7:3
GreaterChittagong Power DistributionProject Phase-II
1. 132 KV TransmissionLine 104 Km
2. 33 KV lines 32 Km
3. 11 KV lines 64 Km
4. 11/.4 KV lines 97 Km
5. 0.4 KV lines 806 Km
6. 132/33KV Sub-station(new/addition) 4 Nos. totalling240 XVA
7. 33/11KV bub-station(new/addition) 8 Nos totalling160 MVA 8. DistributionTransformers, 700 Nos., totalling145 MVA.
A Subject to change after detail planning.
7~~~~~~~ S !) - 61 -
8:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of Project : Augmentationof Grid sub- stations
4. SponsoringMinistry : Ministryof Energyand Mineral Resources 5. ExecutingAgency : BangladeshPower Development Board 6. OtherAgencies involved
7. Location : 25 sub-stationsall over the country.
8. In house implementation : Partly
9. Name and addressof the firm : BPDB. implementing project 10. Main objectives : To enhancethe capcityof exisitng Grid sub-stations to relieve over loaded transformers and cater for new demand. 11. Briefdescription main : Replacement/Addition of new components/activities transformerand additionof some switchgear high voltage bays in the existing sub-stations.
12. *Estimatedcost November1982) : Total: Tk. 311.76 million F.E. : Tk. 171.71million 13. Financing(donor prospect) : Not known to BPDB.
14. Implementationperiod : Commencement:1982-1983
-Completion : 1985-86.
15. Proposed physical & financial program - 62
8:2
Physlcal Schedule of Works
Preliminary Procurement of Installation Testing and Year Works materials/equipment of equipment commissioning 1982-83 100% 25% - 1983-84 - 50% 20% - 1984-85 - 25% 40% - 1985-86 - 40% 100%
Financial Schedule of Works
Year Local Foreign Exchange Total
1982-83 1.50 Nil 1.50 1983-84 60.34 f 90.11 150.45 1984-85 64.71 69.10 133.81 1985-86 13.50 12.50 26.00 Total: I W.0V' 171.71 311.76
16. Statusof the project : Projectbrief for soliciting & feasibilitystudies : finance submitted to Govt. Detailproject under preparationby BPDB.
17. Contribution& inputsrequired : None from other agencies
18. Major outstandingpolicy issues : None
19. AnticiVsted constraints : Foreign finance. 20. EstimatedReduction in oil : This will facilitatesubstitute DemandResulting from project oil no doubt in terms of light and motive power,but it cannot be quantifiedeasily.
21. Economic& FinancialParameters : (a) Benefitcost ratio of the (rate of return,net present Project: value,etc.) i) Financial- 1.087%@ 15% discountrate. ii) Economic- 1.0897%at 15% discountrate. (b) Internalrate of returnof the Project: - 63 -
8:3
i) Financial - Insignificant * ii) Economic - Insignificant (c) Annual financial rate of return in the year output reaches normal capacity (Specify year): 64.74%on the 10th year of operatoni.e. 1994-95.
22. SponsoringAgency Remarks : This projectis very important and urgent,because of overload of existingsubstations. - 64 -
9:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of project : Power Distribution Project (East Zone)
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board
6. Other Agencies involved
7. Location : Eastern Zone of Bangladesh
8. In house implementation : Only construction through local contractor.
9. Name and address of the firm : Various implementing the project 10. Main objectives : To supply power to the rural areas, district towns and growth centers.
11. Brief description main : Procurement & installation componements/activities of equipment & materials for sub-transmission and distribu- tion facilities in Eastern Zone. See Annex.
12. Estimatedcost (1980)1/ : Total : Tk 2219.69 million F.E. : Tk 821.02million
13. Financing (donorprospect) : No foreign finance known.
14. Implementationperiod : 1976-77 to 1984-85 15. Proposedphysical & financialprogram
1/ Executionand operationcosts are not included. - 65 -
9:2
Physical Schedule of Works
Installation Survey/ Land aequisition Construction of equipment Year Desige development Residential Functional and machinery
Up to Jan '82 10% 5% 5% 10% 30% 1982-83 40% 30% 20% 40% 20% 1983-84 30% 40% 40% 40% 30% 1984-85 10 25% 35% 10% 20%
FinancialSchedule of Works
Year Local ForeignExchange Total
Exp. up to June '82 589.56 18.90 608.46 1962-83 172.10 40.00 212.10 1903-84 382.20 457.27 839.47 1984-85 254.81 304.85 559.66 Total 13898.67 821.02 2219.69
16. Statusof the project : Projectproposal approved by & feasibilitystudies Government 17. Contribution& inputs : None required from other agencies
18. Major outstanding policy issues : None
19. Anticipated constraints : 1. Foreign exchange finance. 2. Local currency supply still remains outstanding 20. Time table for completion : See item 14 of the project 21. Estimated Reduction in oil : 263,211 tons (rural energy Demand Resulting from project for lighting & irrigation pumping and milling power).
22. Economic& Financial Parameters : B.C.R. - 0.83 rate of return,net present N.P.V.- (-)1142.20 value,etc. (See Annex-2)
23. SponsoringAgency Remarks : Withoutimplementation of this project electrification programme will hamper and dependence on oil import will continue. - 66 -
MAnex-1 9:3
Power DistributionProject (East Zone)
Physicalfacilities:
1. 33 KV lines 2582 Km
2. 11 KV lines 2237 Km
3. 0.4 KV lines 1511 Km
4. 33/11 KY Sub-stations
a) 2.5 MVA 94 Nos.
b) 1.5 MVA 66 Nos.
5. 33/.4 KV Sub-stations
a) 100 KVA 273 Nos.
b) 50 KVA 248 Nos.
6. 11/.4 KV Sub-stations
a) 250 KVA 248 Nos.
b) 100 KVA 286 Nos. c) 50 KVA 166 Nos.
d) 25 KVA 72 Nos.
I - 67 -
Annex-2 9:4
POWERDISTRIBUTION PROJECT (EAST ZONE)
Project Analysis (Financial) (Based on Latest Tariff)
Discount rate: 15% Total Cost: - Tk. 2219.69 million F.E. - Tk. 821.02 million
(IN MILLIONTAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit
1976-77 5.16 - 5.16 9.02 1977-78 18.16 - 18.16 27.61 1978-79 125.68 - ~'125.68 166.21 1979-80 98.84 - 98.84 113.67 1980-81 147.36 335.04 482.40 482.40 313.77 313.77 1981-82 213.26 342.69 555.95 483.43 348.28 302.85 1982-83 212.10 513.19 725.29 548.42 540.44 408.65 1983-84 839.47 553.42 1392.89 915.85 599.88 394.43 1984-85 559.66 597.94 1157.60 661.86 665.87 380.71 1985-86 - 663.84 663.84 330.04 739.11 367.47 1986-87 - 734.77 734.77 317.66 820.42 354.69 1987-88 - 813.22 813.22 305.72 910.67 342.35 1988-89 - 898.36 898.36 293.67 1010.84 330.44 1989-90 - 971.98 971.98 276.30 1122.03 318.96 1990-91 to - 971.98 x 971.98 x 1122.03 x 1122.03 x 2014-15 25 - 24299.50 1.835 25 1.835 X 1783.58 - 28050.75 - 5573.24
6715.44 5573.24
NPV - 5573.24 - 6715.44 = (-)1142.20
BCR = 5573.24 - 0.83 6715.44
Base Year for Present Worth: 1980-81 - 6E -
10:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1 Sector : Energy
2. Sub-sector : Power
3. Name of Project : System Loss ReductionScheme. 1/
4. SponsoringMinistry : Ministry of Energy and MineralResources S. ExecutingAgency : BangladeshPower Development Board 6. Other Agencies involved : None 7. Location : EntireArea of Bangladesh
8. In house implementation : Some localconsultant/ contractor will be engaged for specific work.
9. Name and addressof the firm : Not known yet. implementing the project
10. Main objectives : To reduce the existing system loss in BPDB system from 32% to 18% by 1985.I. 11. Briefdescription main : Procurement& installationof components/activities meter test sets,capacitors, energymeters and associated tools & tackles. Reorganization and enforcement of a system of checking in the administration of energy sales. 12. Estimatedcost (1982) : Total: Tk. 197 million F.E. : Tk. 130.5 million
1/ The projectshould be givenhigher priority. 2/ ODA is presentlyfinancing a managementstudy for BPDB which coverspart of this project. The activitiesshould be coordinated with CDA financedproject. - 69 -
10:2
13. Financing (donor prospects) : ADBloan, Swiss & Saudi grant expected.
14. Implementation period : Commencement: 1981-82 Completion : 1984-85
15. Proposed physical 8 financial program Physical Schedule of Work Year Installation of Equipment and Machinery
1982-83 40% 1983-84 60%
Financial Schedule of Work
In Million Taka Year Local Foreign Exchange Total
1982-83 25.421 78.330 103.751
1983-84 41.106 52.182 93.288
Total 66.527 130.512 197.039
16. Status of the project : Partly financed by ADBfor & feasibility studies procurement of Capacitor Bank. To minimize the non- technical loss, re-oganization in administrative system is already under process. The available Capacitor Bank in store is under process of installation. 17. Contribution & inmputs required : None from other agencies
18. Major outstanding policy issues : - 19. Anticipated Constraints : Communication between Commercial Operation and different area & sub-area electric distribution management. - 70 -
10:3
20. Time table for completion : See item 14 of the project 21. Estimated Reduction in oil : Not applicable Demand Resulting from project
22. Economic & Financial Parameters : Not applicable (rate of return, net present value,etc.)
23. SponsoringAgency Remarks : It is the responsibilityof the Commercial Operation of BPDBto remove the apparent constraints. - 71 -
11:1 BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2 Sub-sector : Power
3. Name of project : Barisal-Patuakhali Bhola 132 KV Transmission line
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources
5. Executing Agency : Bangladesh Power Development Board
6. Other Agencies involved : None
7. Location : Barisal & Patuakhali Districts
8. In house implementation : Construction by contractor
9. Name & address of the firm : Not yet decided implementing the project
10. Main objectives : To extend Grid supply up to Patuakhali to meet growing demand of the area. 11. Brief descriptionmain : Procurementinstallation and components/activities commissioningof 96 Km single circuit132 KV line equipments and materialsand associated 2 x 20 MVA sub-stations#at Patuakhali. 12. Estimatedcost (1983) : Total:Tk. 348.48million F.E. : Tk. 165.00 million 13. Financing(donor prospect) : Not known to BPDB
14. Implementationperiod : 1983-84to 1986-87
15. Proposedphysical & financial program - 72 -
11:2
Physical Schedule of Works
Preliminary Procurement of Installation Testing and Year Works materlals/equipment of equipment commissioning
1983-84 100% 20% 10% - 1984-85 - 50% 20% - 1985-86 - 30% 40% - 1986-87 - 30% 100%
Financial Schedule of Works
In million Taka Year Local Foreign Exchange Total
1983-84 4.83 6.00 10.83 1984-85 2.27 56.49 58.76 1985-86 127.38 92.31 219.89 .1966-87 49.00 10.00 59.00 Total 1W U 1-65.0 348.48
16. Status of the project : Project study underway (in & feasiblity studies house)
17. Contribution& inputs required : None from other agencies
18. Major outstanding policy issues : None
19. Anticipated Constraints : 1) Foreign exchange finance 2) Local currencysupply
20 EstimatedReduction in oil : 8695 tons Demand Resulting from project 21. Economic & Financial Parameters : B.C.R. - 0.584 (rate of return,net present N.P.V. - -175.23 value,etc.) ~.7)~ ~ ~ ~ ~ ~~~~~~7
- 73 -
12:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Subsector Power
3. Name of Project : Area CoverageRural Electrification,Phase III.A
4. SponsoringMinistry : Ministryof Energyand MineralResources
5. ExecutingAgency : Rural ElectrificationBoard
6. OtherAgencies involved : Power DevelopmentBoard BSCIC, BADC 7. Location : 12 PBS Areas in different districtsof the country. Final areas will be determined after study.
8. In house implementation : Partly
9. Name and address of the firm : Prequalifiedlocal Consultants implementing the project and Contractors 10. Main objectives : To provide electricpower to rural areas for production, employment creation, rural household and community services in project areas. 11. Brief description,main : a. Physical works involved: components/activities Mileageof line
1. Three Phase Primary line 2052 2. Single Phase Primary line 2461 3. Secondary line 2687 7200 - 74 -
12:2
b. PhysicalTarpets:
Connections(Nos.)
1. Residential/Commercial166128 2. Irrigetion 3588 3. Industrial 1392 171108
12. Estimatedcost : Foreigncurrency: Tk. 1798.914mln. Total : Tk. 2389.279aln.
13. Financing(Donor prospect) : None so far
14. Time table for completionof : July 1983 - June 1989 the project
15. Proposedphysical and financial: program
PhysiclScihdule of Wbzk
Year Items of Nbzk 198-64 1984P-85198346 198647 1987-6819888
1. itutioi &Mdo=Mt 50 50 _ - ' - detail survq 2. Lad aquAstion& d&wqopise, 40 40 20 - - - civil cowtmctcmi 3. Procuremetofmterals - 25 40 20 15 - 4. Eectricalcmtruction - - 25 40 20 15
Finaa Schedu of Wob*
In mllion Taka Year load cwenx X__no of t" F_g_ %oftoal 1983-84 11.610 1 - - 1984-85 200.839 19 408.583 23 1980-86 337.704 33 675.204 37 186-87 227.372 22 373.758 21 1987-88 168.130 16 305.617 17 198-9 94.710 9 35.752 2 ITOW 1040.365 100 114 100 -75-
12:3
16. Status of the project and : The project has not yet been feasiility study submitted to the Govarnment. A feasibility study was carried out by Messrs. NRECA/CAIof USA for a project of similar nature namely ACRE, Phase-I. Based on ii that study 3 more projects being implemented. Since the project is of similar nature no detail feasibility study is thought to be required. E[owever REB will carry out a brief study to determine the locations of the 12 Rural Electric Socleties.
17. Contribution and inputs : Power at 33 KV from Power required from other agencies Development Board
18. Major outstanding policy issues : None
19. Anticipated constraints : Financing source both for local currency as well as foreign exchange component.
20 Implementation period : Commencement: July 1983 Completion : June 1989
21. Estimatedreduction in oil : a. Kerosene: 35,803,872lbs. demand resulting froa project b. Diesel : 3,424,939 gallons c. Lubricant: 131,874gallons
22. Economic& financialparameters : I.R.R.for A.C.R.E.Phase II.b (rate of return,net present project(IDA financed)is 20%. value,etc.) This project is of same nature.
e - 76 -
13:1
BANGLADESH
PRIORITYINVESTMENT PROGQUM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Power
3. Name of Project FeasibilityStudy for Ashuganj Thermal Power Station, 2nd Extension.
4. SponsoringMinistry Ministry of Energy & Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board.
6. Other AgenciesInvolved : None
7. Location Ashuganj
8. In house implementation : Partly .... Assistingthe consultants.
9. Name and Addressof the firm : not yet known. lmplementing the project
10. Main Objectives : Engineering study for addition of 4th unit to the existing Thermal Power Plant at Ashuganj. 11. Brief description main : Please see Annex. components/activities
12. Estimatedcost : Total : Tk. 6.8 million F.E. : Tk. 5.44 million
1.3. Financing (donor prospect) : Not known to BPDB.
144 Implementation period : 4 (four) months. Commencement: August 1983.
15. Proposedphysical and : Please see planning schedule 'financialprogram at Annex-2
3-6.;" Status, of the project and : Project proposal to be submitted feasibililtystudiei to Government. - 77 -
13:2
17. Contribution and inputs : None required from other agencies
* - 18. Major outstanding policy issues : None
19. Anticipated Constraints : Foreign Exchange Fiuance.
20. Time table for completion : 4 (four) months. Commencement:August 1983. 21. EstimatedReduction in oil : Not applicable. DemandResulting from project
22. Economic& Financial : Not applicable. Parameters(rLte of return, net presentvalue, etc.)
23. Sponsoring AgencyRemarks : As per generationaddition scheduleof BPDB,approximately 150 Mi is requiredby December 1989. As it requiresabout 7 to 8 years to build a ThermalPower Plant from date of conceptionof project,the feasibilitystudy is requiredto be done shortly.
24. Numberof Documentsattached : 1 (One)
4 - 78 -
Annex-i 13:3
FEASIBILITY STUDYFOR ASHUGANJTHERMAL POWERSTATION SECOND EXTENSION
SCOPE OF WORK:
The work envisageson engineeringstudy to be furnishedin the form of a Project Report in connection with the construction of a steam power station having a capacity around 150 MWin the premises of existing thermal power plant at Ashunganj in Comllla district of Bangladesh. mhe works would include but not be limited to the following:
1. Reconnaisance survey of Ashuganj and other alternative sites and to determine the most suitable location based on geological, hydrological, mateorological, seismological date, transport and communication facilities. 2. Collection of data of existing power system of Bangladesh relevant to the study of the proposed feasibility. 3. Study and review the forecast on power demand and energy consumption available with the PDB and make independent aseessment of the same as required. 4. Undertake load-flow, short-circuit and stability studies to test the systemwith and withoutEast-West Interconnector and its performancebefore and after the installationof the proposed plant consideringdifferent alternative cases, i.e. peak load, tight load or faultlocation at differentpoints etc. and five necessaryrecommendations. 5. Study the mid-termpower developmentprogramme of Bangladesh PowerDevelopment Board. 6. Study the sourcesand supplyof gas in globalperspective of Eastern Zone of Bangladesh an show financialimplication of alternative fuels. Recommend reinforcement in gas supply as required. 7. Study the source,quality and availabilityof plantcooling water and boiler make-up water. Study the implication of this addition. 8 Study the local availability of equipment and materials which can be utilized for the proposed plant and suggest foreign procurement otherwise. 9. Select appropriate technology and most economic plant/unit size for the proposedconstruction after comparingwith the alterna- tives with respectto existingsystem demand as well as forecast demand. 10. Preparation of itemized cost estimates for the proposed plant in detail showing foreign and local currencies involved and the annual phasing of expenditure. 11. Study the financialand economicjustification of the proposed plant in exhaustivedetails. 12. Preparationand submissionof draft report. 13. Submissionof final report. - 79 -
14:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Power
3. Name of Project : BPDB TariffStudy
4. SponsoringMinistry : Ministryof Energy and Mineral Resources. 5. ExecutingAgency : BangladeshPower Developent Board.
6. Other Agenciesinvolved : None
7. Location
8. In house implementation : Partly. BPDB personnelwill be attached to the Foreign Consultants.
9. Name and addressof the firm : Not known yet. implementingthe project
10. Main objectives : Tariff Study based on long-run marginal cost.
11. Brief descriptionmain : Scope of work not yet drawn. components/activities
12. Estimatedcost : Total: Tk. 11 million (US$0.5 M.) (out of which 0.05 Million Tk. 1.1 millionconvertible).
1L. Financing(donor prospect) : Not known to BODB
14. Implementationperiod : Commencement: January1984 Completion : June 1984.
15. Proposedphysical and : Work to be completedin 6 financialprogram months.
16. Statusof the project : This project is a covenant of and feasibility studies the loan agreement in the Ashuganjthermal power station extention, nothing has been done as yet, due to lack of financing resource. - 80 -
14.2
17. Contributionand inputs requiredfrom other agencies.
18. Major outstandingpolicy : None issues 19. Anticipatedconstraints : ForeignExchange Finance.
20. Time table for completion : See Item 14. of the project 21. EstlimtedReduction in oil : Not applicable. Demand Resulting from project
22. Economic and Financial : No direct application. Parameters (rate of return, N.P.V. +229.66 net presentvalue, etc.)
0
fl~~~~.
' )
, ) 0 - 81 -
15:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of Projeet : Pre-stressedconcete Pole ManufacturingPlant at Aricha.
4. SponsoringMinistry : Ministryof Energyand Mineral Resources.
5. Executing Agency : BangladeshPower Development Board. 6. Other Agencies involved : Trading Corporation of Bangladesh for allocation of cement.
7. Location : Aricha Dhaka. 8. In house implementation : Partly;Top supervisionand civil works.
9. Name and addressof the firm : Not yet decided. implementing the project
10. Main objectives : Settingup a plant for produc- tion of P.C. Poles for BPDB.
11. Brief description main : Procurementand installation of components/activities spun concretepole (pre- * stressed)manufacturing equip- ment and executionof ancillary civil works.
12. Estimatedcost (1982) : Total : Tk. 98.966 million F.E. : Tk. 43.551million
13. Financing (donor prospect) : P.R. China has shown interest. 14. Implementation period : Commencement : 1982-83 Completion : 1983-84
15. Proposed physical and financial program
_, - 82 -
15:2
Physical schedule of works
Installation of Land acquisitlon Construction equipment and Year development Residential Functional machinery
1882-83 100% 40% 60% 60% 1983-84 60% 40% 40%
Financial schedule of works
(In million Taka) Year Local Foreign Exchange Total
1982-83 22.862 23.656 46.518 1983-84 32.553 19.895 52.448
Total 35.415 43.551 98.966
16. Status of the project and : P.P. and Project Report prepared feasibility study and submitted for Government approval.
17. Contribution and inputs : None required from other agencies 18. Major outstandingpolicy : To be includedin SecondFive issues Year Plan.
19. Anticipated Constraints : 1) Foreigncurrency financing. 2) Local currency shortage.
20. Time table for completion : See item 14. of the project
21. EstimatedReduction in oil Demand Resulting from project
22. Economic tnd Financial : Indicators Financial Economic Parameters(rate of return, B.C.R.= 2.32 2.39 net presentvalue, etc.) N.P.V.- + 3677.27
23. SponsoringAgency Remarks : None detailproject pro?. see BPDB document(Pp. June 1982)
Ii t,, - 83 -
16:1
BANGLADESH
PRIORITY INVESTMENTPROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of Project : 60 KW Gas Turbine Power Station (in East Zone) Land Based.
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources.
5. Executing Agency : Bangladesh Power Development Board.
6. Other Agencies involved : None
7. Location : Ashunganj, Comilla.
8. In house implementation : Partly
9. Name and address of the firm : Not yet decided. implementing the project
10. Main objectives : To meet the gap between avail- able generation capacity and peak load of the integrated grid system by 1985-86.
11. Brief description main : Procurement, installation and components/activities commissioning of 60 MW gas tur- bine generator and associated equipment and extension of 132 KV switchyard. 12. Estimated cost (1983) : Total: Tk. 577.50 million F.E. : Tkc.412.5 million
13. Financing (donor prospect) : Not yet known.
14. Implementation period : July 1983/84 - September 85/86.
15. Proposed physical and financial program -84 -
16:2
Physical Schedule of Wcrk - ,.
Installation Survey/ Land Acquioition Construction of equipment Year Design and Development Residential Functional & Machinery
1983-84 100% 100% 20% 20% 10% 1984-85 - - 40% 40% 80% 1985-86 - - 40% 40% 10%
Financial Schedule of -
In million Taka Year Local Foreign Exchange Total
1983-84 36.59 41.25 77.84 1984-85 61.16 330.00 391.16 1985-86 67.25 41.25 108.50
Total: 165.00 412.50 577.50
16. Statusof the project : Projectstudy underway(in and feasibilitystudies house)
17. Contributionand inputs : None requiredfrom other agencies
18. Major outstandingpolicy : None issues
19. Anticipated Constraints : 1) Foreign exchange finance 2) Local cv.rrency shortage
20. Time table for completion : See item 14 of the project
21. EstimatedReduction in oil : 68338 tons oil equivalent(toe) DemandResulting from project Z2* Economicand Financial : N.A. Parameters (rate of return, net presentvalu2, etc.) 23. Sponsoring Agency Remarks . None
.~~~ ~ ~ ~ - 85 -
17:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector : Power
3. Name of Project : 60 MWGas Turbine Power Station (East Zone) (Barge Mounted)
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources
5. Executing Agency : Bangladesh Power Development Board
6I Other Ageucies involved : None
7. Location : Bakhabad, Comilla 8. In house implementation : Partly
9. Name and addressof the firm : Not yet decided implementing the project 10. Main objectives : To meet the gap betweenavail- able generationcapacity and peak load of the integratedgrid systemby 1984/85.
11. Brief descriptionmain : Procurement,installation and components/activities commissioningof 60 MW gas turbineand extensionof 132 KV switchyard. 12. Estimatedcost : Total : Tk. 559.20million F.E. : Tk. 451.50million
13. Financing(donor prospect) : Not yet known.
14. Implementationperiod : Commencement: 1983-84 Completion : 1984-85
15. Proposedphysical and financialprogram - 86 -
17:2 Physical Schedule of Work
Installation Survey/ Land Acquisition Construction of equipment Year Design and Development Residential Functional & Machinery
1983-84 100% 100% 40% 90% 90% 1984-85 - - 60% 10% 10%
Financial Schedule of Work
In million Taka Year Local Foreign Exchange Total 1983-84 90.30 451.5' 541.80 *'Z4-85 17.40 - 17.40
Total 107.70 451.50 559.20 vm& ====C.. .,,=
16. Status of the project : Project study underway (in and feasibility studies house)
17. Contribution and inputs : None required from other agencies 18. Major outstanding policy : None issues 19. Anticipated Constraints : 1) Foreign Exchange finance 2) local Currency shortage 20. Time table for completion : See item 14 of the project
21. Estimated Reduction in oil : 68338 tons oil equivalent (toe) Demand Resulting from project
22. Economic and Financial : N.A. Parameters (rate of return, net present value, etc.)
23. Sponsoring Agency Remarks : Without implementation of this project electrifi-stion program will hamper and dependence for oil import to continue.
C'~~~~~~~~~~ - 87 -
18:1
BANGLADESH
£ PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector ; Energy
2. Sub-sector : Power
3. Name of Project : Pre-feasibility study for mini- hydro power generation.
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources.
5. Executing Agency : Bangladesh Power Development Board.
6. Other Agencies involved : Bangladesh Water Development Board.
7. Location Chittagong,Chittagong Hill Tracts, Sylhet, Mymensingh, Rangpur and Dinajpur.
8. - In house implementation : Partly.
9. Name and address of the firm : Not yet decided. implementing the project
10. Main objectives : To examine the possibility of power generationby installing mini-hydroplants using potentialof small riversand a streams.
11. Brief descriptionmain : See No. 23 components/activities 12. Estimatedcost : Total : Tk. 2.2 million F.E. : Tk. 1.2 million
13. Financing(donor prospect) : Not known to BPDB.
14. Implementationperiod : 10 months.
15. Proposed physical and : The work will be completed financialprogram within 10 (ten) months. - 88 -
18.2
16. Status of the project : Reconnaissance survey in 1981 and feasibility studies by "Working Group" formed by Bangladesb Government.
17. Contribution and inputs : Contribution from Bangladesh required from other agencies Water Development Board.
18. Major outstanding policy : None issues
19. Anticipated Constraints : Foreign Exchange Finance.
20. Time table for completion : Please see Item No. 14. of the project
21. Estimated Reduction in oil : Not applicable. Demand Resnlting from project
22. Economic and Financial : Not applicable. Parameters(rate of return, net presentvalue, etc.)
23. Sponsoring Agency Remarks
Potential of small rivers like, Matamuhuri, Halda, Monu Dharla and numerous small streams of Chittagong Hill Tracts, Chittagong, Sylbet,Mymensingh, Rangpur and Dinajpurdistricts deserve investi- gations in decail. A country-widesurvey of potential is essential.
In 1981, a Working Group' formed by the erstwhile Ministry of Power, Water Resources and Flood Control submitted a report after reconnaissance survey of a few sites in five districts of Bangladesh. It recommended 12 sites for detailed investigation. No furtherprogress has been acLievedso far. Small and mini-hydro possibilitiesare to be investigatedwhich Bangladeshcan tap with great benefitto its economy. - 89 -
19:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY V~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. Sector : Energy
2. Sub-sector : Power
3. Name of Project : Canal drop small hydro power plant at Teesta.
4. Sponsoring Ministry : Ministryof Energyand Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board.
6. Other Agenciesinvolved : Bangladesh Water Development Board.
7. Location : 23 miles downstreamof main canal of TeestaBarrage Project in the district of Rangpur.
8. In house implementation : Partly. Top supervision, some civil construction,checking and testing. 9. Name and addressof the firm : Not known yet. implementingthe project
10. Main objectives : To construct a small hydro plant of approximately 8000 KW capacity.
11. Brief description main : Detailed design, procurement of components/activities hydro-turbines, generators, switchgears and ancillary equipment; civil construction, installation of machinery, testing and commissioning of approximately 4 x 2000 KW for a hydro power plant. The power plant will utilize the canal drop of main canal of Teesta Irrigation Project.
12. Estimated cost : Total : Tk. 264 million F.E. : Tk. 158 million -90-
19.2
13. Financing (dono; prospect) : Not known to BPDB.
14. Implementation period : January 1984 - June 1986.
15. Proposed physical and financial program
Physical Schedule of Work
Installation Survey/ Land Acquisition Construction of equipment Year Design and Development Residential Functional & Machinery
1984-85 100X 100% 20Z 501 40% 1985-86 - - 80% 50% 60%
O Financial Schedule of Work
In million Taka Year Local Foreign Exchange Total 1986,-85 45.6 60.00 105.60 1985-86 60.40 98.00 158.40
Total: 106.00 158.00 264.00
16. Status of the project : Pre-feasibility studies were and feasibility studies done by ACECof Belgium and NRECAof U.S.A. Detailed feasibility and Engg. has been proposed.. 17. Contribution and inputs : Hydraulic structure will be done required from other agencies through Water Development Board.
18. Major outstanding policy : 1. Coordination between Water issues and Power Board. 2. Inclusion of the program in the second plan.
19. Anticipated Constraints : 1. Foreign exchange finance. 2. Local currency shortage.
20. Time table for comple:ion : See item 14. of the project - 91 -
19.3
21. EstimatedReduction in oil : 9750 tons to 14,350tons. Demand Reault ing from project
1. Z-n-nomlcand Financial : Not yet computed. Parameters (rate of return, net pres*nt value, etc.)
2. Sponsoring Agency Remarks : None - 92 -
20:1
BANGLADESH PRIORITYINVESTNENT PROGRAM FOR ENERGY
1. Sector s Energy
2. Sub-sector : Power
3. Name of Project : Feasibilitystudy for A 100/190 MW Steam Power S1tationin West Zone.
4. SponsoringMinistry : Ministryof Energyand Mineral Resources.
5. Executing Agency Bangladesh Power development Board.
6. Other Agencies involved : None
7. Location : Generalarea in NorthernPart of West Zone.
8. In house implementation : Partly;in assistingthe consultants with local support.
9. Name and address of the firm : implementing the project 10. Main objectives : Engineering study for a thermal power plant of 100/150MW in West Zone of Bangladesh.
11. Brief descriptionof main : An engineeringstudy for components/activities constructionof a steam power plant with 100/150MW capacity in the Westernpart of the country. Some of the main components are: 1. Survey of possible sites for selection of the most suitable location. 2. Study and review the forecast on Power demand and energy consumption. 3. Study and recommendation on: load-flow, short-circuit, performance, stability of the plant and operation. -93-
20.2
4. Study the sourcesand supplyof alternative fuels and their financial implications. 5. Preparation of cost estimate for local and foreign currency requirements and financial and economic justification of the project.
12. Estimated cost (June 1982) : Total : Tk. 8.64 million F.E. : Tk. 7.26 million
13. Financing (donor prospect) : Not known.
14. Implementation period : 6 months.
15. Status of the project : Project proposal submitted to and feasibility studies Government for approval.
16. Contribu ,.on and inputs : None required from other agencies
17. Major outstanding policy : None issues
18. Anticipated Constraints : Foreign Finance.
19. Sponsoring Agency Remarks : This study is of utmost impor- tance In view of generation shortage in West Zone on the one hand and high cost of fuel at present on the other. - 94 -
G-l:l BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Oil and Gas
3. Name of the Project : Developmentof Kamta Gas Field and Interlinkingwith Titas System.
4. SponsoringMinistry : Ministryof Energyand Mineral Resources.
5. Executiig Agency : PETROBANGLA 6. Other agenciesinvolved : None
7. Location : Kamta Gas Field,Dhaka and Joydevpur,Dhaka
8. In-houseimplementation : Partly
9. Name and addressof the : 1- PETROBANGLA firm implementingthe 2- Titas Gas T&D Co., Ltd. project
10. Main objectives : The projectaims to drill a new well and workoverthe existing well at gas field produce25 MMCFD of gas. Constructionof a pipelineabout 10 miles long and 6" dia to supplygas to rhaka area which may be sufficientto
stablizegas shortageand low . - pressureproblems in Dhaka area.
11. Brief description/main : (i) Land acquisitionand deve- lopment (ii) Right of way (iii) One developmentwell Dril- ling (iv) Constructionof functional and residentialbuildings. (v) Procurementof equipfent and materials. (vi) Workoveroperation on the existingwell. -95-
G-1:2
(vii) Installationof well com- pletionequipment and surfacefacilities. (viii) Pipeline laying (6" dia 10 miles long). (ix) ExpertServices.
12. EstimatedCost (1982) : Total Cost: Tk. 264 mln - Foreign Exchange: Tk 180 mln (US$7.81mln)
13. F tnctng(donor prospect) : None
14. Implementation period : One year.
15. Proposed physical and : One year. financial program
lt,. Statusof the project : This project has been included and feasibility studies in ADN, T.A., for future financing. The study will be completed by December 1983.
17. Contribution and inputs : None requiredfrom other agencies.
18. Anticipatedconstraints : Financial
19. Major outstanding issues : None other than mobilization of financing.
20. Time table for completion : December 1983 to December 1984. of the project
21. Estimated reduction in oil : US$ 78.00 mln per annum 1/ demand resulting from project
22. Economic and financial : B.C.R. - 1.162/ parameters (rate of return, N.P.V. - +229.66 net present value, etc.)
1/ There is no basis for such a considerable amount of saving by replacing imported commercial fuel, especially the supply from this field is aimed to remedy the low pressure critical situation of the Dhaka area.
2/ Calculations are not correct. - 96 -
G-1:3
Sponsoring agency romarks : Kamta well No. 1 was drilled to a depthof 3614M.Production testing confirmed commercial gas in only one zone. Other five zones yeilded water with gas. Reinterpreted Seismic data shows that well No. 1 is drilled off the crast of 2nd closureby about 1 km. It can be assumed from test resultsand Seismic data that well No. 1 passed close to the gas watercon- tact. A second well on the southernclosure has a good chanceto discovergas in all these 5 horizons. Moreover there is a possibilityto encounterreservoir bed within the interval3600 - 4200 M. After the developmentof the field,this may produceabout 25 MMCFD of gas. A pipeline of 6" diam and 10 miles long would be laid from the field to Joydevpur for gas supply to Dhaka area, which may be sufficientto stabilizegas storageand low pressureproblem in Dhakaarea.
11~'s~ ~ ~ ~ ~ ~~~~~~~1
1/ Investmentdecision should be based on the reservoirevaluation of the discovery. -97_
G-2:1
BANGLADESH
PRIORItYINVESTMENT PROGRAM FOR ENERGY
1. Sector Energy
2. Sub,-2actor : Oil and Gas
3. Name of the Project : GREATERDHAKA GAS DISTRIBUTION PROJECT
4. SponsoringMinistry s Ministryof Energyand Mineral Resources
5. Executing Agency PETROBANGLA/UAWITS 0 6. Other agencieti involved : None
7. Location: i) Jinjira, Dhaka ii) Manikganj, Dhaka iii) Aricha, Dhaka iv) Tangail,Tangail v) Kaliganj, Dhaka
8. In-houseimplementation : Contractor
9. Name and addressof the : Petrobangla/TitasGas T&D Co., firm implementing the Ltd. will supervise. Local Project. contractorwill be selected.
10. Main objective : The existingGreater Dhaka Gas Distribution System did not cover ctrtain areas in and around Dhaka, such as Jinjira, Mainkganj, Tangail and Kaligonj. This project envisages to extend gas distribution facilities to the above townshipsand industrially developedzones. The components of the projectare as follows:
i) JinjiraGas Distribution Network. ii) Savar-Mainkganj-ArichasGas DistributionLine and Distri- butionNetwork. - 98 -
G-2:2
iii) Tangail- JoydevpurGas Distri- butionNetwork. iv) KaligonjGas Distribution Network. 1/
11. Brief descriptionof main : i) Land acquisitionand components/activities ii) Right of way iii) Civil constructionwork iv) Procurement of material and equipment v) Fabricationand Erection of DRS and RMS (Regulatingand Metering Stations) vi) Pipelaying
a)3 zi 4ira 12" dia 4000 rft 4" dia 4000 rft 2" dia 10000 rft 1* dia 10000 rft 3/4" dia 100000rft
b) Savar-Meinkganj-Aricha 4" die 10000 rft 2" dia 15000 rft l1 dia 25000 rft 3/4" dia 30000 rft
c) Tanoail 10" dia 220000rft 4" die 30000 rft 3" dia 30000 rft 2" dia 40000 rft 1" dia 50000 rft 3/4" dia 10000 rft
d) Kaliganj 6* dia 75000 rft 4" dia 15000 rft 2" dia 10000 rft 1" dia 15000 rft 3/4" dia 10000 rft
1/ Already the greate:Dhaka area is in need of supplyif addi- tional distribution Network is created Transmission pipeline should be implemented parallel to this project and the Economicsof both should be considered. ADBis financing the feeder pipeline. 99
G-2:3
vii) River,canal and highwaycrossing includingthe river Buringanga.
12. Estimatedcost (1980) : Jinjira (US$ 1 - Tk. 23.00) Total Cost : Tk. 46.00 mlun ForeignExchange : Tk. 17.00mln (US$ 0.74 mln)
Savar-Nanikgonj- Aricha
Total Cost : Tk. 120.00mln ForeignExchange : Tk. 33.00mln * :1 (US$ 1.43 1.n) Tan_gail
Total Cost t Tk. 152.00mln ForeignExchange : Tk 48.00mml (US$ 2.10 mln)
Kaligani
Total Cost : Tk. 33.00mln ForeignExchange : Tk. 10.00mln (US$ 0.43 mln)
For the whole Project
Total Cost : Tk. 351.00mlu ForeignExchange : Tk. 108.00mlu (US$ 4.70 mla)
The cost has been estimatedduring November1980 and based on prices prevailingat that time.
1. Financing (donor prospect) : None
2. Implementation period : Three years
3. Proposed physical and financial program
ft -100-
G-2:4 PHYSICALPROGRAM
Suarvey/ Land development/ Civil Year Design acquisition Construction Procurement Pipelaying
1 100% 70% 30X 50% 2 - 30% 30% 50% 50% 3 _ - 40% - 50%
FINANCIALPROGRAM (TK in MLNS)
Year Local Currency ForeignExchange Total
1 48.00 50.00 98.00 2 107.00 58.00 165.00 3 88.00 - 88.00
TOTAL: 243.00 108.00 351.00
Both physical and financialprograms are tentative.
16. Status of ths project and : This is an approvedproject. feasibilitystudy. Titas Gas Transmissionand Dis- tributionCo. Ltd. has prepareda Project Preparation Report on GreaterTitas FranchiseArea Gas Distributionin April 1982 on which basisthis projectprofile has been prepared.
17. Contributionand Inputs : For financialrequirement requiredfor other agencies PlanningCommission and External ResourcesDivision will be directlyinvolved.
18. Anticipatedconstraint Financial
19. Major outstandingpolicy issue : None
20. Time table for completionof : It will take 3 years to complete. the project A tentativeprogram is shown in item 15. 1.01 -
G-2:5
21. EstimatedReduction in Oil : It is estimatedthit about 6 Demandresulting from Project MNCF of gas will be consumed per day in these four townships. This gas -411save Tk. 437.00 mln (US$ 19.00 mln) of imported oil annually. 1/
22. Economicand Financial : Benefitcost Ratio:1.14 2/ parameters(Rate of Return InternalRate of Return:29T net presentvalue, etc.) N.P.V. - +145.35
23. SponsoringAgencies' Remarks : Implementationof this project help to supplygas to Jinjira, Manikganj,Kaliganj and Tangail for industrial,commercial and domesticuse.
After the implementation of the project no. of connection would as follows:
Name of the Industry Brick field Commarcial Domestic Town
Jinjira 120 70 90 560
Manikgonj- 10 8 30 4000 Aricha
Tangail 60 5 170 1000
Kaliganj 1 2 10 500
TOTAL: 191 85 300 15060
The source of supply (average requirement 6 MMCFD)of gas will be from existing Titas System.
1/ The saving is overestimated.
2/ These numbers ar taken from the PP 1980 which included the two pipelinesnow being financedby A.D.B.,and are not correct. - 102 - G-3:1 BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Oil and Gas
3. Name of the Project : Developmentof RashidpurGas
.4' .- '-' Fieldand interlinkingpipeline to Titas System.
4. SponsoringMinistry : Ministryof Energyand Mineral Resources.
5. Executing Agency : PETROBANGLA
6. Other Agencies involved : Titas Gas Company
7. Location : Rashidpurarea
8. In-houseimplementation : Partly. Contractorswill be used for pipeli.ne implementation.
9. Name and addressif firm : Will be selectedwhen project implementing starts.
10. Main objective : The projectaims co utilizethe gas production resources of Rashidpurfield which has been shut in since the fieldwas discovered.
11. Brief description/main : i) Land acquisitionand civilwork ii) Workoverof 2 wells iii) Productionof facilities, procurementand installation iv) 55 miles of 18' pipeline
12. Estimatedcost : Total cost: Tk. 531.10millions ForeignExchange Tk. 298.50 millions - US$ 13.00 millions
13. Financing(donor prospect) : None
14. Implementation Period : Two and half years ^ 103 -
G-3:2
15. Proposed physicaland: financialprogram
PHYSICALPROGRAM
Year CIVILWORK Pipeline SurfaceEquipment and Land acquisition construction well workover. development/RBW and material
1 60X 50% 70%
2 40X 352 30%
3 15%
FINANCIALPROGRAM
Year CIVILWORK Pipeline Surfaceequipment and Land acquisition materialand well workover development/RBW construction
LC FE LC FE LC FE
1 30 70 100 17 67.1
2 20 56 70 18 31
3 18 30
TOTAL 50 147 200 35 98.1 - Tk.53110
16. Statusof the project : Rashidpurwell No. 1 was drilled at. feasibilitystudy in 1960 and well No. 2 completed in 1961. Both wells were consi- dered as profilic gas producers. However, due to variousconstraints and lack of pipelineconnection to distributionsystem, the wells have been shut in. The componentsof the projecthave been approvedby the GOB. - 104 -
G-3:3
17. Contributionand inputs : Nona requiredfrom other agencies.
18. Anticipatedconstraints : None
19. Major outstandingpolicy : None issues
20. Time table for completion : See #14
21. Estimatedreduction in oil : This projectwill add 60 MMCF demand resulting from Project which is equal to 0.53 million tons of oil equivalent(TOE) annually. Total price of which is = US$ 133 millions.1/
22. Economicand financial parameters
23. Sponsoringagency remarks. : RashidpurGas Field has 2 shut-inwells, which could be quickly workedover and broughtinto production.The connection and de- velopment of this field with the existing Titas System will provide a lot of flexibility and reliability and also meet addi- tional gas demand of the system starting from 1985-86. The de- velopment of this field would supply 60 MNCFDof additional gas which is equivalent to 0.53 million tons of oil equivalent (TOE) annually and save around US$ 133.00 million annually against imported fuel. The total estimated cost of the project is US$ 23.00mln. including US$ 13.00 million in foreign exchange. It will be seen that one year's saving in foreign exchange (11S$ 133.00mln) far exceeds project's total investment (US$ 23.00 mln). This would more than justify immediate implementation of the project. 2/
-3
1/ There is no basis for this figure.
#/ The same quantity of gas may be produced from Titas or Habiganj with considerably lower cost. - 105 -
G-4: 1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Oil and Gas
3. Name of the Project : GAS TRANSMISSIONAND DISTRIBU- TION TO MIMENSINGHAND JAMALPUR VIA KISHOREGANJ.
4. Sponsoring Ministry Ministry of Energy and Mineral
5. Executing Agency : PETROBANGLA/UNITS
6. Other agencies involved : None
7. Location : (i) Bhairab bazar, Mymensingh (ii) Kishoreganj,Mymensingh (iII) Mymensingh (iv) Jamalpur (v) BahadurabadGhat, Jamalpur (vi) Jagannathganj Ghat, Mymensingh 8. In-houseimplementation : Partly
9. Name and addressof the : Petrobanglaand Titas Gas will ftrm implementingthe project supervise. Local or Foreign contractorswill be selected.
10. Main objective : The main objectiveof the projectis to extendthe gas facilitiesto Mymensingh, Jamalpur,Kishoreganj for distributionof gas, industrial, commercial and domestic pur- poses. This also includes an extensionup to East Bank of the River Jamunafor the purposeof supplying gas to fertilizer factory which is planned to be constructed.
11. Brief description/main :(i) Land acquisitionand activities development (ii) Right of way - 106 -
G-4:2
(iii) Civil constructionwork (iv) Procurement of material and equipment (v) Fabricationand Erectionof DRS and RMS (Regulatingand MeteringStations). For more informationsee Annex-1.
12. EstimatedCost : For Transmission: (US$1 - TK23) Total Cost :Tk. 374.00mln. ForeignExchange :Tk. 172.00mln. (US$ 7.50 mlm.)
For Distribution: Total Cost : Tk. 104.00mln. ForeignExchange : Tk. 41.00 mln. (US$ 1.80 mln.)
Total Cost : Tk. 478 mln. F.E. : Tk. 213 mln. (US$ 9.3 mln.)
13. Financing(donor proposed) : None
14. Implementation period : Three years
15. Proposedphysical and Financial program - 107-
G-4:3
PHYSICALPROGRAM
Year Survey/ Land acqn./ Civil Procure- Pipelaying Distribution design developmevt const. ment (Trans) network
1 100% 70% 30% 80% - - 2 - 30% 30% 20% 100% 30% 3 - - 60X - - 70%
TOTAL 100% 100% 100% 100% 100%
FINANCIALPROGRAM (Tk. in million)
Year Local Currency ForeignExchange Total Cost
1 45.00 170.00 215.00 2 154.00 43.00 197.00 3 66.00 - 66.00
TOTAL 265.00 213.00 478.00
Both Physicaland Financialprograms are tentative.
16. Statusof the Projectand : An EngineeringStudy for Gas & feasibilitystudy. EasternBank of the JamunaRiver (underapproved PC-II form) has been carriedout by Titas Gas Transmission& DistributionCo., Ltd., in 1981, on which basis this projectprofile has been prepared.
17. Contributionand Inputs : None requiredfor other agencies
18. Anticipatedconstraints : Financial
19. Major outstandingpolicy : None issues 20. Time table for completion : It will take 3 years to complete the work. Refer to #14. - 108 -
G-4 :4
21. EstimatedReduction in Oil : Tk. 160-0.00mln. anntuallym Demandresulting from US$ 70 mln./Year. 1/ Project 22. Ecooomicand Financial : N.A. Parameters (Rate of Return, net present value, etc.)
23. Sponsoring Agencies' Remarks : In view of the increasing crises of the liquid and other indigenousfuel, it is felt very much necessaryto extendthe gas facilitiesup to Mymensingh,Jamalpur and Kishoreganjfor distributionof gas for Industrial,Commercidal and Domestic purpose of use. There are quite a good numberof small scale commercial and dtestic customers at present and after extending the gas facilities in these areas, more commercial consumer in small scale will come up. At the initialstage No. of connectionswould be as follows: Industrial Commercial Domestic
Mymensingh 57 600 10000 Jamalpur 2 200 2000 Kishoreganj 13 200 3000' Total 72 1000 15000
The industrial customers Jute Mills, Sugar Mills,Metal Industries, Rice Mills, Brick Fields, Oil Mills, etc. The source of supply (averagerequirement 23 MMCFD) of gas will be from Titas as well as Eabiganjgas field. At Titas 3 wells under ADB assistanceand at Hibiganj2 wells under FrenchAssistance will be completed by 1985. The pipeline will be extended up to the East Bank of the river Jamuna for the purpose of gas utilization by fertilizer factory at the river bank is i9 minimize the transportation cost of fertilizer factory.- The objective of fertilizerfactory at the river bank is to minimizethe transportationcost of fertilizerand to facilitatestoring for timelydistribution to the farmers.
1/ The savingis overestimated.
2/ No firm plan is underwayfor constructionof a fertilizerfactory in that area. - 109 -
G-5:1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Oil and Gas 3. Name of the Project : SYLHETTEA ESTATESGAS (SUPPLY) DISTRIBUTIONPROJECT (PHASE II)
4. SponsoringMinistry : Ministryof Energyand Mineral Resources
5. ExecutingAgency : PETROBANGLA
6. Other agenciesinvolved : None
7. Location : Small townshipin and aroundLugala Juri Area, Sylhet
8. In-houseimplementation : Contractor
9. Name and addressof the : Local Contractorto be selected firm implementingthe Project.
10. Main objective : 57 Tea-Estates(remaining Tea- Estatesafter the completionof 1st phase),100 commercialand 4000 domesticunits in and aroundLungla and Juri Areas, in the Districtof Sylhet.
11. Brief description/main i) Land acquisitionand development ii) Right of way iii) Civil constructionworks. iv) Procurementof materialand equipment v) Pipeline,Laying (Transmission) a) 6' ND, 110,000' b) 4" ND, 264,000 vi) DistributionNetwork a) 3" ND, 160,000' b) 2" ND, 110,000' 110-
G-5:2 c) 1" NDs 40,000' d) 3/4 ND, 100,000' 'I, vii) River Crossing,4000' viii) Rail crossing, 1000' ix) Road crossing, 2000' x) Fabricationand Erectionof DRS (2 Nos.) and RMS (67 Nos.)
12. EstimatedCost : Total Cost : Tk. 154.00mln. (US$1- TK23) ForeignExchange : Tk. 46.00mln. (US$ 2.00 mln.)
The cost has been estimatedin January1982 on the basis of current prices.
13. Financing(donor prospect) : None
14. Implementation : Two years
15. ProposedPhysical and FinancialProgram
PHYSICALPROGRAM
Year Survey/ Land acquisition Civil Procurement Pipelaying Design Development Construction & Installation
1 100% 702 100% 100% 50% 2 - 30% - - 50%
TOTAL: 100% 100% 100% 100% 100%
FINANCIALPROGRAM (TK in Millions)
Year Local Currency Foreign Exchange Total
1 55.00 46.00 101.00 .2 53.00 - 53.00
TOTAL: 108.00 46.00 154.00 (US$ 2.00 mln) - 111 -
G-5:3
16. Status of the Project . The Sylhet Tea-Estate gas supply project was originally envisaged at supplying gas to Tea-Gardens of Rashidpur, Sirmangal, Shamshernager, Lungla and Juri areas in the district of Sylhet. 13 Nos. of Tea-Garden in Laksherpur Valley in the vici y of .' EHabiganj Gas Field has been connected with Gas supply in the later part of 1977. A Project Proforma prepared in 1978 was broken into two phases for the supply of gas to 47 Nos. of Tea-Gardens in the 1st phase and 57 No. of Tea-Gardens in the 2nd phase. The lt phase of the Project Proforma has been approved by ECNEC on 17.5.1980. The 2nd phase of the project Proforma is under considerationof the sponsoring Ministry.
The 1st phase of the Project is under implementation*mder Belgian Credit of BFr 120.00 mln. Pipeline material along with other accessories have been procured under Belgian Credit. These materials will meet about 70% of the whole project. To complete the whole project additional funds of US$ 2.20 mln is required. ODA, UK has agreed to provide the additional funds.
The detailed pipeline route survey and gas off take has been done by the ImplementationDivision who is responsible for the execution of the Project on behalf of Petrobangla.
17. Contribuion And Inputs- : None required from other agencies
18. Anticipated constraint : Financial
19. Major outstanding policy : None issues - 112 -
G-5:4
20. Time table for completionof : It will take two years to the project completeafter the commencementof the work. The work is supposed to be commencedafter the completionof the 1st phase,or as soon as funds were made available.
21. EstimatedReduction in Oil : Estimatedgas consumptionin Demandresulting from Project 4.44 MMCFD and is expectedto save Tk 220.00mln annuallyagainst import of fuel.
22. Economicand Financial : BenefitCost Ratio (BCR) : 0.82 paramaters(Rate of return, InternalRate of Return (IRk) : 10.5% net presentvalue, etc.) (Calculatedconsidering 20 yrs. as economiclife of the Project).
23. SponsoringAgency's remarks : The projectafter implementationwill supply gas to 57 Tea-Estates, 100 commercialunits and 4000 domestic customers in and around Lungla and Juri areas in the district of Sylhet. Moveover, this project might create facilities for installation of more Glass and CeramicIndustries, Brick manufacturingplants, Steel Re-rolling Mills, Price Processingplants and other small industriesto meet the demandof the projectarea.
The gas offtakeestimated for the projectis MMCFD which is expectedto save Zk. 220.00mln annuallyagainst of importof fuels.
Use of gas in place of expensive importedfuel will make the price of tea very comparativein the world marketand qualityof tea will be improved. Use of gas will also solve difficultand costly transportationand storageproblem associatedwith furnaceoil. - 113 -
G-6:1 BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-Sector : Oil and Gas
3. Name of the Project : GAS GRID SYSTEMIN EASTERNZONE
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources
- -~ 5. Executing Agency Petrobangla 6. Other Agenciesinvolved : None
7. Location : EasternZone of Bangladesh (A map is enclosed for location)
8. In house implemenWatlon : None
9. Name and addressof the firm : Consultantwill be selected. Implementing the Project
10. Nain objective : The main objective of the project is to recommenda suitablegas grid systemin the eastern zone of Bangladesh for transmission of gas from fields to the various load centers and also interconnectionof the gas fieldsfor the reliability,flexibility and effic- iency.
11. Brief description/main : FeasibilityStudy. components/activities (copyof terms of referenceis enclosed)
12. EstimatedCost : Total Cost of Tk. 5.00 mln. ForeignExchange Tk. 4.00 mln. (US$0.17mln.)
13. Financing(donor prospect) : None
14. Implementationperiod : Six months.
15. Proposedphysical and : Six months. financialprogram - 114 -
G-6:2
16. Status of the project and : An Engineering Study on Country- feasibility studies wide Gas Grid System has been carried out by local consultants in 1982. GOB feels that additionalstudy is needed.
17. Contributionand Inputs : None requiredfrom other agencies
18. AnticipatedConstraint : Financial
19. Major outstandingpolicy : None issues
20. Time Table for completion : It will take six months to complete of the Project the study.
21. EstimatedReduction in Oil : No directresults. demand resultingfrom project
22. Economicand Financial : Not applicable. parameters(Rate of return, net presentvalue etc.)
23. Sponsoringagency's remark : The study will help to finalizelong term planningof gas transmissionand distributionnetwork system in the easternzone of Bangladesh.The study will also find out the detaileconomic benefitof a gas grid over individual transmissionlines as well as the exact impactof the grid to the national economy.
a
l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 115 - G-7: 1
BANGLADESH
PRIORITYINVESTMENT PROGRAM FOR ENERGY
1. Sector : Energy
2. Sub-sector Petrobangla
3. Name of Project : Feasibility of converting railway and marine equipment to Compressed Natural Gas (CNG).
4. Sponsoring Ministry : Ministry of Energy and Mineral Resources
5. Executing Agency : Petrobangla
6. Other Agencies involved : Ministry of Railway, Highways and Road Transport (Railway Board); Ministry of Ports, Shipping and Inland Waterways (Inland Water Transport Authority and Chittagong Port Authority).
7. Location : Entire area of Bangladesh.
8. In house implementation : Partly, civil works, top supervision, and administrative assistance.
9. Name and address of the firm : To be determined. implementing the project
10. Main objective : To determine the technical and economic feasibility of large scale conversion of railway and marine equipment to CNG.
11. Brief description main : Survey to determine types of components/activities equipment, location, routes and fuel eonsumption. Evaluation of equipment requirements. Economic analysis.
12. Estimated cost (1983) : Total Cost of TK. 3.5 mln. Foreign Exchange Tk. 3.5 mln. (US$150,000)
13. Financing (donor prospect) : Not yet known. - 116 -
G-7:2
14. Implementationperiod : 3 months.
15. Proposedphysical and financial program
Physical Schedule of Work
Project Mouth Task Area
1 On-site survey 2 Analysisof data 3 Preparationand Presentationof Final Report
FinancialSchedule of Work
Mcfnth Local Foraign Exchange Total
1 -0- 50,000 50,000 2 -0- 65,000 65,000 3 -0- 35,000 35,000
16. Status of the projectand : Currentproject on converting feasibiUty studies highway vehicles underway.
17. Contribution and inputs : Donation of equipment for conversion, required from other agencies facilities and personnel for conversion and refuelling.
18. MaJor outstanding policy issues : None
19. Anticipated Constraints : None
20. Timetablefor completionof : See item 14 the project
21. Estimated Reduction in oil : Railway: 60,000 LT/yr OIL resulting from project 5,300 LT/yr COAL
22. Economic and Financial : Marines: about 100,000 LT Parameters (rate of return, estimated precise information - net present value, etc.) not available. AMUEK I Page I of 3 SOURCEs Petrobangla PEAKGAS MMfANDAnD SUPPLYPOSITIOM (Yiguz.s in imcrD) Gas Distribution System & Customer 981-82 1982-83 L963-84 1984-85 1985-86 1986-47 1987-88 1988-89 1989-90 1- Titas - BabiganJ SyRtem
I. Power Station Ashuganj Ghorasal 91 107 129 150 Siddbirganj 180 201 215 ais 235 Shabjibasar
It. Fertilizer Ashuganj 90 92 102 210 110 Ghorasal Potash non no 110 110 III. Others Small Industries Commercial 63 76 88 97 Domestic 105 113 122 133 145
A. Sub-Total (Demand) 244 275 319 357 395 424 547 457 490 B. Dewand with diver- sity of 0.9 219 245 287 322 356 381 403 412 441 C. Gas Supply based 210 240 300 360 360 360 on firm finaiced ADBFionaced 360 360 360 3 wells at Titss and French flanced 2 eilL at abiganj resulting projects additionalsupply of 150 NOCID. in total D. AdditionalGas Supplybased on - - 25 85 85 85 145 proposeddevelop- Projectsproposed developmeit 175 175 gfnt projects of BEsta field 25 XCFDand Rashidpure60 XMCPD. *Otherdevelopment projects to meet the demandis unspecified.
F Total Supply based on Pirm plus pro- 210 240 325 posed. 445 44'S 445 505 535 535 M= I Page 2 of 3
PAX GA DM AND SUMPLYPOSmON (Figres in )M)
Gas Distribution System & Customer 1981-82 198283 1983-84 1984-85 1985-86 1986-87 1987-88 198889 198990
II. C}HEATA,SYLUT GASFIELDS
A. Gas Demand&' 29 42 45 46 46 48 60 67 70 (Fertilizer, Cement, Papermill)
B. Gas Demand with diversity of 0.9 26 38 41 42 42 43 54 60 63 C. Gas Supply 61 61 lOS* 105 105 105 105 105 105 Position with Two wells at Syihet; 1 ell at Chhatsk. Proposed work over program in the NE area is for 1 well firm and pro- in Kalaubtlla, emd 2 Vells at Sylhet,* present supoly position of 61 W4CFDsatisfy the demand posed Programme to 1990.
III* BAKHRABADGAS SYSTEM (Bakhrabad & Feni Gas Field)s Power - - 15 1S 15 1S 15 15 15 Fertilizer - - 45 105 105 105 105 105 105 Methanol - *- - -5 5S Others - - 38 39 55 56 64 79 94
A. Sub-Total (De--' mand): - - 53 109 175 176 239 254 269 B. Demand with diversity of 0.9 - 48 98 158 13
11, 2/: Petrobangla's projected demand appears to be over estimated both for Bakhrabad and the Sylhet-Chhstak systems. The present supply position should satisfy the demand up to 1989-1990.
( , 4 . AN=E I Page 3 of 3
PEAZ GAS DifAN AND SUPLy PoSniTO (Fianras In MICFD)
Gas Ditributiou System & Customer 1981-82 1982-83 1983-BA 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90
D. Gas Supply Posi- tion based on firm & pro- posed well & - - 90 150 210 300 330 360 pipeline dtve- 390 lopment pro- In order to neet the demand projected Petrobangla proposes to drill 4 additional wells at Brame Bakhrabad and 4 ells at Faid Field. (The proposed program is unspecified).
IV. TOTALSYSTEM DEMLWDIN EASTERNZONEs Power 91 107 144 165 195 216 230 230 250 Fertilizer 110 112 122 175 235 235 235 235 235 Methanol ------55 S5 55 Others 72 98 151 162 186 197 226 259 289
A. Total Demand 273 317 417 502 616 648 746 779 829 B. Total Derand with diversity of 0.9 246 285 375 452 554 583 671 701 746
4. . .~~~~~~~~~~~~~~~~~~~~~~
ANNEXII Page 1 of 7 WELLSDRILLED iN uxouDzSx
CLASSIFI- YEAROP TOTALDEPTR FOBMATION R 8 N A R K S WELL NO. NAMEOF WELL COMANY CATION 5M lElRFE ET AT T . DEPTH 1 2 4.....~~~~34 5 6. 7 8
1. Sitakund-l TPPC Exploration 1914 760/2500 HB Gas show in MB
2. Sitakund-2 IPPC Exploration 1914 760/2500 M, Gas show in MB
3. Sitakund-3 IPPC Exploration 1914
4. Sitakund-4 BOC Exploration 1914 1023/3350 LB? Gas show in MB & LB
5. Patharia-1 BOC Exploration 1933 875/2871 BB Oil and gas shows in MB
6. Patharia-2 BOC Exploration 1933 1047/3436 IMB Ol show in MB
7. Pstharia-3 PPL Exploration 10.12.51 1649/5411 LB Oil and gas show in _ & LB
8. Patharia-4 PPL Exploration 23.2.53 830/2723 MB Dry hole
9. Patiya-l PPL Exploration 14.9.53 3102/10176 NB Dry hole
10. Sylhet-1 PPL Exploration 12.5.55 2377/7800 UB Gas shows in BB, blow out.
*0 * * ,-* 4 . 4 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4 ANNE it Page 2 of 7
1 2 3 4 5 6 7 8
11 8Sylbet-2 m Appraisal 7.10.56 2817/9245 UB Ga show In BB.
12. Sylhet-3 PPL Appraisal 19.7.57 167515497 Bs Gas producer (BB)
13. Sylhet-4 PPL Appraisal 15.10.59 2850/9350 UB Gas producer (BB and UB)
14. Sylhet-5 PPL Appraisal 22.3.63 575/1885 TS Gas show in Tipam
15. Sylhet-6 PPL Appraisal 3.7.64 1405/4610 BB Gas producer,BB
16. Lalmai-l PPL Exploration 12.2.58 2991/9813 MB Dry hole
17. talmai-2 PPL Exploration 27.10.60 4116/13506 LB Dry hole
18. Chhatak-l PPL Exploration 14.4.59 2314/7,000 UB Gas producer,BB and UB
19. Kuch__a- SvOC Exploration 26.6.59 2875/9433 Lower gondwana Dry hole
20. Bogra-l SVOC Exploration 8.2.60 2187/7176 Pre-cambrian Dry hole, gas shows in UB At xIkage 3 of 7
1 2 3 4 5 6 7 8
21. Hazipur-l SVOC Exploration 5.9.60 3816/12521 Ba,ail Dry hole
22. Fenchugonj-l PPL Exploration 18.4.60 2438/8000 UB Gas show ln BB
23. Rashidpur-l PSOC Exploration 20.7.60 3860/12663 UB Gas well, gas in BB & UB
24. Bashidpur-2 PSOC Appraisal 23.6.61 4593/15071 LB Gas well, gas in BB & UR
25. Kailastila-l PSOC Exploration 22.3.62 4138/13577 UB Gas well, gas in BB & UB
26. Uabigonj-l PSOC Exploration 22.5.63 3505l11500 UB Gas producer,BB.
27. Eabigonj-2 PSOC Appraisal 1963 1555/5102 BB Gas producer, BB.
28. Titas-1 PSOC Exploration 23.8.62 3756/12325 im Gas producer (gas in BB and .B).
29. Titas-2 PSOC Appraisal 6.11.63 3223/10574 UB Gas producer(gas in BB and UB).
30. Titas-3 PSOC Development 28.8.69 2839/9315 VB Gas producer (gas in BB and UB).
r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ AM=E U Page 4 of 7
1 2 3 4 5 6 7 8
31. Titas-4 PSOC Development 15.10.69 2890/9350 D3 Gas producer (gas in BB and UB).
32. Titas-5 RGFCL Development Jan 81 3296/10814 UB Gas producer (gas In BB and UB).
33. Jaldl-1 OGDC Exploration 10.3.65 2391/7546 U Dry bole
34. Jaldi-2 OGDC Exploration 27.11.67 3360/11024 MB Gas shovs in UB & MB
35. Jaldi-3 OGDC Appraisal 25.5.70 4500/14765 LB Gas and condensate shows In UB and LB
36. Semutang-1 OGDC Exploration 22.5.69 4088/13413 LB Gas well, gas in BB
37. Semutang-2 OGDC Appralisa 5.5.70 1535/5036 BB Gss well, gas in BB
38. Sewutang-3 OGDC Appraisal 11.10.70 1552/5092 BB Dry hole
39. Semutang-4 OGDC Appraisal 21.1.71 1464/4093 BB Dry bole
40. Bakhradab-l PSOC Exploration 6.5.69 2838/9310 DB Gas well, gas in BB & UB (S~~~~~~~~~~~~~~~~~~~~~~~~
AgNNPfltPage 5 of 7
1 2 3 4 5 6 7 8
41. Dakhrabad-2 JAPEZ Development 13.10.81 2606/8550 UB Gas well, gas In 33 & UB
42. Bakhrabad-3 JAPEM Development 16.4.82 2846/9339 UB Gas vell, gas in BB 6 UB
43. Bskhrabad-4 JAPEX Development 9.82 2218/7276 UB Gas well, gas in BB & UB
44. Bskhrabad-5 J_EM Development us 6as vell, gas in BB & UB
45. Cosas BaZBr- PSOC Exploration 16.12.69 3698/12134 UB Abandoned
46. BODC-1 BODC Exploration 10.3.76 4598/15086 Lb. Abandoned
47. BODC-2 BODC Exploration 17.6.76 4435/14551 LB Abandoned
48. BODC-3 ic Exploration 20.3.78 4503/14724 UB Dry hole
49. ARCO-1 ARCO Exploration 4.2.76 3902/12804 BB Abandoned
50. Bl1A-l INA NAFTAPLIN Exploration 31.5.76 4095/13436 BB Abandoned
51. BINA-2 INA _N APLI_ Exploration 1.3.77 4294/14089 Dry hole
+ * t J~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ _ s ,.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
_ ------,. . ~ ~ ~ ~ - .- V
ANEX II Pa"e 6 of 7
1 2 3 4 5 6 7 8
52. KUTU3DIA-1 UNION Exploration 28.1.77 3505111500 MB Gas well -
53. Muladi- TPetrobangla Exploration 16.12.76 4732/15521 UB Abandoned
54. Muladi-2 Petrobangla Exploration 23.7.80 4556/14940 UB Abandoned
55. Begumgonj-1 Petrobangla Exploration 29.1.77 3656/11991 DB Gas well
56. Begungonj-2 Petrobangla Exploration 29.8.78 3577/11732 U Dry bole
57. Singra-1 Petrobangla Exploration 19.3.81 4100/13448 lower Gondwana Abandoned
58. peni-l Petrobangla Exploration 1.12.80 3200/10496 Gas well, gas In BB &
59. Kamta-1 Petrobangla Exploration 15.3.82 3614/11854 MB Gas well, gas in BB.
60. Beantbaaar-l Petrobangla Exploration 12.5.81 4110/1348:0 LB Gas well, gas In UB. .___.-_____ (MDP) - . .
61. Atgrai-l Petrobangla Exploration 13.4.82 4962/16276 Barail Abandoned
JW~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ AM=I II Page 7 of 7
41B WELLS
1 2 3 4 S 6 7 8
1. Sitakuad-l BOC GIB 1939 1100-600 - Two major thrusts un WB
2. Sylhet-1 PPL oIn 1951
3. Sylhet-2 PPL GIB 1952
4. Jaldi-1 OGDC GIB 17.3.65 1315/4429 8B Gas shows In TM I-A
5. Jaldi-2 OGDC GIB June '66 1368/4488 1B Gas shows in BB
6. Semutang-1 OGDC GIB 16.9.66 338/1109 BB Gas show In B3 and blow out
ABBREVIATIONS.
IPPC - Indian Petroleum Prospecting Company BODC - Bdngal Oil Development Company DT - Dupitila BOC a Burmah Oil Company ARCO a Atlantic Richfield Company TS - Tipam SSt. PPL - Pakistan Petroleum tLiited UNION - Union Oil Company 1BB Boka Bil PSOC - Pakistan Shell Oil Company GIB - Geological Informstion Borehole UB - Upper Bhuban OGDC - Oil & Gas Devblopment Corporation MB - Middle Bhuban SVOC - Standard Vaccum Oil Company LB - Lower Bhuban