N E DO- I C-00ER38
Feasibility Study on Energy Conservation and Modernization of Chhatak Cement Company Ltd.
March, 2 0 0 1
New Energy and Industrial Technology Development Organization (NEDO) Entrusted to Japan Consulting Institute
020005072-2 Feasibility Study on Energy Conservation and Modernization of Chhatak Cement Company Ltd.
Japan Consulting Institute
March, 2001 Page: 160
Study purpose;
The objective is to conduct a feasibility study on energy conservation and modernization of Chhatak Cement Plant, and to study the possibility of the future Clean Development Mechanism Project. This Project is expected to contribute to energy saving in industries and the abatement of the greenhouse gas emission in Bangladesh through the introduction of Japanese energy-saving technology. In addition, the Project is intended to contribute to industrial modernization required for sustaining the economic development in Bangladesh with the future implementation of CDM Project. PREFACE
This report concerns the results of the Feasibility Study on Energy Conservation and Modernization of Chhatak Cement Plant in the People ’s Republic of Bangladesh. The Study was organized by NEDO (New Energy and Industrial Technology Development Organization affiliated to the Ministry of Economy, Trade and Industry of Japan) in conjunction with the “Basic Study for Promotion of Joint Implementation, etc. in 200(7’, which was entrusted by NEDO to Japan Consulting Institute (JCI).
Japan intends to achieve Greenhouse Gas reductions to help the prevention of global warming through positive use of the Joint Implementation or Clean Development Mechanism (CDM) adopted under the Kyoto Protocol, a flexible mechanism within the United Nations Framework Convention on Climate Change.
The study was conducted to evaluate the project as a possible CDM Project. The Project is expected to contribute to energy saving in the plant and the abatement of Greenhouse Gas emissions through the introduction of Japanese energy saving technology. In addition, the Project is intended to contribute to industrial modernization required to sustain economic development with the future CDM project.
JCI would like to express sincere appreciation for the kind support from the Ministry of Industries and the Ministry of Environment and Forest in Bangladesh and for practical cooperation extended by the Bangladesh Chemical Industries Corporation and Chhatak Cement Co. Ltd.
March,2001
Japan Consulting Institute CONTENTS Page OUTLINE...... 1
Chapter 1. Fundamentals on the Project 1.1. General Situation of the People ’s Republic of Bangladesh ...... 1-1 1.1.1 Political, Economic and Social Situation ...... 1-1 1.1.2 Energy Conditions ...... 1-7 1.1.3 Needs for CDM Project ...... 1-14 1.2. The Importance of Energy Conservation Technology ...... 1-16 1.3. Significance, Needs, Effects of the Project and Dissemination of Results over Other Industries ...... 1-17
Chapter 2 Project Materialization 2.1. The Project ...... 2-1 2.1.1 General...... 2-1 2.1.2 Details of the Project ...... 2-3 2.1.3 Greenhouse Gases to be targeted ...... 2-4 2.2. Outline of Chhatak Cement Co. Ltd. (CCCL)...... 2-5 2.2.1 Interest and Intention at Execution Site...... 2-5 2.2.2 Conditions of Relevant Equipment (Outline, Specifications, Operation, etc.)...... 2-6 2.2.3 Project Execution Ability of the Site...... 2-11 (1) Technical capacity...... 2-11 (2) Management system...... 2-11 (3) Management foundation and management policy...... 2-13 (4) Capability of sharing necessary fund ...... 2-13 (5) Capability for supply of manpower ...... 2-13 (6) Implementation system...... 2-13 2.2.4 Project Details and Equipment after Modernization ...... 2-15 2.2.5 Assignment of Job, Funding, Procurement of Equipment and Other Services, which are required for Project Implementation, to be shared by both Parties ...... 2-18 2.2.6 Prerequisite for Implementation of the Project and Points at Issue, etc.* * 2-23 2.2.7 Project Implementation Schedule...... 2-25 2.3. Realization of Financial Plan ...... 2-28 2.3.1 Financial Plan for Project Implementation (Required Fund, Raising Fund, etc.)...... 2-28 2.3.2 Prospect for raising Fund ...... 2-29 2.4. Conditions relating to CDM...... 2-30 2.4.1 Issues to be settled with Bangladesh Government for Realization of CDM regarding Conditions and Job Assignment for Project Implementation based on the Practical Situation at the Site ...... 2-30 2.4.2 The Possibility of Agreement on CDM of the Project on the Side of Bangladesh ...... 2-31
Chapter 3 Effects of the Project 3.1. Energy Conservation Effects...... 3-1 3.1.1 Technical Ground for Producing Energy Conservation Effects...... 3-1 3.1.2 Baseline for estimating Energy Conservation Effects...... 3-3 3.1.3 Actual Volume, Production Period and Accumulated Volume of Energy-saving Effects...... 3-6 3.1.4 Practical Method to confirm Energy Conservation Effects...... 3-8 3.2. Reduction Effects of Greenhouse Gas...... 3-9 3.2.1 Technical Ground for producing Reduction Effects of Greenhouse Gas...... 3-9 3.2.2 Baseline for estimating Reduction Effects of Greenhouse Gas...... 3-11 3.2.3 Actual Volume, Production Period and Accumulated Volume of Reduction Effects of Greenhouse Gas...... 3-12 3.2.4 Practical Method to confirm Reduction Effects of Greenhouse Gas (Monitoring Method) ...... 3-13 3.3 Effects on Productivity ...... 3-16
Chapter 4 Financial Evaluation 4.1. Fund Efficiency of Investment ...... 4-1 4.2. Cost Reduction Effects in this Project ...... 4-10 4.2.1 Energy-saving Effects...... 4-10 4.2.2 Effects of Greenhouse Gas Reduction ...... 4-11
Chapter 5. Extension of Technology 5.1. Possibility of Spread of the Technology introduced in the Project ...... 5-1 5.2. Benefits of Extending Technology ...... 5-2 5.2.1 Energy-saving Effects...... 5-2 5.2.2 Effect due to Greenhouse Gas Reduction ...... 5-2 Chapter 6 Influences to Other Aspects 6.1. Influence to Environmental Aspects...... 6-1 6.2. Influence to Economic and Social Aspects...... 6-2
CONCLUSION...... C-l
ANNEX-1: Financial Analysis ANNEX-2: Field Survey Report ANNEX-3: Reference Data OUTLINE OUTLINE
The People ’s Republic of Bangladesh (hereinafter called as Bangladesh) is located in the northeastern part of the South Asian subcontinent with an area of 147,570 sq. km and a population of approximately 130 million. The annual population growth rate is nearly 1.8%. The Bangladesh economy depends on agriculture, which provides over 30% of GDP, industry contributes only 10%. Economic growth is, therefore, affected heavily by weather. More than 70% of exports are sewing goods and knit products, followed mainly by jute products and frozen food.
Among basic materials required as a key item for social development, cement demand increased by around 3 times from 1990 through 1999 and is anticipated to come up to 7 million tons during the period from 2000 to 2001. Since there are no deposits of limestone within available limits for mining in Bangladesh, only Chhatak Cement Plant exists in the country as an integrated cement plant, in which cement is produced from raw materials.
Chhatak Cement Co. Ltd. (CCCL) was founded in 1937 as the former Assam Bengal Cement Co. and its operation was commenced from 1941, which became, however, a government-run enterprise in Bangladesh at the time when Bangladesh was established as an independent nation. With limestone mines remaining within Indian territories, limestone (raw material) is imported through ropeway transportation over a distance of 16km. In other private cement plants, imported clinkers are ground and, after bagging, supplied for sale. The total domestic production was around 1.4 million tons in 1998. And the shortage, except the above domestic production, relies fully on imports, resulting in an outflow of valuable foreign currencies.
To cope as far as possible with increasing demand, CCCL has become a plant with a nominal capacity of 267,000 t/y, using 2 units of 400t/d kiln, after renovation and extension. Since old wet long-kilns are mainly used in production, the unit consumption of natural gas, the most valuable energy resource in Bangladesh, is extremely high. A low operational availability attributable to old deteriorating equipment, average annual production over the past 5 years has amounted to only 160,000 tons, resulting in additional unit consumption of fuel natural gas and electric power.
As requested by CCCL, NEDO/JCI has implemented a basic study on this project. As a result, it is clear that unit consumption of natural gas and electric power will be reduced by 50% and 16% respectively, with the following energy conservation technologies prevailing in Japan. They are applications of vertical roller mills for raw
- 1 - material grinding, suspension pre-heaters, short-kilns for clinker burning, highly efficient grate coolers for clinker cooling and pre-grinding system, in which installation of a vertical roller mill is needed prior to clinker grinding using a tube mill. If the above reduction volume is calculated from a baseline of 276,000 tons annual production of cement, the total energy consumption will amount to approximately 22,000 toe/y (ton oil equivalent; crude oil equivalent basis) and around 25 million Nm3/y in actually used natural gas conversion, respectively.
As a result, the abatement of CO2 emissions targeted in CDM is expected to be 51,800 t-CC>2/y calculated from actually used natural gas. Total investment cost required for this project will be US$ 37,327,000. In addition, energy saving to the total investment cost will be 5.46 toe-y/million yen, and the abatement of CO2 emissions in natural gas base to the total investment cost by 12.85 t-C02-y/million yen. (Exchange rate: 108 yen/US$)
With the reduction of production cost due to energy saving and the increase of marginal income attributable to the increase of actual production volume through plant modernization in this project, it will become economically feasible, if low-interest and long-term soft loans are provided.
Requirements from the Bangladeshi bodies involved have been incorporated in the study as much as possible for the proposed CDM project. It is designed to minimize influence on production during the construction work for modernization and to reduce total investment costs by using the existing equipment as much as possible. As both details of the project and investment cost have proved to be satisfactory to the counterparts, Bangladesh Government, BC1C and CCCL have a strong desire to materialize this project.
Meanwhile, both the country and targeted company have studied CDM extensively and have a better understanding of CDM. Since this project is a very attractive method for promoting modernization of the plant, they have a strong desire to realize this project. Although there are several problems to be resolved in the future, the possibility of the project ’s materialization seems to be extremely high. With future adjustment of various issues, including fund-raising, the shaping of this project will get on the move after COP 7, which will be held at the end of this year. Under these circumstances, both sides will endeavor to the best of their abilities to realize this project as early as possible.
-2- Chapter 1 Fundamentals on the Project’
In this chapter, the political, economic & social situation of the People’s Republic of Bangladesh, its energy conditions as well as needs for CDM project have been reviewed, as fundamentals for implementation of the project. Chapter 1
1.1 General Situation of the People’s Republic of Bangladesh
1.1.1 Political, Economic and Social Situation
(1) General matters and politics The People ’s Republic of Bangladesh (hereinafter called as Bangladesh) is located in the northeastern part of the South Asian subcontinent with an area of 147,570 sq. km and a population of approximately 130 million. It borders India on western, northern, and eastern sides and borders Myanmar on the southeastern tip. The capital city is Dhaka with an estimated population of around 9 million. Annual population growth rate is nearly 1.8% and the population ranks 9th in the world. Except for city-states, this country ’s population density is the largest in the world, as the geographical area is a little more than 140,000 km2. The large population coincides with evolving poverty.
In April 1948, East Pakistan, thepredecessor of the present Bangladesh, became independent from India and achieved its independence as Bangladesh in March 1971. In 1996, AL (Awami League) won the National Diet Election after an interval of 21 years, and the present government headed by Sheik Hasina (eldest daughter of the late Mujibur Rahman, the first president) came into power. Although the next general election is scheduled for 2001 when the tenure of the present government expires, the non-government parties led by BNP (Bangladesh Nationalist Party) are now requesting a general resignation of the cabinet and an early general election against the party in power. In respect of fundamental policy, there is no great difference between AL and BNP, and both of the parties are aiming at economic development, depending on aid from Europe and America, including ODA to be provided by the World Bank, the Asian Development Bank, Japan (JICA/JBIC), the UK and the EU, etc. While AL adopts a pro-Indian policy, BNP intends to rather resist India. There is strong friction between the party in power and non-government parties, on the issues as to whether export of gas & electricity to India as well as their transportation from East India to West India via Bangladesh should be approved.
Since there are frequent general strikes, a kind of political strike called as Hartal, serious concerns and requests for self-imposed control are expressed by the people, industrial circles and foreign governments. Hartal is a unique anti-government protest action in Bangladesh and AL often took such actions in the past during the period when BNP maintained power. Smooth general
- 1-1 - elections after dissolution and stabilization of the new government have been supreme issues, because of strong disagreements between the party in power and non-government parties in respect of the scheduling of the next general election.
(2) Key statistics on Bangladesh Basic statistics (population, increase rate of consumer price, exchange rate), GDP in each industry (constant market price in 1984/85), main export goods, balance of international payments and nation ’s financial condition are shown in Table 1.1-1 (1/2) and (2/2). Regarding GDP in each industry, it is clear that Bangladesh economy depends on agriculture which provides 30% of GDP, industry contributes only 10%. The economic growth is, therefore, affected heavily by weather. More than 70% of exports are sewing goods, knit products, jute products and frozen food. Such being the case, there is hardly any industrial product in the country ’s export. Reflecting the country ’s trade structure, in which capital goods such as machinery, equipment, metal, crude oil and input goods as well as food are imported primarily from Asia and agricultural processed goods are exported to Japan, America, and Europe, a trade balance deficit of 2 - 3 billion dollars occurs annually.
- 1-2 - Chapter 1
Table 1.1-1 Key Statistics on Bangladesh 1999 (1/2) 1) Basic statistics 1994/95 1995/96 1996/97 1997/98 1998/99 Population (million people) 119.9 122.1 124.3 126.5 128.1 Increase rate of consumer price (%) 8.87 6.65 2.52 6.99 8.91 Exchange rate (l$=Taka) 40.20 40.84 42.70 45.46 48.06 (Source) Bangladesh Bank, Barshik Report 1998/99, pp.113, 135; Bangladesh Bureau of Statistics,
Monthly Statistical Bulletin Bangladesh, Sep. 1999, p. 38.
2) GDP in each industry (price in 1983/85) (Unit: 10 million Taka) 1994/95 1995/96 1996/97 1997/98 1998/99 Agriculture 19,982 20,713 22,046 22,696 23,836 Mining and quarrying 14 17 22 29 36 Industry 6,916 7,282 7,540 8,260 8,464 Construction 3,859 4,015 4,210 4,505 4,797 Power, gas, water & sanitary services 1,134 1,246 1,267 1,305 1,336 Transport, storage and communication 7,420 7,789 8,295 8,859 9,391 Trade services 5,867 6,455 6,880 7,341 7,759 Housing services 4,546 4,720 4,904 5,097 5,275 Public administration and defense 3,096 3,353 3,634 3,947 4,263 Banking and insurance 1,109 1,148 1,191 1,236 1,281 Professional & miscellaneous services 7,036 7,506 8,032 8,594 9,135 Total 60,979 64,244 68,021 71,869 75,573 Growth rate 4.4 5.4 5.9 5.7 5.2 (Note) Figures in 1989/99 are estimated. (Source) Artha Mantranalaye, Bangladesh Arthanoitik Samikkha, 1999, p. 112-113.
3) Main export goods (Unit: million $) 1994/95 1995/96 1996/97 1997/98 1998/99 Raw jute 79 91 116 108 72 Tea 33 33 38 47 39 Frozen food 306 314 321 294 274 Agricultural processed goods 13 22 29 39 22 Other primary products 21 16 22 14 16 Jute products 319 329 318 281 304 Leather products 202 212 195 190 168 N aphtha/paraffin-oil/bitumen 14 11 16 11 5 Sewing goods 1,835 1,949 2,238 2,843 2,985 Knit products 393 598 763 940 1,035 Chemical products 108 98 108 74 79 Paper products 0 0 0 0 0 Handicraft goods 6 6 6 6 8 Machinery products 10 13 16 20 11 Other industrial products 134 189 241 293 295 Total 3,473 3,881 4,427 5,161 5,313 (Source) Bangladesh Arthannoitik Samkka, 1999, p 130, Raptani Unnayan Bureau ’s data released to
reporters (Source) Annual report on Asian trend, 2000; Asia Economic Research Center
- 1-3 - Table 1.1-1 Key Statistics on Bangladesh 1999 (2/2) 4) Balance of international payments (Unit: million $) 1994/95 1995/96 1996/97 1997/98 1998/99 Trade balance -2,361 -3,063 -2,735 -2,352 -2,694 Export 3,473 3,884 4,427 5,172 5,324 Import 5,834 6,947 7,162 7,524 8,018 Balance of services -89 -104 163 182 198 Export of services 657 553 656 707 707 Import of services 746 657 493 525 509 Income -41 55 -107 -100 -135 Income receivable 162 253 89 91 91 Income payable 203 198 196 191 226 Current transfers 1,827 1,821 2,145 2,017 2,237 Public sector 401 346 375 267 262 (Aid through supply of food) (137) (138) (101) (99) (177) Private sector 1,426 1,475 1,770 1,750 1,975 (Remittance from overseas laborers) (1,198) (1,217) (1,475) (1,525) (1,706) Current Account -664 -1,291 -534 -253 -394 Capital Account 1,195 778 691 1,064 817 Capital account except investment 489 331 360 304 348 Capital account of investment 706 447 331 760 469 Direct investment 6 7 16 249 198 Portfolio investment 61 -21 -132 3 -6 Other investment 639 461 447 508 277 (public external credit receivable) (849) (767) (746) (748) (867) (public external debt payable) (314) (316) (316) (308) (341) (net long-term capital account) (-8) (33) (50) (-50) (-30) (net short-term capital account) (112) (-23) (-33) (118) (-219) Errors & Omissions -79 -504 -326 -729 -594 Overall Balance 452 -1,017 -169 82 -171 (Source) Barshik Report 1998/99, p.129
5) Nation ’s financial condition (Unit: 10 million Taka) 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 Revenues in general account 14,210 15,512 17,145 18,777 19,700 24,151 Expenditures in general account 10,300 11,814 12,535 14,500 16,765 17,800 Surplus in general account (A) 3,910 3,698 4,610 4,277 2,935 6,351 Foreign donation (B) 2,625 3,005 2,951 2,886 3,552 3,269 Foreign credit (C) 4,369 3,676 3,444 3,818 5,332 5,091 (Net) domestic capital account (D) 402 956 1,309 1,162 1,280 1,360 (Net) other independent account(E) 887 475 340 281 1,799 421 Revenues in development account (A+B+C+D+E) 12,193 11,810 12,654 12,424 14,898 16,492 Annual development plan 11,150 10,447 11,700 12,200 14,000 15,500 Other development program 1,043 1,363 954 224 898 992 (Note) Figures in 1998/99 are in revised budget, and those in 1999/2000 are in original budget. (Source) Artha Mantranalaye, Bajeter Sangkhiptasar, each of annual edition
(Source) Annual report on Asian trend 2000: Asian Economic Research Center
- 1-4 - Chapter 1
(3) Government structure The government structure of Bangladesh is indicated in Figure 1.1-1. MOI (Ministry of Industries) is a competent ministry, issuing all industrial licenses. Under MOI, there are BCIC (Bangladesh Chemical Industries Corporation) and BSEC (Bangladesh Steel & Engineering Corporation). While a cement company (Chhatak Cement Co. Ltd.) and 7 fertilizer companies (Jamuna Fertilizer Company, Chittagong Urea Fertilizer, etc) are under control of BCIC, a steel company (Chittagong Steel Mill) is affiliated by BSEC as a government-run company. Based on such recognition that energy supply conditions control the development of industry, Ministry of Energy and Mineral Resources has been organized as a competent ministry for energy.
In cement industry, BCIC under control of MOI, manages a government-run cement plant (Chhatak Cement Plant exists only as government-run cement plant). Although all private cement companies are not under the management and guidance of government agencies, they are members of BCMA (Bangladesh Cement Manufacturers Association) approved by the Government.
In 1989, Bangladeshi Government established MOEF (Ministry of Environment and Forest). Under this Ministry, there are DOE (Department of Environment) handling recently clarified environment-related matters, and FD (Forest Department). Meanwhile, Bangladesh is a treaty country with UNFCCC (the United Nations Framework Convention on Climate Change). In 1992, the Bangladesh Government signed this treaty in Rio de Janeiro and ratified it in 1994.
- 1-5 - President President Secretariat Diet Supreme Court
One House Prime Minister 330 seats Court of Prime Minister's Cabinet Revision Office High Court Arms Forces Special Affairs Division Division
Hill Tracks Council
Hill Tracks Districts Ministry of Law, Justice and Ministry of Defense Local Government Parliamentary Affairs 3 places
Ministry of Local Govt., Rural Ministry of Establishment Municipal Corporation Development & Co-operatives 4 places Ministry of Health and Ministry of Agriculture Municipal Bodies Family Welfare 182 places Ministry of Water Resources Ministry of Industries District Municipal Bodies 61 places Ministry of Labor & Ministry of Jute Union Council Manpower 449 places Ministry of Post & tele Ministry of Foreign Affairs communication
Ministry of Education Ministry of Planning
Ministry of Finance Ministry of Commerce
Ministry of Science & Ministry of Land Technology
Ministry of Communication Ministry of Social Welfare
Ministry of Environment and Ministry of Religious Affairs Forest
Ministry of Fisheries & Ministry of Women and Livestock Children Affairs
Ministry of Food Ministry of Youth & Sports
Ministry of Disaster Ministry of Textiles Management & Relief
Ministry of Power, Energy Ministry of Information and Mineral Resources
Ministry of Civil Aviation Ministry of Cultural Affairs and Tourism
Ministry of Housing & Ministry of Home Affairs Public Works
Ministry of Chittagong Hill Ministry of Shipping ______Tracks Affairs______
Figure 1.1-1 Government Structure of Bangladesh
(Source) Annual Report on Asian Trend 2000: Asian Economic Research Center
1-6 - Chapter 1
1.1.2 Energy Conditions
(1) Outline
Natural gas is theonly abundant mineral resource in Bangladesh. It accounts for 60% of commercial energy needs and 100% of the raw materials for fertilizers. Besides natural gas, oil and coal are energy resources, but these are largely imported, because of a low quantity of domestic production.
Consumption structure of each energy resource is shown in Figure 1.1-2. Overall consumption has increased by more than 20%, compared with that of 3 years ago. While crude oil and coal have shown a slight growth, only natural gas remains unchanged.
LO co r-~- cr> o> O) \ \ \ \ CO LO CO o> o> Oi a> m o> o> o> YEAR
Fig.1.1-2 Consumption of Commercial Energy by Major Source
(Source) Statistical Pocketbook of Bangladesh 1999
- 1-7 - (2) Energy conditions of each resource
Natural gas
Annual consumption of natural gas is shown in Figurel.1-3. The consumption of natural gas increased year by year and exceeded 8 billion m3 in 1999. Of the above 8 billion m3, nearly 77% was used for electric power generation and fertilizer production. The total consumption volume in 1998 recorded more than 15% growth, compared with the level of 1995, reflecting a more than 27% increase of consumption of electricity use.
As of 1999, an estimated amount of proven domestic natural gas reserves is 300 billion m3 in Bangladesh.
10000 8000 □ DOMESTIC 6000 □ INDUSTRIAL 4000 ■ FERTILIZER
2000 M ELECTRICITY 0 CO 00 05 a> 05 05 05 is \ \ \ \ in CD 00 o a> 05 05 05 o 05 05 05 05 YEAR
Figure 1.1-3 Natural Gas Consumption
(Source) Statistical Pocketbook of Bangladesh 1999
- 1-8 - Chapter 1
Petroleum
As production of petroleum is very low in Bangladesh, the country relies heavily on imports. Annual imports of crude oil and petroleum products are indicated in Figure 1.1-4. Annual imports have a tendency to increase and are expected to grow steadily in the future.
CD r- CO CD
Figure 1.1-4 Imports of Crude Oil and Petroleum Products
(Source) Statistical Pocketbook of Bangladesh 1999
- 1-9 - Coal
Imports of coal and coke are shown in Figure 1.1-5. Consumption is low with the greater part of coal and coke imported from India. Coal and coke are used primarily for brick production.
Figure 1.1-5 Coal & Coke Imports
(Source) Statistical Pocketbook of Bangladesh 1999
- 1-10 - Chapter 1
For reference, estimated amount of deposits of natural gas and coal are shown in Table 1.1-2.
Table 1.1-2: Energy Resources
Energy Name of mine and gas field Deposits Coal*l Jamalganj*3 1,000
Peerganj 400
Brapukeria*4 250
Natural gas *2 Bakhrabad 317.2
Feni 40.6
Habigani 1,239.3
Kailashtila 2,377.5
Meghnia 97.8
Narshingadi 112.4
Rashidpur 1,184.6
Shaldanadi 138.4
Sylhet 104.7
Titas 586.7
Chhatak 1,113.5
Kamta 173.9
Sangu 846.8
Others 2,092.0
Total 10,524.3 *l:Unit of deposits =million tons; Estimated deposits range from estimated coal volume to proven coal amount *2: Unit of deposits = billion ft3; Deposits are proven deposits in August, 1998. *3: Since the depth of deposits is 1,000m, exploitation is unavailable. *4: Under the guidance of China, 1 million tons annual production will commence from the end of 2002. Exploitation volume of coal will be 16 million tons.
Source: “World trend ” No52 (December, 1999) by Asian Economic Research Center
- 1-11 - (3) Situation of electric power
With a little more than 15% diffusion of electric power, most of the people use rice hulls, cow ’s dung, bagasse and branches & leaves as energy resources. Main electric power generation relies on thermal power generation, using natural gas. In the western part of the country where the quantity of natural gas is low, thermal power generation depends on crude oil. The existing large river is not suitable to play an important role in hydraulic power generation, because the valley is flat and cannot hold sufficient water for hydraulic power.
Despite nominal generation capacity of 3,600 MW (including 300 MW-private), actual generation capacity is 2,950 MW. Also, the average generation is 2,500MW. With a 30% increase of electricity consumption at peak time the power supply is sometimes cut, due to insufficient capacity. Natural gas is mainly used (more than 84%) as fuel.
A demand of 5,500 MW is estimated for 2005 in respect of future anticipated electricity demand. Of the above 5,500 MW, 250^300 MW is expected to become available through coal-based power generation attributable to the development of coal mines. Within the capacity in 2005, 2,000 MW will be taken up by the private sector. Of the above 2,000MW, 810 MW was contracted and 510MW is under negotiation. To cope with electrical shortages at peak times of consumption, Barge Mounted Generators (300MW X 2 units) are being ordered.
- 1-12 - Chapter 1
(4) Energy consumption volume in cement industry
In Bangladesh, there is only one company with an integrated cement plant, which requires thermal resource. Energy consumption consists, therefore, of natural gas used by the above company and electricity consumed by all other plants. Trial calculations of total energy consumption of the cement industry have been made by use of estimated figures of unit consumption, as shown in Table 1.1-3.
Table 1.1-3 Estimated Energy Consumption in Cement Industry Production Natural gas Electric power (t/y) (m3/y) consumption Estimated 1,900 Integrated: 170 kWh/t unit consumption kcal/kg-cl. Clinker : 60 kWh/t Integrated plant 160,000 35,300,000 27.2 million kWh/y
Clinker grinding plant 1,240,000 - 74.4 million kWh/y Total 1,400,000 35,300,000 101.6 million kWh/y
In terms of the energy consumption ratio of the cement industry against the whole of Bangladesh, the influence on the country ’s energy balance is relatively small, with a ratio of 0.4% (35.3/8,244 x 100) in natural gas and 1.1% (101.6/9,421 x 100) in electric power. The reason of such low influence is due to the fact that Bangladesh is a country, which produces natural gas and which products are mostly used for power generation, general industries and fertilizer. The gas consumption by the cement industry accounts for 3.4% of all consumption by general industries, which seems a relatively high consumption ratio, taking the consumption by one single cement company in the general industries into consideration.
- 1-13 - 1.1.3 Needs for CDM project
After signing the United Nations Framework Convention on Climate Change (UNFCCC) in 1992, Bangladesh has taken various steps in association with international institutions to do the following: # assess the potential influence of climate change and rising sea levels in different sectors, # assess Bangladesh ’s contribution to the global load of greenhouse gases (GHGs) on an annual basis, # identify possible options to abate national GHGs emission, and # identify specific steps and projects that would have positive feedback in curbing GHGs emissions.
The possibility of changes in climate and rising sea levels must be considered seriously. Bangladeshi is greatly concerned about land loss by rising sea levels, as Bangladesh is a low-lying country. Bangladesh expects much from Japanese leadership for materializing the CDM project, as Japan is the only Annex-2 country of OECD in Asia.
According to the director-technical, Department of Environment in MOEF (Ministry of Environment and Forest), he was of the opinion that modernization through the introduction of energy saving technology for cement plant is desirable and this project would be realized as the first project between Japan and Bangladesh. Also, he expressed his expectation of support from the Japanese Government fairly without prejudice to India and China which have the advantage of scale and number, although there would be a small number of projects to be taken as CDM project due to lack of the suitable scale and the number of domestic industries in Bangladesh.
Based on the Bangladesh Government ’s need to save energy and environmental measures related to the CDM project to be supported by Japan, a wide range of interest was shown by the government agencies concerned.
The Bangladesh economy is supported mostly by foreign aid and hasinsufficient financial resources to support ordinary commercial projects or provide investment in energy-saving technology and plant modernization. Implementation of the Project as a CDM project will contribute to a remarkable
reduction of energy consumption resulting in CO2 reduction and improvement
- 1-14 - Chapter 1 of productivity. Under such circumstances, the Bangladesh government has a strong desire to realize this project as a CDM Project since this project is a very attractive method for promoting modernization of the plant.
- 1-15 - 1.2 The Importance of Energy Conservation Technology
Neither renovation of equipment nor introduction of new technology for energy saving has been made since installation of equipment in Bangladesh ’s cement industry. Chhatak Cement Plant a targeted industry is the only integrated cement plant in Bangladesh, producing cement from limestone. Two wet kilns with a nominal capacity of 400 T/D and a satellite type clinker cooler were introduced in this plant. Adoption of a satellite type cooler seems to have followed the trend of technologies in Europe, since such technology was quite common at the time of construction. However, these technologies disappeared 40 years ago in Japan.
Chhatak Cement Company fears that they cannot continue to operate the plant, since these old-fashioned processes result in less profit due to high production costs from higher unit consumption of fuel and lower operational output due to deterioration of machinery and equipment. The company is required to modernize the plant by lowering unit consumption of overall energy down to a half of the present level through change of the existing wet long kiln to dry NSP (New Suspension Pre-heater) short kiln and replacement of the existing satellite cooler with a grate type cooler.
- 1-16 - Chapter 1
1.3 Significance, Needs, Effects of the Project and Dissemination of Results over Other Industries
Significance, needs and effects in implementation of the project are summarized as follows:
(D Unit consumption of fuel is more than double of the average in Japan and unit consumption of electric power is also 20% higher, because of partial deterioration of the targeted plant. Reduction of approximately 52 thousand
tons (natural gas basis) of CO2 emissions is attainable through implementation of the project. Further, implementation of the CDM project will contribute
partially to CO2 reduction in concert with COP-3 in Japan. Greater CO2 reduction and a wide range of contributions to the prevention of global warming are expected, based on the potential dissemination of the grinding method using a vertical roller mill with advanced energy saving technology to be adopted in the project. The cement industry grinds imported clinkers, using grinding equipment with tube mills, which require a relatively higher unit consumption of electric power.
(2) Resulting to financial benefits to Chhatak Cement will be extremely high due to significant natural gas reduction of around 25 million Nm3 annually. Thisis achievable only through implementation of the project, and a long-term loan balance amounting to US$21 million at the end of 1999 would be reduced due to the potential dissemination of energy saving technology in the project.
(3) Neither introduction of new technology nor significant renovation of the equipment for energy saving has been made since commencement of operations. At the same time, modernization of Chhatak Cement Plant is hindered considerably by lack of capital expenditure. Materialization of the project will contribute greatly to improve the company ’s competitiveness. Modernization of production equipment will be promoted and a reduction of energy consumption as well as better productivity of cement products will be attainable through implementation of the project.
- 1-17 - Chapter 2 Project Materialization
This chapter describes the Chhatak Cement Plant, Bangladeshi interest in the Project, equipment conditions, project capacity and equipment specification after modernization. The report goes on to describe the results of discussion with Bangladesh concerning scope of procurement of the project equipment and works, preconditions, points at issue and the implementation schedule. It also covers funding, fund-raising, CDM conditions, adjustment matters and the possibility of agreement on CDM implementation. Chapter 2
2.1 The Project
2.1.1 General
The Chhatak cement plant managed by Chhatak Cement Company Ltd. (CCCL), is located at the Sunamganji District, near the border to India, in northern area of Bangladesh, which is the only integrated plant in Bangladesh producing the Portland cement from the raw materials of limestone and clay. The Chhatak cement plant was commissioned in 1941 by the former Assam Bengal Cement Company established on 1937. The plant had the capacity of 60,000 tons per annum when starting up by one line of wet long kiln supplied by Polysius, Germany, and was expanded to the capacity of 90,000 tons per annum in 1958, installing a wet long kiln supplied by F. L. Smidth, Denmark.
After the independence of the People ’s Republic of Bangladesh in 1971, the management of the Chhatak Cement Plant was changed to Chhatak Cement Company Ltd. After that, another wet long kiln made of Heavy Engineering Corporation (HEC) India was installed in 1987 as the project of BMRE-1 (Balancing, Modernization, Rehabilitation and Expansion Program- 1) and the plant capacity was increased to 165,000 t/y. In 1987, BMRE-2 was implemented by Korea Heavy Industries & Constructions Co. Ltd. (KMIC) based on the Feasibility Study Report of Storch Corporation USA, and assistance of Asian Development Bank, and under the technical supervising of Nihon Cement Co. of Japan. By the BMRE-2, Polysius-made oldest kiln was demolished and the plant capacity of two units of wet process long kiln came up to be 267,000 ton-cement per annum. The new steam turbine electric power generator was installed in August 2000 having the capacity 8MW utilizing the natural gas that is stably supplied to the burning process. Due to the cause of the frequent electric power failure before the start of power supply by the new generator, lack of the spare parts and troubles of the maintenance, the actual average production of cement for recent 5 years was 160,000 tons per annum.
On the other hand, the main raw material of limestone is not available in Bangladesh and CCCL imports the limestone from India through ropeway transportation over a distance of 16 km. In the past, this ropeway installed in 1943 was also the unstable factor for the plant operation. In 1974, the long-term limestone supply agreement between Indian Miner and CCCL was signed, and the ropeway was thoroughly overhauled by CCCL For the
2-1 supplemental supply of limestone, CCCL has contracted the supply with the river transporter.
As described above, there are many interruptions for operation, and the plant was expanded stepwise, the existing process plant is composed of old style wet grinding, wet long kiln equipped with satellite coolers and has the plant capacity of 400t/d-cl x 2 lines. This wet process plant consumes two times volume of the fuel compared with that of the modernized dry process plant composed of a suspension pre-heater with pre-calciner, a short dry kiln and a heat recovery grate cooler. The much fuel consumption consequently increases the Greenhouse
Gas (CO2) emissions.
Japan Consulting Institute has conducted the study of “Fundamental Survey of High Energy Consuming Industries in South Asia (Bangladesh) ” as the trusted work from NEDO in the year of 1999, and visited CCCL to obtain the information. CCCL has requested to the Survey team of JCI to carry out Feasibility Study of the Modernization of the plant converting from existing wet process to dry process. It was assumed that the plant could achieve performance of 1.6 times production, 0.5 times of unit fuel consumption, and 0.8 times of total fuel consumption at the 1.6 times production, by the conversion of the one line of the wet process to the new dry process.
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2.1.2 Details of the Project
The Chhatak cement plant is operating with old wet process plant composed of wet tube mills for raw material grinding, wet long kilns with satellite coolers, and therefore, the energy consumption is extremely high which consequently
results in the much Greenhouse Gas (CO2) emissions. The modernization project is targeted to energy saving, Greenhouse Gas abatement and the increase of the yearly cement production. The main contents of the modernization project are (1) the application of a roller mill for dry raw material grinding, a suspension pre-heater with a pre-calciner, a dry short kiln, and a grate cooler, (2) addition of a pre-grinder of roller mill for existing cement ball mills, (3) the modification of old style material yard system, (4) renovation of old equipment and (5) an additional cement delivery system to cope with increased actual production capacity. It is expected to decrease the unit consumption of the fuel for clinker burning, the unit consumption of the electric power, and the increase of actual yearly production.
Although it was planned to utilize the part of existing kiln shell cutting short for the new dry kiln at the first stage of survey, this idea was abandoned and agreed to a plan to install brand new dry short kiln, after observation and discussion by both parties to avoid the expected trouble in the future.
2-3 2.1.3 Greenhouse Gases to be targeted
The targeted Greenhouse Gases are CO2 gases in the exhaust gas from the rotary kiln and from the boiler of steam turbine electric generator. The existing old wet process plant is extremely inefficient for producing clinker due to the wet process with the unit consumption of fuel per ton at more than 2 times as much as dry NSP kiln process prevailing in Japan, consequently
emitting much Greenhouse Gases (CO2 gases) into the air. Because of the cleanness of available natural gas, the sulfide matter is negligible, and the
nitrogen-oxide matter is very small compared with the quantity of CO2 gas.
The relation between energy conservation and CO2 gas abatement is examined in the study.
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2.2 Outline of Chhatak Cement Co. Ltd. (CCCL)
2.2.1 Interest and Intention at Execution Site
Chhatak Cement Co. Ltd. (CCCL) has the strong desire for modernization of the plant, which has appeared during the site survey visit of the JCI survey team through the cooperative preparation by CCCL of the required data, and the discussion about the modernization plan.
For example, the data of recent 5 years production and operation record as well as the company’s financial statements were disclosed to the JCI survey team at the time of the first site visit. The modernization plan based on the analysis of operating conditions was deeply discussed during the first and second site visits. The execution site has much concern about the modification procedure and the firm prospect of the modification efficiency relating to the economical improvement, which is one of basic judgments for implementation of the Project.
It seems that the financing arrangement for the project will be planned and coordinated by the Ministry of Industries (MOI) and BCIC upon the request of the execution site. The explanation and discussion with MOI and BCIC was carried out in Dhaka for the financial plan and the application of Japanese soft loan. The strong interest for CDM scheme was also raised by MOI at the meeting, and JCI Survey team expressed to do their best efforts to inform the progress of the international agreement on details of CDM scheme going on.
2-5 2.2.2 Conditions of Relevant Equipment (Outline, Specifications, Operation, etc.)
(1) The existing plant capacity after the completion of BMRE-2 is as follows: Nominal plant capacity ; 400 t-clinker/day x 2 lines x 321 days/year = 256,800 t-clinker/y Cement production = 256,800 t/y x 1/0.96 = 267,000 t-cement/y
(2) Production record and Operation days
Table 2.2-1 shows the yearly cement production record for recent 5 years.
Taj )le 2.2-1 Cement Production Recorc
Year 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 Production (ton/y) 153,275 168,010 162,010 151,200 168,275 Ratio/Nominal capacity (%) 57.4 62.9 60.7 56.6 63.0
The average yearly cement production of recent 5 years is 160,000 tons approximately, and the average operation days per year are less than 250 days. The most considerable cause of the less operation days is the electric power failure frequently occurred by the BPDB (Bangladesh Power Development Board). This main cause of the plant shut down by electric power failure is expected to be minimized since the newly installed own electric power generator of 8 MW as planned BMRE-II commenced its operation in August, 2000. On the other hand, much continuous operation will cause much maintenance shutdown of the plant, unless the effective rehabilitation of the old equipment is carried out.
Low operational availability of the plant has been a main reason why the annual cement production of recent 5 years did not achieve the designed capacity of 267,000 tons. Following causes are discussed and recognized mutually for the low operational availability; © Frequent electric power failure (2) Problems of transportation of limestone by rope way ® Frequent maintenance work required for limestone crushing and
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storage/handling by old cranes ® Frequent maintenance work required for kiln refractory, especially for the refractory at the outlet of kiln to planetary cooler © Low productivity of old cement mills
(3) Unit consumption of the fuel The design base of the unit consumption of the fuel for the current burning is 1,600 kcal/t-clinker although the actual unit consumption is as high as 1,900 kcal/t-clinker in average due to the frequent operation stop by the cause of electric power failure.
(4) Unit consumption of electric power The unit consumption of electric power is shown in Table 2.2-2.
Table 2.2-2 Unit Consumption of Electric Power
Production Wet process Wet process Wet process
No. 160,000 215,000 267,000 t-cement/y t-cement/y * t-cement/y
Department kWh/ton-cement kWh/ton-cement % kWh/ton-cement
1 Ropeway, 9.5 9.5 5.6 9.5 Crushing
2 Clay handling 5.4 5.4 3.2 5.4
3 Raw Mill 37.8 37.8 22.3 37.8
4 Kiln 23.0 23.0 13.5 23.0
5 Cement Mill 51.3 51.3 30.2 51.3
6 Packing and 4.0 4.0 2.4 4.0 delivery
Sub total 131.0 131.0 77.1 131.0 Others j** (39x215/160 (39x215/267 (machine shop, water pump, =52.4) =31.4) compressor, overhead, colony) 52.4 39.0 22.9 31.4
Total 183.4 170.0 100 162.4
Remarks: * The unit consumption is based on the yearly production of 215,000
t-cement/y. ** Others are the fixed consumption of the power at the production of 215,000 t-cement/y. Source of the data: by CCCL
2-7 (5) The main equipment The specification and installation year for the main equipment are shown in Table 2.2-3.
Table 2.2-3 List of Main Equipment • Raw Mill Supplier Fuller USA/KHIC Installed April, 1992 Type 3 chambers open circuit wet ball mill Q’ty 2 sets Main size 2.6 m dia. x 12. 8m L Capacity 35t/h each Main drive 950 kW
No.l Rotary Kiln Supplier F.L. Smidth Denmark Installed 1959 Type Wet long kiln Q’ty 1 set Main size 3.0 x 2.7 x 3.0m dia. x 123 m L Capacity 400t/d Main drive 120 kW
No.2 Rotary Kiln Supplier HEC India Installed 1987 Type Wet long kiln Q’ty 1 set Main size 3.0 x 2.7 x 3.0m dia. x 123 m L Capacity 400t/d Main drive 140 kW
4) No.l Clinker Cooler Supplier F.L. Smidth Denmark Installed 1959 Type Planetary cooler Q’ty 12 tubes Main size 1.05 m dia. x 6. 6m L
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5) No.2 Clinker Cooler Supplier HEC India Installed 1987 Type Planetary cooler Q’ty 12 tubes Main size 1.05 m dia. x 6. 6m L
6) Cement Mill Supplier F.L. Smidth Denmark Installed 1959 Type 3 chambers open circuit ball mill Q’ty 2 sets Main size 2.3 m dia. x 10.6 m L Capacity 15t/h each Main drive 660 kW
7) Cement Mill Supplier Polysius, Germany Installed 1940 Type 3 chambers open circuit ball mill Q’ty 2 sets Main size 2.2 m dia. x 13.0 m L Capacity 12t/h each Main drive 530 kW
(6) Process Flow Diagram The process flow diagram of recent Chhatak Cement Plant is shown in Figure 2.2-1.
2-9 From India Clay Ropeway (Deposit)
Clay Clay Clay Limestone Wash Mill Hopper Crusher Unloading
fromTahirnur
Clay Storage
(by Boat or Barge)
Raw Mill
Slurry Hopper
Rotary Kiln & Satellite Cooler
Clinker Gypsum Storage (from TSP)
Gypsum Cement Dryer Mill
Cement Silo
Cement Packer
Ship Loading
Figure 2.2-1 Process Flow Diagram of Chhatak Cement Plant
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2.2.3 Project Execution Ability of the Site
(1) Technical capacity
Details of JCFs requirements for data collection were adequately understood and answered quickly. Also, contents of correspondence to JCI’s questions were reliable and appropriate.
It is quite natural to consider that CCCL has basic capacity and expertise of technology and many persons with excellent power of understanding, judging from that JCI received proper answers from CCCL in written form or verbal for study team’s technical questions during the local investigation and discussion with the engineers of CCCL.
And it has persons with endowments of understanding instructions and of performing the Project, if definite guideline is given from the management and adequate guidance by well-experienced consultant.
(2) Management system
The organization chart of CCCL is shown in Figure 2.2-2. Management system for daily operation is well arranged. Its morale is high and correspondence is prompt.
Specially organized project team has usually made preparation and implementation of plans for modernization as well as management of promotion conditions. Such provisional organization is required for the Project.
2-11 Department Section Section
Administration Personnel 261 32
Establishment & Common Service 155 Accounts High School
Purchase Medical 21 ______34 Commercial Sales (Com, office - 3)36 12 Material Planning MPIC 12 37 Cement Production Store 19 25 Operation (Oper. office - 3) 182 Mechanical Managing Director Maintenance 180 5 Total 1,539 (1,266-CCCL) Electrical ( 273 -TLMP) Maintenance 136 Mill House
Maintenance Ropeway (Maint. office -3 651 128 Pack House 24 Civil 52 Administration Transportation 152 Store, Purchase Quality Control & Civil 2
Accounts Technical Service Design Development (Tech, office - 3) & Tech. Library 1 Mining Training
Limestone Production Mechanical, Electrical Project (Office-3) 273 & Power 106
Figure shows total number of personnel at each department or section.
Figure 2.2-2 Organization of Chhatak Cement Co. Ltd.
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(3) Management foundation and management policy
CCCL has become the only integrated cement manufacturing company in Bangladesh. Its parent body is made up of a main investment from BCIC fund. Its management foundation is firm with such fund-raising capability.
Its management policy aims at concentrating on demands of main markets, such as northern part of Bangladesh and supplying products of high quality, but export of products is not targeted. At the same time, the company has an eye on taking a leading part in Bangladesh cement industry and, in view of geographical conditions of location, expects highly the implementation of the Project as a most important issue for energy-saving and environmental measures.
(4) Capability for sharing necessary fund
Soft loan to be provided by Japan is expected for 85% of the total required fund, and it doesn ’t matter to cover the remaining 15% by the company’s own fund, as a result of the discussion with CCCL on sharing fund required for implementation of the Project.
(5) Capability for supply of manpower
There are a lot of persons with talent who are skilled in the company. Preparatory education and supplements by outsiders will be required, in case of shortage of skilled labor.
(6) Implementation system
Figure 2.2-3 shows the organization required for implementing the Project. The position of consultant varies with his role. It depends on whether he has a function of advisor to owner or becomes an owner ’s engineer who implements the Project on behalf of the owner. Typical cases are mentioned below, although there are many variations.
The role of main contractor covers basic designs, detailed designs, determination of specifications based on such designs, domestic and overseas procurement and transportation of the Plant equipment and materials. It is
2-13 common in Bangladesh that main contractor carries out local procurement usually, as the question as to who is responsible for performance of plant itself becomes a subject of discussion in respect of placing order of the Plant equipment,.
As for local civil engineering and construction works and installation works, it is customary that owner places order directly with local contractors, and the role of main contractor is usually limited to construction management and supervision services. In general, owner places order directly with contractors on domestic transportation and custom clearance, too.
Main Contractor Basic Engineering
Consultant Detail Design
Procurement Client - Domestic - Overseas Project Team
Ocean Transportation
Civil and Building Works
Erection and Installation Works
Inland Transportation
Customs Clearance
Figure 2.2-3 Organization for Project Implementation (Typical example)
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2.2.4 Project Details and Equipment after Modernization
(1) Plant capacity The maximum plant capacity is limited by the available quantity of the raw material of limestone to be purchased and transported by ropeway and barges all from India, and that quantity of 1,024 tons/day limestone is maximum for the purchase and minimum requirement for the production of 800 t-clinker/day which relates to the nominal plant capacity of 267,000 ton-cement/y.
The calculation of the required raw material quantity and product is as follows: 800 t-clinker/day x 1.58 x 0.81 = 1,024 t-limestone/day 800 t-clinker/day x 1.58x0.19 = 240 t-clay/day 800 t-clinker/day x 321days/year x 1/0.96 = 267,000 t-cement/year
The plant capacity of 800 t-clinker/day is not so economical scale for the NSP dry process plant from the view point of the cost performance, but still there will be the merit for the operation cost decrease by the energy saving, durability of the long continuous operation and so on.
The reinforcement and rehabilitation of the existing equipment are inevitable for the continuous plant operation with full capacity even after the plant modernization is implemented. The required modification and rehabilitation portion are shown in Figure 2.2-4 Mass Flow Diagram. These measures and dispositions can eliminate the causes mentioned in Section 2.2.2, which has lowered the plant operational availability.
In order to secure the production of nominal plant capacity, the burning department shall be designed with the reserve up to 900t-clinker/day for the recovery of leaning-stage operation at the initial few years.
(2) Unit consumption of the fuel The design base of the unit consumption of the fuel shall be set to 800 kcal/kg-clinker which figure is just 50 % of the design base consumption 1,600 kcal/kg at existing wet process plant.
(3) Unit consumption of the electric power
2-15 It is expected that the unit consumption of the electric power will be decreased by 16% of the variable portion in the Project, by the endeavor to apply most developed technology, those of the application of the roller mill for the raw mill, and for the pre-grinder to be combined with the existing ball mills, and the employment of a grate cooler equipped with high efficiency grate plate.
4) Mass flow diagram The total mass flow diagram after the modernization project is shown in Figure 2.2-4, which indicates clearly the departmental classification for the kind of works such as new installation, rehabilitation, conversion etc.
2-16 Chapter 2
60t/h x 12h Limestone Clay bv rone wav Deposit 304t/d Limestone by Barge 1024 t/d Trnasportat ion by Truck 240 t/d Crushing
Limestone Clay Storage Temporary stock
200 t/h Raw Mill Raw Mill Feed Bin Feed Bin 133t/h LEGEND 56.7 t/h Water contents Water contents Raw Mill 27.0% NEW (Roller Mill) 70t/h Water contents 10.0% 70t/hx20h/dx291d/y
EXISTING 407,600 t/y Mixed Raw Meal
MODIFICATION Blending Silo lniiniinmuiiiiiniimiiiiiii 2,600 ton
Kiln Feed System 60 t/h
NSP, Kiln, Cooler 800 t-cl/d 800 t/d x 321d/y== 256,800 t/y (max. 900t-cl/d)
Gypsum Clinker Storage Yard Storage Yard
Weight ratio 96% Weight ratio 4.0 % 50 t/h Pre-Grinder (Roller Mill)
Stand-by 22 t/h 16 t/h (12 t/h) Cement Cement Cement Mill Mill
r 1 r
Pneumatic CEMENT 267,000 t/y Transportation
Cement Silos Cement Silos
Packer Packer 100 t/h
Ship Loader Ship Loader
Figure 2.2-4 Mass Flow Diagram
2-17 2.2.5 Assignment of Job, Funding, Procurement of Equipment and Other Services, which are required for Project Implementation, to be shared by both Parties
Through the meeting with the Ministries of Bangladesh, BCIC and CCCL, following points were recognized.
It is prerequisite that Bangladesh will acquire the finance from Japanese Government with necessary fund required for the Project. The Project executor on the side of Japan (hereinafter refer to "Japanese executor ”) will provide necessary services, such as, basic planning and basic engineering, for machinery and equipment, as well as operational
know-how related to energy-saving technology and reduction of CO2 gas emissions. Japan side will also assist Bangladesh side to request the loan from Government of Japan in order for Bangladesh side to execute measures for environmental and energy- saving by the equipment and facilities.
The scope is confirmed as follows by both parties, based on above understanding.
(1) The Items to be done on the side of Japanese executor
■ Project preparation phase; © Liaison, negotiation and coordination with Bangladesh Government, Japanese authorities concerned, BCIC and CCCL related to realization of the Project (2) Assistance to Bangladesh side for further detailed feasibility study on the basis of the Study when required for fund-raising from Japan (D Preparation of basic plan for the Project
■ Project execution phase; © Technical assistant for basic and detailed design for equipment & machinery ® Technical assistance for procurement and /or supply services of the equipment to be manufactured in Japan or oversea based on main contractor ’s technology (3) Technical assistance for construction and operation
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® Technical assistance for training in main contractor ’s country and OJT guidance at the site on personnel required for operation and maintenance © Technical assistance for guidance and supervision of local construction work and commissioning © Preparation of measurement manual required for calculation of CO2 emissions
(2) The Items to be done on the side of Bangladesh (BCIC/CCCL)
I Project preparation phase; © Liaison, negotiation and coordination with Bangladesh Government (Ministry of Industries, Ministry of Environment and Forest, etc.) related to realization of the Project and acquisition of the Government approval for the execution of the Project ® Government approval for the application of loan from Japan in Yen on Government -Government base © All necessary internal procedures in BCIC and CCCL for the initiation of the Project and application of loan from Japan in Yen on Government - Government base @ All necessary procedures for fund loaning and conclusion of the loan agreement
I Project execution phase; © Acquisition of Bangladesh Government ’s sanction for the special action on taxation for environmental protection project ® Providing all necessary facilities for the activity by Japanese in Bangladesh related to execution of the Project © Providing basic design data and design drawings for existing equipment and facilities ® Procurement of equipment, materials and various site works during the Project execution as well as equipment and materials manufactured in Bangladesh
(3) Supply scope of fund, machinery & equipment and services to be provided by both of Japan and Bangladesh in implementation of the Project are mentioned in more details as follows.
2-19 ® Basic plan and fund-raising With consent obtained from CCCL/BCIC after mutual discussion, a consultant will be selected, who has excellent experiences required for performance of similar project. Such consultant is expected to undertake the task of teaching and advising needed for preparation of basic plan and project control.
The scope, schedule, budget and set-up of financial scheme will be included in the basic plan. Its detail will be mutually agreed and determined after approval of Bangladesh Government.
As for 85% of the fund required for implementation of the Project, Yen Credit or export credit is anticipated being provided through the mediation by Japanese executor and the remaining 15% to be raised separately, either by own fund of CCCL or through supports of Bangladesh Government.
In respect of the fund to be provided on Japanese side, adjustment by Japanese executor with authorities concerned will be made, relating to type of finance, application scope as well as terms and conditions. Finally, fund-raising will be decided after the discussion with Japanese executor, including allocation of CDM results. Various procedures required in practical stage will be shared by each party and implemented separately.
(2) Machinery & equipment and local construction works Japanese executor will assist for CCCL and the consultant to select a main contractor, who has a know-how required for implementation of the Project after the discussion with CCCL and the consultant. The selected main contractor will undertake the task of detailed design of process and preparation of drawings and specifications necessary for equipment procurement based on the main contract of the plant.
Through discussion with the above consultant, CCCL is expected to organize the project team, consisting of its own personnel, and, if necessary, appoint separately another local consultant who is anticipated to go into services, such as preparation of drawings and
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specifications for local construction works and other promotions of the Project.
The main contractor will supply plant and equipment essentially required for fulfillment of plant performance guarantee. The order placement will be made by CCCL with consent of the above consultant.
Based on drawings and specifications prepared by main contractor, other services, such as order placement and management of auxiliary machinery & equipment procurement, will be implemented by CCCL with consent of the above consultant.
As for order placement and management relating to local construction works, it is expected to be implemented, with consent of the above consultant, by CCCL in accordance with drawings and specifications made out by the above project team or a consultant separately appointed.
(D Other services CCCL will provide all information required for setting up conditions of the Project ’s basic plan.
Japanese executor will provide CCCL the conditions and information, relating to fund-raising by use of governmental financial institution ’s loan and CDM application and it will take relevant procedures, necessary on the side of Japan. Even if Feasibility Study is required separately in application of such financial institution ’s loan, relevant expenses are not included in the budget of the Project.
CCCL will take various procedures needed for Bangladesh Government relating to the above.
The guidance in respect of plant management will be undertaken, after discussion with CCCL. Guidance for test run after completion of construction works will be included within the scope of work for the above main contractor.
2-21 Technical assistance by Japanese executor will be rendered after completion of the Project, if requested by CCCL.
After completion of the Project, operation records of each manufacturing process relating to the Project will be managed by CCCL and released to Japanese executor at any time.
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2.2.6 Prerequisite for Implementation of the Project and Points at Issue, etc.
(1) Prerequisite for implementation of the Project
Prerequisite for implementation of the Project is as the follows. © Prerequisites and problems, peculiar to the Project, have not been found. And in this connection, any indication has neither been made by CCCL. ® Due to financial situation of Bangladesh, it is prerequisite that Japanese Yen credit will be provided for the project and approval of the Government of Bangladesh for raising such fund from Japan for the Project is an important prerequisite. (3) Both of CCCL and Bangladesh Government take cognizance fully of the need for the Project. Although the Government ’s approval is indispensable for implementation, the Government intends to give its sanction, if finance conditions are arranged. Under the circumstances, the Project will be implemented immediately, in the case that ODA loan from Japanese Government is provided through the designated procedures @ In parallel with the above procedures, the following coordination is required. - Selection of consultant - Determination on the scope of the Project - Determination on project cost - Procedures for implementation and set-up of schedule - Informal decision on engineering contractor - Confirmation on points of arrangement for machinery & equipment and guarantee conditions - Determination on conditions of financial plan
(2) Points at issue, etc.
© Settlement of detailed procedure of CDM is to be made, since basic conditions are not agreed yet among the countries on the trade of
reduced CO2 emissions after the Project implementation. ® 15% of Value Added Tax (V.A.T.) to be imposed on equipment cost is extremely high. To improve economic effect in the Project and facilitate fund-raising for equipment required for Greenhouse Gas reduction,
2-23 Bangladesh Government is requested to exempt such V.A.T. as a favorable treatment. (3) Although same treatment is required for import duty, Bangladesh Government is also requested to apply the duty exemption. @ From the viewpoints of technology and equipment, there is no particular problem. In local construction work for modernization, possible care and security are required so as not to prevent normal operation during construction period. Implementation of final work for change to new equipment is required to be made quickly in annual major repair period (approx. 20 days) in order to minimize opportunity losses due to shutdown. As a result of the investigation of this time relating to layout, there is no problem in the execution of such work.
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2.2.7 Project Implementation Schedule
The both parties confirm as below that the action plan and schedule of implementation until conclusions of commercial contracts, assumed in the case of implementation of the Project being adopted between Japanese Government and Bangladesh Government or among private companies after completion of the basic study.
Schedule of the Project Implementation has been planned in the following three stages. (See Figure 2.2-5)
1) First stage: Action plan until conclusion of commercial contracts
® All necessary internal procedures in BCIC and CCCL for the initiation of the Project @ Preparation of basic plan for CDM Project (3) Preparation of implementation plan for CDM Project @ Application of the Government approval for the execution of the Project (5) Application of loan from Japan in ODA Yen Credit © Technical assistance related to finance arrangement ® Liaison, negotiation and coordination with Bangladesh Government (Ministry of Industries, Ministry of Environment and Forest, etc.) related to the Project ® Liaison, negotiation and coordination with Japanese Government related to the Project ® Acquisition of Bangladesh Government ’s sanction for the special action on taxation for environmental protection project
2) Second stage: Construction work from the effective date of the Project contract to completion of commissioning
(D Selection of Consultant and preparation of basic plan for the Project © Arrangement and conclusion of loan agreement ® Conclusions of agreements on construction contracts @ Basic design work and detailed design work © Procurement service of machinery equipment & materials
2-25 © Shipment & transportation service (Marine transportation, custom clearance in Bangladesh and inland transportation) ® Local construction work (Dismantling and removal work of the existing facilities in the new NSP kiln area, dismantling and removal of supplementary equipment to the existing plant, work for concrete foundation and installation & assembling work) ® Commissioning for the construction work ® Training for operation and maintenance personnel
3) Third stage: After completion of construction commissioning for the Project
® Monitoring and evaluation about reduction volume of CO2 gas @ Technical assistance for plant operation
In consideration of each of the above services, overall schedule in implementation of the Project is shown in Figure 2.2-5.
As the policies for Greenhouse Gas reduction plans by both of the Governments (Japan and Bangladesh) are unknown, it is too early to make exact implementation schedule of the Project on monthly (calendar) basis. Since timing and time period for reviewing and appraisal of the viability and feasibility on the side of lenders for the Project are quite unclear, the schedule from effective date to completion of commissioning has been made out, on the condition that 16 months are required for the period commencing joint work to effective date of the construction contract.
Meanwhile, 30 months are required for the period from effective date of contract/ commencement of design to completion of all the works. Particularly, 24 months are required for the period from commencement of removal of the existing facilities to completion of installation work. As for training, 1 month in Japan or an oversea country within the scope of main contractor and 3 months in the execution site for OJT (On-the-Job Training) under the direction of supervisors delegated from the main contractor are required, respectively.
2-26 Chapter 2 50 | | 1 49
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2-27 2.3. Realization of Financial Plan
2.3.1 Financial Plan for Project Implementation (Required Fund, Raising Fund, etc.)
(1) Necessary fund amount The fund required for implementation of the Project is based on the following amount, calculated on so-called “turn-key basis”. Such turn-key based amount is inclusive of civil engineering, construction, installation and test-run works expected to be within the supply scope of CCCL in implementation stage as well as education, training and technical assistance scheduled to be provided by the plant main contractor for project implementation.
Construction Cost: US$36,000,000
Total investment cost for each case based on above construction cost will be as follows, taking different interest rate of possible lender into consideration (For details, see Table 4.1-1 Total Investment Cost.)
Total Investment Cost - Case 1: US$37,327,000 Total Investment Cost - Case 2: US$40,994,000 Total Investment Cost - Case 3: US$38,146,000
Total required fund including necessary cash-in-hand of US$100,000 (assumed) will be;
Total Required Fund - Case 1: US$37,427,000 Total Required Fund - Case 2: US$41,094,000 Total Required Fund - Case 3: US$38,246,000
(2) Fund-raising method Approximately 15% of the above total required fund will be covered by Bangladesh side own fund and the coverage of the remaining 85% is expected to be by long-term loan from Japan.
2-28 Chapter 2
2.3.2 Prospect for raising Fund (Implementation Plan of F/S by Executor and Promoter at the Site)
As far as the loan from Japan (85% of total required fund) is concerned, two types of loan, such as export finance and Yen Credit from Japan Bank for International Cooperation (JBIC) seem to be available. In addition to due considerations on the characteristic target of the Project for energy-saving and Greenhouse Gas reduction, Bangladesh Government hopes for application of Yen Credit with soft borrowing conditions, in view of the fact that interest rate is higher and repayment period is shorter in the export finance of JBIC, compared with its Yen Credit.
It may well be that implementation of the Project will be materialized, since Ministry of Industries and its affiliated organization BCIC, as Bangladeshi project promoter, asses the Project and have intention to request application of Yen credit with high priority.
As for local portion, BCIC expressed clearly its views that 15% of the total required fund of the Project can be covered by own fund. They, however, hope the local portion of the fund be minimized as low as possible.
- 2-29 2.4 Conditions relating to CDM
2.4.1 Issues to be settled with Bangladesh Government for Realization of CDM regarding Conditions and Job Assignment for Project Implementation based on the Practical Situation at the Site
Provision of information is required at any time, as settlements of the matters indicated in 2.2.6 in this Chapter are preconditions for implementation of CDM and adjustments corresponding to development of international agreement on CDM, such as establishment of monitoring system, are necessary. So far the counter party (country) has not yet proposed any conditions for the Project.
Although Department of Environment and execution site of CCCL are very positive for early provision of environmental measures and energy improvement through CDM of the Project, clarification of the following points is required as preconditions for execution of the Project. © In respect of CDM, direct and official contact between Japanese Government and Bangladeshi Government and set-up of concrete
approach to and agreement on CO2 sharing © Set-up of a responsible ministry for CDM on the side of Bangladesh Government © Materialization of provision of Yen Credit for the execution of CDM Project
2-30 Chapter 2
2.4.2 The Possibility of Agreement on CDM of the Project on the Side of Bangladesh (Conditions to be accepted by Bangladesh Government and the implementation site taking their concept on CDM system into account)
Requirements from the Bangladeshi bodies involved have been incorporated in the Study as much as possible for the proposed CDM project. It is designed to minimize influence on production during the construction work for modernization and to reduce total investment costs by using the existing equipment as much as possible. As both details of the project and investment costs have proved to be satisfactory to the counterparts, Bangladesh Government, BCIC and CCCL have a strong desire to materialize this project.
Meanwhile, both the country and targeted company have studied CDM extensively and have a better understanding of CDM. Since this project is a very attractive method for promoting modernization of the plant, they have a strong desire to realize this project.
2-31 Chapter 3 Effects of the Project
This chapter hereby states the technical grounds for production of each effect of energy-saving and Greenhouse Gas reduction in the implementation of the Project, and approach to estimation on each volume, in the case of the Project being not implemented. In addition, it mentions the results of calculation on each concrete volume of effects, production period, accumulated volume, concrete method of confirmation and influence on productivity. Chapter 3
3.1. Energy Conservation Effects
3.1.1 Technical Ground for Producing Energy Conservation Effects
(1) Effects due to conversion of wet Kiln to dry NSP kiln
As more than 40% of water is intentionally added to raw materials for wet process kiln in the process of grinding, heat energy exceeding two times of the heat energy theoretically required for burning is needed, when such raw materials are supplied to kiln as in the case of CCCL. On the contrary, necessary heat can reduce by half in the case of dry process, since water of raw materials to be supplied is less than 1%.
In respect of NSP kiln, radiation heat from the surface of kiln is able to be reduced by half, as around 60% of fuel required for burning is supplied to the pre-calciner which is installed between kiln and pre-heater for raw materials and is burnt at low temperature.
(2) Effects of introduction of a vertical roller mill for the raw material grinding process
Generally, electric power of 1.3 times as much is required for raw material grinding in case a wet horizontal ball mill is replaced with a dry horizontal ball mill. Electric power consumption can be, however, cut down below the consumption of a wet horizontal ball mill, adopting a vertical roller mill in the process even with such replacement.
(3) Effects of introduction pre-grinding system for clinker
The introduction of pre-grinding system through increase of roller mill entails improvement of grinding efficiency as well as advancement of productivity of the existing tube mill. It has been proved actually in Japan.
(4) Effects due to replacement of clinker cooler
In respect of clinker cooler, two roles are expected. One role is cooling of red-hot clinker heated in the burning zone of the kiln, and another is a function as heat recovery equipment. The air used for cooling of clinker is utilized as
3-1 secondary air for burning fuel in the kiln, and the tertiary air in the pre-calciner.
As for satellite cooler, air volume required for cooling of clinker exceeds considerably the theoretical volume required for burning fuel in the kiln, resulting in combustion at too much excessive air ratio. In regard to grate cooler, control of the above secondary and tertiary air volume and temperature is easy, and improvements of productivity and thermal efficiency of kiln will be achievable. Furthermore, higher efficiency of heat recovery and decrease of electric power consumption along with it can be expected adopting grate type cooler equipped with recently developed new type grate plate.
3-2 Chapter 3
3.1.2 Baseline for estimating Energy Conservation Effects (Baseline to assume Energy Consumption in case the Project is not realized)
Existing plant has the maximum production capacity 267,000 ton-cement/y. The capacity is limited by the transport capacity of the raw material of limestone by ropeway even adding quantity of the limestone transported by barges. The unit consumption of the fuel required for burning clinker, 1,600 kcal/kg-clinker, is a design value in case the plant is operated under above production capacity. Average production ratio (to designed capacity) stays only 60% in recent 5 years operation due to five main causes mentioned in section 2.2.2(2) above, resulting in unit consumption of the fuel as high as 2,000 kcal/kg-clinker approximately.
Meanwhile, it is necessary to maximize the plant production capacity to meet the upper limit of transport capacity of limestone, since the lower the plant production, the higher the production cost in the NSP dry kiln process applied for this project. A plan lowering fuel consumption and production cost is now underway for the stable and continuous operation of the plant.
In line with this plan, renovation, new installation and expansion of existing equipment, excepting already solved electric power generator of above five causes, are proceeding in order to increase the production up to designed capacity of 267,000 ton-cement/y with present wet process, although it will be long term plan due to difficulty of financing, in case that the Project is not implemented. The baseline is set up where increased production, 267,000 ton-cement/y is achieved by present wet process if above measures, such as, renovation, new installation and expansion of existing equipment, are executed.
(1) Production capacity
The designed capacity of the existing production equipment amounts to 800 t/d (clinker). In case of operation being made for 321 days annually, production volume will come up to 267,000 t/y (inclusive of errors due to rounding-off of figures).
800 t-clinker/dX 321 d/y-i-0.96 =? 267,000 t-cement/y
3-3 As mentioned above, the actual mean value for the past 5 years production was, however, limited to 160,000 t/y in average and average operation days in a year was 250 d/y. When design basis operation days of 321 d/y is achieved annually to cope with continuing demand after renovation, new installation and expansion of existing equipment are complete using the present wet process, estimated maximum practicable production will be 267,000 tons on annual basis. Therefore, the production tonnage at the baseline is set up with 267,000t/y.
3-4 Chapter 3
(2) Energy consumption
The maximum energy consumption as the baseline will be estimated as following table, in case of the Project being not implemented.
Table 3.1-1 Fuel Consumption
At Present Baseline
Clinker Production 153,600 t/y 256,800 t/y
Cement Production 160,000 t/y 267,000 t/y Unit Consumption of 220 Nm3/t-clinker 185.8 Nm3t-clinker Fuel = 211.2 Nm3/t-cement = 178.4 Nm3/t-cement Unit Consumption of 1,894.2 Kcal/kg-clinker 1,600 Kcal/kg-clinker Heat = 1,818.4 Kcal/kg-cement = 1,536.0 Kcal/kg-cement Annual Fuel Consumption 33,792,000 Nm3/y 47,632,800 Nm 3/y Annual Heat Consumption 290,900,000 Mcal/y 410,100,000 Mcal/y
Calculation:
1,600 kcal/kg-clinker X 1,000 kg/t X 267,000 t/y X 0.96= 410,100,000 Mcal/y
Also, the maximum consumption of electric power will be estimated as following table in case of the Project being not implemented.
Table 3.1-2 Power Consumption
At Present Baseline Clinker Production 153,600 t/y 256,800 t/y Cement Production 160,000 t/y 267,000 t/y Unit Consumption of 183.4 kWh/t-cement 162.4 kWh/t-cement Electric Power Annual Power 29,344,000 kWh/y 43,360,000 kWh/y Consumption
3-5 3.1.3 Actual Volume, Production Period and Accumulated Volume of Energy-saving Effects
As the result of the conceptual design of the new NSP kiln, the following unit consumption of fuel and electric power after conversion to dry process will be attainable, respectively after implementation of the Project:
Unit consumption of Fuel: 800 Kcal/kg- clinker
Unit consumption of Electric Power: 141.4 kWh/t-cement
After the modernization of the plant, the energy consumption on the basis of 256,800 t/y clinker processing will be as follows:
Fuel: 800 Kcal/kg- clinker X 1,000 kg/t X (267,000 t/y X 0.96) = 205,050,000 Mcal/y
Electric Power: 141.4 kWh/t-cement X 267,000 t/y = 37,750,000 kWh/y
Based on above calculation, following table shows summary of annual reduction of the energy consumption.
Table 3.1-3 Annual Reduction of Energy Consumption
After Project Annual Baseline Implemented Reduction
Cement Production 267,000 t/y 267,000 t/y - Heat Consumption 410,100,000 205,050,000 205,050,000 Mcal/y Mcal/y Mcal/y Power 43,360,000 37,750,000 5,610,000 Consumption kWh/y kWh/y kWh/y
The above electric power consumption is convertible to heat capacity by use of the following formula. (2,646 kcal/kWh is the coefficient of conversion for electric power and heat capacity, based on IPCC guideline.)
3-6 Chapter 3
Baseline : 43,360,000 kWh/y X 2,646 kcal/kWh = 114.730.000 Mcal/v
After Project Implemented : 37,750,000 kWh/y X 2,646 kcal/kWh = 99.886.000 Mcal/v
Therefore, the annual reduction of electrical energy consumption will be;
114.730.000 Mcal/v - 99.886.000 Mcal/v = 14.844.000 Mcal/v
Then, the annual reduction of total energy consumption will be: 205,050,000 Mcal/y + 14,844,000 Mcal/y = 219.894.000 Mcal/v
(Equivalent annual reduction of the natural gas consumption = 219,894,000 Mcal/y-7-8,610 Kcal/Nm3X 1,000 Kcal/Mcal =25,540,000 Nm3/y)
Annual reduction of total energy consumption (crude oil equivalent basis) @ 10,000kcal/kg-oil conversion rate
Annual consumption of total energy: Before project implementation = 52,483 toe/y After project implementation = 30,493 toe/v Annual reduction = 21,990 toe/y
Effect Ratio for Energy-saving (1) Energy consumption before Project implementation (Baseline) = 52,483 toe/y...... (a) (2) Energy-saving after the Project implementation = 21,990 toe/y...... (b)
Effect Ratio for Energy-saving = (b) / (a) X 100 = 41.9 %
3-7 3.1.4 Practical Method to confirm Energy Conservation Effects
Energy-saving effect (A) is equal to the difference (B—C) between a measured value of annual energy consumption after implementation of the Project (C) and the value at the baseline corresponding to production volume at that time (B).
A = B - C
As production volume is indicated by clinker base (kiln products), namely clinker ton (t-clinker), instead of the cement volume, the production volume of the clinker is measured using y ray weigher and the error is corrected weekly, comparing it with inventory.
The measurement for fuel flow is available by use of integration flow recorders, as far as it is fluid, such as oil or natural gas, etc. As there are daily operation changes, and a time lag between the fuel consumption and the production volume, the confirmation of appropriateness of data shall be done against the monthly cumulative volume, and annual consumption volume is decided by means of totaling them. Regular measurement for low calorific value of fuels is also required.
In respect of electric power consumption, cumulative value measured by instruments is also usable, but adequate arrangement of precise instruments is needed for acquiring an exact value for each production. The consumed electric power in infrastructure, utilities and management facilities is also to be totalized respectively in a separate manner.
The above data is obtainable as total values of daily operation records. Company’s capability for management is substantial factor for maintaining the credibility of operation records. The causes for errors are pursued through actual measurement for heat balance of process, if values in records are doubtful.
Appropriateness of contents of the values obtained from measurement is ascertained and energy-saving effect (A = B~C) is also confirmed through these procedures.
3-8 Chapter 3
3.2. Reduction Effects of Greenhouse Gas
3.2.1 Technical Ground for producing Reduction Effects of Greenhouse Gas
The Greenhouse Gas targeted in this Chapter is CO2 gas to be generated through combustion of fuel. Reduction effect of greenhouse gas is considered to correspond to energy-saving effect.
As for energy-saving effects, reduction of the electric power consumption converted to heat value is added to reduction of fuel consumption in its calculation. Although preconditions are different from such actual situation that electric power is supplied partially from the outside, it is treated collectively, in brief for simplified calculation, on the assumption that reduction effects of Greenhouse Gas are produced at the plant, as in the case of fuel.
The above-mentioned energy-saving effects of fuel and electric power will contribute directly to the reduction of Greenhouse Gas. Natural gas as a fuel
will generate CO2 after its combustion in the kiln, and pre-calciner The
volume of CO2 generated at the time of 1 Nm3 is 1.0337 Nm3, as shown in the Table 3.2-1. The cubic volume of natural gas is, therefore, considered to be
almost equivalent to that of CO2 gas. The evaluation of fuel consumption-saving volume of electric power is made by indicating it with the heat capacity required for electric power generation converted on the basis of crude oil.
3-9 Table 3.2-1 Natural gas analysis and CO2 emission after burning
Natural Gas Analysis CO2 Emission (Vol. %) * by Burning
ch4 95.70 95.70
C2H6 0.60 1.20
C3H8 0.90 2.70 i-C4Hio 0.40 1.60 n-C4Hio N.A. n-CsHn N.A. CeHn N.A. C02 N.A. n2 0.20 0.20 Total 97.80 101.40 CO2 Emission after Burning CH4 - C4H10 103.37
CO2 in Natural Gas N.A.
CO2 Emission Total 103.37 1.00 Nm3-Natural Gas...... > 1.0337 Nm3-CQ2 * Data given by CCCL
3-10 Chapter 3
3.2.2 Baseline for estimating Reduction Effects of Greenhouse Gas
The integration of total energy (fuel and electric power) consumed annually in the existing cement plant during the past one year has been made from the respective operation records for estimating the Greenhouse Gas emissions volume in the case where the Project is not implemented. The consumption in operational records have, however, showed far higher unit consumption than designed value which was expected only under smooth, stable operation of the plant.
Those are due to the plant shutdown by repeated power failure and frequent shutdown of each plant area because of maintenance of deteriorated equipment. The total energy consumption is expected to get near designed value and the production would increase, so long as the stable supply of electric power is kept by CCCL own electric power generator recently installed and deteriorated equipment is renovated by additional investment. So the baseline for Greenhouse Gas emissions is set-up with the calculation of Greenhouse Gas emissions volume annually based on designed production volume and designed energy consumption for the existing plant.
Based on energy consumption in design basis by the existing plant and the production for the new plant after the modernization, the annual energy consumption will be as follows:
Production at the baseline = 267,000 t/y-cement Energy Consumption at the Baseline Annual Fuel Consumption = 410,100,000 Mcal/y Annual Electric Power Consumption = 114,730,000 Mcal/v Total = 524,830,000 Mcal/y Natural Gas Consumption at the Baseline = 524,830,000 Mcal/y^-8,610 Kcal/Nm3X 1,000 Kcal/Mcal = 60,956,000 Nm3/y
Therefore, CO2 emissions at the baseline will be; 60,956,000 Nm3/y X 1.0337 X (44/22.4)/!,000 =? 123,700 t-COVy
3-11 3.2.3 Actual Volume, Production Period and Accumulated Volume of Reduction Effects of Greenhouse Gas
The annual energy consumption will be as follows, based on the energy consumption expected by the new NSP kiln after the implementation of the Project:
Cement Production by the new plant= 267,000 t/y
Energy consumption after the Project implementation Annual Fuel Consumption = 205,050,000 Mcal/y Annual Electric Power Consumption = 99,886,000 Mcal/v Total = 304,936,000 Mcal/y
Natural Gas Consumption after the Project implementation = 304,936,000 Mcal/y 4-8,610 Kcal/Nm3 X 1,000 Kcal/Mcal = 35,416,492 Nm3/y
Therefore, CO2 emissions after the Project implementation will be; 35,416,492 Nm3/y X 1.0337 X (44/22.4)/!,000 =; 71,900 t-COVy
Meanwhile, the total Greenhouse Gas emissions at the baseline are 123,700t-CC>2/y as calculated in the section 3.2.2 above. Therefore, the reduction of total Greenhouse Gas emissions after the Project implementation will be;
(123,700 t-COVyK 71,900 t-COVyX 51,800 t-COVy
The reduction volume of Greenhouse Gas (CO2 gas) emitted from the power generation plant is included in above calculation, in the base as it generates the electric power equivalent to reduced power consumption in the plant.
3-12 Chapter 3
3.2.4 Practical Method to confirm Reduction Effects of Greenhouse Gas (Monitoring Method)
The CO2 gases generated from combustion of fuel and decomposition of raw materials exist together in the exhaust gas of the kiln. The ratio is affected by thermal efficiency and productivity, and changes considerably. Coping with the situation of supply sources, the natural gas is used as fuel, and generation ratio of carbon gas varies with their chemical compositions. Also, evaluation on project effects should include reduction effects of the electric power.
Under the circumstances, the effects cannot be ascertained only through the
direct measurement for CO2 generation volume. Actual results become
available by converting their results to CO2 volume, after energy-saving effects are confirmed by comparing total value of energy consumption with production volume.
Above described are the methods for ascertaining energy-saving effects. Thanks to spread of the progress of Information Technology, the obtained information can be hold in common use by the parties after implementation of technical analysis based on the pattern as agreed in advance.
Guidance from the authorities concerned of both Governments is required for confirming project effects, by reason of international character of CDM. In the Ministry of Industries and the Ministry of Environment and Forest, Bangladeshi Government, there are the existing organizations that are able to correspond to the organization of the Ministry of Economy, Trade and Industry, competent authorities in Japan. It seems not necessary to form a new organization in implementation process.
Figure 3.2-1 shows the existing organization of both countries comparatively. In this Figure, CCCL and Japanese Project Promoter, both of which are surrounded by thick frame, are main companies in the Project. The lines, connecting each department with the other, mean communication roots for information or details of guidelines.
3-13 Bangladeshi side Japanese side
Ministry of Ministry of Environment Ministry of Industries Economy, Trade & Industry Confirm and Forest Confirm
Agency of Natural Resources and Energy
New Energy Department BCIC Department of Environment
CCCL Energy Efficiency Officer Japanese Promoter Support Support
Report
Figure 3.2-1 Monitoring system
(1) Collected data The following data will be collected. - Clinker production tonnage - Fuel consumption volume (Natural gas) - Electric power consumption kWh - Troubles, such as incidents, and adjustments of production (Factors for non-achievement of reduction of emissions)
(2) Data collection and communication CCCL will collect data periodically in accordance with the instruments and the manners mutually agreed between both of Japan and Bangladesh. Also, CCCL will submit such data to the Ministry of Industries and BCIC in the form mutually agreed. Submission of data to the Ministry of Industries will be carried out monthly, and communication to Japan will be made quarterly. And the Ministry of Industries will communicate with Japan after its confirmation of such data.
(3) Interval of monitoring and confirmation of Greenhouse Gas abatement Data collection will be made by CCCL once a day. Data check will be carried out monthly by the Ministry of Industries, after comparing such data with the reduction target of Greenhouse Gas, and the results will be
3-14 Chapter 3 communicated with Japan quarterly. A report to that effect will be submitted in respect of non-achievement of the target due to equipment trouble, etc.
3-15 3.3. Effects on Productivity
At the time of completion of the project, as clearly described above, the total production tonnage will increase by about 66%, compared with the present situation.
Labor productivity will also be improved considerably. Since small change of operation organization will be required for its materialization, gradual improvement will be made with a little time lag, in the light of the company’s social position as well as its roles.
In parallel with the progress of a series of production equipment improvement, the following examinations are required on the security of the fuel and raw material resources as well as the distribution system for increased products. These matters are not only guarantees for effects owing to a large amount of investment, but also are greatly related to production cost reduction, improvement of labor productivity and expansion of employment, its maintenance as well as company’s existence. Cement industry is, therefore, expected to tackle these problems on its own initiative. (1) Transportation of raw material from the mine to CCCL plant (2) Stable supply of natural gas (3) Shipment method (4) Utilization of idle assets
3-16 Chapter 4 Financial Evaluation
This chapter describes the calculation results of the internal rate of return (IRR) and payback period in order to assess the funds efficiency of investment in case of implementation of the Project. The financial analysis is also made to compare the funds efficiency of three cases with different loan conditions (interest rate, grace period and repayment period) as the case study. Furthermore, the energy-saving effect is shown in US dollar amount. Chapter 4
4.1. Fund Efficiency of Investment
4.1.1. Assumptions for Calculation and Financial Scheme
(1) Assumptions for calculation
Assumptions for financial calculation are as follows. Exchange rate: US$1.00=TK55=Japanese YenlOS Construction cost: US$36,000,000 (3,888 million yen) Annual production after renovation: 800t/day X 321day/y~i"0.96=267,000t-cement/y Increase of annual production after the modernization: 107,000t-cement /y (Up to 267,000t /y from 160,000t/y). However, increase of annual production in 1st year is 66,950t/y (Up to 226,950t-cement/y from 160,000t/y).
Energy reduction volume: Natural gas reduction =127.1 Nm3/t-cl. (from 220 Nm3/t-cl. down to 92.9 Nm3/t-cl.) =122.0 Nm3/t-cement Electric power reduction =42.0kWh/t-cement (Down to 141.4kWh/t-cement from 183.4kWh/t-cement) Total reduction amount = 122.0 Nm3/t-cement X 3.62TK + 42.0kWh/t-cement X 2.67TK = 553.78 TK/t-cement =10.07$/t-cement
($74.95/ton) Variable cost: Variable cost achieved in the year 1998/1999, except expenses relating to energy saving Depreciation method: Straight-line method, Depreciation period-15years, Salvage value-10% Amortization method: Amortization period-lOyears, Salvage value-0 Corporate tax: 40% Targeted period for the above calculation: 20years
4-1 (2) Financial scheme
In a basic plan, the total amount of increased fund required for completion of the plant modernization is assumed to be available by long-term loans. It is assumed that 85% of the above fund will be raised from Japan and the remaining 15% provided domestically in Bangladesh. It is also assumed that borrowing conditions of domestic long-term loan in Bangladesh are 10% of interest rate and 10 years of repayment period (without grace period).
As to borrowing conditions, the following 3 cases are estimated in fund-raising from Japan.
Case 1: The case with more soft loan conditions: Interest rate: 0.75% Repayment period: 40 years (with 10 years grace period) (Compound interest rate in Case 1 =0.75 X 0.85+10.0 X 0.15=2.1375%)
Case 2: The case with more soft loan conditions plus interest rate of 7.5% (domestic re-lending charge in Bangladesh): Interest rate: 0.75% Repayment period: 40 years (with 10 years grace period) (Compound interest rate in Case 2 =8.25 X 0.85+10.0X0.15=8.5125%)
Case 3: The case with export credit: Interest rate: 2.5% Repayment period: lOyears (without grace period) (Compound interest rate in Case 3 = 2.5 X 0.85+10.0 X 0.15=3.625%)
Total investment cost is shown in the following table, based on the above preconditions.
4-2 - Chapter 4
Table 4.1-1 Total investment cost (Unit: US$1,000) Case 1 Case 2 Case 3 Construction cost 36,000 36,000 36,000 Pre-operating expenses 36 36 36 Working capital 151 151 151 Interest during construction 1,140 4,807 1,959 Total investment cost 37,327 40,994 38,146
Fund shortage before commencement of the plant operation will be covered by short-term borrowings in Bangladesh. And 10% of interest rate is expected in the domestic borrowings.
4-3 - 4.1.2. Investment Effects by the Plant Modernization
The following 2 points are anticipated as income effects by the plant modernization.
(1) Cost-down effect of energy saving generated by the plant modernization:
As mentioned above, the difference between the energy consumption at 160.000 tons of annual production, the present full capacity, and that at 267.000 tons of annual production after the plant modernization is estimated as $10.07/t-cement. Therefore, cost saving by the decrease of the energy consumption will be $2,689,000/y. ($10.07 X 267,000t/y=$2,689,000/y)
(2) Increase of marginal profit by the increment of production capacity:
The production capacity will be reinforced by 107,000t/y up to 267,000t/y from 160,000t/y by the plant modernization. As the present marginal profit is $28.38 (Sales price - Variable cost = $74.95 - $46.57), total amount comes up to $3,036,700/y. ($28.38 X 107,000t/y= $3,036,700t/y)
An aggregate amount of income effects by the plant modernization will be $5,725,700/y, as a result of totaling the above 2 points, from 2nd year when full capacity operation of the plant becomes available. ($4,185,000 is estimated in 1st year after plant modernization)
4-4 - Chapter 4
4.1.3 Economical Effects by the Return on Investment
The financial analysis has been made based on the following different conditions shown in Table 4.1-2 in order to evaluate Internal Rate of Return (IRR) and financial effects.
Table 4.1-2 Conditions for Financial Analysis
Case 1 Case 2 Case 3 Loan (L) -1 Interest Rate 0.75% p.a. 0.75% p. a. 2.5% p. a.. (85% of Total + 7.5% p. a. Required Fund) Grace Period 10 years 10 years None Repayment 40 years 40 years 10 years Loan (L) - 2 Interest Rate 10% p. a. 10% p. a. 10% p. a. (15% of Total Grace Period None None None Required Fund) Repayment 10 years 10 years 10 years Other conditions Import Duty Exempt. Exempt. Exempt. VAT. Exempt. Exempt. Exempt. Total Investment Cost US$37,327,000 US$40,994,000 US$38,146,000
The table below shows the project ’s IRR and payback period, which are calculated on the basis of the above assumptions for calculation, total investment cost and investment effect. Incidentally, the investment return is estimated by the difference between IRR and compound interest rate of borrowings.
Table 4.1-3 IRR and paybackperiod Case 1 Case 2 Case 3 IRR 10.07% 10.43% 9.74% (8.79%) Compound interest rate 2.1375% 8.5125% 3.625% of loans Payback period 8 years 17 years 9 years 4 months 1 month (Note) Figure in a parenthesis is a reference figure, in the case where the present production capacity is increased by 20,000t/y up to 180,0000t/y (160,000t/y in a basic plan) and resultant decrease of increased production effect is also taken into account.
4-5 As a result of the above calculations, both of Case 1 and Case 3 are concluded as feasible, with IRR exceeding substantially compound interest rate of loans required as necessary fund and around 9 years of payback period. Although Case 2 is also considered as narrowly feasible, the assumptions, in which interest rate of 7.5% (domestic re-lending charge) is additionally needed, seems to impose a heavy burden on the project ’ feasibility. It is, therefore, desirable to reduce such domestic re-lending charge.
Meanwhile, the project ’s IRR is calculated as discount rate, by which the present value of cash outflow and that of cash inflow in the following concept become equal value. Outflow: Plant construction cost + Pre-operational expenses + Working capital + Interest during construction Inflow: Profit after tax + Interest + Depreciation + Differed assets * Amortization cost
4-6 Chapter 4
4.1.4 Conditions of Income and Supply & Demand of Fund in this Project
The summary of conditions of the income and the supply & demand of fund are as follows. (Refer to Table 4.1-4 on the next page) Details are shown in the table for results of financial analysis. (Annex- 1)
(1) Conditions of income
In respect of conditions of the income in this project, a profit are expected from 1st year after the plant modernization in both of Case 1 and Case 3, and accumulated losses in the existing plant will be resolved after 3rd year. Since then, accumulation of an enormous amount surplus will be achievable. In Case 2, the loss is estimated in the 1st year and a certain amount of deficit will be also posted from 2nd year. In 8th year, recovery to profit is expected to be attainable, and resolution of accumulated losses will be attainable in 16th year.
(2) Conditions of demand & supply of fund
As for the demand & supply of fund, a surplus of fund is anticipated from 1st year after the plant modernization in Case 1 and, consequently, $21,415,000 of the long-term loan balance at the end of the period from 1998/1999 will be repayable in 6th year.
In Case 2, a surplus of fund will be estimated in 2nd year, but the long-term loan is estimated to be repayable in 13th year.
In respect of Case 3, a surplus of fund is expected to be attainable in 5th year and repayment of the long-term loan in the existing plant will be realized finally in 14th year, by the reason of severe conditions for the demand & supply of fund in early stage, such as 10 years of repayment period (without grace period) for the long-term loan.
4-7 Table 4.1-4 Profitability & funds surplus in each case (Unit: US$1,000) Case 1 Case 2 Case 1 interest rate (Foreign Loan) 0.75% 8.25% 2.50% Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Year Net Profit Net Profit Cash Surplus Net Profit Net Profit Cash Surplus Net Profit Net Profit Cash Surplus 1 1,135 1,135 1,976 -1,967 -1,967 0 412 412 0 2 2,732 3,867 6,114 -365 -2,332 537 2,006 2,418 0 3 2,788 6,655 10,619 -263 -2,595 2,302 2,193 4,611 0 4 2,844 9,499 15,179 -201 -2,796 4,129 2,415 7,026 0 5 2,901 12,400 19,796 -139 -2,935 6,018 2,603 9,629 1,117 6 1,774 14,174 24,469 -78 -3,013 7,968 1,645 11,274 2,395 7 1,808 15,982 31,595 -16 -3,029 9,979 1,729 13,003 2,713 4^ 8 1,841 17,823 35,209 27 -3,002 12,053 1,812 14,815 3,115 00 9 1,875 19,698 35,209 64 -2,938 14,169 1,895 16,710 3,601 10 1,909 21,607 38,857 101 -2,837 16,323 1,978 18,688 4,169 11 1,998 23,605 42,279 432 -2,405 18,262 2,139 20,827 8,576 12 2,002 25,607 45,647 475 -1,930 20,053 2,139 22,966 12,875 13 2,005 27,612 49,019 518 -1,412 21,887 2,139 25,105 17,175 14 2,009 29,621 52,395 562 -850 23,764 2,139 27,244 21,474 15 2,012 31,633 55,775 605 -245 25,684 2,139 29,383 25,773 16 3,312 34,945 59,157 1,944 1,699 27,648 3,435 32,818 30,073 17 3,315 38,260 61,680 1,987 3,686 28,791 3,436 36,254 33,508 18 3,319 41,579 64,206 2,031 5,717 29,977 3,436 39,690 36,943 19 3,323 44,902 66,736 2,074 7,791 31,206 3,436 43,126 40,379 20 (A) 3,326 48,228 69,269 2,117 9,908 32,479 3,435 46,561 43,814 Long term loan balance(20thY) (E$) 23,860 26,198 0 Net cash surplus(A-B) 45,409 6,281 43,814 Chapter 4
4.1.5 Summary of Results of Financial Analysis through Case Study
Summary of results of financial analysis through the above case study is as follows.
In the present situation of the existing plant, there is an underlying tone of deficit in the aspect of income, and severe conditions are also estimated in the demand & supply of fund. Under the circumstances, improvement of the present financial conditions is needed in parallel with energy saving and Greenhouse Gas reduction. Apart from the above, it is judged through the project ’s financial evaluation that Case 2 is severe in the aspect of income and Case 3 is also severe in the aspect of the demand & supply of fund, despite its little problem in the aspect of income.
It is desired that the loan from Japan with similar soft loan conditions is provided, such as those (Interest rate: 0.75%, Grace period: 10 years, Repayment period: 40 years) assumed in Case 1 and considerable reduction of interest rate of 7.5% (domestic re-lending charge) is given for foreign debt in Bangladesh.
- 4-9 4.2 Cost Reduction Effect in this Project
4.2.1 Energy-saving Effects
As mentioned in Chapter 3, the energy saving effect in this project is indicated in the following table.
Table 4.2-1 Annual energy saving
Annual energy Annual Annual Annual saving reduction reduction in reduction amount in US$ calorie volume in crude oil equivalent Natural 23,815,000 $1,567,000 205,050,000 20,505t-oil/y gas Nm3/y Mcal/y Electric 5,610,000 $272,000 14,844,000 l,485t-oil/y power kWh/y Mcal/y Total $1,839,000 219,894,000 21,990-oil/y Mcal/y (Note) Annual reduction volume indicated in sum of money: (Natural gas: 23,815,000Nm 3/y X 3.62TK/55 = 1,567K$) (Electricity: 5,610,000kWh/y X 2.67TK/55 = 272K$)
Followings are evaluation on annual energy saving per investment cost.
Energy saving in crude oil equivalent: 21,990 toe/y (toe: ton oil equivalent)
Total investment cost (Case 1): US$37,327,000 (4,031 million yen)
Annual energy saving per investment cost: 589.1 toe-y/million-$ (5.46toe-y/million yen)
Annual cost saving per investment cost: 0.0492 million-$/ million $ (4.92 million yen)
4-10 Chapter 4
4.2.2 Effects of Greenhouse Gas Reduction
Followings are evaluation on annual reduction of greenhouse gas (CO2).
Annual reduction volume of Greenhouse Gas: 51,800 t-COi/y
Total investment cost: US$ 37,327,000 (4,031 million yen)
Annual CO2 reduction per total investment cost: 1,388 t-COz/million-S (12.85 t-CCVmillion yen)
4-11 Chapter 5 Extension of Technology
This chapter covers a trial calculation for the possibility of spread of technology to be introduced into Bangladesh in this project and the effects of energy saving and greenhouse gas reduction throughout Bangladesh, if such technology becomes widespread Chapter 5
5.1. Possibility of Spread of the Technology introduced in the Project
Equipment technology, relating to raw material dry grinding by a vertical mill, NSP system, a grate-type clinker cooler and cement pre-grinding system as well as an operation technology are scheduled to be introduced in this project. These technologies will be combined each other in the integrated production process from raw material to cement products and contribute to effective energy saving and highly-efficient operation with synergistic effect. Meanwhile, only Chhatak Cement Plant owned by Chhatak Cement Co. exists as an integrated cement plant in Bangladesh, since there are not any deposits of limestone, main raw material, within available limits for exploitation. Such being the case, spread effect of the above overall technology to other fields has not yet been recognized in Bangladesh.
At the beginning of 2000, there are, however, 11 private grinding plants for imported clinker, targeting domestic increase of added value and considering effect due to quality deterioration of imported cement during its transportation to cope with increasing cement demand. Furthermore, successive constructions of cement plants are in progress and the number of cement plants will amount to 20 by 2001.
As horizontal tube mills have been, so far, applied for all of these grinding plants, it will be possible to introduce the pre-grinding system by the vertical roller mill recommended in this project.
- 5-1 - 5.2. Benefits of Extending Technology
5.2.1 Energy-saving Effects
In Bangladesh, cement demand in 2000 is estimated as approximately 6 million tons, out of which around 1.5 million tons of cement is produced by means of grinding imported clinker at grinding plants and supplied to the market, after bagging. The remaining portion of cement is imported as cement product, except 160,000 tons of cement from Chhatak Cement Plant.
Electric power saving of 12 million kWh might be achievable annually with about 8 kWh/ton reduction in unit consumption of electric power, if the pre-grinding system is applied for all cement grinding plants in Bangladesh.
5.2.2. Effects due to Greenhouse Gas Reduction
Since it is uncertain as to whether imported cement are produced at plants equipped with such energy saving technology, energy saving effect as well as effect due to greenhouse t gas reduction are not clearly expected from global viewpoint, even if reduced import portion is produced by use of such energy saving technology.
The effect of Greenhouse Gas reduction is as followings, in the case of applying Pre-grinding System to all the grinding plant in Bangladesh.
Production volume: l,500,000t/y Energy reduction: 12,000,000 kWh/y x 2,646kcal/kWh = 31,752,000Mcal/y Crude oil equivalent: 3,175 toe/y (Conversion @10,000Kcal/kg)
CO2 gas reduction: 3,175 toe /y x 42.62 x 20x 0.99 x 44/12/1,000 = 9,824 t-COz/y
- 5-2 - Chapter 6 Influences to Other Aspects
This chapter describes influences to other aspects, such as environmental, economic and social aspects, has been ascertained, in addition to energy saving effect and effect due to greenhouse gas reduction through implementation of the project. Chapter 6
6.1 Influence to Environmental Aspects
In Bangladesh, “Bangladesh Environment Protection Act” was established by the Ministry of Environment and Forest (MOEF) in 1995, as a comprehensive environment law. Department of Environment (DOE) is under control of MOEF and all industrial plants are subject to rules of DOE.
All manufacturing industries are not allowed to implement any project without environmental clearance from DOE in regulated way. In 1997, DOE established Environment Conservation Rule, as a regulation for details. In this rule, industries and projects are classified into 4 categories, depending on the degree of influence to environment and the complexity in obtaining environmental clearance, such as green, umber-A, umber-B and red category. Above all, red category is most stringent. Steel industry, cement industry and fertilizer industry are regulated in red category. In the case of red category, environmental assessment (EA) is also required for obtaining environmental clearance.
Any environmental pollution problem has not arisen up to now in Chhatak Cement Plant, as it is located in the area far away from industrial development district in the city and has made such improvement available for clearance of expected regulation value through its renovation of BMRE-II before establishment of Environment Protection Act. . It is unlikely that any environmental problem will occur in the future, with due consideration of exhaust gas dust, drainage and environmental dust collection in this project.
- 6-1 - 6.2. Influence to Economic and Social Aspects
Chhatak Cement Plant not only is a unique integrated cement plant in Bangladesh, but also has an important position among small number of industries in the country. Its operation is, however, compelled under unfavorable conditions of old-typed wet kiln and superannuated incidental equipment. It is likely that a problem due to its continuation will arise in the near future, judging from poor profitability due to low operating rate, high cost of fuel / electric power and accumulated losses, which are still increasing despite protected sales price of product.
A great deal of merits will be enjoyed by both countries, Bangladesh and Japan, provided that this project is taken up mutually by both countries as CDM project, which will result in cost saving of fuel natural gas and electric power, improvement of profitability through betterment of operational rate as well as ultimate decrease of greenhouse gas emission after modernization of the existing equipment being implemented,
- 6-2 - CONCLUSION CONCLUSION
To comply with the “Kyoto Protocol ” made during the third UN Conference on Protocol for framing climatic change (COP-3), the Study has been planned by NEDO* as a Project which contributes to the reduction of Greenhouse Gas emissions, to the development of a national economy and finally lead to the realization of a “Clean Development Mechanism” as the Project.
The Study was entrusted to Japan Consulting Institute and conducted for Chhatak Cement Co. Ltd. (CCCL), Bangladesh during August 2000 through March 2001. The Study was welcomed and assisted by the Ministry of Industries, the Ministry of Environment and Forest, the Bangladesh Chemical Industries Corporation and CCCL well with the strong intentions for promoting the Project as CDM project and it was effectively conducted.
From the results of the Study, it has been ascertained that reduction of energy consumption and Greenhouse Gas emissions as estimated in the initial proposal could be attained if the Project is implemented.
Main points are as follows: (D It has been proved that internal rate of return would be 10.07% and the payback period (discounted by interest rate of borrowings) would be 8.3 years. The financial calculation was made on the preconditions that the total investment cost is US$ 37,327,000 and interest rate for borrowing is 0.75% p.a. for 85% of the cost (from Japan) with a repayment period of 40 years and 10% p.a. for 15% of the remaining costs (in domestically) with a 10 year repayment period in consideration of profitability of the Project. It is, therefore, clear that the Project is fully viable and would be profitable. (2) The reduction of energy (fuel and electric power) consumption of 219,894,000 Mcal/y (21,990 toe/y) will be attainable and approximately $1,839,000 will be reduced annually based on the present unit price of energy (fuel and electric power) in the Plant. (3) It is also clear that a reduction of 51,800 tons-CCVy of Greenhouse Gases will
be attainable when calculating the CO2 obtained from presently used natural gas combustion.
The Bangladesh economy is greatly supported by foreign aid. Under such circumstances, CCCL, as a government owned company, has insufficient financial
- C-l - resources to invest on the introduction of energy-saving technology and plant modernization. Implementation of the Project as a CDM project will contribute to a remarkable reduction of energy consumption resulting in CO2 reduction and improvement of productivity. It is, therefore, from all aspects estimated that the economic effects obtained after execution of the Project are quite remarkable. Due to various financial circumstances, mentioned implementation of the Project by provision of a soft loan from Japan is essential.
NEDO*: New Energy and Industrial Technology Development Organization, a body corporate attached to Ministry of Economy, Trade and Industry of Japan-METI
- C-2 - ANNEX-1
FINANCIAL ANALYSIS ANNEX-1
Financial Analysis
The following tables show the summary of each case for which financial analysis is made based on the different conditions. • Basic Data, Production Cost and Input Data / IRR • Cashflow during Construction • Cashflow • Profit & Loss Statement • Balance Sheet • Loan (L) Repayment Schedule • Sensitivity Analysis
Case 1 Case 2 Case 3 Loan (L) -1 Interest Rate 0.75% p.a. 0.75% p. a. 2.5% p. a.. (85% of Total + 7.5% p. a. Required Fund) Grace Period 10 years 10 years None Repayment 40 years 40 years 10 years Loan (L) - 2 Interest Rate 10% p. a. 10% p. a. 10% p. a. (15% of Total Grace Period None None None Required Fund) Repayment 10 years 10 years 10 years Other conditions Import Duty Exempt. Exempt. Exempt. V. A. T. Exempt. Exempt. Exempt. Construction Cost US$36,000,000 US$36,000,000 US$36,000,000 Interest during Construction US$1,140,000 US$4,807,000 US$1,959,000 Pre-operational Expenses US$36,000 US$36,000 US$36,000 Working Capital US$151,000 US$151,000 US$151,000 Total Investment Cost US$37,327,000 US$40,994,000 US$38,146,000
All 66,950 Sales
107,000 107,000 107,000 Cost)
interest
2.1375 (tons/year) Annual Plant
Compound of (x Loan(L) 5 0 0 10 10 15 10 10 40 10 36 40 100 100 100 165 1.50 1.00 0.00 85% 8,020 4,983 62.57 2.00% 0.750 -2,689 36,000 10.000 1,000)
(US$
UNIT
NO. (%)
CAPITAL
COST CURRENCY COST
IRR
(YEAR) (YEAR)
/ COST
RATE(1)(%) RATE(2)(%) RATE(4-)(%) RATE(3)(%)
INSTAL. INSTAL.NO. VALUE(%) COST(FULL) INTERESTS) INTERESTS) GRACE(YEAR) GRACE(YEAR)
INTEREST COST Cash
RATIO(%) DATA FIXED Loan(L)-1/Loan(L)
WORKING REVENUE(FULL)
of RATE(%) HOLIDAY(YEAR)
RECEIVABLE(MONTH)
INITIAL LOAN(S) Minimum DEPRECIATION RESIDUAL OPERATION OPERATION OPERATION OPERATION INVENTORY(MONTH) LABOUR OTHER LOAN(L)-1 LOAN(L)-2 LOAN(L)-2 LOAN(L)-2 SALES VARIABLE TAX TAX PRE-OPERATING EQUITY Ratio LOAN(L)-1 LOAN(L)-1 AMORTIZATION INPUT AC CONSTRUCTION ~1 0.00%
100.00% 3MZ
0 0
118 187 727 469
-411 1,487 2,160 4,572 2,113 4,983 -2,689 Equity: Debt (%)= R 5 ANNUAL AMOUNT 1 (US$1,000/Y)
I
0.00 6.79 1.75 4.38 13.90 19.75 46.57 1)
CEMENT
(US$/Ton) COST/TON OF (US$/TON) (US$1,000) (US$/Ton) (Case (YEARS) (YEARS) (YEARS) (PERSONS) (US$/P) (T/YEAR) (US$1,000) 0 0 3 15 10 36 19.75 74.95 0.0658 COST 36,000
107,000 0.050727273 UNIT 1 211.2 CEMENT DATA
UNIT OF LINE)
CONSUMPTION BASIC TON
F/S
PER COST
CEMENT
) 3 (kWh) MERITS OF COST
EXPENSES COST PERIOD
(Nm COST
COST
PERIOD PERIOD(STRAIGHT
CAPACITY
ITEM PROJECT PERSONNEL OIL PRICE
Cost
GAS
SAVING COST
OF FIXED
COST TOTAL
EXPENSES
CONSTRUCTION VARIABLE
SALES
FURNACE LABOUR ENERGY DEPRECIATION MAINTENANCE ELECTRICITY NATURAL OTHER PRODUCTION MATERIAL LABOUR PRE-OPERATION AMORTIZATION NUMBER UNIT PRODUCTION PLANT DEPRECIATION CHHATAK CONSTRUCTION AMORTIZATION
A l-2 % % 00 00 . . 0 100 i 0 0 36 0% 100 151 100 100 740 400 100% 1,140 36,000 37,427 37,427 37,427 TOTAL (Unit:1,000US$)
j
i
0 0 0: 0 36 0% 53 100 151 100 11% 693| 747 4,994 4,941 3,960 4,994 4,994 -1
i 1)
| 0| 0 0 0 0 0 0
47 0% 83% 370 323 30,250 29,927! 30,250 30,250 29,880 -2 Case-
(
; ’
0 O 0i 0 0 0 0 0 23! 23 6% 0% 2,160| 2,160| 2,183 2,183 2,160 2,183 -3 CONSTRUCTION
COST COST
Hand
USES SOURCE in (plant) (equity) FUNDS
DURING
CAPITAL OF
FUNDS YEAR Cash
DEPOSIT(END) DEPOSIT(BEG) CAPITAL
USES SOURCES schedule schedule
& & OF
PROVISIONAL PROVISIONAL CASH EQUITY PRE-OPERATING USES SURPLUS(DEFICIT) LOAN(L) INTEREST Minimum payment payment CASH CONSTRUCTION CASHFLOW SOURCES TOTAL WORKING TOTAL ------
| i jlNTEREST(L)-ii SlNTEREST(L)-i
A l-3 0 0 0 0 160 118 561 267 3,647 1,250 2,239 2,160 3,448 39,017 41,095 38,857 35,370 10 691% 0 0 0 0 160 118 561 323 3,614 1,228 2,272 3,448 2,160 9 35,370 37,481 35,209 31,756 648% 0 0 0 0 160 118 561 379 3,580 1,205 2,160 2,306 3,448 8 33,901 31,756 28,176 31,595 609% 0 0 0 0 160 118 561 435 3,546 1,183 2,340 2,160 3,448 28,176 30,355 28,015 24,629 7 575% 0 0 0 0 0 160 118 561 491 4,673 1,213 2,160 3,448 6 19,956 24,629 25,682 24,469 544% 0 0 0 0 0 160 118 561 547 4,617 1,269 2,160 3,448 19,956 5 19,796 15,340 21,065 516% 0 0 0 0 0 160 118 604 561 4,561 1,325 2,160 3,448 15,340 4 16,505 10,779 15,179 491% 0 0 0 0 0 160 118 561 660 4,505 1,381 2,160 6,274 3,448 10,779 3 12,000 10,619 469% 0 0 0 0 1) 160 118 716 561 250
4,198 1,688 6,274 2,160 7,802 6,114 2,076 3,448 2 448% Case-
( 0 0 0 0 118 100 100 772 876 561 1,976 1,976 1,907 2,076 2,160 4,285 2,309 1 314% Hand
(beginning in
FUNDS WC
(Unit:1,OOOUS$) TAX
PROFIT
IN OF
Coverage equity
FUNDS
REPAYMENT YEAR
Cash REPAYMENT DEPOSIT(CUM)
CAPITAL
for
Deposit
& OF
&
Service
USES Minimum INCREASE LOAN(L) INTEREST(L) CASHFLOW INTEREST(S) LOAN(S) DEPRECIATION EQUITY LOAN(L) LOAN(S) SURPLUS/DEFICIT CASH OPERATING CORPORATE SOURCES Debt Cash cashflow TOTAL AMORTIZATION TOTAL
A l-4 0 0 0 0 0 0 160 182 795 2,533 5,726 2,215 3,353 72,622 69,269 69,429 66,896 20 586% 0 0 0 0 0 0 160 188 795 2,530 5,726 3,356 2,213 70,092 66,736 66,896 64,366 19 582% 0 0 0 0 0 0 160 194 795 2,526 5,726 2,210 3,360 64,206 64,366 61,840 67,566 18 579% 0 0 0 0 0 0 160 795 200 2,523 3,363 5,726 2,208 61,680 61,840 59,318 65,043 17 575% 0 0 0 0 0 0 160 795 206 3,383 1,342 2,503 5,726 59,318 55,935 61,661 59,157 16 572% 0 0 0 0 0 160 795 212 3,379 1,339 2,507 2,160 3,566 58,281 55,935 52,556 55,775 15 569% 0 0 0 0 0 160 795 218 3,376 1,337 2,510 2,160 3,566 52,556 49,180 54,905 52,395 14 565% 0 0 0 0 0 160 795 224 3,372 1,334 2,514 3,566 2,160 51,533 49,019 49,180 45,808 13 562% 0 0 0 0 0 160 795 230 3,369 1,332 2,517 2,160 3,566 48,165 45,647 45,808 42,439 12 559% 0 0 0 0 0 160 795 236 3,422 1,273 2,464 2,160 3,566 44,743 42,279 42,439 39,017 11 555%
Al-5 0 118 267 -411 1,909 8,020 1,273 4,983 3,037 2,160 3,448 3,181 -2,689 21,608 10 0 118 323 -411 8,020 1,250 1,875 4,983 3,037 2,160 3,448 3,125 -2,689 9 19,699 0 118 379 -411 8,020 1,228 1,841 4,983 3,037 2,160 3,448 3,069 -2,689 8 17,824 0 118 435 -411 8,020 1,205 1,808 4,983 3,037 2,160 3,448 3,013 -2,689 15,983 7 0 118 491 -411 8,020 4,983 1,183 1,774 3,037 2,160 3,448 2,957 -2,689 6 14,175 0 0 118 547 -411 8,020 4,983 3,037 2,160 2,901 2,901 3,448 -2,689 5 12,401 0 0 118 604 -411 8,020 4,983 3,037 2,160 3,448 2,844 2,844 9,500 -2,689 4 0 0 118 660 -411 8,020 4,983 3,037 2,160 3,448 2,788 2,788 6,656 -2,689 3 0 0 1) 118
716 -411 8,020 4,983 3,037 2,160 2,732 2,732 3,448 3,868 -2,689 2 Case-
( 0 0 -7 118 772 1,900 1,907 5,018 1,135 1,135 1,135 3,118 2,160 -2,285 1 TAX STATEMENT
COST PROFIT
(Unit:1,000US$)
TOTAL PROFIT
PROFIT
COST LOSS
YEAR COST
& BEFORE FIXED
REVENUE
COST
PROFIT
PROFIT SALES MARGINAL DEPRECIATION LABOUR INTEREST PROFIT FIXED VARIABLE NET OTHER CUMULATIVE OPERATING AMORTIZATION TAX
A l-6 0 0 0 182 8,020 4,983 5,726 3,037 5,544 2,217 3,326 -2,689 -2,689 48,229 20 0 0 0 188 8,020 4,983 5,726 3,037 5,538 2,215 3,323 -2,689 -2,689 44,903 19 0 0 0 194 8,020 4,983 3,037 5,726 5,532 2,213 3,319 -2,689 -2,689 41,580 18 0 0 0 200 8,020 4,983 3,037 5,726 5,526 2,210 3,315 -2,689 -2,689 38,261 17 0 0 0 206 8,020 4,983 3,037 5,726 5,520 2,208 3,312 -2,689 -2,689 34,946 16 0 0 212 -529 1,342 8,020 4,983 3,037 2,160 3,566 2,012 3,354 -2,689 31,634 15 0 0 218 -529 8,020 1,339 4,983 3,037 2,160 3,566 2,009 3,348 -2,689 29,621 14 0 0 224 -529 1,337 8,020 2,160 4,983 3,037 3,566 2,005 3,342 -2,689 27,613 13 0 0 230 -529 1,334 8,020 4,983 3,037 2,160 2,002 3,566 3,336 -2,689 25,608 12 0 0 236 -529 1,332 1,998 8,020 4,983 3,037 2,160 3,566 3,330 -2,689 23,606 11
A l-7 i ! j
i
0 0 0 0 0 OS 668 623 40% 4,453 1,273 2,239 14,400 39,017 54,708 54,694 31,813 21,608 32,375 31,8131 41,0951 10 ______
! 1 1 0 0 0 0 0 118 668 623 38% 4,476 1,250 2,272: 9 16,560 19,699 35,370 53,338 53,324 32,375 32,936 32,375 37,481 ______0 0 0 0 0 668 623 235 35% 4,498 1,228 2,306 8 18,720 17,824 31,756 52,002 51,988 32,936 33,497 32,936 33,901
I 0 0 0 of 0 668 623 32% 353 4,520 1,205 2,340 28,176 15,983 20,880 50,700 50,685 33,497 34,059 33,497 30,355 7 0 0 0 cf b 668 623 29% 470 4,543 1,183 6 24,629 14,175 23,040 49,431 49,417 25,682 34,059 34,059 34,620'
h F 1,213 0 0 0 o! o! 0 668 623 588 26% 5,726 1,269 5 19,956 12,401 25,200 47,036 47,021 21,065 34,620 35,182 34,620 J 0 0 0 0 0 0 668 623 706 21% 5,726 9,500 4 15,340 27,360 16,505 44,696 35,182 44,682 35,743' 35,182
------
| -r 0 0 0 0 0 0! 16% 668 623 823 5.726 1,381! 1,381! 1,325 6,656 3 10,779 12,000| 29,520 42,413 35,743 42,399 36,304 35,743 ------1) 0 0 0 0 0 0
10% 668 623 941 5,726 6,274 7,802 3,868 2 31,680 40,186 36,304 40,172 36,866' 36,304 Case-
(
------1,688 i
t 0 0 0 0 of 0! 3% 418 623 4,185 1,058 1,135 2,076 4,285 2,309 1 38,016 33,840 37,427 36,866 38,001 36,866 ------CAPITAL LOANS PROFIT
(Unit:1,OOOUS$)
LOANS -2
&
CHARGES
SHEET
RECEIVABLE PAYABLE (Sj-1
(sj
YEAR TOTAL TOTAL BALANCE(BEG) BALANCE(END) DEPOSIT
ASSETS &
Ratio
PAYABLE Inflow
nterest BALANCE INVENTORIES FIXED LIABILITIES DEFERRED CASH ASSETS interest PUSES LONG-TERM CAPITAL CUMULATIVE Equity SHORT-TERM ACCOUNT I "P-SOURCES ACCOUNT TAX Cash iLOAN(L) iLOAN(L) [
A l-8 i i j
0 0 0 0 o! Oi 668 623 67% 3,508 2,217 3,600 3,353 69,429 74,321 23,860 74,306 48,229 24,65*5*1 23,860 72,622! 20 ______H 0 0 0 0 0 o 668 623 65% 3,511 2,215 3,600 3,356 66,896 71,787 24,655 71,773 44,903 25,451 24,655 70,092 19
i
0 0 0 0 oi 0 62% 668 623 3,513 3,600 2,213 3,360 64,366 69,258 25,451 67,566 41,580 69,243 26,246 25,451 18 ------0 0 0 0 0 668 623 59% 3,515 3,600 2,210 3,363 61,840 66,732 26,246 66,717 27,041* 26,246 65,043 38,261 17 ------0 0 0 0 0 0 668 623 56% 3,518 2,208 2,503 3,600 59,318 64,209 27,041 64,195 27,837 61,661 34,946 27,041 16 T 0 0 0 0 o 0 668 623 53% 4,384 1,342 3,600 2,507 55,935 60,826 27,837 28,632 58,281 31,634 60,812 27,837 15 0 0 0 0 0 0 668 623 51% 4,386 1,339 5,760 2,510 52,556 59,607 28,632 59,593 29,427 54,905 29,621 28,632 14
T 0 0 0 0 0 oi 668 623 48% 4,389 1,337 7,920 2,514 49,180 58,391 27,613 58,377 29,427 29,427 30,223 51,533 13 0 0 0 0 0 0 668 623 46% 4,391 1,334 2,517 10,080 45,808 57,165 57,179 25,608 31,018 30,223 30,223 48,165 12 0 0 0 0 0 o 668 623 43% 4,394 1,332 M64 12,240 42,439 23,606 55,956 55,970 31,813 31,018 31,018 44,743 11 ______
A l-9 I 0 0 28 239 267 561 561 561
31,813 32,375 31,813 31,813 10 0 84 561 239 561 561 323 1,123 9 31,813 32,936 32,375 31,813 0 140 379 239 561 561 1,684 1,123 8 31,813 31,813 33,497 32,936 0 196 239 561 435 561 1,684 2,246 31,813 31,813 34,059 33,497 7 0 239 561 253 561 491 2,807 2,246 6 34,620 34,059 31,813 31,813 0 239 561 547 309 561 3,368 2,807 5 34,620 31,813 31,813 35,182 0 604 239 561 561 365 3,930 3,368 4 35,182 31,813 31,813 35,743 0 239 561 660 421 561 4,491 3,930 3 31,813 31,813 36,304 35,743 1) 0
239 561 716 477 561 5,053 4,491 2 31,813 36,866 36,304 31,813 Case
( 0 772 239 561 533 561 5,053 5,614 1 31,813 37,427 36,866 31,813
Schedule
(end) (bigining) (end) (bigining) (end) (bigining)
(Unit:1,000US$) YEAR Repayment
balance balance balance balance balance balance
/U
Repayment Loan Repayment Loan Loan Interest Loan Interest Loan Interest Loan Repayment Loan Loan(L)-1&2 Total Loan(L)-2 Loan(L)-1
A l-10 24,655 23,860 25,451 26,246 27,041 27,041 27,837 27,041 27,837 28,632 27,837 28,632 29,427 28,632 29,427 29,427 30,223 31,018 30,223 30,223 31,813 31,018
Al-11 0 516 858 626 568 468 425 413 945 PV 1,558 1,263 1,041 1,907 1,724 1,409 1,147 3,901 3,544 3,220 2,109 3,138 2,926
-4,039 -2,183 -27,483 NET 50340.7944 (Unit:1,000US$)
% 07 . 3,513 3,511 3,508 3,751 3,515 4,384 3,518 4,498 4,476 4,453 4,394 4,391 4,389 4,386 4,185 5,726 5,726 5,726 5,726 4,543 4,520 FLOW -2,183 -4,894 55,510 10 -30,250
______WC) NET
&
1)
IDC
151 3,513 3,511 3,515 3,508 3,751 3,518 4,453 4,394 4,389 4,386 4,384 4,185 5,726 5,726 5,726 4,498 4,476 4,391 5,726 4,543 4,520 92,837 INFLOW Case-
(
CASH (INCLUDING \RRt%) 2,183 4,894
37,327 30,250 ______10.07 OF
INVESTMENT
Basis)
1 8 3 4 5 6 9 2 7 18 19 -3 -2 -1 16 17 13 14 15 11 10 12 20 INVESTMENT) YEAR IRFU%)=
RESIDUAL (TOTAL) (Post-Tax (ON CALCULATION
A l-1 2 SENSITIVITY ANALYSIS (SUMMARY) SENSITIVITY ANALYSIS IRR (%) ( Case- 1) Plant Construction Cost (US$1,000) Amount IRR(%) Plant Cost Sales Price Material Cost Natural Gas BASE CASE 36,000 10.07 +20% 9.44 7.99 13.30 9.17 PLUS 20% 43,200 7.99 +15% 8.45 12.51 9.40 9.60 PLUS 15% 41,400 8.45 +10% 8.95 11.71 9.62 9.75 PLUS 10% 39,600 8.95 +5% 9.48 10.90 9.84 9.91 PLUS 5% 37,800 9.48 Base Case 10.07 10.07 10.07 10.07 MINUS 5% 34,200 10.70 -5% 10.70 9.22 10.29 10.22 MINUS 10% 32,400 11.39 MINUS 15% 30,600 12.15 -10% 11.39 8.34 10.51 10.38 MINUS 20% 28,800 12.99 -15% 12.15 7.45 10.73 10.53
-20% 12.99 6.53 10.94 10.69 SALES PRICE(US$/T) Amount IRR(%)
BASE CASE 75 10.07 PLUS 20% 90 13.30 PLUS 15% 86 12.51 PLUS 10% 82 11.71 PLUS 5% 79 10.90 MINUS 5% 71 9.22 MINUS 10% 67 8.34 MINUS 15% 64 7.45 MINUS 20% 60 6.53 66,950
Sales
107,000 107,000 107,000 Cost) interest
8.5125 (tons/year) Annual Plant
Compound of (x Loan(L) 5 0 0 10 10 15 10 10 10 40 40 36 100 165 100 100 1.50 1.00 0.00 85% 8,020 4,983 62.57 2.00% 8.250 -2,689 1,000) 36,000 10.000
(US$
UNIT
(L)
(YEAR)
COST COST
(YEAR) CAPITAL IRR
COST /
CURRENCY
RATE(1)(%) RATE(2)(%) RATE(3)(%) RATE(4-)(%) (L)-1/Loan
INSTAL.NO. INSTAL.NO. VALUE(%) INTERESTS) INTERESTS) COST(FULL) GRACE(YEAR) GRACE
INTERESTS) COST Cash
RATIO(%)
-2 FIXED Loan
DATA REVENUE(FULL)
WORKING
of RATE(%) HOLIDAY(YEAR)
RECEIVABLE(MONTH)
RESIDUAL LOAN(S) Minimum LABOUR DEPRECIATION OPERATION INITIAL INVENTORY(MONTH) OTHER OPERATION OPERATION OPERATION Ratio LOAN(L)-1 LOAN(L)-1 LOAN(L)-2 LOAN(L) LOAN(L)-2 TAX TAX PRE-OPERATING EQUITY LOAN(L)-1 SALES AMORTIZATION(YEAR) INPUT CONSTRUCTION VARIABLE AC 0.00% 100.00% 1M3 : 0 0
-45 187 727 469 484 )= 1,487 4,938 4,983 Equity: 2,113 2,160 Debt -2,689 % ( R ANNUAL AMOUNT »fl- (US$1,000/Y)
! 6.79 4.38 1.75 0.00 2) 19.75 13.90 46.57
CEMENT
(US$/Ton) COST/TON OF Case (USS/TON) (YEARS) (PERSONS) (US$/P) (US$/Ton) (YEARS) (US$1,000) ( (T/YEAR) (US$1,000) (YEARS)
0 0 3 15 10 36 19.75 74.95 COST 0.0658
36,000 107,000 UNIT
0.05072727 1 211.2 CEMENT DATA
UNIT OF
LINE)
CONSUMPTION BASIC TON
F/S PER
COST
)
CEMENT 3 (kWh)
MERITS
OF COST
(Nm EXPENSES
COST PERIOD COST
COST
PERIOD
PERIOD(STRAIGHT
CAPACITY OIL Cost
PROJECT ITEM
PERSONNEL PRICE
GAS
SAVING COST
EXPENSES OF COST FIXED
TOTAL
CONSTRUCTION
VARIABLE SALES
FURNACE MATERIAL MAINTENANCE ENERGY ELECTRICITY LABOUR DEPRECIATION OTHER NATURAL PRODUCTION PRE-OPERATION AMORTIZATION NUMBER LABOUR UNIT PRODUCTION PLANT DEPRECIATION CHHATAK CONSTRUCTION AMORTIZATION
A l-14 % % 00 00 . . 0 100 0 0 % % 36 0 151 100 100 100 100 1,749 3,058 4,807 41,094 36,000 41,094 41,094 TOTAL (Unit:1,000US$) i i
0 0 0 0 % % 36 0 11 151 100 100 3161 7,113! 2,866 3,960 7,429 7,429 7,429 3,182 -1
2)
0 0 Oj 0 0 0 0 % 0 1921 83% Case- 1,3371 1,529
30,072! 29,880 31,409 31,409 31,409 ( -2 o; Oi 0 0 0 0 0 0 % % 96; 96 6 0 2,160 2,256 2,256 2,256 2,160| -3 i I i |
CONSTRUCTION
COST COST
Hand
USES SOURCE (equity) in (plant) FUNDS
DURING
CAPITAL OF
FUNDS YEAR Cash
DEPOSIT(BEG) DEPOSIT(END) CAPITAL
USES SOURCES schedule schedule
& & OF
______PROVISIONAL PROVISIONAL PRE-OPERATING EQUITY INTEREST Minimum USES CASHFLOW SURPLUS(DEFICIT) CASH CASH LOAN(L) CONSTRUCTION SOURCES payment payment WORKING TOTAL TOTAL
ilNTEREST(L)-i ilNTEREST(L)-ii | i
Al-15 0 0 0 0 43 160 616 484 2,154 2,913 2,160 3,081 3,732 16,323 16,484 14,330 20,055 10 162% 0 0 0 0 18 160 616 484 2,117 2,974 3,769 3,081 2,160 9 17,939 14,169 14,330 12,213 159% 0 0 0 0 0 160 616 484 2,073 3,036 2,160 3,813 3,081 8 15,865 12,213 10,140 12,053 157% 0 0 0 0 0 160 616 484
. 2,012 3,097 2,160 9,979 3,874 8,128 3,081 13,854 10,140 7 154% 0 0 0 0 0 160 616 484 1,950 3,159 7,968 8,128 3,936 6,178 3,081 2,160 6 11,904 152% 0 0 0 0 0 160 616 484 1,888 3,221 6,178 3,998 4,290 2,160 6,018 3,081 5 10,015 149% 0 0 0 0 0 160 616 484 1,827 3,282 4,059 8,188 4,290 2,463 2,160 4,129 3,081 4 147% 0 0 0 0 0 160 616 698 484 1,765 3,344 4,121 6,423 2,302 2,463 3,081 2,160 3 145% 0 0 2) 41 597
160 100 815 698 250 616 484 537 3,406 5,289 5,826 3,081 2,160 2 117% Case-
( 0 0 0 0 41 100 100 100 876 616 815 484 1,541 5,101 5,101 3,467 2,160 1 101% Hand
(beginning in
FUNDS WC
(Unit:1,OOOUS$) TAX
PROFIT
IN OF
Coverage equity
FUNDS
REPAYMENT YEAR
Cash REPAYMENT DEPOSIT(CUM)
CAPITAL
for
Deposit
& OF
&
Service
USES INTEREST(L) CASHFLOW LOAN(L) INTEREST(S) Minimum INCREASE LOAN(L) LOAN(S) EQUITY LOAN(S) DEPRECIATION SURPLUS/DEFICIT CASH CORPORATE SOURCES Cash Debt OPERATING TOTAL cashflow AMORTIZATION TOTAL
Al-16 0 0 0 0 0 0 160 873 1,273 1,382 5,726 2,197 4,613 37,092 32,639 31,367 32,479 20 186% 0 0 0 0 0 0 160 873 1,229 1,354 2,269 4,657 5,726 31,367 35,863 31,206 30,137 19 182% 0 0 0 0 0 0 160 873 1,186 1,325 2,341 4,700 5,726 29,977 28,951 34,677 30,137 18 178% 0 0 0 0 0 0 160 873 1,143 1,296 2,413 4,743 5,726 27,808 28,791 28,951 33,534 17 174% 0 0 0 0 0 0 160 873 403 1,964 2,485 3,922 5,726 27,648 27,808 25,845 31,570 16 170% 0 0 0 0 0 160 873 374 1,920 2,558 2,160 3,966 3,566 29,650 25,684 25,845 23,924 15 167% 0 0 0 0 0 160 873 346 1,877 2,630 4,009 2,160 3,566 27,773 23,764 23,924 22,047 14 163% 0 0 0 0 0 160 873 317 1,834 2,160 2,702 4,052 3,566 21,887 25,939 22,047 20,213 13 160% 0 0 0 0 0 160 873 288 1,791 2,774 4,095 2,160 3,566 18,423 24,148 20,053 20,213 12 157% 0 0 0 0 0 67 160 873 1,939 2,846 3,947 2,160 3,566 16,484 18,262 18,423 22,209 11 154%
A l-17 0 67 -45 169 101 484 8,020 4,983 3,037 2,160 2,913 3,081 -2,689 -2,837 10 0 43 64 -45 107 484 8,020 4,983 2,160 3,037 2,974 3,081 -2,689 9 -2,938 0 18 45 27 -45 484 8,020 4,983 3,037 2,160 3,081 3,036 -2,689 -3,003 8 0 0 -45 -16 -16 484 8,020 4,983 3,037 2,160 3,081 3,097 -2,689 -3,030 7 0 0 -45 -78 -78 484 8,020 4,983 3,037 2,160 3,159 3,081 -2,689 -3,014 6 0 0 -45 484 -139 -139 8,020 4,983 3,037 2,160 3,081 3,221 -2,689 -2,936 5 0 0 -45 484 -201 -201 8,020 4,983 3,037 2,160 3,081 3,282 -2,689 4 -2,796 0 0 -45 484 -263 -263 8,020 4,983 3,037 2,160 3,081 3,344 -2,689 -2,595 3 0 0 2) -45 484
-365 -365 8,020 4,983 3,037 2,160 3,081 3,446 -2,689 2 -2,333 Case-
( 0 0 484 359 1,900 5,018 1,541 3,118 2,160 3,508 1 -2,285 -1,967 -1,967 -1,967 TAX STATEMENT
COST (Unit:1,000US$) PROFIT
TOTAL PROFIT
PROFIT
COST LOSS
YEAR COST
& BEFORE FIXED
REVENUE
COST
PROFIT
PROFIT MARGINAL SALES LABOUR DEPRECIATION VARIABLE FIXED INTEREST OTHER OPERATING PROFIT NET AMORTIZATION CUMULATIVE TAX
Al-18 0 0 0 8,020 1,411 4,983 3,037 5,726 2,197 2,117 9,907 3,528 -2,689 -2,689 20 0 0 0 8,020 1,382 4,983 3,037 5,726 7,790 2,269 3,456 2,074 -2,689 -2,689 19 0 0 0 8,020 1,354 4,983 3,037 5,717 5,726 2,341 3,384 2,031 -2,689 -2,689 18 0 0 0 1,987 8,020 1,325 4,983 3,037 5,726 3,312 3,686 2,413 -2,689 -2,689 17 0 0 0 8,020 1,699 1,296 1,944 4,983 3,037 5,726 2,485 3,240 -2,689 -2,689 16 0 0 403 605 -245 -529 8,020 1,008 4,983 3,037 2,160 2,558 3,566 -2,689 15 0 0 936 374 562 -850 -529 8,020 4,983 3,037 2,160 3,566 2,630 -2,689 14 0 0 864 346 518 -529 8,020 3,037 4,983 2,160 2,702 3,566 -2,689 -1,412 13 0 0 792 317 475 -529 8,020 3,037 4,983 2,160 2,774 3,566 -2,689 -1,930 12 0 0 288 432 720 -529 8,020 4,983 3,037 2,160 2,846 3,566 -2,689 -2,405 11
A l-19 0 0 0 0; 0 9j 67 -9% 668 623 5,658 3,732; -2,837 16,484 14,400 32,175 34,930 32,160 35,546: 34,930! 20,055! 10
______0 0 0 0; o 43 -9% 668 623 484 5,683 3,769; -2,938 9 14,330 16,560 17,939 32,665 32,651 36,163 35,546 35,546
0 0 0 0; 0 18 -9% 668 623 969 5,707 3,813! -3,003 8 12,213 18,720 33,193 15,865 36,163 33,178 36,779 36,163
0 0 0 0 o! -9% 668 623 5,726 1,453 3,874! -3,030 10,140 20,880 13,8541 33,764 36,779 33,749 37,396 36,779. 7 0i 0 0 0 0 Oj P. -9% 668 623 5,726 8,128 1,937 3,936; -3,014 6 23,040 11,904 34,396 37,396 34,382 38,012' 37,396 ______------
T 0 0 0 0 0 0 -8% 668 623 5,726 6,178 2,421 3,998; -2,936 5 10,0151 25,200 35,091 35,076 38,012 38,629 38,012 0 0 0 0 o 0 -8% 668 623 5,726 4,290 2,906 8,188! 4,059! -2,796 4 27,360 35,846 38,629 35,832 39,245' 38,629
i 1 0 0 0 0 0 o, -7% 668 623 5,726 2,463 3,390 6,423. 4,121 -2,595 3 29,520 36,664 39,245 36,650 39,861 39,245 , 0 0 0 0 0 2) 41 -6%
698 668 623 5,726 3,874 5,826! 5,289! -2,333 2 31,680 37,543 39,861 37,529 40,478' 39,861 Case-
(
i
0 0 0 0 41 -5% 100 418 623 815 4.185 4,359 4,285 5,060 1 -1,967 39,340 33,840 40,478 39,326 41,094 40,478 CAPITAL LOANS PROFIT
(Unit:1,000US$)
LOANS &
CHARGES
SHEET
RECEIVABLE PAYABLE
YEAR TOTAL TOTAL BALANCE(BEG) BALANCE(END) DEPOSIT
______ASSETS &
Ratio
PAYABLE Inflow
BALANCE CASH LIABILITIES INVENTORIES FIXED DEFERRED ASSETS LONG-TERM ACCOUNT INTEREST(S)-2 CAPITAL CUMULATIVE Equity SHORT-TERM P-SOURCES ACCOUNT TAX Cash
iLOAN(L) jLOAN(L) = ilNTEREST(S)-1 ! 'PUSES
A l-20 0 0 0 0 0 0 27% 668 623 4,314 1,411 4,613 9,907 3,600 27,071 26,198 37,092 37,516 26,198 32,639 37,530 20 0 0 6 0 0 - 22% 668 623 4,343 1,382 4,657 7,790 3,600 36,244 27,944 35,863 27,071 31,367 36,258 19
27,071 o 0! 0 0 0 0 ...... 17% 623 668 4,372 4,7001 1,354 5,717 ------3,600 34,6771 28,817! 27,944! 35,014 27,944 30,137 35,029 18 ------0 0 0 0 *0 .0 11% 668 623 4,401 1,325 3,686 3,600 4:743 28,817 33,534 29,691' 28,817 33,828 28,951 33,843 17 ------0 0 0 0 - 0 5% 668 623 4,430 1,699 1,296 3,922 3,600 30,564 29,691 31,570 32,685 27,808 29,691 32,700 16
I 1 1 0 0 0 0 0 ------1% 623 403 668 -245 5,322 3,966! 3,600 29,650 25,845 30,564 30,722 31,437 30,564 30,736 15 ------
0 o 0 0 0 0 -3% 668 623 374 -850 5,351 4,0091 5,760 30,961 31,437! 23,924 31,437 32,310i 30,976 14 27,773j ------
1 i i 0 oi 0 0 0 0 -5% 668 346 623 5,380 4,052! 7,920 -1,412 25,939 33,184 32,310! 31,244 22,047 32,310 31,259 13 0 0 0 0 0 0 -6% 668 623 317 5,409 4,095 -1,930 10,080 24,148 34,057 33,184 31,570 20,213 33,184 31,585 12 H o 0 0 0 0 0 -8% 668 623 288 5,438 3,947^ -2,405 12,240 18,423 34,057 22,209 34,930 31,940 34,057 31,954 11
Al-21 I 0 0 31 616 616 616
2,882 2,913 34,930 34,930 35,546 34,930 10 0 92 616 616 616 1,233 2,882 2,974 9 34,930 36,163 34,930 35,546 0 154 616 616 1,849 1,233 2,882 3,036 8 34,930 34,930 36,779 36,163 0 616 216 616 1,849 2,882 2,466 3,097 34,930 36,779 34,930 37,396 7 0 616 277 616 2,882 3,082 2,466 3,159 6 34,930 34,930 38,012 37,396 0 616 616 339 2,882 3,698 3,082 3,221 5 34,930 34,930 38,629 38,012 0 616 401 616 2,882 4,315 3,698 3,282 4 34,930 34,930 39,245 38,629 0 616 462 616 2,882 4,315 3,344 4,931 3 34,930 34,930 39,861 39,245 0 2)
616 524 616 2,882 5,548 4,931 3,406 2 34,930 34,930 40,478 39,861 Case-
(
0 616 616 586 5,548 3,467 2,882 6,164 1 34,930 40,478 41,094 34,930
Schedule
(bigining) (end) (bigining) (bigining) (end) (end)
(Unit:1,Q00US$) Total
YEAR Repayment
-2 balance balance balance balance balance balance
(U
(L)
Interest Repayment Interest Repayment Loan Loan Repayment Loan Loan Loan Loan Interest Loan Loan(L)-1 Loan(L)-1&2 Loan
A l-22 0 0 0 0 873 873 2,197 2,197 27,071 26,198 27,071 26,198 20 0 0 0 0 873 873 2,269 2,269 27,944 27,071 27,944 27,071 19 0 0 0 0 873 873 2,341 2,341 28,817 27,944 28,817 27,944 18 0 0 0 0 873 873 2,413 2,413 29,691 28,817 29,691 28,817 17 0 0 0 0 873 873 2,485 2,485 30,564 29,691 29,691 30,564 16 0 0 0 0 873 873 2,558 2,558 31,437 30,564 31,437 30,564 15 0 0 0 0 873 873 2,630 2,630 32,310 31,437 32,310 31,437 14 0 0 0 0 873 873 2,702 2,702 33,184 33,184 32,310 32,310 13 0 0 0 0 873 873 2,774 2,774 34,057 34,057 33,184 33,184 12 0 0 0 0 873 873 2,846 2,846 34,930 34,057 34,930 34,057 11
Al-23 0 601 541 383 743 668 487 986 PV 1,215 1,095 1,909 1,721 1,498 1,349 3,108 3,850 3,487 3,158 2,589 2,345 2,117 2,859
-2,256 -6,010 -28,443 NET 50340.7944 (Unit:1,000US$) 4,343 3,751 5,409 5,380 5,351 5,322 4,401 4,372 4,314 4,185 5,726 5,726 5,726 5,726 5,726 5,726 5,707 5,683 5,658 5,438 4,430 FLOW -2,256 -7,329 67,103 ______10.43% -31,409
WC)
NET &
2)
IDC
1104 3,751 5,322 4,401 4,372 4,314 5,726 5,707 5,683 5,658 5,438 5,409 5,380 5,351 4,430 4,185 5,726 5,726 5,726 5,726 5,726 4,343 INFLOW
Case- 108,097
(
CASH (INCLUDING IRR(%) 2,256 7,329
40,994 31,409 ______10.43 OF
INVESTMENT Basis)
1 6 7 8 2 3 4 5 9 -3 -2 -1 13 14 15 16 17 18 19 10 11 12 20 INVESTMENT) YEAR IRR(%)= IRR(%)=
RESIDUAL (TOTAL) (Post-Tax (ON CALCULATION
A l-2 4 8.36 8;84 9.33 9.86 9.60 8.73 7.77 6.77 10.43 10.98 11.59 12.25 12.99 13.26 10.43 12.57 11.87 11.16 IRR(%) IRR(%) (US$1,000)
90 86 82 79 71 75 67 64 60 Cost 43,200 41,400 39,600 37,800 34,200 32,400 36,000 30,600 28,800 Amount Amount ANALYSIS
5% 5% 5% 15% 20% 10% 5% 10% 15% PRICE(US$/T) 20% 15% 10% 20% 10% 15% 20%
CASE Construction
CASE
SENSITIVITY Plant BASE PLUS PLUS PLUS PLUS MINUS MINUS MINUS MINUS SALES BASE PLUS PLUS PLUS PLUS MINUS MINUS MINUS MINUS
2)
Gas 9.82 9.97
10.13 10.28 10.43 10.57 10.70 10.84 10.97 Case-
( Natural
9.55 9.77 10.00 10.22 10.43 10.62 10.82 11.01 11.19 Ore
Iron ^SUMMARY)
9.60 8.73 7.77 6.77 Price 13.26 12.57 11.87 11.16 10.43
(%)
Sales ANALYSIS IRR 8.36 8.84 9.33 9.86 Cost 10.43 10.98 12.25 11.59 12.99
Plant SENSITIVITY -5% Case +5% -10% -15% -20%
+20% +10% +15% Base
A l-25 66,950
Sales
107,000 107,000 107,000 Cost) interest
3.625 (tons/year) Plant Annual
Compound of (x Loan(L) 5 0 0 0 15 10 10 10 10 10 40 36 100 100 100 165 1.50 1.00 0.00 85% 8,020 4,983 62.57 2.500 -2,689 2.00% 1,000) 36,000 10.000
(US$
UNIT
(L)
(YEAR)
COST COST
(YEAR) (YEAR)
CAPITAL IRR
COST N
/
CURRENCY
RATE(1)(%) RATE(2)(%) RATE(3)(%) RATE(4-)(%) (L)-1/Loan
INSTAL.NO. INSTAL.NO. VALUE(%) INTERESTS) INTERESTS) COST(FULL) GRACE GRACE(YEAR)
INTERESTS) COST Cash
RATIO(%)
-2 -2 FIXED Loan
DATA REVENUE(FULL)
WORKING
of RTIZATIO RATE(%) HOLIDAY(YEAR)
RECEIVABLE(MONTH)
RESIDUAL LABOUR DEPRECIATION LOAN(S) Minimum INVENTORY(MONTH) OTHER OPERATION OPERATION OPERATION OPERATION INITIAL PRE-OPERATING EQUITY Ratio LOAN(L)-1 LOAN(L)-1 LOAN(L)-1 LOAN(L)-2 LOAN(L) LOAN(L) SALES AMO TAX TAX INPUT CONSTRUCTION VARIABLE AC | 0.00% 100.00%
9J4 : 0 0
187 199 727 469 -330 Debt 1,487 4,654 Equity: 2,113 4,983 2,160 -2,689 ANNUAL AMOUNT IRR(%)= (US$1,000/Y)
l 6.79 1.75 0.00 4.38 3) 19.75 13.90 46.57 CEMENT
(US$/Ton) COST/TON OF Case Case (US$/TON) ( (YEARS) (YEARS) (US$1,000) (YEARS) (PERSONS) (US$/P) (US$/Ton) (T/YEAR) (US$1,000)
0 0 3 15 10 36 19.75 74.95 0.0658 36,000 COST 107,000 UNIT
0.05072727 1 211.2 CEMENT DATA
UNIT OF
LINE)
CONSUMPTION BASIC TON
F/S
PER COST
CEMENT 3) (kWh)
MERITS
OF COST
(Nm EXPENSES COST
PERIOD COST
COST
PERIOD PERIOD(STRAIGHT
CAPACITY OIL Cost
PROJECT ITEM
PERSONNEL PRICE
SAVING COST
OF EXPENSES COST FIXED
TOTAL CONSTRUCTION
VARIABLE SALES
FURNACE MATERIAL MAINTENANCE ENERGY ELECTRICITY LABOUR DEPRECIATION NATURAL GAS PRODUCTION OTHER CHHATAK NUMBER LABOUR UNIT PRODUCTION PLANT PRE-OPERATION DEPRECIATION AMORTIZATION CONSTRUCTION AMORTIZATION
A l-26 % % 00 00 . . 0 100 0 0 36 0% 100 151 100 100 693 100% f|266 1.959 38.246 36,000 38,246 38.246 TOTAL (Unit:1,000llS$)
1
0 0 0 01
36 151 100 100: 100 1861 11% 0% , 1,286 1 3,960 5,533 5,533 5,533 5,433 -1 ) 3
i
_ 0 0 0 0 0 o| 0
80 633 83% 0% Case
29,880 30,513 30,513 30,513 -2 (
29,960| 553|
0 o| 01 0 0 0 0 0 40: 40 6% 0% 2,160 2,160| 2,200 2,200 2,200 -3 CONSTRUCTION
COST COST
Hand
USES SOURCE (equity) in (plant) FUNDS
DURING
CAPITAL OF
FUNDS YEAR
Cash DEPOSIT(END) DEPOSIT(BEG) CAPITAL
USES SOURCES schedule schedule
& & OF
PROVISIONAL PROVISIONAL EQUITY LOAN(L) PRE-OPERATING INTEREST USES CASH CASH Minimum CONSTRUCTION CASHFLOW SURPLUS(DEFICIT) payment payment SOURCES TOTAL WORKING TOTAL
11NTEREST(ll)-i jlNTEREST(L)-ii | i
A l-27 0 0 0 0 69 568 160 199 1,263 4,169 4,329 3,825 2,160 9,487 5,318 3,366 3,761 10 147% 0 0 0 0 485 160 199 208 1,208 3,601 2,160 9,001 3,761 3,825 3,276 3,366 5,401 9 142% 0 0 0 0 402 160 199 347 1,152 2,160 8,599 3,825 5,484 2,874 3,366 3,115 3,276 8 137% 0 0 0 0 319 160 199 485 1,097 2,160 2,713 2,874 3,825 2,555 3,366 8,281 5,567 7 133% 0 0 0 0 0 160 199 624 1,277 1,278 3,825 2,160 7,003 2,395 2,555 4,609 3,366 6 129% 1 0 0 0 20 160 160 199 763 1,117 1,117 1,278 3,825 2,160 5,886 4,768 3,366 5 124% 0 0 0 0 50 20 160 160 160 199 970 901 3,825 2,160 5,906 5,906 3,366 4 100% 0 0 0 0 160 160 133 199 160 970 1,698 1,040 3,825 2,160 6,856 6,856 3,366 3 86% 0 0 60 3) 160 181 100 199 160 250
1,178 1,929 1,698 3,825 7,524 2,160 7,524 3,366 2 80% Case-
( 0 0 0 0 96 100 199 100 100 876 1,317 1,826 1,929 2,160 6(214 3,825 6,214 1 80% Hand
(beginning in
FUNDS WC
(Unit:1,OOOUS$) TAX
PROFIT
IN OF
Coverage equity
FUNDS
REPAYMENT YEAR
Cash REPAYMENT DEPOSIT(CUM)
CAPITAL
for
Deposit
& OF
&
Service
USES INTEREST(S) Minimum INCREASE LOAN(L) LOAN(S) INTEREST(L) CASHFLOW SURPLUS/DEFICIT EQUITY DEPRECIATION CASH LOAN(L) LOAN(S) CORPORATE Debt OPERATING SOURCES Cash cashflow AMORTIZATION TOTAL TOTAL
Al-28 o o o o o o o 1- 0) o CO o O in Tf Z*- CO 0> in CO CM CO CM ■M" in N CM CO CD CM CM 9 in s' 5 3 2 0
o o o o o o o o CO o O CD CD CD CO O) m o CM CM h- CO CM •M- N CO CO in CD CM CM IsT in CM o o CO 't
o o o o o o o 00 o CO o o CO 't CO O) in CO CM CD ■M- o CM ■m- CO N CO CD 00 CM CM (0 in CD CO N CO CO CO CO
o o o o o o o CO o CO o o CD 22 CO CO 0) in CO CM m o CO CM CM N CD m CO CM CM b in in CO CO CO CO CO CO
o o o o o o CO N Tf o CO o o CD CO CO CO CM 00 CO CM in h- CO in o> h- CO o CM CO in in o o CM CO CO CO
o o o o o o CO N o CO o o o CO ■M" CO CM 00 CO CO CO CO N CO rt in CO in CO CD in CO CM in in CM CM CM CM
o o o o o o CO N in o CO o o o •'t CO CM CO CO CO CO CO h- CO Tf in CO in o CO N CO CM CO CM CM CM
o o o o o o CO h- CO o CO o o in in CO CM CO CO CO CO CO h- CO in o in N « V- T- CO CO CM CO N N
o o o o o o CO N CO o CO o o CM in CO CO CM 00 CO CO CO CO N- n in h- m CO o rt-" CM T- T- 00 CO CM CM CO
o o o o o o O) CD CD o CO o o in CO CO CO CM CO CO in CO CO CO in o m I CO CM o CO CO
Al-29 0 69 199 -330 8,020 1,319 1,978 4,983 3,037 2,160 3,366 3,297 -2,689 18,688 10 0 199 208 -330 8,020 1,263 1,895 4,983 3,037 2,160 3,366 3,158 -2,689 9 16,709 0 199 347 -330 8,020 4,983 1,208 1,812 3,037 2,160 3,366 3,019 -2,689 8 14,815 0 199 485 -330 8,020 4,983 1,152 1,729 3,037 2,160 3,366 2,881 -2,689 13,003 7 0 199 624 -330 8,020 4,983 1,097 1,645 3,037 2,160 3,366 2,742 -2,689 6 1.1,274 0 0 199 764 -330 8,020 4,983 3,037 2,160 3,366 2,603 2,603 9,629 -2,689 5 0 0 199 951 -330 8,020 4,983 3,037 2,160 3,366 2,415 2,415 7,027 -2,689 4 0 0 199 -330 8,020 4,983 1,173 3,037 2,160 3,366 2,193 2,193 4,611 -2,689 3 0 0 3)
199 -330 8,020 4,983 1,360 3,037 2,160 2,006 3,366 2,006 2,418 -2,689 2 Case-
( 0 0 74 199 412 412 412 1,900 5,018 1,826 1,414 3,118 2,160 -2,285 1 TAX STATEMENT
COST PROFIT (Unit:1,000US$)
TOTAL PROFIT
PROFIT COST LOSS
YEAR COST
& BEFORE FIXED
REVENUE
COST
PROFIT
PROFIT MARGINAL SALES LABOUR DEPRECIATION FIXED VARIABLE INTEREST PROFIT OTHER OPERATING NET AMORTIZATION CUMULATIVE TAX
A l-30 0 0 0 0 8,020 5,726 2,290 3,435 4,983 5,726 3,037 -2,689 -2,689 46,561 20 0 0 0 0 8,020 5,726 2,290 3,435 4,983 3,037 5,726 -2,689 -2,689 43,126 19 0 0 0 0 8,020 4,983 3,037 5,726 5,726 2,290 3,435 -2,689 -2,689 39,690 18 0 0 0 0 8,020 2,290 3,435 4,983 3,037 5,726 5,726 -2,689 -2,689 36,255 17 0 0 0 0 8,020 4,983 5,726 5,726 2,290 3,435 3,037 -2,689 -2,689 32,820 16 0 0 0 -529 1,426 8,020 4,983 2,139 3,037 2,160 3,566 3,566 -2,689 29,384 15 0 0 0 -529 1,426 8,020 4,983 3,037 2,139 2,160 3,566 3,566 -2,689 27,245 14 0 0 0 -529 1,426 8,020 4,983 3,566 2,139 3,037 2,160 3,566 -2,689 25,106 13 0 0 0 -529 1,426 8,020 4,983 2,139 3,037 2,160 3,566 3,566 -2,689 22,966 12 0 0 0 -529 1,426 8,020 4,983 3,566 2,139 3,037 2,160 3,566 -2,689 20,827 11
Al-31 j 1
0 0 0 0 0i 0 0! o! 668 623 100% 4,407 4,329 1,319 3,825] 9,487 5,318 14,400 18,688 20,021 10 20,006 ______
j |
0 0 0 0! o[ 199 668 623 81% 4,462 1,263 3,761 3,825 7,649 3,825 9,001! 5,401 9 16,560 16,709 21,812 21,797 ______0 0 0 0 0 668 623 66% 399 4,518 1,208 3,276 7,649 7,649 8,599 5,484 8 18,720 14,815 11,474 23,686 23,672
i 1 T
0 0 0 0; 0! 668 623 598 53% 4,573 2,874 1,152 8,281 5,567 11,474 11,474 20,880 13,003 15,298 25,643 25,629 7
] 1 0 0 0 o 0! 668 623 798 42% 4,629 2,555 1,097 4,609 6 15,298 11,274 19,123' 15,298 23,040 27,684 27,670 ------7,003} j
J 0 i 0 0 O' 0 668 623 997 33% 5,726 1,278 9,629 5,886 4,768 5 19,123 19,123, 25,200 28,766 28,752 22,948 ...... ------1 0 0 0 20 160 668 623 23% 5,726 1,197 7,027 5,886 5,905 4 27,360 30,008 22,948 29,994 26,772 22,948 49
i
j
T 0 0 0 85 49! 160 668 623 15% 970 5,726 1,396 4,611 5,886 6,808 3 29,520 32,368 26,772 26,772 32,354 30,597 1 0 0 0 96 85 3) 7% 160 668 623
5,726 1,596 1,698 5,826 7,439 2,418 2 31,680 34,727 30,597 34,713 34,422' 30,597 Case-
( 0 0 0 0 96 1% 100 418 623 412 4,185 1,795 1,929 4,285 6,118' 1 33,840 36,777 34,422 36,762 38,246 34,422 CAPITAL LOANS PROFIT
(Unit:1,000US$)
LOANS &
CHARGES
SHEET
RECEIVABLE PAYABLE
YEAR TOTAL TOTAL BALANCE(BEG) BALANCE(END) DEPOSIT
ASSETS &
Ratio
PAYABLE Inflow
BALANCE INVENTORIES FIXED CASH LIABILITIES DEFERRED ASSETS LONG-TERM ACCOUNT LOAN(L) LOAN(L) SHORT-TERM P-SOURCES CAPITAL CUMULATIVE Equity ACCOUNT TAX ______Cash
I | ilNTEREST(S)-1 ilNTEREST(S)-2 .PUSES
A l-32 0 0 0 0 0 0 0 668 623 100% 3,435 2,290 2,451 3,600 46,561 48,851 48,866 46,265 43,974 20 0 0 0 Oi 0 Oi 0 0 0 0 o 668 623 100% 3,435 2,290 3,600 45,416 42,829! 43,126 40,539 45,430 19 ______2:451. 0 o 0 0 0 0 0 0 668 623 3,435 100% 2,451 2,290 3,600 41,981 39,690 39,394 37,104 41,995 18 0
S T
Oi 0 0 0 0 0 0 o 623 668 100% 3,435 2,451 2,290 3,600 36,255 38,545 35,959! 33,668 38,559 17
o r 0 0 o; 0 0 oi 0 0 0 668 623 3,435 100% 1,587! 2,290 3,600 35,110 32,820 31,659! 35,124 30,233 16 0 0 0 0 0 0 0 0 o' 668 623 100% 4,299 1,426 3,600 7587' 29,384 27,360 30,811 25,934 30,825 15 ------*"
* ------0 0 0 0 0 0 0 0 0 668 623 4,299 100% 1,426 5,760 7,587 23,060 27,245 28,671 21,634 28,685 14 ......
' ------0 0 0 0 0 0 0 0 668 623 100% 4,299 1,587 1,426 7,920 18,761 17,335 25,106 26,532 26,546 13 ------0 0 0 0 0 0 0 0 668 623 100% 4,299 1,587 1,426 14,462 10,080 13,036 22,966 24,392 24,407 12 o
j T
0 o; 6 0 0 0 0 0 0 668 623 100% 4,299 1,479 1,426 8,736 10,055 20,827 12,240 22,253 22,267 11
Al-33 | 0 0 0 41 69 29 574 574
3,251 3,251 3,825 3,825 10 86 122 574 574 208 1,147 6,502 3,251 3,251 7,649 3,825 3,825 9 143 203 574 347 1,721 1,147 9,753 3,251 6,502 3,825 7,649 8 11,474 284 574 201 485 1,721 3,251 9,753 2,295 3,825 13,004 15,298 11,474 7 366 574 258 624 3,251 2,868 2,295 3,825 6 16,255 13,004 19,123 15,298 447 574 763 316 3,251 3,442 2,868 3,825 5 16,255 19,506 19,123 22,948 528 574 373 901 3,251 4,016 3,442 3,825 4 19,506 22,756 26,772 22,948 610 574 430 1,040 3,251 4,590 4,016 3,825 3 26,007 22,756 26,772 30,597 3) 691 574 488
1,178 5,163 4,590 3,825 3,251 2 29,258 26,007 34,422 30,597 Case-
( 772 574 545 1,317 3,251 5,737 5,163 3,825 1 32,509 29,258 38,246 34,422 Schedule
(bigining) (end) (bigining) (end) (bigining) (end)
(Unit:1,000US$) Total
YEAR Repayment
-2 balance balance balance balance balance balance
(L)
(L)
Loan Interest Loan Repayment Loan Interest Loan Repayment Interest Loan Loan Repayment Loan Loan(L)-1 Loan(L)-1&2 Loan
Al-34 o o o o
o oo o
Al-35 0 535 488 645 445 442 886 588 972 PV 1,170 1,067 1,981 1,784 1,605 1,445 1,284 2,201 3,167 3,948 3,598 3,278 2,987
-2,200 -4,512 -27,805 NET 50340.7944 (Unit:1,000US$) 3,435 3,435 3,435 3,751 3,435 4,299 3,435 4,299 4,299 4,299 4,518 4,462 4,407 4,299 4,185 5,726 5,726 5,726 5,726 4,629 4,573 FLOW -2,200 -5,433 9.74% 53,955
-30,513
WC)
NET
&
3)
IDC
-592 3,435 3,435 3,435 3,751 3,435 4,299 3,435 4,407 4,299 4,299 4,299 4,299 5,726 5,726 5,726 5,726 4,629 4,573 4,518 4,462 4,185 92,101 INFLOW Case-
(
CASH (INCLUDING IRR(%) 2,200 5,433
38,146 30,513 ______OF
INVESTMENT Basis) 1 6 8 3 5 7 9 2 4 17 18 -3 -2 -1 15 16 19 13 14 11 12 10 20 INVESTMENT) YEAR IRR(%)= IRR(%)= 9.74
RESIDUAL (TOTAL) (Post-Tax (ON CALCULATION
Al-36 7.87 8.24 8.67 9.16 9.74 8.90 8.16 7.46 9.74 6.79 10.37 11.06 11.81 12.65 12.95 12.17 11.38 10.57 IRR(%) IRR(%) (US$1,000)
90 86 79 75 82 71 67 64 60 Cost 43,200 41,400 39,600 37,800 36,000 34,200 32,400 30,600 28,800 Amount ANALYSIS Amount
5% 5% 5% 15% 20% 10% 5% 10% 15% PRICE(US$/T) 20% 15% 10% 20% 10% 15% 20%
CASE
Construction
CASE
SENSITIVITY Plant BASE PLUS PLUS PLUS PLUS MINUS MINUS MINUS MINUS SALES PLUS PLUS BASE PLUS PLUS MINUS MINUS MINUS MINUS
3)
Gas 9.12 9.27 9.43 9.58 9.74 9.89
10.05 10.20 10.36 Case-
( Natural
8.86 9.07 9.30 9.52 9.74 9.96 10.18 10.39 10.61 Ore
Iron NUMMARY)
8.90 9.74 8.16 7.46 6.79 Price 12.95 12.17 11.38 10.57
(%)
ANALYSIS Sales
IRR 8.24 8.67 9.74 7.87 9.16 Cost 10.37 11.06 11.81 12.65
Plant SENSITIVITY -5% Case +5% -10% -15% -20%
+20% +15% +10% Base
A l-37
46,950 87,000 87,000 87,000 Sales
Cost)
interest
2.1375 (tons/year) Plant Annual
Compound (x Loan(L) of 0 0 5 10 15 10 10 10 10 36 40 40 100 100 100 116 1.00 1.50 0.00 85% 4,052 6,521 0.750 53.97 -2,689 2.00% 1,000) 36,000 10.000
(US$
UNIT
NO.
(%) COST COST
(YEAR) (YEAR) IRR
CAPITAL
COST /
CURRENCY
RATE(1)(%) RATE(2)(%) RATE(3)(%) RATE(4-)(%)
INSTAL.NO. INSTAL. VALUE COST(FULL) INTERESTS) INTERESTS) GRACE(YEAR) GRACE(YEAR)
COST INTERESTS) Cash
RATIO(%)
-2 -2 -2
FIXED Loan(L)-1/Loan(L)
DATA REVENUE(FULL)
WORKING of
RATE(%) HOLIDAY(YEAR)
RECEIVABLE(MONTH)
INPUT PRE-OPERATING EQUITY LABOUR Ratio LOAN(L)-1 LOAN(L)-1 LOAN(L)-1 LOAN(L) LOAN(L) LOAN(L) INVENTORY(MONTH) DEPRECIATION RESIDUAL LOAN(S) CONSTRUCTION Minimum SALES OTHER OPERATION OPERATION OPERATION INITIAL VARIABLE OPERATION AC AMORTIZATION TAX TAX % % | 00 00 . . 0 100
8.79 : 0 0
152 118 591 381
-411 1,718 1,209 Equity: 4,052 3,640 2,160 Debt -2,689 ANNUAL AMOUNT (US$1,000/Y) IRR(%)= )
| -L 6.79 4.38 1.75 0.00
19.75 13.90 46.57 1
CEMENT
(US$/Ton) COST/TON OF Case (T/YEAR) (YEARS) (US$1,000) (YEARS) (PERSONS) (US$1,000) (YEARS) (US$/P) (US$/Ton) (US$/TON)
(
0 0 3 15 10 36 19.75 74.95 COST 87,000 0.0658 36,000
UNIT
0.05072727 1 211.2 CEMENT DATA
UNIT OF
LINE)
CONSUMPTION BASIC TON
F/S
PER COST
CEMENT 3) (kWh) MERITS
OF COST
(Nm EXPENSES COST PERIOD
COST COST
PERIOD PERIOD(STRAIGHT
CAPACITY OIL
Cost PROJECT ITEM PERSONNEL
PRICE
GAS
SAVING COST
OF EXPENSES COST
FIXED
TOTAL CONSTRUCTION
VARIABLE SALES
FURNACE MATERIAL CHHATAK PRODUCTION PLANT NATURAL ELECTRICITY NUMBER LABOUR DEPRECIATION LABOUR DEPRECIATION MAINTENANCE ENERGY UNIT PRODUCTION CONSTRUCTION PRE-OPERATION OTHER AMORTIZATION AMORTIZATION
Al-38 ANNEX-2
FIELD SURVEY REPORT ANNEX - 2
Field Survey Report -1 Sep. 19, 2000 Survey Mission: Energy Conservation and Modernization of Chhatak Cement Plant - First Survey Mission Leader: Mr. Akira YOKOYAMA Mission Members: Messrs. Ken KISHIMOTO, Hironobu SAKO, Yoshihisa MATSUDAIRA, Kazutaka NAKAYAMA Yoshio SHIBATA and Minoru HIROSE Period of Time: September 3 - 16, 2000
Followings are the report for the first field survey in Bangladesh.
September 4, 2000 Visit to: JBIC Dhaka Liaison Office Met with: Mr. Yasunori Ohnishi, Representative Subject: Explanation of purposes of visit and hearing on JBIC views for their Bangladesh projects
Visit to: The Embassy of Japan Met with: Mr. Tomohide Uchida, Economic Advisor to Ambassador Subject: Explanation of purposes of visit and hearing on general situation about Bangladesh
September 5, 2000 Visit to: Ministry of Environment and Forest Met with: Mr. Mohammad Reazuddin, Technical Director, Dept, of Environment Subject: 1) Explanation of purposes of visit 2) Hearing on Bangladesh strategy for CDM
Visit to: Ministry of Industries Met with: Mr. AJ-Ameen Chaudhury Subject: 1) Explanation of purposes of visit and CDM. 2) Hearing on the Ministry’s policy about modernization of CCCL
Visit to: Bangladesh Chemical Industries Corporation (BCIC) Met with: Mr. M.A.Samad, Director (Planning & Implementation) Mr. F. A. Chowdhury, Director (Technical) Subject: 1) Explanation of purposes of visit and CDM.
A2-1 2) Hearing on BCIC’s policy about modernization of CCCL
September 7, 2000 Visit to: Chhatak Cement Co. Ltd. (CCCL) Met with: Mr. D.K. Kundu, Managing Director Mr. A.R. Moynul Islam, General Manager (BMRE) Mr. M. M. Shamsuddoha, Addl. Chief Administrative Manager Other Management Staff Subject: 1) Explanation of purposes of visit, CDM and the Study 2) Request for CCCL’s cooperation on the Study 3) Discussion about time schedule of the Study
September 8, 2000 Visit to: Chhatak Cement Co. Ltd. Met with: Mr. D.K. Kundu, Managing Director Mr. A.R. Moynul Islam, General Manager (BMRE) Mr. Dipak Chowdhury, Technical Manager Other Management Staff Subject: CCCL’s policy on the plant modernization
September 11,2000 Visit to: Chhatak Cement Co. Ltd. Met with: Mr. M.M.Hassan, General Manager (Accounting & Finance) Subject: Financial situation of CCCL Met with: Engineers for Operation, Technical, Civil and Electrical Subject: Operational and technical matters
September 12,2000 Visit to: Chhatak Cement Co. Ltd. Met with: Engineers for Operation, Technical, Civil and Electrical Subject: Operational and technical matters
September 13, 2000 Visit to: Chhatak Cement Co. Ltd. Met with: Mr. D.K. Kundu, Managing Director Other Management Staff Subject: Wrap-up Meeting (Summary of the plant survey and Minutes of Meeting) End
A2-2 ANNEX - 2
Field Survey Report - 2 Jan. 22, 2001 Survey Mission: Energy Conservation and Modernization of Chhatak Cement Plant - Second Survey Mission Leader: Mr. Akira YOKOYAMA Mission Members: Messrs. Ken KISHIMOTO, Hironobu SAKO, Masahiro KUBO and Yoshio SHIBATA Period of Time: Jan. 8 - 18, 2001
Followings are the report for the second field survey in Bangladesh.
Purposes of Visit: Explanation on a draft report of the feasibility study, hearing on Bangladesh side additional requirements and discussion about conditions for materialization of the project
January 10,2001 Visit to: Chhatak Cement Co. Ltd. Met with: Mr. Shaijahan, General Manager of Production Mr. Shaikh Mizanur Rahman, Mechanical Engineer Mr. Md. Momtazuddin, Addl. Chief Engineer- Electrical. Mr. A.K.M. Shah-E-Alan, Mechanical Engineer Mr. Tarun Kanti Sarkar, Electrical Engineer
January 11,2001 Visit to: Chhatak Cement Co. Ltd. Met with: Mr. D.K.Kundu, Managing Director Mr. Abdur Razaqque, Additional Chief Accountant Mr. Md. Atiqul Haque, Assistant Accountants Officer Mr. Shaikh Mizanur Rahman, Mechanical Engineer
January 12, 2001 Visit to: Ministry of Industries Met with: Mr. Al-Amin Chaudhury, Secretary Mr. Meer M.A.Gasher, Joint Chief
- A2-3 January 15,2001 Visit to: Ministry of Environment and Forest Met with: Mr. Abu Taleb Khandakar, Director (technical), Department of Environment
January 16,2001 Visit to: Bangladesh Chemical Industries Corporation (BCIC) Met with: Mr. K.M.Zahrul Islam, Director, Planning & Implementation Mr. Abdul Wadud, Senior General Manager, Planning, Design & Development Mr. S.M. Kamal Uddin, Senior General manager, Planning End
A2-4 ANNEX - 2
Field Survey Report - 3 March 21, 2001 Survey Mission: Energy Conservation and Modernization of Chhatak Cement Plant - Third Survey Mission Leader: Mr. Ken KISHIMOTO Mission Members: Messrs., Hironobu SAKO, Masahiro KUBO and Naoyuki YATAGAI Period of Time: March 1 - 20, 2001
Followings are the report for the third field survey in Bangladesh.
March 12,2001 Visit to: Bangladesh Chemical Industries Corporation (BCIC) Met with: Mr. K. M. Zahrul Islam, Director, Planning & Implementation Mr. Abdul Wadud, Sr. General Manager, Project Design Div. Mr. M.H.M Abed, Addl. Chief Engineer, Project Design Div. Subject: BCIC’s comments and discussion about Draft Final Report of the Study
March 14 & 15, 2001 Visit to: Chhatak Cement Co. Ltd. (CCCL) Met with: Mr. M.H.M Abed, Addl. Chief Engineer/BCIC Mr. D.K.Kundu, Managing Director Mr. M.D.Shaharjahan, General Manager of Production Mr MIR Farzuk, Addl. Chief Engineer Mr. Shaikh Mizanur Rahman, Mechnical Engineer Mr. Dipak Choudhury, Addl. Chief Chemist Mr. Phela Ramchakma, Addl. Chief Engineer Mr. MD. Maqbul Husain, Dy. Chief Accountant Mr. A.K.M. Shah-E-Alam, Mechanical Engineer
Subject: 1) CCCL’s comments and discussion about Draft Final Report of the Study 2) Proposal and confirmation about additional plant modification requested at the previous (January) meeting 3) Study and measures for problems of facilities and operation raised by BCIC 4) Re-confirmation on actual operational conditions at Plant 5) Presentation on technical details about proposed dry process
A2-5 March 18, 2001 Visit to: Ministry of Environment and Forest Met with: Mr. Abu Taleb Khandakar, Director (Technical), Department of Environment Subject: MOEF’s comments and discussion about Draft Final Report of the Study
Visit to: BCIC (Bangladesh Chemical Industries Corporation) Met with: Mr. K. M. Zahrul Islam, Director, Planning & Implementation, BCIC Mr. Abdul Wadud, Sr. General Manager, Project Design Div., BCIC Mr. M.H.M Abed, Addl. Chief Engineer, Project Design Div., BCIC Mr. D. K. Kundu, Managing Director, CCCL Mr. Md. Shajahan, General Manager (Operation), CCCL Mr. Mir Farzuk, Addl. Chief Enginerr, CCCL Mr. Shaikh Mizanur Rahman, Mech. Engineer (BMRE), CCCL Subject: 1) Summary meeting on BCIC/CCCL comments for JCI’s Draft Final Report 2) Discussion on future actions for materialization of the Project End
A2-6 ANNEX-3
REFERENCE DATA ANNEX-3
REFERENCE DATA
Following reference data are partially referred or quoted in preparation of this report.
1. International Financial Statistics Yearbook 1999 2. Annual Report on Asian Trend, 2000; Asian Economic Research Center 3. Statistical Pocketbook of Bangladesh 1999 4. World Trend No. 52 (December, 1999) by Asian Economic Research Center 5. Asian Least-cost Greenhouse Gas Abatement Strategy, Bangladesh Asian Development Bank/Global Environment Facility/UNDP, October 1998 6. Bangladesh: Greenhouse Effect and Climate Change; Briefing Published by Bangladesh Unnayan Parishad (BUP), First Published in 1993 Briefing Documents; 1- The Greenhouse Effect and Climate Change 2- Sea-Level Changes in the Bay of Bengal 3- Effects of Climate and Sea-Level Changes on the Natural Resources of Bangladesh 4- Socio-Economic Implications of Climate Change for Bangladesh 5- Legal Implications of Global Climate Change for Bangladesh 6- Climate Change and Sea-Level Rise: The Case of the Coast 7- The Implications of Climate Change for Bangladesh: A Synthesis 7. Bangladesh: State of Environment Report 1998, Quamrul Islam Chowdhury Published by Forum Environmental Journalists of Bangladesh Any part or a whole of the report shall not be disclosed without prior consent of International Cooperation Center, NEDO.
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