4'~ ~~0 n. NP Bank0 ~oilt NDPWorld Bn Energy. S,ector management Program ~~~ . ~~~Activity, Coi6ip!etiik*epor't 9 ~~ .No. (0I83 14 Aciiy:, PA10RITY wMSTmW PROGRAM F~OR ENRGY ,~~aC MaIgy 1983I port te oin LNDP/WorMd Banik Energ Stor Managemnent Pr6gram This document has a restricted distribution. Rts contents may not be disclosed 0 wvhut authoriition from the Government, the -UNDPbor the Word~ Bank. Ct N4 d i Energy Sector Managnment Program The Joint UNDP/World Bank Energy Sector Management Program is designed to provide a rapid and flexible response to governments who request assistance in implementing the policy, planning and institutional recommendations of the Energy Assessment Reports produced under another Joint UNDP/World Bank Program, or in carrying out prefeasibility studies for energy investments identified in these reports. The Energy $ector Management Program can provide the following types of assistance for countries which have had assessments: o assistance to improve a government's ability to manage its energy sector, for example by defining staffing and work programs, evaluating management information needs, identifying sources of public and private finance, developing a medium-term investment plan; o prefeasibility work on priority investment plans, especially those which will improve the efficiency of energy use, bring about economic fuel substitution, or provide enough affordable energy to rural areas; 3 specific short-term assistance in institutional and manpower development, both at the sectoral and agency levels. The Program aims to supplement, advance and strengthen ths impact of bilateral or multilateral resources already available for technical assistance in the energy sector. Funding of the Program The Program is a major international effort and, w'hile the cere finance has been provided jointly by the UNDP and the World Bank, important financial contributions to the Program have been made by the Governments of the United Kingdom, the Netherlands, Denmark, Finland, Norway, Sweden, Australia and New Zealand. BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY May 1983 a 'V .;~~~~~~ 0 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY PART I INTRODUCTORY REPORT TO THE INVESTMENT PORTFOLIO . Table of Contents Page No. Bangladesh: Priority Investment Program for Energy ....... 1 Scope and Aim of Priority Investment Program............. 1 Overviev............................, 3 Exploration for Hydrocarbon in Bangladesh................. 4 Historical Back4round. .......... ........ ........*.... 4 Present Exploration Activities .......... 5 Exploration Drilling Proposed by Petrobangla ........ ..... 7 Gas Utilization in Bangladesh............................ 7 Development# Transmission and Distribution of Natural Gas . . ...................... . 9 Development of Gas Fields Proposed by Petrobangla....o.... 11 Transmission and Distribution Network Proposed by GOB.... 12 Refinery Subsector .................................. .... 15 Power Subsectoro .............. o. 16 External Assistance .................................... . 17 Potential Smaller Scale Projects ........................ 22 Ranking of the Projects. ... . . ....... .................. .. . 23 Benefit-Cost Analrsis.................... ............... . 25 Observationo............................................. 26 Recommandations ......................................... o. 29 Part II Investment Portfolio............................ 32 Power Projects: 1. Upgrading of East-West Interconnector Co 230 KV operationo................ ........... .... 33 2. Ashuganj-Comilla 230 KV Transmission Line ........................ ....... . 42 3. Kaptai Hydro Power Station Eatention ............Dhaka Pour 45 4. Greater Dhaka Power Distribution Project, Phase II ............ o .............. oo ............... 48 5. Power Distribution Project West Zone ooo...oo...0....000............................. 50 6. Ghorasal-Tongi 230 KV Transmission Line o................................ 55 7. Greater Chittagong Power Distribution Project Phase IIo.................... 58 8. Augmentation of Grid Substations..oo ............. 61 Table of Contents Page No. 9. Power Distribution Project East Zone. . . . . ... . .* 64 10. System Loss Reduction Scheme..................... 68 11. Barisal - Patuakhali Bhola 132 KV Transmission Line .............. 71 12. Area Coverage Rural Electrification Phase Ift.A 73 13. Feasibility Study for Ashuganj Thermal Power Station, 2nd Extention............. 76 14. BPDB Tariff Study.... ftuytfttt ...f 79 15. Pre-stressed concrete Pole Manufacturing Plant at Aricha ............ . 81 16. 60 MW Gas Turbine Power Station (East Zone) Land Baseda........................................ 83 17. 60 MW Gas Turbine Power Station (East Zone) Barge Mounted ........... 85 18. Pre-feasibility study for Minihydro Power Generation........................................ 87 19. Canal drop small hydro power plant at Teesta........ 89 20. Feasibility study for a 100/150 MW Steam Power Station in West Zone o ne.. .f 92 NATURAL GAS PROJECTS 1. Development of Kauta Gas Field and Interlinking with Titas System 94 2. Greater Dhaka Gas Distribuition...................... 97 3. Development of Rashidpur Gas Field and interlinking pipelines to Titas System ..........ft 102 4. Gas Transmission and Distribution to Mymensing and Jamalpur via Kishorganj................ 105 5. Syihet Tea Estate Gas (Supply) Distribution (Phase II) 109 Table of Contents Page No. . Gas Grid System in Eastern Zone (study) ...... 113 7. Feasibility study of converting raiLlway and river transport to Compressed Natural Gas (CNG)... 115 4U BANGLADESH . 'PIOXIsTV INVEMSTMNT PROGRAM FOR ENERGY IN BANGLADESH -Introduction 1. The purpose of this study is to establish a priority ranking of energy projects In Bangladesh, as well as to: (a) ensure that implemen- ** . tation of critical projects is not inhibited by a lack of financial resourceo, (b) eliminate duplicate and parallel projects in order to optimize future energy investment in Bangladesh; and (c) to promote a co- ordinated approach toward a priorit" investment program for energy (PIPE) in Bangladesh. All the available projects were reviewed with the domes- tic executing agencies' planning staff in Dhaka. The present exercise is based on GOB energy policies as well as the World Bank report No. 3873-BD 'Ianladesh:* Issues and Options in Energy Sector."' It is hoped that IDA will provide assistance and support towards promoting an investment plan for the energy sector in consideration of the overall financial con- straints prevailing in Bangladesh. Scope and Aim of Priority Investment Program for Energy (PIPE) 2. The PIPE was assigned to translate specific energy projects and pr9grams into an investment portfolio, with a three-fold objective to: (a) provide a comprehensive and det-lled schedule of investments needed in the energy sector, for which investment decisions are to be made during 1983-85; (b) prepare a specific portfolio of investment projects and programs including ranking the priorities based on the economics of the projects; (c) assist donors in the selection of projects for their support within the framework of the sector investment priorities. -2- 3.. The Government of Baugladesh gave its full support to the World Bank representatives In the process of the project Inventory and ce.lcula- tiohi of the net present value of the projects. All the information preeented in the project briefs was prepared and supplied by various exe- cuting agencies in Bangladesh. The Secretary of Petroleum and Natural resources devoted a great deal of his valuable time in chairing several lengthy meetings and coordinating the work for preparation of this docu- ment. The sub-sectors covered in PIPE are represented by the main energy supply agencies; (i) for power, the Bangladesh Power Development Board (BPDB), and Rural Electrification Board (REB) ii) for oil and gas, the Ministry of Energy, Petrobargla, and, the Yarious gas companies iii) for refinery operations, Bangladesh PetroleLm Corporation (BPC) The Power Development Board and the Rural Electrification Board submitted a total of 33 projects out of which 20 were selected and thought to have merit which could be considered for inclusion in the portfolio. Petrobangla proposed 17 projects, seven of which could be de- velope&' for inclusion in the portfolio, and the seven projects proposed by the Bangladesh Petroleum Corporation should be considered late in 1984 when the result of the consultants' study on the ERL is available. The projects to be considered for inclusion in the portfolio are summarized in Table 5 and 6. The total investment cost of the projects selected is a&bout Taka 18,498 million (US $804.3 million), of which Taka 9,191.62 -3 million '(US$ 1.1)0 millioun would be in foreipn exchange. Individual p;oject proform-a are enclosed as the complementary Part II of the report. Overview 4. Commercial energy sources (petroleumi products, coal, gas and electric power) in Bangladesh amount to about thirty-four percent of total energy demand. Import of petroleum products accounted for about 522 of total commercial energy in 1980/1981. Tlhe net petroleum imports of around 1.6 million tons in 1980-1981 cost about US 460 million using * - ~about 60%-70% of the country'sa foreign exchange earnings .I/ According to Petrobangla, the quantity of imported oil has not changed considerably in 1982 from that of previous year however the foreign currency is expected to cost US $ 600 million. 2/ The imported oil accounts for 46% 3/ of the total commercial energy, while natural gas will be 47%,, Imported coal 5% and hydropower contributes the remaining 2% 4/. Since the quantity of imported fuels have remaiued unchanged and oil prices remained stable or even lower in the spot market in 1982, it would be safe to assume that I/ World'Baik report No. 3873-BD, Oct. 1982. 2/The sharp increased cost of imported oil of US$600 million for 1982, as projected by Petrobangla compares to US$460 million as cited in the World Bank Energy Assessment Report. Such increase could only bkt attributed to Increased demand but not to price escalation. However, Petrobangla does not forecast a sharp increase in demand for 1982. The US$600 million projection should be treated with reservation. 3/ The World Bank Energy Report #5873-BD states that, 52% of total com- mercial energy was imported in 1980/1981, while Petrobangla's projec- tion for 1982 is 46Z in 1982. This is probably due to increased natural gas consumption in 1982. 4/ Petrobangla project information for Saudi Assistance, Oct. 1982. ... . -4- ,the foreign currency cost for the country would be in the rsnje of 1981 and not the amount indicated by Petrobangla. tn either case, the finan- cial burden of hydrocarbon imports,even with nominal growth, is untenable for the government and expeditious strategies have to be adopt-d focused on the development of indigenous energy sources, to replace imports. The only lndigenous comercial energy aource presently available in Bangladesh is natural gas discovered in thirteen fields, twelve of which are located in the eastern part of the country and one offshore. Five fields are producing with a total offtake of 237 MMCFD, supplying gas to four independent gas distribution systems; 1- Titas-Habiganj, 2- Sylhet, 3- Chhatak and 4- Bakhrabad. f Exploration for Hydrocarbon in Bangladesh Historical Background 5. Since 1910 there have been numerous exploratory attempts in search of hydorcarbon deposits in Bangladesh. Early drilling activities were abandoned in 1914, after the first three wells did not encounter hydrocarbon deposits. In 1933, however, two wells were drilled by Burma Oil Company in the Patharia district, penetrating depths of 2871 feet and .3436 feet where oil and gas showe were recorded. From 1951 to 1960 Pakistan Petroleum Limited drilled tight exploration wells which resulted in discovery of the Sylhet and Chhatak gas fields and subsequently drilled five appraisasL ells on these structures. A total of seven wells drilled on the Sylhet structure, two of which are gas producers at present. Standard Vacum Oil Company drilled three exploratory wells during 1959 and 1960, penetrating to the total depth of 12,521 feet, all of which were completed as dry holes. Pakistan Shell Oil Company drilled eleven wel1s curing 1960 to 1969, which resulted in discovery of the Titas, H.biganj, Rashidp4r, Bakhrabad and Xailashtilia gas fields. Atlantic Richfield Company (ARCO) drilled one exploration weU in 1976, to, a total depth of 12,804 feet, which was, abandoned as dry hole. In 1977 Union Oil Company drilled one we.l on the off shore Kutubde struc- ture and encountered gas. The Beanibazar and Kasta gas discoveries were made through financial and technical assistance of the FRG and the USSR in 1982. (See Annex I1 for details). 6. Since prospects of liquid hydrocarbon occurrences have not been ruled out in Bangladesis and various investigations indicate probability of finding oil; GOB officials have given top priority to further exploratory endeavours. However, the Bangladesh government authorities, at all levels, believe that the major (multi-national) oil companies have no further interest to invest in exploration drilling. They also have given up hope of obtaining financial support from multilateral institutions. GOB presently is seeking financial support for eyploratiou from Saudi Arabia as well as Eastern Europe. Present Exploration Activities 7. Presently, GOB lacks a clear cut exploration strategy. Considering the fact that exploration is a capital intensive and high risk investment undertaking, the government is not in a position to use its own limited e resources for that purpose. Soliciting foreign aid has not been successful, especially after the unsuccessful termination of the German multiwell drilling program. Petrobangla, under the directive of the Ministry of Energy and Mineral Resources, intends to pursue exploration drilling, using its own manpower and equipment. At the same time, -6- however, Petrobangla encourages foreign private participation. Final decisions should be made on either alternative and a clear cut course of action shoulld be adopted. 8. Studies and research on the hydrocarbon accumulation in Bangladesh have been or are anticipated to be carried out by the following entities. (a) USSR: geological and drilling activities have been carried out in Bangladesh since 1972. A total of 23.2 million Ruble have been allocated for these activites of which 17.7 million Ruble have been disbursed. Six exploratory wells have been drilled but the results of the studies are not available in English. (b) U.S. AID: has supported an investigation of "Tectonic set up of Bangladesh and its relation to hydrocarbon accumulation"; a joint study by Bangladesh Center for Policy Research represented by Prof. Monirul Hoque of Dhaka University and Mr. Lynn Watney, chief subsurface geology division of Kansas Geological Survey. According to the US AID representatives in Dhaka, the result of the second phase will be available in 1983. (c) The World Bank: The Second Hydrocarbon Project also includes a comprehensive study on the Habitat of Hydrocarbon in Bangladesh; (d) France: GOB has recently asked the French government for tech- nical assistance in planning exploration drilling anticipated by the new French rig Petrobangla has acquired through French fi- nancing. A protocol has been signed and the Institute Francais du Petrole (IFP) will be sending a team of oil and gas experts to assist the GOB in this field, early in 1983. -7- (e) Federal Republic of Germany: German geological and geophysical experts have also been occupied with separate exploration drill- ing, seismic and geological investigations in Bangladesh which is going to continue at least for. another year, with the excep- tion of multiwell drilling which terminated in December, 1982. Exploration Drilllng Proposed by Petrobangla 9. The Government of Bangladesh is pursuing oil exploration drill- ing intensively. A project has been submitted by Petrobangla to inten- sify the search for oil and consequently offset the country's adverse balance of payment position. It proposes the drilling of three explora- tory wells, each to about 5,000 meters depth. The total cost is esti- mated at about US$32 million of which roughly US$26 million would be foreign exchange. The government rationale for such a high-risk and capital intensive venture is based on. following: i) consideration of the fact that previous exploratory drilling has resulted in an impressive success ratio of one gas discovery for every three wells drilled; ii) geological and geophysical conditions in Bangladesh do not preclude presence and possibility of finding oil; iii) the burden of foreign exchange drain used for import of fuel. Gas Utilization In Bangladesh 10. It is imperative that import of commercial fuels be reduced as much as possible and replaced by indigenous natural gas. Every 100 NMCFD of gas utilized from local sources implies a savings of about US$150 million of foreign exchange. The status of current production of gas fields in Bangladesh is summarized in the following table. -8- TABLE 1 - PRODUCING GAS FIELDS IN BANGLADESH GAS SYSTEM NO. OF WELLS CAPACITY OFFTAKE PRINCIPAL OF DISTRIBUTION PRODUCING MMCFD MMCFD CONSUMERS 1- Titas;- 5 Wells/ 150 150 Domestic: Dhaka, Ghorasal, Habiganj Titas Ashuganj towns, Power Ashuganj, Shahibazar, 2 Wells/ 60 56 Hubiganj Tea Valley Habiganj Ashujang Fertilizer Factory Total 7 210 206 2- Sylhet 1/ 2 21 21 Sylhet Tea Estate Towns in Sylhet District Sylhet Fertilizer Plant Cement and Pulp Factories 3- Chhatak 2/ 1 30 7.5 3 51 28.5 4- Bakhrabad- 5 150 -- Power, Fertilizer, Indus- Feni tries, Commercial, Domes- tic in the Chittagong, Bakhrabad and Feni areas 1/ The two fields are not connected - they are two separate systems. 2/ Due to water encroachzent into the gas zone in Chhatak field, GOB is in the process of constructing a 30 mile pipeline from Kailashtilla to the Chhatak cement and paper mill to replace the gas supply source - Chhatak - which has to be shut down for reservoir testing and possible workover operations. Source: Petrobangla -9- 11. In the past the power subsector has been the largest natural gas consumer in the country, 38% of the total in 1981, followed by Fe:tilizer Industry with 36%. Other industries had a share of 16%, while domestic and commercial sectors together accounted for the remaining 10%. The projected rate of growth for the two major consumers, power and ferti- lizer up to the year 1985 is estimated to be 29.6% and 41.8% respective- ly, consuming about 70% of the total supply. See Table 2. Table 2 Projected Natural Gas Demand by Major Consumer Group Summary M4MCF Annual Percentage Percentage Average Growth Category 1980/81 Share 1984/85 Share Rate, X 1980/81-1984/85 Power 18,619 38.0 28,458 29.6 11.2% Fertilizer 17,730 36.0 40,170 41.8 22.7% Industry 7,891 16.1 20,506 21.4 27.0 Commerce .1,282 2.6 1,888 1.9 10.2% Households 3,429 7.0 5,020 5.2 10.2% Totals 48,951. 100.0 96,042 1GO.O 18.4% Source: World Bank Energy Assessment Mission Development, Transmission and Distriibution of Natural Gas * ^ 12. In an effort to replace imported fuel by natural gas, Petrobangla plans to extend the gas distribution network countrywide. Gas utilization promotion in recent years has resulted in 165,560 domestic gas connections 1/, and connections of three fertilizer factories, four power stations, one cement plant, 581 small industries, - 10 - 106 brick kilns and 3,774 commercial enterprises. Table 2 shows natural gas consumption by sector. More than 1,100 miles of gas transmission and distribution pipeliUe have been constructed in the eastern part of Bangladesh. The following table summerizes the specifications of the transmission pipelines constructed or under construction for each of the independent distribution systems. Table 3 Existing and Under Construction Gas Transmission Pipelines in Bangladesh Pipeline and Diameter Length Line Flow Working Distribution System Inches Miles Capacity Pressure MMCFD psig Already Constructed A- Titas-Habiganj System 1- Titas-Dhaka 14" 60 170 1000 2- Iabiganj-Shahjibazar 8" 1.5 36 450 3- Rabiganj-Ashuganj 12" 35 90 1000 B- Sylhet-Chhatak System 4- Sylhet-Fenchuganj 8" 33 25 650 5- Chhatak-Cement 4" 12 9 650 6- Sylhet-Kailashtitta- 8" 8 30 650 Under Construction A- Titas-Habigsnj System 1- Habiganj-Sylhet 6"&4" 60 7 - Tea Estate 2- Titas-Narshingdi 16" 31 197 1000 3- Narshingdi-Joydevpur 14" 26 60 1000 B- Sylhet-Chhatak System 1- Kailashtitta-Chhatak 6" 25 20 650 2- Chhatak-Sunamganj 4" 12 9 - C- Bakhrabad System 1- Bakhrabad-Chittagong 24" 110 336 960 2- Bakhrabad-Comilla 6" 11 24 900 3- Bakhrabad-Chandpur 4" 31 9 900 Source; Petrobangla 1/ Source: Petrobangla pcsition paper on Natural Gas, October 1982. - Ul - Development of Gas Fields Proposed by Petrobangla 13. In view of the expected shortfalls in gas supply for the Titas Habiganj system, ADB has committed its support to the drilling of three new development wells in the Titas field, which would add 90 MMCFD to the system. Two wells resulting in an additional 60 MMCFD to the Titas- Habinganj system, are planned through, French financing, FF 50 million in the Eabiganj Field, raising the total supply to 360 MMCFD by 1985. How- ever, GOB feels that in the greater Dhaka region, the main industrial area, there will be greater demand in the immediate future, and therefore according to GOB the development of Kampta and Rashidpur fi0lds would be justified. The proposed drilling of a new well in Kampta and workover of the existing well will add an additional 25 MMCFD to the Dhaka area, this is believed by Petrobangla to be sufficient to stabilize gas storage and eliminate low pressure problems within the area's distribution system. In Rashidpur, there are two existing wells which GOB proposes to bring into production, after workover with a 55 mile, 18' pipeline to be con- structed for transport of the Rashidpur gas to the Ashunganj area and connection to the Titas System, resulting in an additional supply of 60 MMCFD. See Annex I, Peak Gas Demand and supply position based on Petrobangla's estimates. 14. Petrobangla's natural gas expansion program under implementation or planned is shown in Table 4. - 12 - Table 4 Additional Gas Production Capacity Anticipated or Planned in Bangladesh Field No. of Wells Capacity (MMCFD) Financed by: Titas 3 90 Asian Development Bank Subiganj 2 60 France Bakhrahad 5 150 World Bank Rashidpur 2 60 None Kuata 2 25 None Total 1a; _ 15. At present the supply position in the Chhatak-Sylhet and Bakhrabad systems should satisfy the demand for the next five to ten years, except for the recent critical water encroachment in Chhatak where the. amount of water has Increased from 3.1 gallons to 25 gallons per MMCF. Consequently Petrobangla is constructing a new pipeline 30 miles long to transport gas from Kailashtilla to the cement and paper plants preventing shut down of the two industries. However, the Titas-Habiganj system is facing a critical shortfall, with a present gas demand of about 230 MMCFD against a supply of only 210 MMCFD. Petrobangla expects the future demand in the system to rise to 270 MMCFD by mid-1983, mainly due to increased demand by the power subsector, industries and brick manufac- turers. By 1989 demand is projected to rise to about 500 MMCFD. Con- sequently, Petrobangla believes that the four additional gas wells at Kamta and Rashidpur should be developed as soon as possible. Transmission and Distribution Network Prop.osed by GOB 16. There are three gas transmission and distribution projects that have been proposed by the GOB in parallel with implementation of gas de- velopment projects: - 13 - T. The Greater Dhaka gas distribution project. This would follow the construction of two transmission pipelines(Narsingdi-Ghorasal and Titas Narsingdi) which have been financed recently by ADB. The proposed network covers Jinjira, Kaliganj, Ianiganj and Tangail. II. The Mymensing, Jamalpur and .shorganj project. Its main ob- jective is the extension of gas distribution facilities for Lndustrial, commercial and domestic purposes. Also envisaged is extension to the East Bank of the Jamuna River for gas supply to the fertilizer factory anticipated to be built in that area. III. The Sylhet Tea Estate Phase II project. This is the contin- uation of the SyDhet Tea Estate distribution network which is under im- plementation with Belgian financing, supplementary fund requirements are being negotiated with the British ODA. The project objective is to replace fuel oil by gas as the main source of energy for the Tea industry in that area, and also to supply gas to commercial and domestic con- sumers. - 14 - Table 5: List of Projects Proposed for Development of Gas Proposed - In Million Taka 1/ Total Foreign Cost s Exchange 1. Development of Kmata Gas Field 264 180 2. Development of Rashidpur Gas Field 531 298 3. Greater Dhaka Gas Distribution vf351 108 V 4. Transmission and Distribution to 478 213 Hymensing, Jamalpur & Kisborganj 5. Distribution Network Gas Supply to 154 46 Sylhet Tea Estate Phase I 6. Gas Grid System in Eastern Zone (Study) 5.00 4.00 7. Feasibility Study of Converting rail and river transportation to CNG 3.45 3.45 Total 1,786.45 852.45 (US$77.2) (US$37.1) I/ TK. 23 - US$1) 17. Since gas distribution and transmission are carried out under four independent systems (Bakhrbad, Sylhet, Chhatak, and Titas-Habiganj) each has to be dealt with separately in respect to the demand and supply position within each system. (See the gas demand and supply positions attached as Annex I). If the projects financed by ADB and the French for the Titas-Ilabigani System are implemented on time, the gas industry will be temporarily relieved of impending shortfalls. The GOB proposal for development of wells in Kamta and Rashidpur will result in an additional - 15 - supply of 85 MMCFD to the Titas system sufficient to satisfy the pro- jected demand growth up to 1987. Refinery Subsector 18. Several projects for development and conversion of the Eastern Refinery Limited (ERL) were supplied for inclusion in the Priority Investment Program for Energy. Only one project was identified to be in an advanced stage. It is already in the pipeline for financing and will probably be presented to the World Bank Board prior to July 1983. The Project consists of five components: (a) rehabilitation of the Eastern Refinery Limited (ERL) facilities in Chittangong - to restore its mecha- nical integrity, increase capacity utilization by 22%, improve its opera- tions, reduce its energy consumption -- and the execution of a techno- economic study to determine further modifications required to ensure that the refinery's yield pattern would be in balance with the changing long- term demand profile for petroleum fuels in the country; (b) technical assistance to improve the accounting, financial and management informa- tion systems of the Bangladesh Petroleum Corporation (BPC), the parent company of ERL; (c) an energy conservation and diversification program to identify and prepare programs to improve the efficiency of energy use in the industrial and power sectors as well as financing of energy conver- sion facilities to enable selected industries in the Chittagong area currently using imported petroleum fuel to switch to natural gas; (d) the carrying out of detailed feasibility studies on gas-based export-oriented projects to provide a basis for Bangladesh to capture the foreign ex- change potential of its abundant natural gas resource; and (e) research and development on the possibilities of using natural gas-derived metha- - 16 - nol an an extender of middle distillate petroleum products and in other non-conventional applications. Implementation of the Refinery Rehabili- tation Component is expected to be completed by March 1986; the technical assistance to improve BPC's accounting and management information system is expected to be initiated by September 1983 for completion by March 1985; the energy conservation and diversification component is expected to begin in March 1983 and scheduled for completion by September 1985. The detailed feasibility studies of gas-based export-oriented projects would be executed over a 28 month period starting May 1983; while the research and development on methanol use as an extender of middle distil- late petroleum products would support a three-year continuation of the research work in this area being carried out by the Chemical Engineering Department of the Bangladesh University of Engineering and Technology (BUET). 1/ Power Subsector: 19. Although the total investment in generation, transmission and dis- tribution of power in Bangladesh has been greater than in other energy subsectors, still there is much more to be accomplished. According to the World Bank energy report, "electricity demand in Bangladesh has grown at an annual average rbte of 13% bet"eewn 1976 and 1980 and at a rate of slightly over 9% the following years. Consumption is dominated by the industrial sector which accounts for 59% of the public utility sales and an estimated 70% of total electricity' including captively generated electricity by industrial enterprises. The next important user group is 1/ Based on the draft copy of the staff appraisal report No. 4295-BD, January 1983. - 17 - the commercial sector with a 14% share, followed by the domestic one with 12%. Agriculture and rural areaas use only 2% of the power generated in the country. In those villages, towns and cities that have access to *- electricity, the number of households connected i8 very small, ranging from a fraction of 1X to less than 20% in the Greater Dhaka area. 1/ External Assistance: 20e In the past, Bangladesh has been able to secure foreign funds for implementing power projects, especially for power generation. Presently several donor agencies are showing interest to finance power projects. In order to place power system planning on a sound basis, the Government, with the assistance of Power Board's planning department adopted a long- range power development plan which is based on least cost options and availability of indigeneous energy resources. The Government agreed, under the Greater Khulna Power Distribution Project (credit 934-BD), to an annual review of the plan in consultation with IDA. The plan was reviewed recentlj by the World Bank power mission to Bangladesh and found acceptable. The projects submitted by BPD8 for the "Priority Investment Projects for Energy" portfolio are part of the Long-Range Powr Plan. 21. The Power Development Board and the Rural Electricification Board submitted a total of 33 projects out of which 20 were selected and thought to have enough merit to be considered for inclusion in the port- folio. The list of the projects in the power subsector for which the GOB is seeking financial support, is summarized in the following Table 6: 1/ Source: World Bank Report No. 3873-BD ½' - 18 - Table 6: Priority List of Power Projects Proposed by BPDB Cost in Million Taka (TK. 23 - U.S. $1) Total Foreign Cost Exchange BCR NPV 1. Upgrading of E.W. Inter-Connector to 230 KV1 289.5 155.16 0.98 (-) 105.56 2. Ashuganj-Comilla Transmission Line 875 450 0.69 () 454.45 3. Kaplai Hydro Power Extension 1911 1082 0.497 (-) 7357 4. Greater Khaka Power Distribution Project - Phase It 2783.205 1513.6 0.713 () 1235.61 5. Power Distribution Project (West Zone) 1318.17 440.57 0.781 (-) 726.49 6. Chorasal-Tangi 230 KV Transmission Line 403.7 223^3 0.63 () 248.58 7. Greater Chittagong Power Distribution 1588.24 793.35 0.778 (-) 556.60 8. Augmentation of Grid Sub-stations 311.76 171.71 1.0897 4031 9. Power Distribution Project E. Zone 2219 321.02 0.83 () 1142.20 10. Syst" Less Reduction Scheme 197 131 11. Barisal-Patukhah 132 KV Transmission Line 348.48 165 0.584 (-) 175.23 12. Rural Electrification Phase III-A 2939 1800 Same as Phase II-B 13. Feasibility Study- Ashugani Thermal . Power, 2nd Extension 6 6 14. BPDB Tariff Study 11 10 15. Pre-stressed Concrete Pole-Production Plant 99 47 2.32 (+)3677.27 16. Gas Turbine Power Generation in E. Zone (Land Based) 577.5 412.5 0.96 (-) 23.11 17. Gas Turbine Power Generation in E. Zone (Barge Mounted) 559.20 451.50 1.49 351.13 18. Pre-feasibility study for Mlini-Hydro Po;wer Generation 2.2 1.2 19. Canal drop small hydro power plant at Teesta 264.00 158.00 20. Feasibility study for AICO/150 MW steak power station in West Zone 8.64 7.26 Total 16,711.6 8340.14 (US$726.6 (US$362.61) 1/ The costs reflect January 19, 1983 revisions made by BPDB and are consistent with those submitted to the Second Five Year Plan. 22. BPDB considers the country's generation position to be in a cri- tical situation both in the East and West zones. The installed genera- tion capacity generation capability and peak demand of the system is summarized below by BPDB as of May 1982: -19 - Installed Capability Firm Peak Capacity (May '82) Capacity Demand East Zone 562 481 366 450 MV West Zone 295 197 118 ./ 146 MV 2t Consequently the BPDB is operating the power system without adequate firm capacity. Thereforo, load shedding measures are adopted at the slightest mishap. BPDB's two grids, East and West have been combined together on 1st December 1982 with the commissioning of East-West Interconnector. The generatior. capability of the integrated Grid as of December '82 is 812 MW. The maximum demand of the integrated system is 650 MW, recorded so far. 23. In the context of past experience and local condition BPDB pro- poses, the following contingencies &re to be recognized by the Power Board planning Division. (a) The largest machine on planned maintenance. (b) The second largest on forced outage. (c) One gas turbine out of service. On the basis of the above, the present firm capability of the system is 812-(60+55+21) = 676 MW. The generation projects under implementation which would be completed by June 1985, would provide 435 MW generation capacity in addition to the; present capacity of 812 MW. By June 1985, 1/ Large portion is in-srnal combustion turbine, not suited for base-load. 2/ The peak demand is restricted. - 20 - the anticipataed peak demand would be 936 MW. The generation capability of PDB system by that time would be 1215 KW and the firm capacity would be 1215-(210411014603) - 835 MW. Therefore, the firm capacity will fall short of peak demand by abcut 100 MW. Hence, about 120 NW capacity is additionally required to have the firm capacity above the demsnd line. The capacity has to be built up very quickly i.e., within next two years. See Generation Addition vs Load Demand, next page. - - - r" N N ( 1 0 s (1 0 (l 0 At 0 0 0 0 0 0 0 0 0 0 East West Interconnector Commissioned NJ -.< G) 0) a)! Khulno 110 MW ST. G Ca 00 \1 4 Chittogong 60MW ST. rn L 1 1 <.Ashugonj 30 MW ST. r t o\i*p oll 8arisal 25 MW Retirement 32 MW O 1 4 0 Z0 -4 0 I .CA g East and West Zone 2 x 60 MW GT.(Not Yet In- en - ch i _ duded In SFYP)0 3> - 0 * - ~ ~ ~ ~ ~ ~ ~ ~ ~~~~ M _i' @I g _ 1gtoGhorosol 210 MW ST. F m 0 East Zone 60 MW GT. G Z M < &.1 w 0E C o 'Ri > Ashuganj 150 MW ST.(IstUnlt) rf Z Ch N _ 55= > Kaptoi 50MW HyiroO4th.Unit) Z 'a3 0 \'8 O Retirement 5MW r; C 7 > zo ts Ashuganji150MWST1ZndUnit) a Z o = o 0 O_MW HydroGth.UnfiXWP _ 3o G horosal 210MW ST12ndsp)z m o N~~~r 0 ~ N \ West Zon*45OMW ST.O Z | | | @ 'S, I IRetirement 10 MW 0. o. 01 C \w 10 ~ ~ 1 0 z - 0 0 > - -- -i _ Chittogong I50MW ST. 0 -< * 1} p _ rWest Zone 150 MW ST. 0 00 -1 N~~~~ co o ID ^ z 0 2 0 z > _\ \^ 8>> _ Ashugonj150MW O 0 m 3 zD Q 1 1> g N(3rd.Unit) - 2 0~~~~~~~~~T - 22 - Potential Smaller Scale Projects 24. There are several smaller scale projects proposed that may have a high pay-off. These will be of interest to individual donors with lim- ited funds. The following have been suggested: 1) A study of energy sector institutions. 2) A study for reorganization of oil and gas agencies. 3) A study of the Gas Grid system in the Eastern Zone. An engineering study on country-wide Gas Grid system has been carried out by local conoultants in 1981. GOB feels that additional study is needed, estimated cost of which is about US$200,000. 4) A study of prospective future gas demand. (A US $200,000 project.) 5) A study and equipment of a comprehensive communications system for BPDB, estimated cost is US $2 million. 6) A pre-feasibility study for mini-hydro power generation, estimated cost US $100,000. 7) A study of Peat as an anergy source: (The Danish government is presently involved in a study and experiment on "peat as rural energy source'). 8) Utililation of compressed natural gas for the transport sector An experimental program is presently underway with IDA financ- ing. It is thought that this exercise should also cover the utilization of CNG on locomotives and river transport as well. 9) Cost minimization and risk analysis of electricity supply alternatives for the west side. - 23 - 10) A study of Energy conservation/substitution for Xhulna pulp and paper mill to replace the present 50,000 ton of oil consumed annually. Project proformas for the first six studies are prepared and could be included in the portfolio. Efforts will be made to collect necessary information for preparation of project briefs for the remaining three studies. Ranking of the Projects 25. For ranking of the projects in order of priority investment for the energy sector in Bangladesh, the following criteria is proposed. i) projects should satisfy accepted economic criteria and be ranked according to the average net present value per dollar of investment required. ii) Each project should be checked against financial viability of the venture. iii) All projects should clearly identify foreign exchange flows and local investment funds over time including those required for proper operations. iv) Projects should be classified on the basis of reLiable information supplied and estimates provided about the required additional time and resouces needed to arrive at a full feasibility of assessment. v) Projects should identify required government subsidies, if any, during its operating life. vi) Projects should identify potential redundancy or other proposed alternatives that would have bearing on all or part of its output. - 24 - vii) Projects should identify needs for managerial, technical and other physical inputs (e.g., cement, transport, operating personnel) and spell out the required training component of the project. 26. In addition to the above-mentioned, selection of Xhe projects should fit harmoneously into the overall development policies of the country, within the given resource constraints. All projects should satisfy projected demands and not create excess capacity. They should generally lead to increased productivity and generate additional invest- ment rather than increasing consumption only. 27. It should be stressed that some of the aformentioned cri.-ria cannot be quantified for Bangladesh, in addition there are imperceptible parameters which effect the net present value of various projects. Even though the methodology employed for calculation of the net present value and cost benefit ratio is precise, they are not necessarily representing the reality accurately. Theefore it is difficult to measure the vlue of the projects included in the portfolio, for the exact order they are ranked. However, due attention should be paid to two important and quan- tifiable factors: firstly, the project leads to furthering utilization of natural gas, and secondly, the project results in replacement of imported fuel by indigenous natural gas. - 25 - BENFIT-COST ANALYSES 1/ 28. The methodology applied by Petrobangla for estimating the bene- fits and costs of gas development projects is inappropriate. It is neither an economic nor a financial analysis although it contains elements of both and mixes them up. The following comments are made based on a review of the Kamta project analysis. The projected output of Kamta is constant throughout the project life. It is also assumed equal to full flow capacity for 365 days per year. These assumptions are inappropriate. All production of the Titas system in total would have considerable excess capacity rela- tive to demand, in order to meet peak load requirements. Each well, on average, therefore, would operate at considerable lower levels than maximum capacity. This average is the appropriate measure. Furthermore, towards the end of life of the reservoir potential out- put may decline, reducing average annual production, this should be considered. 29. The well head price is shown in financial terms, ie.e. by apply- ing the going authorized tariff per MCF. This is appropriate for the financial analysis but not for the economic one. The economic value is given by the replacement value of the gas either in the form of alterna- tive fuels that would be used (e.g. fuel oil, coal, firewood, etc.) or the net value of output minus all production cost, as measured by the value of imported fertilizer for example, minus all gas-based fertilizer 1/ This part was prepared by G. Schramm after reviewing the data collected in the field. - 26 - production costs except gas costs, pro-rated on a MCF basis. Adjustments must be made to the net value of gas thus evaluated by accounting for net differences in systems supply costs (e.g. gas trausmissin plus distribu- tion versus fuel oil delievery costs). 30. It is inappropriate to use annual price inflators (e.g. 10% for value of gas and exclse tax), but not for others (e.g. manpower, mainten- ance, etc). It is also inappropriate to combine capital costs on the one hand and to add depreciation plus interest on the other. This represents double counting. Furthermore, it is inappropriate to count excise duties as either a cost or a benefit in the economic analysis. These are simple transfer payments. 31. Use of a 152 discount factor implies a real net of interest of 5%, after 10% per year inflation. Is that an appropriate rate in Bangladesh? The Planning Commission recommended a 15% discounting real rate in 1981. The easiest way to undertake the economic benefit-cost analysis is to use constant costs and prices; the appropriate real rate of interest; the net value of gas as specified under 29 above; to eli- minate depreciation, excise duty and Interest on loan from the cost categories. cash flow anaysis in current terms (i.e. inflated prices and costs as projected for all categories). This analysis must include actual interest payments, depreciation charges and all appropriately inflated operating costs. OBSERVATION 32. Bangladesh has one of the lowest levels of per capita energy consumption in the world (100-130 kg. of oil equivalant) of which over two-thirds comes from traditional energy sources like bio-mas, agricul- - 27 - tural waste, firewood, etc., and the balance makes up the commrcial energy, i.e., petroleum, natural gas, coal and hydro-electricity. Natural gas contributes about 46% of annual commercial energy require- ment. Imports consisting of petroleum (1.6 million toe) and coal makes up a little over 502 of commercial energy requirement, which is only 18% of tota' energy consumption. Nevertheless, at this low level, import of fuel swallows up 70% of the country's hard earned foreign exchange earn- ings. Payments for imports of fuel is already adversely affecting the country's ailing economy and threatens to become a critical issue in the near future unless immediate measures are adopted to arrest the looming gap, the country's economy will continue to deteriorate. 33. Natural gas is the only Indigenous commercial energy source with attractive development potential, particularly because of its highly comr- petative cost compared to imported fuels. Use of gas as an inexpensive source of energy is bound to spur some accelerated economic activities in the country. The responsible authorities in Bangladesh feel that natural gas should be available to consumers where and when the undertaking is economically feasible. It is against this background that maximum utili- zation of natural gas has become a national priority. 34. Considering the serious economic and balance of payment diffi- . . culties which Bangladesh has been facing during the past year. It should be understandable that the government agencies would resort to ad-hoc decisions in order to remedy the immediate crises which appear regulalry due to undiversified economic structure of the country as well as clima- tic arages or other causes. In view of the above, it would be difficult to implement a medium term development plan without deviating from long- -28 - term plan goal. In fact, this is true for any developing country, espe- ciallv for a newly-born country with high aspirations and hopes of great achievements but inherited with archaic administratiave traditions, form- ing a major hurdle in the course of development. Therefore it is advis- able to adopt priority investment programs for implementation of projects addressing the immediate needs of the country, until a comprehensive and well planned long term scenario is available. 35. In spite of the fact that natural gas have been utilized as a major source of energy in Bangladesh for several years, and future devel- opment of the country is also dependent on natural gas reserves. No sys- tematic and dependable investigation have been carried out for a precise and accurate evaluation of the gas fields in Bangladesh. Recently GOB has signed an aid agreement with the U.S. AID to the order of US $ 1.2 million to finance Bechtel for a preliminary data collection and study of the existing information as the first step towards appraisal of gas fields in Bangladesh. Another and more useful undertaking is anticipated as a component of the World Bank second hydrocarbon project, for detail development-seismic survey of the major gas fields in the country. Both of the two mentioned projects are very useful and complemenmtary to the other. Based on the result of the above mentioned two gas field ap- praisal undertakings, a third and final reservoir study of the gas fields will be needed to give a precise and dependable gas fields performance, rate of future production, decline of each field and an optimum future production program for each field. Petrobangla proposed a US $ 40 million project for gas fields appraisal to be a part of PIPE investment portfolio. In view of the two projects financed or considered by U.S. - 29 - AID and the World Bank, it was agreed to wait after the result of the two studies are available, and then pursue the project. 36. A recent critical situation is threatening shut down of Sylhet cement and paper mill plants due to a reservoir problem which has occurred in the Chhatak gas field. The Chhatak well has been supplying about 8 MMCFD of gas to the cement and pulp factories in the area. Since September 1982 to January 1983, the quantity of water produced per MMCF of gas has increased from 3.1 gallons to 25 gallons. This is either indicative of the reservoir reaching its depletion stage, or "water coaning' due to poor production practices. In either case it is evident that appropriate reservoir engineering study and practices should be adopted. RECOMMENDATIONS 37. The most Important constraint hampering the development of the hydrocarbon industry is the prevailing organizational and administrative system which is not responsive to Bangladesh's oil and gas operations. It is recommended that a comprehensive study be carried out in three phases: (a) First phase, short period, two to three months, by one or two experts for diagnosing the shortcomings in general and preparing a scope of work and terms of reference for the comprehensive * . investigation which would form the basis of a dynamic institu- tional building. (b) Second phase of the exercise would require experts'in Technical, financial and administrative branches of oil and gas field who would undertake preparation of: (i) job specifications for staff - 30 - members at all levels including managers, supervisors, senior managers, directors, board members and the highest executive officers, (1i) job qualifications and also job classification, (iii) introducing management systems which would expedite the operations and eliminate bureaucratic hurdles and, (iv) create various incentives which would attract skills rather than repel them. (c) Third phase, is assisting the agency to Implement the recommen- dation and reorganization of the institutions, as proposed by Phase II, with the view to revising those recommendations which are not applicable; also create and staff a bureau of organiza- tion, method and systems in order to carry on the future organi- zational studies in house. 38. A reservoir engineering study is recommended to commence imme- diately after the completion of the U.S. AID (Bechtel) gas field appraisal project and coordinated with IDA's s,cond hydrocarbon projects' - production Seismic survey. This study should aim to: (a) analyze all the previous reservoir studies, (b) the recoverable reserves of the country, (c) give an optimum gas off-take scheme for each field and (d) prepare a program for updating of reservoir information and reservoir monitoring system. 39. In the absence of a gas off-take scheme development of gas fields are to be coordinated with the result of the detailed production seismic survey which is to be implemented under the IDA second hydro- carbon project. Gas distribution projects catering to the needs of power - 31 - and industry rank higher priority. Implementation of such projects should take into consideration the peak demand supply position of the area. 40. Since one of the constraints both in power and gas distribution agencies is shortage of subscriber meters, it is recommended that attempt should be made for assembly and production of these meters in Bangladesh by formation of joint venture investments with partnership of foreign producers, the public entities and private sector. A task force can be assigned to investigate the options and prepare preliminary project to fulfill this aim. a S - 32 - BANGLADESH PRIORITY INVESTMET PROGRAM FOR ENERGY PART II INVESTMENT PORTFOLIO A stocktaking exercise of potential projects in the energy sector was carried out in Dhaka, Bangladesh from October to December 1982. Part II, represents a selected number of projects with higher priority for investment. U - - 33 - 1:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Eaergy 2. Sub-sector : Power 3. Name of Project : Upgrading of East-West Inter- connector to 230 KV operation. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board 6. - Other Agencies Involved 7. Location : Ishurdi, Pabna 8. In-house Implementation : Partly 9. Name and address of the firm : Not yet decided implementing the project 10. Main objectives : To provide 230 KV sub-station at Ishurdi to upgrade the operation of East-West Inter- connector by December 1985;. 11. Brief Description Main : Procurement of equipuent & Components/Activities materials and installation, commissioning of 230KV sub- station equipment at Ishurdi. 12. Estimated Cost (1982) : Total: Tk. 289.15 million F.E.: Tk. 155.16 million 13. Financing (donor prospect) : Not known to BPDB 14. Implementation Period : Commencement: January 1984 Completion: December 1985 15. Proposed Physical & Financial Program - 34 - 1:2 Physical Schedule of Works Procure- ment of Installation Preliminary Work/ materials/ of equipment Testing & Year Engineering Study Equipment & Materials commissioning 1983-84 100% - - - 1984-85 - 30% 40% - 1985-86 - 10% 60% 100X Financial Schedule of Works (In TAKA Million) Year Local Foreigu Exchange Total 1983-84 15.61 9.24 24.85 1984-85 32.43 95.00 127.43 1985-86 85.95 50.92 136.87 Total 133.99 155.16 289.15 16. Status of the project and : Project brief for soliciting feasibility studies finance submitted to Govern- ment. Detail project under preparation by BPDB. 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : None 19. Anticipated constraints : (1) Foreign Exchange Finance (2) Local Currency Supply 20. Timetable for completion of : See Item No. 14 the project 21. Estimated reduction in oil : Gross saving due to Inter- demand resulting from project connector 686,000 toe. Saving (Oil savings calcuation, see as result of marginal utility Annex-1) of upgrading 239,000 toe. 22. Economic & Financial Parameters: B.C.R. = 0.8 (rate of return, net present N.P.V. - -105.56 value, etc.) (Detail r-"pulations, Annex-2). 23. Sponsoring agency remarks : None - 35 - Annex-1 1:4 Preliminary -Up-grading of East West Inter-connector Project Analysis (Financial) Cost: Total - Tk. 289.15 million F.E. - Tk. 155.16 million (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit e 15% @ 15% 1983-84 24.85 - 24.85 21.61 - - 1984-85 127.43 - 127.43 96.36 - - 1985-86 136.87 46.22 183.09 120.42 59.11 38.86 1986-87 - 51.35 51.35 29.36 65.68 37.55 --987-88 - 57.05 57.05 28.36 73.97 36.78 1988-89 - 63.39 63.39 27.40 81.08 35.05 1989-90 - 70.43 70.43 26.48 90.09 33.87 1990-91 to - 78.26 78.26 172.03 100.10 220.04 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 17.92 98.89 22.93 2014-14 (each year) (10 years) (each year) (10 years) Salvage value @ 19% of material cost 9.30 539.94f 434.38 BCR , 434.38 - 0.80 .9 539.94 NPV - 434.38 - 539.94 - -105.56 B Revised costing based on January 1983. - 36 - ANNEX-1 1:5 Up-grading of East West Inter-connector Project Analysis (EconOmic) Cost: Total - Tk. 289.15 million F.E. - Tk. 155.16 million (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 15% @ 15% 1983-84 22.52 - 22.52 19.58 - - 1984-85 115.96 - 115.96 87.68 - - 1985-86 124.55 46.22 170.77 112.28 59.11 38.86 1986-87 - 51.33 51.33 29.36 65.68 37.55 1987-88 - 57.05 57.05 28.36 73.97 36.78 1988-89 - 63.39 63.39 27.40 81.08 35.05 1989-90 - 70.43 70.43 26.48 90.09 33.87 1990-91 to - 78.26 78.26 172.03 100.10 220.04 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 17.92 98.89 22.93 2014-14 (each year) (10 years) (each year) (10 years) Salvage value @ 10% Of material cost 9.30 521.09 434.38 BCR 434.38 - 0.83 521.09 NPV - 434.38 - 521.09 - -86.71 - 37 - ANNEX-1 1:6 Up-grading of East West Inter-connector Project Analysis (Financial) (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 7% @ 7% 1983-84 24.85 - 24.85 23.11 - - 1984-85 127.43 127.43 110.86 - - 1985-86 136.87 46.22 183.09 150.18 59.11 48.47 1986-87 - 51.35 51.35 39.03 65.68 49.92 1987-88 - 57.05 57.05 40.62 73.97 52.67 1988-89 - 63.39 63.39 42.47 81.08 54.32 1989-90 - 70.43 70.43 43.67 90.09 55.86 1990-91 to - 78.26 78.26 443.89 100.10 567.76 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 122.56 98.89 156.77 2014-14 (each year) (10 years) (each year) (10 years) Salvage value a 10% of material cost ____ 9.30 1016.39 995.07 NPV - 995.07 - 1016.39 - - 21.32 BCR - 995.07 0.979 1016.39 -38- ANNEX-1 1:7 Up-grading of East West Inter-connector Project Analysis (Financial) (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 6% @ 6% 1983-84 24.85 - 24.85 23.36 -- 1984-85 127.43 - 127.43 113.29 - - 1985-86 136.87 46.22 183.09 153.66 59.11 49.59 1986-87 - 51.35 51.35 40.57 65.68 51.89 1987-88 - 57.05 57.05 42.62 73.97 55.46 1988-89 - 63.39 63.39 44.63 81.08 57.08 1989-90 - 70.43 70.43 46.84 90.09 59.91 1990-91 to - 78.26 78.26 505.56 100.10 646.65 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 157.71 98.89 201.74 2014-14 (each year) (10 years) (each year) (10 years) Salvage value e 10% of material cost ___ 9.30 1128.24 1131.42 - = NPV - 1131.42 - 1128.24 - +3.18 BCR - 1131.42m 1.003 1128.24 - 39 - ANNEX-1 1:8 Up-grading of East West Inter-connector Project Analysis (Economic) (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 7% @ 7% 1983-84 22.52 - 22.52 21.63 - - 1984-85 115.96 - 115.96 101.23 - - 1985-86 124.55 46.22 170.77 140.35 59.11 48.47 1986-87 - 51.35 51.35 39.03 65.68 49.92 1987-88 - 57.05 57.05 40.62 73.97 52.67 1988-89 - 63.39 63.39 42.47 81.08 54.32 1989-90 - 70.43 70.43 43.67 90.09 55.86 1990-91 to - 78.26 78.26 443.89 100.10 567.77 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 122.56 98.89 156.77 2014-14 (each year) (10 years) (each year) (10 years) Salvage value d 10% of material cost 9.30 996.45 995.07 = NPV - 995.07 - 996.45 - - 1.38 BCR = 995.07 - 0.998 996.45 9- - 40 - ANNEX-1 1:9 Up-grading of East West Inter-connector Project Analysis (Financial) (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit @ 6Z @ 6% 1983-84 22.52 - 22.52 21.24 - - 1984-85 115.96 - 115.96 102.09 - - 1985-86 124.55 46.22 170.77 143.28 59.11 49.57 1986-87 - 51.35 51.35 40.57 65.68 51.89 1987-88 - 57.05 57.05 42.62 73.97 55.26 1988-89 - 63.39 63.39 44.63 81.08 57.08 1989-90 - 70.43 70.43 46.84 90.09 59.91 1990-91 to - 78.26 78.26 505.56 100.10 646.65 2004-05 (each year) (15 years) (each year) (15 years) 2005-06 to - 77.31 77.31 157.71 98.89 201.74 2014-14 (each year) (10 years) (each year) (10 years) Salvage value fa 10% of material cost 9.30 1105.54 1131.42 NPV = 1131.42 - 1105.54 m + 25.88 BCR . 1131.42 - 1.02 1105.54 - 41 - ANNEX-1 1:10 Up-grading of East West Inter-connector 1. Economical: Discount rate : 7% Net Present Value : -1.38 Discount rate : 6% Net Present Value : +25.88 Internal Rate of Return - LDR + (HIDR-LDR) NPV at LDR * NPV at LDR - NPV at HDR - 6% +(7X - 5%) 25.88 25.88 + 1.38 - 6% + 25.88 - 6% + 0.45% - 6.45% 2. Financial: Discount rate 7% NPV - 21.32 Discount rate 6% NPV = + 3.18 IRR - LDR + (HDR - LDR) NPV at LDR NPV at LDR - WV at 1DR - 6% + (7% - 6%) 3.18 3.18 + 21.38 - 6% + 3.18 - 6% + 0.13 -6.13 3. ARR (Financial) 3 Undiscounted benefit - Undiscounted operating cost Total capital cost (Financial) 6th year - 100.10 - 78.26 x 100% 21.84 x 100 of operation 289.15 289.15 - 7.55% - 42 - 2:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Nam of project : Ashuganj-Comilla 230KV Transmission Line 4. Sponsoring ministry : Ministry of Energy & Mineral Resources 5. Executing agency : Bangladesh Power Development Board 6 Other agencies involved : Trading Corporation of Bangladesh for allocation of cement 7. Location : Comilla District 8. In-house implementation : Partly. Top supervision & local support. 9. Name & address of the firm implementing the project 10. Main objectives : 1) To transmit power to Chittagong area. 2) To stabilize power in Dhaka area. 3) Overall system reli- ability. 11. Brief description main : 80 km, 230 KV double ckt. components/activities transmission line. Procure- ment & installation of equip- ment/materials for line support, sub-station structure, high voltage switchgear, transformer, etc. 12. Estimated cost (January 1983) : Total: Tk. 875.00 million F.E.: Tk. 450.00 million - 43 - 2:2 13. Financing (donor prospect) : Being considered by ADB under 1982-83 country programme. 14. Implementation period : 1983-84 to 1986-87 15. Proposed physical & Financial Program Physical Schedule of Works Procurement Preliminary of materials Installation Testing and Year Works /equipment of equipment commissioning 1983-84 100% 10% - - 1984-85 - 50% 10% - 1985-86 - 40% 70% - 1986-87 - - 20% 100% Financial Schedule of Works Year Local Foreign Exchange Total 1983-84 4.09 20.00 24.09 1984-85 1.62 26.00 27.62 1985-86 306.23 356.60 662.73 1986-87 113.06 47.50 160.56 Total 425.00 450.00 875.00 16. Status of the project and feasibility studies 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : Needs to be included in the Second Five Year Plan 19. Anticipated constraints : 1) Foreign exchange finance 2) Local currency supply 20. Timetable for completion of : See Item 14. the project 21. Estimated reduction in oil : Eastern Grid is already on demand resulting from project indigenous natural gas - 44 - 2:3 22. Economic & Financial Parameters : B.C.R. - 0.69 (rate of return, net present N.P.V. - -454.45 value, etc.) Justification is to utilize the (Detail calculations at power generation in Ashuganj Annex-1) Power. S - 45 - 3:1 BANGLADESH * PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of project : Kaptai Hydro Power Station Extension 4. Sponsoring ministry : Ministry of Energy & Mineral Resources S. Executing agency . Bangladesh Power Development Board 6. Other agencies involved : Trading Corporation of Bangladesh for allocation of cement 7. Location : Kaptai, Chittagong Hill Tracts 8. In-house implementation : Partly. Top supervision & construction in-house 9. Name & address of the firm : M/S Tokyo Electric Power implementing the project Services Co. Ltd. - Consultant 10. Main objectives : To build a Power Plant annexed to existing one, with 2 x 50 MW hydro-turbines project include 11. Brief description main : Procurement, installation & tomponents/activities commissioning of 2 x 50 MW Kaptai type water turbine generators including power house, intake channel, excava- tion of penstock tunnel, steel lined concrete penstock tait- race, etc. 12. Estimated cost (August 1982) : Total: Tk. 1911.35 million F.E.: Tk. 1081.94 million 13. Financing (donor prospect) : Part finance (4 billion yen) committed by OECF (Japan). Balance likely to be financed by OECP - 46 - 3:2 14. Implementation period : 6 yeare (inclu-Ing engineering) Commencement: July 1981 Completion: June 1987 15. Proposed physical & financial program Physical Schedule of Works Installation Survey/ Land Lease/ Construction of equipment Year Desipn Development Residential Functional & Machinery 1981-82 22.5% - - - - 1982-83 44.2X - - - - 1983-84 33.31 20% 20% 20X 20% 1984-85 - 23% 23% 23% 27% 1985-86 - 27> 27% 27% 30% 1986-87 - 30% 30% 30% 23% Financial Schedule of Works (in million Taka) Year Iocal Foreign Exchange Total 1981-82 3.00 10.30 13.30 1982-83 31.307 148.443 179.75 1983-84 153.798 248.868 402.666 1984-85 193.575 221.843 415.418 1985-86 223.243 216.433 439.676 1986-87 224.494 236.049 460.543 Total 829.417 1081.936 1911.353 16. Status of the project & feasi- : Project proposal submitted to bility studies goverment for approval. The project is based on feasibility studies by OTCA & JICA of Japan in 1969 & 1980 respectively. YEPSCO of Japan is doing the detail engineering. Tender documents will be submitted in December 1982. 17. Anticipated constraints : 1) Shortage of local currency 2) Further commitment from OECF (Japan) - 47 - 3:3 3) Skilled workers for tunnel excavation need to be imported 18. Estimated reduction in oil : 58,247 toe demand resulting from project 19. Economic & financlal parameters : B.C.R. - 0.497 (rate of return, net present N.P.V. - -7357.23 value, etc.) 20. Sponscring agency remarks : The extension is primarily aimed at increasing peaking capacity. The evaluation has been done on marginal benefit on account of added energy output. -48- 4:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of project : Greater Dhaka Power Distri- bution Project, Phase II 4. Sponsoring ministry : Ministry of Energy & Mineral Resources 5. Executing agency : Bangladesh Power Development Board 6. Other agencies involved : None 7. Location : Dhaka District 8.. In-house implementation : Partly. Top supervision and local support 9. Name and address of the firm : Not yet decided Implementing the project 10. Main objectives : To meet growing load demand of the urban areas & bulk supply to R.E.B. sub-stations within Dhaka District 11. Brief description of main : Procurement, installation and components/activities commissioning of equipment/ materials for 132 KV, 33 KyV, 11 KV & 0.4 lines and associated sub-stations 12. Estimated cost (1983) : Total: Tk. 2783.205 million F.E.: Tk. 1513.600 million LC.: Tk. 1269.605 million 13. Finsacing (donor prospect) : Expected part financing from U.K. 14. Imple-pntatton period : 1983-84 to 1987-88 15. Proposed physical & financial : program -49- 4:2 Physical Schedule of Work Installation Survey/ Land Acquisition Construction of equipment Year Design and Development Residential Functional & Machinery 1983-84 10% 20% 5% 10% 5% 1984-85 5O% 30X 10% 30% 30% 1985-86 30% 30% 10% 30% 30% 1986-87 10% 20% 75% 20% 35% Financial Schedule of Work In million Taka Year Local Foreign Exchange Total 1983-84 5.00 10.00 15.00 1984-85 15.00 15.00 30.00 1985-86 374.881 446.58 821.561 1986-87 624.802 744.30 1369.102 1987-88 249. ^ 297.72 547.641 Total 3' .6fr 1513.600 2783.205 =. , = =. 16. Status oi the project : Technical and economic sludy by and feasi,lity studies Ewbank & Partner of UK in progress. 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : None 19. Anticipated constraints : 1. Foreign exchange finance 2. Shortage of local currency. 20. Timetable for completion : See item 14. of the project 21. Estimated reduction in oil : None Demand Resulting from Project 22. Economic & Financial parameters : B.C.R. - 0.713 (rate of return, net present N.P.V. = (-)1235.61 value, etc.) 23. Sponsoring agency remarks : None - 50 - 5:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Subsector : Power 3. Name of Project : Power Distribution Project (West Zone) 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board 6. Other Agencies involved : None 7. Location * Western Zone of Bangladesh 8. In house implementation : Partly. Only construction through local contractor 9. Name and Address of the firm : Various local firms. implementing the project 10. Main objectives : To supply power tc the rural areas, district towns and growth centres. 11. Brief description main : Procurement & installation of components/activities equipment & materials for sub- transmission and distribution lines and sub-stations. (For details see Annex ). 12. Estimated cost (1980) : Total: Tk. 1318.17 million F.E. : Tk. 440.57 million 13., Financing (donor prospect) : Partly financed under French Credit (Tk. 165.38 million) 14. Implementation period : 1976-77 to 1984-85 15. Proposed physical & financial program - 51 - 5:2 Ehysical Shaeiie of 1bzks IrtaUlation &u=/ land actd.stion (bwtnctlon of equimnt Year D and jpogn ,atdertial Fuictional and mddmry Up to Jme '82 20% 5% 5% loX 30N 1982-83 4(2 302 2C2 402 202 1983-84 30% 40% 40% 40% 30X 1984-85 la0 2% 35X 102 20 Financial Schedule of Works In million Taka Year Local Foreign Exchane Total Expenditure Up to June '82 605.84 18.90 624.74 1982-83 172.10 40.00 212.10 1983-84 59.80 229.00 288.80 1984-85 39.86 152.67 192.53 Total 877.60 440.57 1318.17 16. Status of the project : About 30% of physical facilities and feasibility studies proposed under the project has already been built 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : None 19. Anticipated constraints : 1. Foreign exchange finance 2. Local currency supply. 20. Time table for completion : See item No. 14 of the project 21. Estimated reduction in oil : 141,679 tons (rural energy for demand resulting from project lighting & irrigation pumping and milling power). 22. Economic & Financial parameters: B.C.R. - 0.78 (rate of return, net present N.P.V. - (-)-26.49 value, etc.) (Detail calculation at Annex-2) - 52 - 5.3 23. Sponsoring Agency remarks : Without implementation of this project electrification programme will hamper & dependence for oil import to continue. - 53 - Annex-1 5:3 Power Distribution Project (West Zone) Physical.facilities 1. 33 KV lines 1196 Km 2. 11 KV lines 3022 Km 3. 0.4 KV lines 1130 Km 4. 33/11 KV Sub-stations a) 2.5 MVA 3 Nos. b) 1.5 NVA 44 Nos. 5. 33/.4 KV Sub-stations a) 100 KVA 76 Nos. b) 50 KVA 204 Nos. c) 25 KVA 308 Nos. 6. 11/.4 KV Sub-stations a) 250 KVA 3 Nos. b) 100 KVA 202 Nos. c) 50 KVA 512 Nos. d) 25 KVA 1180 Nos. - 54 - Annex-2 5:4 4 POWER DISTRIBUTION PROJECT (WEST ZONE) Proect Analysis (Financial) (Based on Latest Tariff) Total Cost-: Tk. 1318.17 million F.E. - Tk. 440.57 milllon BASE YEAR: 1979-80 (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit 1976-77 5.96 - 5.96 9.061 - - 1977-78 30.42 - 30.42 40.23 -- 1978-79 115.54 - 115.54 132.87 - 1979-80 105.04 - 105.04 105.04 - - 1980-81 124.19 174.88 299.07 260.06 167.14 144.34 1981-82 243.59 178.33 421.92 319.03 185.52 140.28 1982-83 212.10 269.67 481.77 316.77 287.88 189.28 1983-84 288.80 290.57 579.37 '331.26 319.54 182.70 1984-85 192.53 313.77 506.30 251.72 354.69 176.34 1985-86 - 348.28 348.28 150.57 393.70 170.21 1986-87 - 386.06 386.06 145.13 437.00 164.28 1987-88 - 428.01 428.01 139.92 485.07 158.57 1988-89 - 474.56 474.56 134.90 538.44 153.06 1989-90 - 526.23 526.23 130.08 597.66 147.73 1990-91 to - 526.23 x 526.23 x 597.66 597.66 2014-15 25- 13155.75 1.587 x 25 x 1.587 - 835.13 - 14941.50 - 948.49 Total: 3301.77 2575.28 NPV - 2575.28 - 3301.77 - (-)726.46 BCR =2575.28 0.78 3301.77 Base Year for Present Worth: 1979-80 - 55 - 6:1 BANGLADESH PRIORITY INVESTIENT PROGIAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of project : Ghorasal-Tongi 230 KV Transmission line 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing agency : Bangladesh Power Development Board. 6. Other agencies involved 7. Location : Dhaka District. 8. In house implementation : Partly. Top supervision by BPDB 9. Name and address of the firm : Not known yet. implementing the project 10. Main objectives : i. To transmit bulk of power to Dhaka. ii. To relieve East-West Inter-connector. 11. Brief description main : 230 KV transmission line. 17 components/activities miles (27.36 Km.) of 2 x 1 circuit lines. Procurement of poles, conductors, 230/132 KV transformers, high voltage switchgears and sub-stations. 12. Estimated cost (1983) : Total : Tk. 403.70 million F.E. : Tk. 223.30 million 13. Financing (donor prospect) : Being considered by ADB under 1982-83 country programme. 14. Implementation period : August 1983 - April 1986. - 56 - 6:2 15. Proposed physical & financial program. . PHYSICAL SCHEDULE OF WORK Preliminary Procurement of Installation Testing and Year Works materials/equipment of equipment commissioning 1983-84 100% 20% 10% - 1984-85 - 40% 40% - 1985-86 - 40% 50% 100% Financial Schedule of Works In million Taka Year Local Foreign Exchange Total 1983-84 21.16 25.76 46.92 1984-85 14.19 22.10 36.29 1985-86 145.05 175.44 320.49 Total: 180.40 223.30 403.70 16. Status of the project : Project study underway by ADB. & feasibility studies 17. Contribution & inputs required : None from other agencies. 18. Major outstanding policy issues : None 19. Anticipated constraints : 1. Foreign exchange finance 2. Shortage of local currency. 20. Timetable for completion : See item 14 of the prgject 21. Estimated reduction in oil : East Grid is already on demand resulting from project indigeneous fuel 22. Economic & financial parameters: B.C.R. X 0.63 (rate of return, net present N.P.V. -248.58 value, etc.) - 57 - 6:3 23. Sponsoring agency remarks : BPDB needs this project to meet the increasing load demand of Dhaka Area. At present "East- West Interconnector" is trans- ferring Power from Rongi to Ishurdi. There is a 230 KV double circuit transmission line from Ghorasal to Tongi presently energized at 132 KV to meet load demand of Dhaka Electric Supply. In order to transfer adequate power and to increase security of power supply to West Zone, another 230 KV double circuit transmission line from Ghorasal to Tongi is required which will be directly connected to existing Tongi-Ishurdi line and Tongi-Ishurdi line will then be disconnected from Tongi Sub- station. - 58 - 7:1 BANGLADESH PRIORJTY INVESTMIENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Subsector : Power 3. Name of projectl : Greater Chittagong Power Distribution Project Phase-II 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing agency Bangladesh Power Development Board. 6. Other agencies involved : None 7. Location : Chittagong 8. In house implementation : Partly Top supervision and local support. 9. Name and address of the firm : Not known yet. implementing the project 10. Main objectives : To meet the increasing load demnd of Chittagong and Chittagong Hill Tracts. 11. Brief description main : Procurement installation and components/activities commissioning of equipment/ materials for 132 lV, 33 KV, 11 KV and 0.4 KB lines and associated sub-stations. (For details see Annex-1.) 12. Estimated cost (1983) : Total: Tk. 1588.124 million F.E. : Tk. 793.350 million 13. Financing (donor prospects) : Being considered by ADB under country programme for 1982-83. 14. Implementation period : 1983-84 to 1987-88 15. Proposed physical 6 financial program - 59 - 7:2 Physical Schedule of Works * IDnstallation Survey/ Land acquisition Construction of equipment Year Des!1n and development Residential Functional and machinery 1983-84 10% 10% 5% 20% 15% 1984-85 40% 30% 15% 30% 30% 1985-86 40% 50% 30% 40% 35% 1986-87 10% 10% 30% 10% 10% 1987-88 - - 20% - 10% Financial Schedule of Works In million Taka Year Local Currency Foreign Exchange Total 1983-84 5.00 5.00 10.00 1984-85 10.00 10.00 20.00 1985-86 233.932 233.505 467.437 1986-87 389.887 389.175 779.062 Total: 155.954 155.670 311.624 16. Status of the project : Study undertaken by ADB. and feasibility studies 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : To be included in Second Five Year Plan. 19. Anticipated Constraints : Foreign Exchange finance. Local currency shortage. 20. Timetable for completion : 1983-84 to 1987-88. of the project 21. Estimated reduction in oil : Not known. demand resulting from project 22. Economic & financial parameters : See Annex-1. (rate of return, net present BCR: 0.778 value, etc.) NPV: (-)556.60 23. Sponsoring ageacy remarks : None - 60 - Annex-1 7:3 Greater Chittagong Power Distribution Project Phase-II 1. 132 KV Transmission Line 104 Km 2. 33 KV lines 32 Km 3. 11 KV lines 64 Km 4. 11/.4 KV lines 97 Km 5. 0.4 KV lines 806 Km 6. 132/33 KV Sub-station (new/addition) 4 Nos. totalling 240 XVA 7. 33/11 KV bub-station (new/addition) 8 Nos totalling 160 MVA 8. Distribution Transformers, 700 Nos., totalling 145 MVA. A Subject to change after detail planning. 7~~~~~~~ S !) - 61 - 8:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of Project : Augmentation of Grid sub- stations 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board 6. Other Agencies involved 7. Location : 25 sub-stations all over the country. 8. In house implementation : Partly 9. Name and address of the firm : BPDB. implementing project 10. Main objectives : To enhance the capcity of exisitng Grid sub-stations to relieve over loaded transformers and cater for new demand. 11. Brief description main : Replacement/Addition of new components/activities transformer and addition of some switchgear high voltage bays in the existing sub-stations. 12. *Estimated cost November 1982) : Total: Tk. 311.76 million F.E. : Tk. 171.71 million 13. Financing (donor prospect) : Not known to BPDB. 14. Implementation period : Commencement: 1982-1983 -Completion : 1985-86. 15. Proposed physical & financial program - 62 8:2 Physlcal Schedule of Works Preliminary Procurement of Installation Testing and Year Works materials/equipment of equipment commissioning 1982-83 100% 25% - 1983-84 - 50% 20% - 1984-85 - 25% 40% - 1985-86 - 40% 100% Financial Schedule of Works Year Local Foreign Exchange Total 1982-83 1.50 Nil 1.50 1983-84 60.34 f 90.11 150.45 1984-85 64.71 69.10 133.81 1985-86 13.50 12.50 26.00 Total: I W.0V' 171.71 311.76 16. Status of the project : Project brief for soliciting & feasibility studies : finance submitted to Govt. Detail project under preparation by BPDB. 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : None 19. AnticiVsted constraints : Foreign finance. 20. Estimated Reduction in oil : This will facilitate substitute Demand Resulting from project oil no doubt in terms of light and motive power, but it cannot be quantified easily. 21. Economic & Financial Parameters : (a) Benefit cost ratio of the (rate of return, net present Project: value, etc.) i) Financial - 1.087% @ 15% discount rate. ii) Economic - 1.0897% at 15% discount rate. (b) Internal rate of return of the Project: - 63 - 8:3 i) Financial - Insignificant * ii) Economic - Insignificant (c) Annual financial rate of return in the year output reaches normal capacity (Specify year): 64.74% on the 10th year of operaton i.e. 1994-95. 22. Sponsoring Agency Remarks : This project is very important and urgent, because of overload of existing substations. - 64 - 9:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of project : Power Distribution Project (East Zone) 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board 6. Other Agencies involved 7. Location : Eastern Zone of Bangladesh 8. In house implementation : Only construction through local contractor. 9. Name and address of the firm : Various implementing the project 10. Main objectives : To supply power to the rural areas, district towns and growth centers. 11. Brief description main : Procurement & installation componements/activities of equipment & materials for sub-transmission and distribu- tion facilities in Eastern Zone. See Annex. 12. Estimated cost (1980) 1/ : Total : Tk 2219.69 million F.E. : Tk 821.02 million 13. Financing (donor prospect) : No foreign finance known. 14. Implementation period : 1976-77 to 1984-85 15. Proposed physical & financial program 1/ Execution and operation costs are not included. - 65 - 9:2 Physical Schedule of Works Installation Survey/ Land aequisition Construction of equipment Year Desige development Residential Functional and machinery Up to Jan '82 10% 5% 5% 10% 30% 1982-83 40% 30% 20% 40% 20% 1983-84 30% 40% 40% 40% 30% 1984-85 10 25% 35% 10% 20% Financial Schedule of Works Year Local Foreign Exchange Total Exp. up to June '82 589.56 18.90 608.46 1962-83 172.10 40.00 212.10 1903-84 382.20 457.27 839.47 1984-85 254.81 304.85 559.66 Total 13898.67 821.02 2219.69 16. Status of the project : Project proposal approved by & feasibility studies Government 17. Contribution & inputs : None required from other agencies 18. Major outstanding policy issues : None 19. Anticipated constraints : 1. Foreign exchange finance. 2. Local currency supply still remains outstanding 20. Time table for completion : See item 14 of the project 21. Estimated Reduction in oil : 263,211 tons (rural energy Demand Resulting from project for lighting & irrigation pumping and milling power). 22. Economic & Financial Parameters : B.C.R. - 0.83 rate of return, net present N.P.V. - (-)1142.20 value, etc. (See Annex-2) 23. Sponsoring Agency Remarks : Without implementation of this project electrification programme will hamper and dependence on oil import will continue. - 66 - MAnex-1 9:3 Power Distribution Project (East Zone) Physical facilities: 1. 33 KV lines 2582 Km 2. 11 KV lines 2237 Km 3. 0.4 KV lines 1511 Km 4. 33/11 KY Sub-stations a) 2.5 MVA 94 Nos. b) 1.5 MVA 66 Nos. 5. 33/.4 KV Sub-stations a) 100 KVA 273 Nos. b) 50 KVA 248 Nos. 6. 11/.4 KV Sub-stations a) 250 KVA 248 Nos. b) 100 KVA 286 Nos. c) 50 KVA 166 Nos. d) 25 KVA 72 Nos. I - 67 - Annex-2 9:4 POWER DISTRIBUTION PROJECT (EAST ZONE) Project Analysis (Financial) (Based on Latest Tariff) Discount rate: 15% Total Cost: - Tk. 2219.69 million F.E. - Tk. 821.02 million (IN MILLION TAKA) Discounted Discounted Capital Operating Total value of Total value of total Year cost cost/yr. cost total cost benefit benefit 1976-77 5.16 - 5.16 9.02 1977-78 18.16 - 18.16 27.61 1978-79 125.68 - ~'125.68 166.21 1979-80 98.84 - 98.84 113.67 1980-81 147.36 335.04 482.40 482.40 313.77 313.77 1981-82 213.26 342.69 555.95 483.43 348.28 302.85 1982-83 212.10 513.19 725.29 548.42 540.44 408.65 1983-84 839.47 553.42 1392.89 915.85 599.88 394.43 1984-85 559.66 597.94 1157.60 661.86 665.87 380.71 1985-86 - 663.84 663.84 330.04 739.11 367.47 1986-87 - 734.77 734.77 317.66 820.42 354.69 1987-88 - 813.22 813.22 305.72 910.67 342.35 1988-89 - 898.36 898.36 293.67 1010.84 330.44 1989-90 - 971.98 971.98 276.30 1122.03 318.96 1990-91 to - 971.98 x 971.98 x 1122.03 x 1122.03 x 2014-15 25 - 24299.50 1.835 25 1.835 X 1783.58 - 28050.75 - 5573.24 6715.44 5573.24 NPV - 5573.24 - 6715.44 = (-)1142.20 BCR = 5573.24 - 0.83 6715.44 Base Year for Present Worth: 1980-81 - 6E - 10:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1 Sector : Energy 2. Sub-sector : Power 3. Name of Project : System Loss Reduction Scheme. 1/ 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources S. Executing Agency : Bangladesh Power Development Board 6. Other Agencies involved : None 7. Location : Entire Area of Bangladesh 8. In house implementation : Some local consultant/ contractor will be engaged for specific work. 9. Name and address of the firm : Not known yet. implementing the project 10. Main objectives : To reduce the existing system loss in BPDB system from 32% to 18% by 1985. I. 11. Brief description main : Procurement & installation of components/activities meter test sets, capacitors, energy meters and associated tools & tackles. Reorganization and enforcement of a system of checking in the administration of energy sales. 12. Estimated cost (1982) : Total: Tk. 197 million F.E. : Tk. 130.5 million 1/ The project should be given higher priority. 2/ ODA is presently financing a management study for BPDB which covers part of this project. The activities should be coordinated with CDA financed project. - 69 - 10:2 13. Financing (donor prospects) : ADB loan, Swiss & Saudi grant expected. 14. Implementation period : Commencement: 1981-82 Completion : 1984-85 15. Proposed physical 8 financial program Physical Schedule of Work Year Installation of Equipment and Machinery 1982-83 40% 1983-84 60% Financial Schedule of Work In Million Taka Year Local Foreign Exchange Total 1982-83 25.421 78.330 103.751 1983-84 41.106 52.182 93.288 Total 66.527 130.512 197.039 16. Status of the project : Partly financed by ADB for & feasibility studies procurement of Capacitor Bank. To minimize the non- technical loss, re-oganization in administrative system is already under process. The available Capacitor Bank in store is under process of installation. 17. Contribution & inmputs required : None from other agencies 18. Major outstanding policy issues : - 19. Anticipated Constraints : Communication between Commercial Operation and different area & sub-area electric distribution management. - 70 - 10:3 20. Time table for completion : See item 14 of the project 21. Estimated Reduction in oil : Not applicable Demand Resulting from project 22. Economic & Financial Parameters : Not applicable (rate of return, net present value, etc.) 23. Sponsoring Agency Remarks : It is the responsibility of the Commercial Operation of BPDB to remove the apparent constraints. - 71 - 11:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2 Sub-sector : Power 3. Name of project : Barisal-Patuakhali Bhola 132 KV Transmission line 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board 6. Other Agencies involved : None 7. Location : Barisal & Patuakhali Districts 8. In house implementation : Construction by contractor 9. Name & address of the firm : Not yet decided implementing the project 10. Main objectives : To extend Grid supply up to Patuakhali to meet growing demand of the area. 11. Brief description main : Procurement installation and components/activities commissioning of 96 Km single circuit 132 KV line equipments and materials and associated 2 x 20 MVA sub-stations# at Patuakhali. 12. Estimated cost (1983) : Total: Tk. 348.48 million F.E. : Tk. 165.00 million 13. Financing (donor prospect) : Not known to BPDB 14. Implementation period : 1983-84 to 1986-87 15. Proposed physical & financial program - 72 - 11:2 Physical Schedule of Works Preliminary Procurement of Installation Testing and Year Works materlals/equipment of equipment commissioning 1983-84 100% 20% 10% - 1984-85 - 50% 20% - 1985-86 - 30% 40% - 1986-87 - 30% 100% Financial Schedule of Works In million Taka Year Local Foreign Exchange Total 1983-84 4.83 6.00 10.83 1984-85 2.27 56.49 58.76 1985-86 127.38 92.31 219.89 .1966-87 49.00 10.00 59.00 Total 1W U 1-65.0 348.48 16. Status of the project : Project study underway (in & feasiblity studies house) 17. Contribution & inputs required : None from other agencies 18. Major outstanding policy issues : None 19. Anticipated Constraints : 1) Foreign exchange finance 2) Local currency supply 20 Estimated Reduction in oil : 8695 tons Demand Resulting from project 21. Economic & Financial Parameters : B.C.R. - 0.584 (rate of return, net present N.P.V. - -175.23 value, etc.) .7)~ ~ ~ ~ ~ ~ ~~~~~~7 - 73 - 12:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Subsector Power 3. Name of Project : Area Coverage Rural Electrification, Phase III.A 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Rural Electrification Board 6. Other Agencies involved : Power Development Board BSCIC, BADC 7. Location : 12 PBS Areas in different districts of the country. Final areas will be determined after study. 8. In house implementation : Partly 9. Name and address of the firm : Prequalified local Consultants implementing the project and Contractors 10. Main objectives : To provide electric power to rural areas for production, employment creation, rural household and community services in project areas. 11. Brief description, main : a. Physical works involved: components/activities Mileage of line 1. Three Phase Primary line 2052 2. Single Phase Primary line 2461 3. Secondary line 2687 7200 - 74 - 12:2 b. Physical Tarpets: Connections (Nos.) 1. Residential/Commercial 166128 2. Irrigetion 3588 3. Industrial 1392 171108 12. Estimated cost : Foreign currency: Tk. 1798.914 mln. Total : Tk. 2389.279 aln. 13. Financing (Donor prospect) : None so far 14. Time table for completion of : July 1983 - June 1989 the project 15. Proposed physical and financial : program Physicl Scihdule of Wbzk Year Items of Nbzk 198-64 1984P-85 198346 198647 1987-68 19888 1. itutioi &Mdo=Mt 50 50 - ' - _ detail survq 2. Lad aquAstion & d&wqopise, 40 40 20 - - - civil cowtmctcmi 3. Procuremet of mterals - 25 40 20 15 - 4. Eectrical cmtruction - - 25 40 20 15 Finaa Schedu of Wob* In mllion Taka Year load cwenx X of t" F_g_ __no %of toal 1983-84 11.610 1 - - 1984-85 200.839 19 408.583 23 1980-86 337.704 33 675.204 37 186-87 227.372 22 373.758 21 1987-88 168.130 16 305.617 17 198-9 94.710 9 35.752 2 ITOW 1040.365 100 114 100 -75- 12:3 16. Status of the project and : The project has not yet been feasiility study submitted to the Govarnment. A feasibility study was carried out by Messrs. NRECA/CAI of USA for a project of similar nature namely ACRE, Phase-I. Based on ii that study 3 more projects being implemented. Since the project is of similar nature no detail feasibility study is thought to be required. E[owever REB will carry out a brief study to determine the locations of the 12 Rural Electric Socleties. 17. Contribution and inputs : Power at 33 KV from Power required from other agencies Development Board 18. Major outstanding policy issues : None 19. Anticipated constraints : Financing source both for local currency as well as foreign exchange component. 20 Implementation period : Commencement: July 1983 Completion : June 1989 21. Estimated reduction in oil : a. Kerosene : 35,803,872 lbs. demand resulting froa project b. Diesel : 3,424,939 gallons c. Lubricant: 131,874 gallons 22. Economic & financial parameters : I.R.R. for A.C.R.E. Phase II.b (rate of return, net present project (IDA financed) is 20%. value, etc.) This project is of same nature. e - 76 - 13:1 BANGLADESH PRIORITY INVESTMENT PROGQUM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Power 3. Name of Project Feasibility Study for Ashuganj Thermal Power Station, 2nd Extension. 4. Sponsoring Ministry Ministry of Energy & Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board. 6. Other Agencies Involved : None 7. Location Ashuganj 8. In house implementation : Partly .... Assisting the consultants. 9. Name and Address of the firm : not yet known. lmplementing the project 10. Main Objectives : Engineering study for addition of 4th unit to the existing Thermal Power Plant at Ashuganj. 11. Brief description main : Please see Annex. components/activities 12. Estimated cost : Total : Tk. 6.8 million F.E. : Tk. 5.44 million 1.3. Financing (donor prospect) : Not known to BPDB. 144 Implementation period : 4 (four) months. Commencement: August 1983. 15. Proposed physical and : Please see planning schedule 'financial program at Annex-2 3-6. ;" Status, of the project and : Project proposal to be submitted feasibililty studiei to Government. - 77 - 13:2 17. Contribution and inputs : None required from other agencies * - 18. Major outstanding policy issues : None 19. Anticipated Constraints : Foreign Exchange Fiuance. 20. Time table for completion : 4 (four) months. Commencement: August 1983. 21. Estimated Reduction in oil : Not applicable. Demand Resulting from project 22. Economic & Financial : Not applicable. Parameters (rLte of return, net present value, etc.) 23. Sponsoring Agency Remarks : As per generation addition schedule of BPDB, approximately 150 Mi is required by December 1989. As it requires about 7 to 8 years to build a Thermal Power Plant from date of conception of project, the feasibility study is required to be done shortly. 24. Number of Documents attached : 1 (One) 4 - 78 - Annex-i 13:3 FEASIBILITY STUDY FOR ASHUGANJ THERMAL POWER STATION SECOND EXTENSION SCOPE OF WORK: The work envisages on engineering study to be furnished in the form of a Project Report in connection with the construction of a steam power station having a capacity around 150 MW in the premises of existing thermal power plant at Ashunganj in Comllla district of Bangladesh. mhe works would include but not be limited to the following: 1. Reconnaisance survey of Ashuganj and other alternative sites and to determine the most suitable location based on geological, hydrological, mateorological, seismological date, transport and communication facilities. 2. Collection of data of existing power system of Bangladesh relevant to the study of the proposed feasibility. 3. Study and review the forecast on power demand and energy consumption available with the PDB and make independent aseessment of the same as required. 4. Undertake load-flow, short-circuit and stability studies to test the system with and without East-West Interconnector and its performance before and after the installation of the proposed plant considering different alternative cases, i.e. peak load, tight load or fault location at different points etc. and five necessary recommendations. 5. Study the mid-term power development programme of Bangladesh Power Development Board. 6. Study the sources and supply of gas in global perspective of Eastern Zone of Bangladesh an show financial implication of alternative fuels. Recommend reinforcement in gas supply as required. 7. Study the source, quality and availability of plant cooling water and boiler make-up water. Study the implication of this addition. 8 Study the local availability of equipment and materials which can be utilized for the proposed plant and suggest foreign procurement otherwise. 9. Select appropriate technology and most economic plant/unit size for the proposed construction after comparing with the alterna- tives with respect to existing system demand as well as forecast demand. 10. Preparation of itemized cost estimates for the proposed plant in detail showing foreign and local currencies involved and the annual phasing of expenditure. 11. Study the financial and economic justification of the proposed plant in exhaustive details. 12. Preparation and submission of draft report. 13. Submission of final report. - 79 - 14:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Power 3. Name of Project : BPDB Tariff Study 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency : Bangladesh Power Developent Board. 6. Other Agencies involved : None 7. Location 8. In house implementation : Partly. BPDB personnel will be attached to the Foreign Consultants. 9. Name and address of the firm : Not known yet. implementing the project 10. Main objectives : Tariff Study based on long-run marginal cost. 11. Brief description main : Scope of work not yet drawn. components/activities 12. Estimated cost : Total: Tk. 11 million (US$0.5 M.) (out of which 0.05 Million Tk. 1.1 million convertible). 1L. Financing (donor prospect) : Not known to BODB 14. Implementation period : Commencement : January 1984 Completion : June 1984. 15. Proposed physical and : Work to be completed in 6 financial program months. 16. Status of the project : This project is a covenant of and feasibility studies the loan agreement in the Ashuganj thermal power station extention, nothing has been done as yet, due to lack of financing resource. - 80 - 14.2 17. Contribution and inputs required from other agencies. 18. Major outstanding policy : None issues 19. Anticipated constraints : Foreign Exchange Finance. 20. Time table for completion : See Item 14. of the project 21. Estlimted Reduction in oil : Not applicable. Demand Resulting from project 22. Economic and Financial : No direct application. Parameters (rate of return, N.P.V. +229.66 net present value, etc.) 0 fl~~~~. ' ) , ) 0 - 81 - 15:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of Projeet : Pre-stressed concete Pole Manufacturing Plant at Aricha. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board. 6. Other Agencies involved : Trading Corporation of Bangladesh for allocation of cement. 7. Location : Aricha Dhaka. 8. In house implementation : Partly; Top supervision and civil works. 9. Name and address of the firm : Not yet decided. implementing the project 10. Main objectives : Setting up a plant for produc- tion of P.C. Poles for BPDB. 11. Brief description main : Procurement and installation of components/activities spun concrete pole (pre- * stressed) manufacturing equip- ment and execution of ancillary civil works. 12. Estimated cost (1982) : Total : Tk. 98.966 million F.E. : Tk. 43.551 million 13. Financing (donor prospect) : P.R. China has shown interest. 14. Implementation period : Commencement : 1982-83 Completion : 1983-84 15. Proposed physical and financial program _, - 82 - 15:2 Physical schedule of works Installation of Land acquisitlon Construction equipment and Year development Residential Functional machinery 1882-83 100% 40% 60% 60% 1983-84 60% 40% 40% Financial schedule of works (In million Taka) Year Local Foreign Exchange Total 1982-83 22.862 23.656 46.518 1983-84 32.553 19.895 52.448 Total 35.415 43.551 98.966 16. Status of the project and : P.P. and Project Report prepared feasibility study and submitted for Government approval. 17. Contribution and inputs : None required from other agencies 18. Major outstanding policy : To be included in Second Five issues Year Plan. 19. Anticipated Constraints : 1) Foreign currency financing. 2) Local currency shortage. 20. Time table for completion : See item 14. of the project 21. Estimated Reduction in oil Demand Resulting from project 22. Economic tnd Financial : Indicators Financial Economic Parameters (rate of return, B.C.R. = 2.32 2.39 net present value, etc.) N.P.V. - + 3677.27 23. Sponsoring Agency Remarks : None detail project pro?. see BPDB document (Pp. June 1982) Ii t,, - 83 - 16:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of Project : 60 KW Gas Turbine Power Station (in East Zone) Land Based. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board. 6. Other Agencies involved : None 7. Location : Ashunganj, Comilla. 8. In house implementation : Partly 9. Name and address of the firm : Not yet decided. implementing the project 10. Main objectives : To meet the gap between avail- able generation capacity and peak load of the integrated grid system by 1985-86. 11. Brief description main : Procurement, installation and components/activities commissioning of 60 MW gas tur- bine generator and associated equipment and extension of 132 KV switchyard. 12. Estimated cost (1983) : Total: Tk. 577.50 million F.E. : Tkc. 412.5 million 13. Financing (donor prospect) : Not yet known. 14. Implementation period : July 1983/84 - September 85/86. 15. Proposed physical and financial program -84 - 16:2 - ,. Physical Schedule of Wcrk Installation Survey/ Land Acquioition Construction of equipment Year Design and Development Residential Functional & Machinery 1983-84 100% 100% 20% 20% 10% 1984-85 - - 40% 40% 80% 1985-86 - - 40% 40% 10% Financial Schedule of - In million Taka Year Local Foreign Exchange Total 1983-84 36.59 41.25 77.84 1984-85 61.16 330.00 391.16 1985-86 67.25 41.25 108.50 Total: 165.00 412.50 577.50 16. Status of the project : Project study underway (in and feasibility studies house) 17. Contribution and inputs : None required from other agencies 18. Major outstanding policy : None issues 19. Anticipated Constraints : 1) Foreign exchange finance 2) Local cv.rrency shortage 20. Time table for completion : See item 14 of the project 21. Estimated Reduction in oil : 68338 tons oil equivalent (toe) Demand Resulting from project Z2* Economic and Financial : N.A. Parameters (rate of return, net present valu2, etc.) 23. Sponsoring Agency Remarks . None . ~ ~ ~ ~ ~ ~ - 85 - 17:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector : Power 3. Name of Project : 60 MW Gas Turbine Power Station (East Zone) (Barge Mounted) 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Bangladesh Power Development Board 6I Other Ageucies involved : None 7. Location : Bakhabad, Comilla 8. In house implementation : Partly 9. Name and address of the firm : Not yet decided implementing the project 10. Main objectives : To meet the gap between avail- able generation capacity and peak load of the integrated grid system by 1984/85. 11. Brief description main : Procurement, installation and components/activities commissioning of 60 MW gas turbine and extension of 132 KV switchyard. 12. Estimated cost : Total : Tk. 559.20 million F.E. : Tk. 451.50 million 13. Financing (donor prospect) : Not yet known. 14. Implementation period : Commencement : 1983-84 Completion : 1984-85 15. Proposed physical and financial program - 86 - 17:2 Physical Schedule of Work Installation Survey/ Land Acquisition Construction of equipment Year Design and Development Residential Functional & Machinery 1983-84 100% 100% 40% 90% 90% 1984-85 - - 60% 10% 10% Financial Schedule of Work In million Taka Year Local Foreign Exchange Total 1983-84 90.30 451.5' 541.80 *'Z4-85 17.40 - 17.40 Total 107.70 451.50 559.20 vm& ====C.. ., ,= 16. Status of the project : Project study underway (in and feasibility studies house) 17. Contribution and inputs : None required from other agencies 18. Major outstanding policy : None issues 19. Anticipated Constraints : 1) Foreign Exchange finance 2) local Currency shortage 20. Time table for completion : See item 14 of the project 21. Estimated Reduction in oil : 68338 tons oil equivalent (toe) Demand Resulting from project 22. Economic and Financial : N.A. Parameters (rate of return, net present value, etc.) 23. Sponsoring Agency Remarks : Without implementation of this project electrifi-stion program will hamper and dependence for oil import to continue. C'~~~~~~~~~~ - 87 - 18:1 BANGLADESH £ PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector ; Energy 2. Sub-sector : Power 3. Name of Project : Pre-feasibility study for mini- hydro power generation. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board. 6. Other Agencies involved : Bangladesh Water Development Board. 7. Location Chittagong, Chittagong Hill Tracts, Sylhet, Mymensingh, Rangpur and Dinajpur. 8. - In house implementation : Partly. 9. Name and address of the firm : Not yet decided. implementing the project 10. Main objectives : To examine the possibility of power generation by installing mini-hydro plants using potential of small rivers and a streams. 11. Brief description main : See No. 23 components/activities 12. Estimated cost : Total : Tk. 2.2 million F.E. : Tk. 1.2 million 13. Financing (donor prospect) : Not known to BPDB. 14. Implementation period : 10 months. 15. Proposed physical and : The work will be completed financial program within 10 (ten) months. - 88 - 18.2 16. Status of the project : Reconnaissance survey in 1981 and feasibility studies by "Working Group" formed by Bangladesb Government. 17. Contribution and inputs : Contribution from Bangladesh required from other agencies Water Development Board. 18. Major outstanding policy : None issues 19. Anticipated Constraints : Foreign Exchange Finance. 20. Time table for completion : Please see Item No. 14. of the project 21. Estimated Reduction in oil : Not applicable. Demand Resnlting from project 22. Economic and Financial : Not applicable. Parameters (rate of return, net present value, etc.) 23. Sponsoring Agency Remarks Potential of small rivers like, Matamuhuri, Halda, Monu Dharla and numerous small streams of Chittagong Hill Tracts, Chittagong, Sylbet, Mymensingh, Rangpur and Dinajpur districts deserve investi- gations in decail. A country-wide survey of potential is essential. In 1981, a Working Group' formed by the erstwhile Ministry of Power, Water Resources and Flood Control submitted a report after reconnaissance survey of a few sites in five districts of Bangladesh. It recommended 12 sites for detailed investigation. No further progress has been acLieved so far. Small and mini-hydro possibilities are to be investigated which Bangladesh can tap with great benefit to its economy. - 89 - 19:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY V~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1. Sector : Energy 2. Sub-sector : Power 3. Name of Project : Canal drop small hydro power plant at Teesta. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency : Bangladesh Power Development Board. 6. Other Agencies involved : Bangladesh Water Development Board. 7. Location : 23 miles downstream of main canal of Teesta Barrage Project in the district of Rangpur. 8. In house implementation : Partly. Top supervision, some civil construction, checking and testing. 9. Name and address of the firm : Not known yet. implementing the project 10. Main objectives : To construct a small hydro plant of approximately 8000 KW capacity. 11. Brief description main : Detailed design, procurement of components/activities hydro-turbines, generators, switchgears and ancillary equipment; civil construction, installation of machinery, testing and commissioning of approximately 4 x 2000 KW for a hydro power plant. The power plant will utilize the canal drop of main canal of Teesta Irrigation Project. 12. Estimated cost : Total : Tk. 264 million F.E. : Tk. 158 million -90- 19.2 13. Financing (dono; prospect) : Not known to BPDB. 14. Implementation period : January 1984 - June 1986. 15. Proposed physical and financial program Physical Schedule of Work Installation Survey/ Land Acquisition Construction of equipment Year Design and Development Residential Functional & Machinery 1984-85 100X 100% 20Z 501 40% 1985-86 - - 80% 50% 60% O Financial Schedule of Work In million Taka Year Local Foreign Exchange Total 1986,-85 45.6 60.00 105.60 1985-86 60.40 98.00 158.40 Total: 106.00 158.00 264.00 16. Status of the project : Pre-feasibility studies were and feasibility studies done by ACEC of Belgium and NRECA of U.S.A. Detailed feasibility and Engg. has been proposed.. 17. Contribution and inputs : Hydraulic structure will be done required from other agencies through Water Development Board. 18. Major outstanding policy : 1. Coordination between Water issues and Power Board. 2. Inclusion of the program in the second plan. 19. Anticipated Constraints : 1. Foreign exchange finance. 2. Local currency shortage. 20. Time table for comple:ion : See item 14. of the project - 91 - 19.3 21. Estimated Reduction in oil : 9750 tons to 14,350 tons. Demand Reault ing from project 1. Z-n-nomlc and Financial : Not yet computed. Parameters (rate of return, net pres*nt value, etc.) 2. Sponsoring Agency Remarks : None - 92 - 20:1 BANGLADESH PRIORITY INVESTNENT PROGRAM FOR ENERGY 1. Sector s Energy 2. Sub-sector : Power 3. Name of Project : Feasibility study for A 100/190 MW Steam Power S1tation in West Zone. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency Bangladesh Power development Board. 6. Other Agencies involved : None 7. Location : General area in Northern Part of West Zone. 8. In house implementation : Partly; in assisting the consultants with local support. 9. Name and address of the firm : implementing the project 10. Main objectives : Engineering study for a thermal power plant of 100/150 MW in West Zone of Bangladesh. 11. Brief description of main : An engineering study for components/activities construction of a steam power plant with 100/150 MW capacity in the Western part of the country. Some of the main components are: 1. Survey of possible sites for selection of the most suitable location. 2. Study and review the forecast on Power demand and energy consumption. 3. Study and recommendation on: load-flow, short-circuit, performance, stability of the plant and operation. -93- 20.2 4. Study the sources and supply of alternative fuels and their financial implications. 5. Preparation of cost estimate for local and foreign currency requirements and financial and economic justification of the project. 12. Estimated cost (June 1982) : Total : Tk. 8.64 million F.E. : Tk. 7.26 million 13. Financing (donor prospect) : Not known. 14. Implementation period : 6 months. 15. Status of the project : Project proposal submitted to and feasibility studies Government for approval. 16. Contribu ,.on and inputs : None required from other agencies 17. Major outstanding policy : None issues 18. Anticipated Constraints : Foreign Finance. 19. Sponsoring Agency Remarks : This study is of utmost impor- tance In view of generation shortage in West Zone on the one hand and high cost of fuel at present on the other. - 94 - G-l :l BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Oil and Gas 3. Name of the Project : Development of Kamta Gas Field and Interlinking with Titas System. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executiig Agency : PETROBANGLA 6. Other agencies involved : None 7. Location : Kamta Gas Field, Dhaka and Joydevpur, Dhaka 8. In-house implementation : Partly 9. Name and address of the : 1- PETROBANGLA firm implementing the 2- Titas Gas T&D Co., Ltd. project 10. Main objectives : The project aims to drill a new well and workover the existing well at gas field produce 25 MMCFD of gas. Construction of a pipeline about 10 miles long and 6" dia to supply gas to rhaka area which may be sufficient to stablize gas shortage and low . - pressure problems in Dhaka area. 11. Brief description/main : (i) Land acquisition and deve- lopment (ii) Right of way (iii) One development well Dril- ling (iv) Construction of functional and residential buildings. (v) Procurement of equipfent and materials. (vi) Workover operation on the existing well. -95- G-1:2 (vii) Installation of well com- pletion equipment and surface facilities. (viii) Pipeline laying (6" dia 10 miles long). (ix) Expert Services. 12. Estimated Cost (1982) : Total Cost: Tk. 264 mln - Foreign Exchange: Tk 180 mln (US$7.81 mln) 13. F tnctng (donor prospect) : None 14. Implementation period : One year. 15. Proposed physical and : One year. financial program lt,. Status of the project : This project has been included and feasibility studies in ADN, T.A., for future financing. The study will be completed by December 1983. 17. Contribution and inputs : None required from other agencies. 18. Anticipated constraints : Financial 19. Major outstanding issues : None other than mobilization of financing. 20. Time table for completion : December 1983 to December 1984. of the project 21. Estimated reduction in oil : US$ 78.00 mln per annum 1/ demand resulting from project 22. Economic and financial : B.C.R. - 1.162/ parameters (rate of return, N.P.V. - +229.66 net present value, etc.) 1/ There is no basis for such a considerable amount of saving by replacing imported commercial fuel, especially the supply from this field is aimed to remedy the low pressure critical situation of the Dhaka area. 2/ Calculations are not correct. - 96 - G-1 :3 Sponsoring agency romarks : Kamta well No. 1 was drilled to a depth of 3614M. Production testing confirmed commercial gas in only one zone. Other five zones yeilded water with gas. Reinterpreted Seismic data shows that well No. 1 is drilled off the crast of 2nd closure by about 1 km. It can be assumed from test results and Seismic data that well No. 1 passed close to the gas water con- tact. A second well on the southern closure has a good chance to discover gas in all these 5 horizons. Moreover there is a possibility to encounter reservoir bed within the interval 3600 - 4200 M. After the development of the field, this may produce about 25 MMCFD of gas. A pipeline of 6" diam and 10 miles long would be laid from the field to Joydevpur for gas supply to Dhaka area, which may be sufficient to stabilize gas storage and low pressure problem in Dhaka area. 11 's~ ~ ~ ~ ~ ~ ~~~~~~~1 1/ Investment decision should be based on the reservoir evaluation of the discovery. -97_ G-2:1 BANGLADESH PRIORItY INVESTMENT PROGRAM FOR ENERGY 1. Sector Energy 2. Sub,-2actor : Oil and Gas 3. Name of the Project : GREATER DHAKA GAS DISTRIBUTION PROJECT 4. Sponsoring Ministry s Ministry of Energy and Mineral Resources 5. Executing Agency PETROBANGLA/UAWITS 0 6. Other agencieti involved : None 7. Location: i) Jinjira, Dhaka ii) Manikganj, Dhaka iii) Aricha, Dhaka iv) Tangail, Tangail v) Kaliganj, Dhaka 8. In-house implementation : Contractor 9. Name and address of the : Petrobangla/Titas Gas T&D Co., firm implementing the Ltd. will supervise. Local Project. contractor will be selected. 10. Main objective : The existing Greater Dhaka Gas Distribution System did not cover ctrtain areas in and around Dhaka, such as Jinjira, Mainkganj, Tangail and Kaligonj. This project envisages to extend gas distribution facilities to the above townships and industrially developed zones. The components of the project are as follows: i) Jinjira Gas Distribution Network. ii) Savar-Mainkganj-Arichas Gas Distribution Line and Distri- bution Network. - 98 - G-2 :2 iii) Tangail - Joydevpur Gas Distri- bution Network. iv) Kaligonj Gas Distribution Network. 1/ 11. Brief description of main : i) Land acquisition and components/activities ii) Right of way iii) Civil construction work iv) Procurement of material and equipment v) Fabrication and Erection of DRS and RMS (Regulating and Metering Stations) vi) Pipelaying a) 3 zi 4ira 12" dia 4000 rft 4" dia 4000 rft 2" dia 10000 rft 1* dia 10000 rft 3/4" dia 100000 rft b) Savar-Meinkganj-Aricha 4" die 10000 rft 2" dia 15000 rft l1 dia 25000 rft 3/4" dia 30000 rft c) Tanoail 10" dia 220000 rft 4" die 30000 rft 3" dia 30000 rft 2" dia 40000 rft 1" dia 50000 rft 3/4" dia 10000 rft d) Kaliganj 6* dia 75000 rft 4" dia 15000 rft 2" dia 10000 rft 1" dia 15000 rft 3/4" dia 10000 rft 1/ Already the greate: Dhaka area is in need of supply if addi- tional distribution Network is created Transmission pipeline should be implemented parallel to this project and the Economics of both should be considered. ADB is financing the feeder pipeline. 99 G-2:3 vii) River, canal and highway crossing including the river Buringanga. 12. Estimated cost (1980) : Jinjira (US$ 1 - Tk. 23.00) Total Cost : Tk. 46.00 mlun Foreign Exchange : Tk. 17.00 mln (US$ 0.74 mln) Savar-Nanikgonj - Aricha Total Cost : Tk. 120.00 mln Foreign Exchange : Tk. 33.00 mln * :1 (US$ 1.43 1.n) Tan_gail Total Cost t Tk. 152.00 mln Foreign Exchange : Tk 48.00 mml (US$ 2.10 mln) Kaligani Total Cost : Tk. 33.00 mln Foreign Exchange : Tk. 10.00 mln (US$ 0.43 mln) For the whole Project Total Cost : Tk. 351.00 mlu Foreign Exchange : Tk. 108.00 mlu (US$ 4.70 mla) The cost has been estimated during November 1980 and based on prices prevailing at that time. 1. Financing (donor prospect) : None 2. Implementation period : Three years 3. Proposed physical and financial program ft -100- G-2:4 PHYSICAL PROGRAM Suarvey/ Land development/ Civil Year Design acquisition Construction Procurement Pipelaying 1 100% 70% 30X 50% 2 - 30% 30% 50% 50% 3 _ - 40% - 50% FINANCIAL PROGRAM (TK in MLNS) Year Local Currency Foreign Exchange Total 1 48.00 50.00 98.00 2 107.00 58.00 165.00 3 88.00 - 88.00 TOTAL: 243.00 108.00 351.00 Both physical and financial programs are tentative. 16. Status of ths project and : This is an approved project. feasibility study. Titas Gas Transmission and Dis- tribution Co. Ltd. has prepared a Project Preparation Report on Greater Titas Franchise Area Gas Distribution in April 1982 on which basis this project profile has been prepared. 17. Contribution and Inputs : For financial requirement required for other agencies Planning Commission and External Resources Division will be directly involved. 18. Anticipated constraint Financial 19. Major outstanding policy issue : None 20. Time table for completion of : It will take 3 years to complete. the project A tentative program is shown in item 15. 1.01 - G-2:5 21. Estimated Reduction in Oil : It is estimated thit about 6 Demand resulting from Project MNCF of gas will be consumed per day in these four townships. This gas -411 save Tk. 437.00 mln (US$ 19.00 mln) of imported oil annually. 1/ 22. Economic and Financial : Benefit cost Ratio: 1.14 2/ parameters (Rate of Return Internal Rate of Return: 29T net present value, etc.) N.P.V. - +145.35 23. Sponsoring Agencies' Remarks : Implementation of this project help to supply gas to Jinjira, Manikganj, Kaliganj and Tangail for industrial, commercial and domestic use. After the implementation of the project no. of connection would as follows: Name of the Industry Brick field Commarcial Domestic Town Jinjira 120 70 90 560 Manikgonj- 10 8 30 4000 Aricha Tangail 60 5 170 1000 Kaliganj 1 2 10 500 TOTAL: 191 85 300 15060 The source of supply (average requirement 6 MMCFD) of gas will be from existing Titas System. 1/ The saving is overestimated. 2/ These numbers ar taken from the PP 1980 which included the two pipelines now being financed by A.D.B., and are not correct. - 102 - G-3:1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Oil and Gas 3. Name of the Project : Development of Rashidpur Gas .4' .-'-' Field and interlinking pipeline to Titas System. 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources. 5. Executing Agency : PETROBANGLA 6. Other Agencies involved : Titas Gas Company 7. Location : Rashidpur area 8. In-house implementation : Partly. Contractors will be used for pipeli.ne implementation. 9. Name and address if firm : Will be selected when project implementing starts. 10. Main objective : The project aims co utilize the gas production resources of Rashidpur field which has been shut in since the field was discovered. 11. Brief description/main : i) Land acquisition and civil work ii) Workover of 2 wells iii) Production of facilities, procurement and installation iv) 55 miles of 18' pipeline 12. Estimated cost : Total cost: Tk. 531.10 millions Foreign Exchange Tk. 298.50 millions - US$ 13.00 millions 13. Financing (donor prospect) : None 14. Implementation Period : Two and half years ^ 103 - G-3:2 15. Proposed physical and: financial program PHYSICAL PROGRAM Year CIVIL WORK Pipeline Surface Equipment and Land acquisition construction well workover. development/RBW and material 1 60X 50% 70% 2 40X 352 30% 3 15% FINANCIAL PROGRAM Year CIVIL WORK Pipeline Surface equipment and Land acquisition material and well workover development/RBW construction LC FE LC FE LC FE 1 30 70 100 17 67.1 2 20 56 70 18 31 3 18 30 TOTAL 50 147 200 35 98.1 - Tk.53110 16. Status of the project : Rashidpur well No. 1 was drilled at. feasibility study in 1960 and well No. 2 completed in 1961. Both wells were consi- dered as profilic gas producers. However, due to various constraints and lack of pipeline connection to distribution system, the wells have been shut in. The components of the project have been approved by the GOB. - 104 - G-3:3 17. Contribution and inputs : Nona required from other agencies. 18. Anticipated constraints : None 19. Major outstanding policy : None issues 20. Time table for completion : See #14 21. Estimated reduction in oil : This project will add 60 MMCF demand resulting from Project which is equal to 0.53 million tons of oil equivalent (TOE) annually. Total price of which is = US$ 133 millions. 1/ 22. Economic and financial parameters 23. Sponsoring agency remarks. : Rashidpur Gas Field has 2 shut-in wells, which could be quickly worked over and brought into production. The connection and de- velopment of this field with the existing Titas System will provide a lot of flexibility and reliability and also meet addi- tional gas demand of the system starting from 1985-86. The de- velopment of this field would supply 60 MNCFD of additional gas which is equivalent to 0.53 million tons of oil equivalent (TOE) annually and save around US$ 133.00 million annually against imported fuel. The total estimated cost of the project is US$ 23.00 mln. including US$ 13.00 million in foreign exchange. It will be seen that one year's saving in foreign exchange (11S$ 133.00 mln) far exceeds project's total investment (US$ 23.00 mln). This would more than justify immediate implementation of the project. 2/ -3 1/ There is no basis for this figure. #/ The same quantity of gas may be produced from Titas or Habiganj with considerably lower cost. - 105 - G-4: 1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Oil and Gas 3. Name of the Project : GAS TRANSMISSION AND DISTRIBU- TION TO MIMENSINGH AND JAMALPUR VIA KISHOREGANJ. 4. Sponsoring Ministry Ministry of Energy and Mineral 5. Executing Agency : PETROBANGLA/UNITS 6. Other agencies involved : None 7. Location : (i) Bhairab bazar, Mymensingh (ii) Kishoreganj, Mymensingh (iII) Mymensingh (iv) Jamalpur (v) Bahadurabad Ghat, Jamalpur (vi) Jagannathganj Ghat, Mymensingh 8. In-house implementation : Partly 9. Name and address of the : Petrobangla and Titas Gas will ftrm implementing the project supervise. Local or Foreign contractors will be selected. 10. Main objective : The main objective of the project is to extend the gas facilities to Mymensingh, Jamalpur, Kishoreganj for distribution of gas, industrial, commercial and domestic pur- poses. This also includes an extension up to East Bank of the River Jamuna for the purpose of supplying gas to fertilizer factory which is planned to be constructed. 11. Brief description/main :(i) Land acquisition and activities development (ii) Right of way - 106 - G-4:2 (iii) Civil construction work (iv) Procurement of material and equipment (v) Fabrication and Erection of DRS and RMS (Regulating and Metering Stations). For more information see Annex-1. 12. Estimated Cost : For Transmission : (US$1 - TK23) Total Cost :Tk. 374.00 mln. Foreign Exchange :Tk. 172.00 mln. (US$ 7.50 mlm.) For Distribution : Total Cost : Tk. 104.00 mln. Foreign Exchange : Tk. 41.00 mln. (US$ 1.80 mln.) Total Cost : Tk. 478 mln. F.E. : Tk. 213 mln. (US$ 9.3 mln.) 13. Financing (donor proposed) : None 14. Implementation period : Three years 15. Proposed physical and Financial program - 107 - G-4:3 PHYSICAL PROGRAM Year Survey/ Land acqn./ Civil Procure- Pipelaying Distribution design developmevt const. ment (Trans) network 1 100% 70% 30% 80% - - 2 - 30% 30% 20% 100% 30% 3 - - 60X - - 70% TOTAL 100% 100% 100% 100% 100% FINANCIAL PROGRAM (Tk. in million) Year Local Currency Foreign Exchange Total Cost 1 45.00 170.00 215.00 2 154.00 43.00 197.00 3 66.00 - 66.00 TOTAL 265.00 213.00 478.00 Both Physical and Financial programs are tentative. 16. Status of the Project and : An Engineering Study for Gas & feasibility study. Eastern Bank of the Jamuna River (under approved PC-II form) has been carried out by Titas Gas Transmission & Distribution Co., Ltd., in 1981, on which basis this project profile has been prepared. 17. Contribution and Inputs : None required for other agencies 18. Anticipated constraints : Financial 19. Major outstanding policy : None issues 20. Time table for completion : It will take 3 years to complete the work. Refer to #14. - 108 - G-4 :4 21. Estimated Reduction in Oil : Tk. 160-0.00 mln. anntually m Demand resulting from US$ 70 mln./Year. 1/ Project 22. Ecooomic and Financial : N.A. Parameters (Rate of Return, net present value, etc.) 23. Sponsoring Agencies' Remarks : In view of the increasing crises of the liquid and other indigenous fuel, it is felt very much necessary to extend the gas facilities up to Mymensingh, Jamalpur and Kishoreganj for distribution of gas for Industrial, Commercidal and Domestic purpose of use. There are quite a good number of small scale commercial and dtestic customers at present and after extending the gas facilities in these areas, more commercial consumer in small scale will come up. At the initial stage No. of connections would be as follows: Industrial Commercial Domestic Mymensingh 57 600 10000 Jamalpur 2 200 2000 Kishoreganj 13 200 3000' Total 72 1000 15000 The industrial customers Jute Mills, Sugar Mills, Metal Industries, Rice Mills, Brick Fields, Oil Mills, etc. The source of supply (average requirement 23 MMCFD) of gas will be from Titas as well as Eabiganj gas field. At Titas 3 wells under ADB assistance and at Hibiganj 2 wells under French Assistance will be completed by 1985. The pipeline will be extended up to the East Bank of the river Jamuna for the purpose of gas utilization by fertilizer factory at the river bank is i9 minimize the transportation cost of fertilizer factory.- The objective of fertilizer factory at the river bank is to minimize the transportation cost of fertilizer and to facilitate storing for timely distribution to the farmers. 1/ The saving is overestimated. 2/ No firm plan is underway for construction of a fertilizer factory in that area. - 109 - G-5: 1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Oil and Gas 3. Name of the Project : SYLHET TEA ESTATES GAS (SUPPLY) DISTRIBUTION PROJECT (PHASE II) 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : PETROBANGLA 6. Other agencies involved : None 7. Location : Small township in and around Lugala Juri Area, Sylhet 8. In-house implementation : Contractor 9. Name and address of the : Local Contractor to be selected firm implementing the Project. 10. Main objective : 57 Tea-Estates (remaining Tea- Estates after the completion of 1st phase), 100 commercial and 4000 domestic units in and around Lungla and Juri Areas, in the District of Sylhet. 11. Brief description/main i) Land acquisition and development ii) Right of way iii) Civil construction works. iv) Procurement of material and equipment v) Pipeline, Laying (Transmission) a) 6' ND, 110,000' b) 4" ND, 264,000 vi) Distribution Network a) 3" ND, 160,000' b) 2" ND, 110,000' 110- G-5:2 c) 1" NDs 40,000' d) 3/4 ND, 100,000' 'I, vii) River Crossing, 4000' viii) Rail crossing, 1000' ix) Road crossing, 2000' x) Fabrication and Erection of DRS (2 Nos.) and RMS (67 Nos.) 12. Estimated Cost : Total Cost : Tk. 154.00 mln. (US$1 - TK23) Foreign Exchange : Tk. 46.00 mln. (US$ 2.00 mln.) The cost has been estimated in January 1982 on the basis of current prices. 13. Financing (donor prospect) : None 14. Implementation : Two years 15. Proposed Physical and Financial Program PHYSICAL PROGRAM Year Survey/ Land acquisition Civil Procurement Pipelaying Design Development Construction & Installation 1 100% 702 100% 100% 50% 2 - 30% - - 50% TOTAL: 100% 100% 100% 100% 100% FINANCIAL PROGRAM (TK in Millions) Year Local Currency Foreign Exchange Total 1 55.00 46.00 101.00 .2 53.00 - 53.00 TOTAL: 108.00 46.00 154.00 (US$ 2.00 mln) - 111 - G-5 :3 16. Status of the Project . The Sylhet Tea-Estate gas supply project was originally envisaged at supplying gas to Tea-Gardens of Rashidpur, Sirmangal, Shamshernager, Lungla and Juri areas in the district of Sylhet. 13 Nos. of Tea-Garden in Laksherpur Valley in the vici y of .' E Habiganj Gas Field has been connected with Gas supply in the later part of 1977. A Project Proforma prepared in 1978 was broken into two phases for the supply of gas to 47 Nos. of Tea-Gardens in the 1st phase and 57 No. of Tea-Gardens in the 2nd phase. The lt phase of the Project Proforma has been approved by ECNEC on 17.5.1980. The 2nd phase of the project Proforma is under consideration of the sponsoring Ministry. The 1st phase of the Project is under implementation *mder Belgian Credit of BFr 120.00 mln. Pipeline material along with other accessories have been procured under Belgian Credit. These materials will meet about 70% of the whole project. To complete the whole project additional funds of US$ 2.20 mln is required. ODA, UK has agreed to provide the additional funds. The detailed pipeline route survey and gas off take has been done by the Implementation Division who is responsible for the execution of the Project on behalf of Petrobangla. 17. Contribuion And Inputs- : None required from other agencies 18. Anticipated constraint : Financial 19. Major outstanding policy : None issues - 112 - G-5:4 20. Time table for completion of : It will take two years to the project complete after the commencement of the work. The work is supposed to be commenced after the completion of the 1st phase, or as soon as funds were made available. 21. Estimated Reduction in Oil : Estimated gas consumption in Demand resulting from Project 4.44 MMCFD and is expected to save Tk 220.00 mln annually against import of fuel. 22. Economic and Financial : Benefit Cost Ratio (BCR) : 0.82 paramaters (Rate of return, Internal Rate of Return (IRk) : 10.5% net present value, etc.) (Calculated considering 20 yrs. as economic life of the Project). 23. Sponsoring Agency's remarks : The project after implementation will supply gas to 57 Tea-Estates, 100 commercial units and 4000 domestic customers in and around Lungla and Juri areas in the district of Sylhet. Moveover, this project might create facilities for installation of more Glass and Ceramic Industries, Brick manufacturing plants, Steel Re-rolling Mills, Price Processing plants and other small industries to meet the demand of the project area. The gas offtake estimated for the project is MMCFD which is expected to save Zk. 220.00 mln annually against of import of fuels. Use of gas in place of expensive imported fuel will make the price of tea very comparative in the world market and quality of tea will be improved. Use of gas will also solve difficult and costly transportation and storage problem associated with furnace oil. - 113 - G-6 :1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-Sector : Oil and Gas 3. Name of the Project : GAS GRID SYSTEM IN EASTERN ZONE 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources - -~ 5. Executing Agency Petrobangla 6. Other Agencies involved : None 7. Location : Eastern Zone of Bangladesh (A map is enclosed for location) 8. In house implemenWatlon : None 9. Name and address of the firm : Consultant will be selected. Implementing the Project 10. Nain objective : The main objective of the project is to recommend a suitable gas grid system in the eastern zone of Bangladesh for transmission of gas from fields to the various load centers and also interconnection of the gas fields for the reliability, flexibility and effic- iency. 11. Brief description/main : Feasibility Study. components/activities (copy of terms of reference is enclosed) 12. Estimated Cost : Total Cost of Tk. 5.00 mln. Foreign Exchange Tk. 4.00 mln. (US$0.17 mln.) 13. Financing (donor prospect) : None 14. Implementation period : Six months. 15. Proposed physical and : Six months. financial program - 114 - G-6:2 16. Status of the project and : An Engineering Study on Country- feasibility studies wide Gas Grid System has been carried out by local consultants in 1982. GOB feels that additional study is needed. 17. Contribution and Inputs : None required from other agencies 18. Anticipated Constraint : Financial 19. Major outstanding policy : None issues 20. Time Table for completion : It will take six months to complete of the Project the study. 21. Estimated Reduction in Oil : No direct results. demand resulting from project 22. Economic and Financial : Not applicable. parameters (Rate of return, net present value etc.) 23. Sponsoring agency's remark : The study will help to finalize long term planning of gas transmission and distribution network system in the eastern zone of Bangladesh. The study will also find out the detail economic benefit of a gas grid over individual transmission lines as well as the exact impact of the grid to the national economy. a l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - 115 - G-7: 1 BANGLADESH PRIORITY INVESTMENT PROGRAM FOR ENERGY 1. Sector : Energy 2. Sub-sector Petrobangla 3. Name of Project : Feasibility of converting railway and marine equipment to Compressed Natural Gas (CNG). 4. Sponsoring Ministry : Ministry of Energy and Mineral Resources 5. Executing Agency : Petrobangla 6. Other Agencies involved : Ministry of Railway, Highways and Road Transport (Railway Board); Ministry of Ports, Shipping and Inland Waterways (Inland Water Transport Authority and Chittagong Port Authority). 7. Location : Entire area of Bangladesh. 8. In house implementation : Partly, civil works, top supervision, and administrative assistance. 9. Name and address of the firm : To be determined. implementing the project 10. Main objective : To determine the technical and economic feasibility of large scale conversion of railway and marine equipment to CNG. 11. Brief description main : Survey to determine types of components/activities equipment, location, routes and fuel eonsumption. Evaluation of equipment requirements. Economic analysis. 12. Estimated cost (1983) : Total Cost of TK. 3.5 mln. Foreign Exchange Tk. 3.5 mln. (US$150,000) 13. Financing (donor prospect) : Not yet known. - 116 - G-7:2 14. Implementation period : 3 months. 15. Proposed physical and financial program Physical Schedule of Work Project Mouth Task Area 1 On-site survey 2 Analysis of data 3 Preparation and Presentation of Final Report Financial Schedule of Work Mcfnth Local Foraign Exchange Total 1 -0- 50,000 50,000 2 -0- 65,000 65,000 3 -0- 35,000 35,000 16. Status of the project and : Current project on converting feasibiUty studies highway vehicles underway. 17. Contribution and inputs : Donation of equipment for conversion, required from other agencies facilities and personnel for conversion and refuelling. 18. MaJor outstanding policy issues : None 19. Anticipated Constraints : None 20. Timetable for completion of : See item 14 the project 21. Estimated Reduction in oil : Railway: 60,000 LT/yr OIL resulting from project 5,300 LT/yr COAL 22. Economic and Financial : Marines: about 100,000 LT Parameters (rate of return, estimated precise information - net present value, etc.) not available. AMUEK I Page I of 3 SOURCEs Petrobangla PEAK GAS MMfAND AnD SUPPLY POSITIOM (Yiguz.s in imcrD) Gas Distribution System & Customer 981-82 1982-83 L963-84 1984-85 1985-86 1986-47 1987-88 1988-89 1989-90 1- Titas - BabiganJ SyRtem I. Power Station Ashuganj Ghorasal 91 107 129 150 180 201 215 ais 235 Siddbirganj Shabjibasar It. Fertilizer Ashuganj 90 92 102 210 110 non no 110 110 Ghorasal Potash III. Others Small Industries Commercial 63 76 88 97 105 113 122 133 145 Domestic A. Sub-Total (Demand) 244 275 319 357 395 424 547 457 490 B. Dewand with diver- sity of 0.9 219 245 287 322 356 381 403 412 441 C. Gas Supply based 210 240 300 360 360 360 360 360 360 on firm finaiced ADB Fionaced 3 wells at Titss and French flanced 2 eilL at abiganj resulting in total projects additional supply of 150 NOCID. D. Additional Gas Supply based on - - 25 85 85 85 145 175 175 proposed develop- Projects proposed developmeit of BEsta field 25 XCFD and Rashidpure 60 XMCPD. gfnt projects *Other development projects to meet the demand is unspecified. F Total Supply based on Pirm plus pro- 210 240 325 445 44'S 445 505 535 535 posed. M= I Page 2 of 3 PAX GA DM AND SUMPLY POSmON (Figres in )M) Gas Distribution System & Customer 1981-82 198283 1983-84 1984-85 1985-86 1986-87 1987-88 198889 198990 II. C}HEATA, SYLUT GAS FIELDS A. Gas Demand&' 29 42 45 46 46 48 60 67 70 (Fertilizer, Cement, Papermill) B. Gas Demand with diversity of 0.9 26 38 41 42 42 43 54 60 63 C. Gas Supply 61 61 lOS* 105 105 105 105 105 105 Position with Two wells at Syihet; 1 ell at Chhatsk. Proposed work over program in the NE area is for 1 well firm and pro- in Kalaubtlla, emd 2 Vells at Sylhet,* present supoly position of 61 W4CFD satisfy the demand posed Programme to 1990. III* BAKHRABAD GAS SYSTEM (Bakhrabad & Feni Gas Field)s Power - - 15 1S 15 1S 15 15 15 Fertilizer - - 45 105 105 105 105 105 105 Methanol - *- - -5 5S Others - - 38 39 55 56 64 79 94 A. Sub-Total (De--' mand): - - 53 109 175 176 239 254 269 B. Demand with diversity of 0.9 - 48 98 158 13