You are on page 1of 35

Editor

Mollah M Amzad Hossain

Fortnightly Magazine, Vol 14, Issue 8, October 1-15

Advisory Editor
Anwarul Islam Tarek
Mortuza Ahmad Faruque
Munjurul H Khan
International Editor
Dr. Nafis Ahmed
Contributing Editors
Saleque Sufi
Dr. A Rahman
Online Editor
GSM Shamsuzzoha (Nasim)

Setting up of Rampal power plant is a hotly debated issue in Bangladesh.


Environmental activists are apparently dead against the plant as they think it would
destroy the worlds largest mangrove forest. On the other hand, the government is
determined to build the plant for the sake of development. In this circumstance,
UNESCO issued a report on the consequences of the coal-fired power plant now
being implemented, stimulating the activists to gear up their protests. UNESCO
urges the government of Bangladesh to explain its position about the project and, at
the same time, requested to cancel the plant near the World Heritage Site.

Managing Editor
Afroza Hossain
Magazine Administrator
AKM Shamsul Hoque
Reporters
Md. Nuruzzaman Delowar
Arunima Hossain
Design & Graphics
Md. Monirul Islam
Photography
Bulbul Ahmed

However, the power sector experts say the UNESCO report was based mainly on
information from tertiary sources, and without taking into consideration properly the
technological specifications. While the government is going ahead with the project,
it says the report was misleading and without having adequate information. It is also
preparing response to explain different issues of concern and would be sent soon to
the UNESCO.

Production
Mufazzal Hossain Joy
Computer Graphics
Md. Uzzal Hossain
Circulation Assistant
Khokan Chandra Das

The government, going beyond its determination and rigidity, should take a
pro-active role to explain in detail the issues of concern not only to appease the
UNESCO, but also to clear confusion among the people. It would create a win-win
situation.

Editorial, News & Commercial


Room 509, Eastern Trade Center
56 Inner Circular Road (VIP Road)
Naya Paltan. GPO Box : 677
Dhaka-1000, Bangladesh
Tel & Fax : 88-02-58314532
Email: ep@dhaka.net
energypower@gmail.com
Website: www.ep-bd.com
Price
Bangladesh: Tk 50, SAARC: US$ 6,
Asia: US$ 8, Europe: US$ 10, North
America, Africa & Australia: US$ 14

43

35

The countrys power generation


capacity would reach very close
to the target of 24,000 MW by
2021, if it not achieved completely. But the main challenge
to reach there is bringing at least
few large under implementation
coal-fired power plants into commercial operation. I am highly
optimistic that at least two plants
- 1320 MW Rampal and 1320
MW Payera Plant - will come
into operation by then.

The 23rd World Energy Congress


(WEC) is all set take place on 0913 October in Istanbul, Turkey
with the theme Embracing New
Frontiers. The worlds most influential decision makers, including policy makers, opinion
leaders and the CEOs of top energy companies will take part in
the event.

9
Coal debate is nothing new in Bangladesh.
The move to resist imported coal based
power generation started here, after letting
domestic coal buried through creating confusions. It kicked off with the movement for
cancelling the Rampal imported coal based
power plant in the name of protecting the
Sundarbans. Infrequently, ultra-environmental activists are protesting other coal
based power projects too. Though not
mentioned yet, it is apparent that the
movement against Rampal Power Plant has
already shaped up as anti coal fired...

Encouraged by the readers and patrons, the EP would continue bringing


out Green Pages to contribute to the countrys efforts in its journey
towards environment-friendly energy.

29

Sonagazi to Have 100


MW Solar, 100 MW Wind
Power Plants

31

Atiur Calls for Giving


Green Finance Institutional
Shape

31

China to Rein in Growth of


Green Energy Industry

32

G20 Leaders Reaffirm


Green Finance in
Hangzhou

WORLD WATCH

Protest Coal Development

Latest Development in

Near Sundarbans

World
6,7

45

Govt Urged to Ensure Energy,

SNAPSHOT

Land For New Industries

Latest Development

Projects
EVENT

COVER
UNESCO Plays A Trick

35

23rd WEC Set to Shape


Future Energy Landscape

17

COVRE ARTICLE
UNESCO Mission Report on
RPP is Hollow

19

COVRE PLUS

CLIMATE
37

BD Joins Paris Climate Deal


Club

37

A Commentary on

Bangladesh Braces for


Environmental Hazards:

IUCN/WHCs Report on

Experts

Rampal Power Plant


38
21

23

Climate Resilience Initiative

Nasrul: Rampal Plan

Set to Accelerate Climate

Construction to Continue

Action

Matarbari Project Hits Snag

39

Over Security Concerns


24

UN: Paris Climate Deal 'Will


Enter Into Force By 2016'

BERC Readies Draft LPG


Regulation

25

UN Secretary Generals

REPORT

INTERVIEW
41

Devrim ZTRK;
Ambassador, Embassy of the

Experts for Keeping Close

Peoples Republic of Turkey,

Watch on Rampal

Dhaka
26

Govt to Install 660MW Plant at


Mine Mouth of Dighipara

27

Groups Rally Outside U.N. to

43

Engr. Khaled Mahmood,


Chairman, Bangladesh Power
Development Board (BPDB),

Wo rl dwatc h
French energy comp a n y
Areva said
recently it
was selling its stake in an offshore wind power unit to Gamesa,
removing a key hurdle to the Spanish renewable energy group's
merger with German engineering giant Siemens.

French Energy Firm to Allow


Gamesa-Siemens Merger

"Following a 3-month competitive bidding process aimed at obtaining and assessing offers from potential third-party investors,
the Board of Directors of AREVA S.A. decided to... sell its shares
in Adwen to Gamesa," the French company, whose primary
business has been in nuclear energy, said in a statement.
Gamesa said in a separate statement it will pay 60 million euros
($67 million) to purchase Areva's stake.
Gamesa and Siemens announced in June plans to combine their
wind power businesses to create one of the world's largest makers of wind turbines.
A loose thread had been Adwen, the 50-50 per cent joint venture between Areva and Gamesa in offshore wind power.
Areva
was
given three
months
to
d e c i d e
whether to
sell its stake
in Adwen or
buy
out
Gamesa.

The orders include the


first heat recovery
steam generator technology project after
GEs acquisition of
Koreas Doosan Engineering & Constructions HRSG business
in August this year.

GE Power Secures
$800m of New Orders

The $140m order, from Korea Midland Power Company


(KOMIPO), includes a new 250MW combined cycle power
facility.
It will feature two of GEs 6F.03 gas turbines and a full-suite
of equipment, controls and maintenance parts.
The other orders are for a stator rewind project at a natural
gas-fired cogeneration plant in Chonburi province in Thailand, and 17 emergency diesel generator (EDG) packages plus
five transportable switch rooms for Malaysias Petronas group.
Each EDG package will feature
one of GEs 616 diesel engines delivered by GEs Distributed Power
business.
The equipment will provide continuous backup power for Petronas
Pengerang Integrated Complex
(PIC) refinery project in Johor.

Russian
and
Iranian firms
began work recently on two
additional reactors at Irans nuclear power plant on the Gulf coast at Bushehr,
the project manager said.

Work Starts on Two New


Iran Nuclear Reactors

The plant has been a bone of contention with Irans Gulf Arab
neighbours, even after a deal limiting its nuclear ambitions was
signed with major powers in July last year.
Project manager Mahmoud Jafari said that construction of the
two 1,000 MW reactors, which is being carried out jointly with
an Iranian firm, would take a decade and cost up to $10 billion.
When these two units become operational, 11 million barrels
of oil will be saved per year and emission of 7 million tons of
greenhouse gas will be avoided, he said.
Some 8,000 workers are involved in
the project, which
is being led by Russias Rosatom with
Irans
Nuclear
Power Production
and Development
Company.
Sergey
Kirienko,
head
of
Russias
state nuc l e a r
power corporation Rosatom meets president Vladimir Putin
in Moscow recently to apprise him the latest achievements of
Russian nuclear industry.

President Putin Discusses


Achievements of Russian
Nuclear Industry

Kirienko during the meeting termed recent start-up of


Novovoronezh NPP reactor as a flagship event for global nuclear industry, as it is the first generation III+ unit which was
connected to national grid. The first in the world generation III+
unit was built in Russia strictly in accordance with postFukushima safety requirements. He added that similar power
units are being constructed in Belarus, Hungary, Egypt and
Bangladesh.
Rosatoms Chief highlighted the achievements in the field of Fast
Neutron technology. Russias Beloyarsk NPP with its fast neutron reactor BN-800 went to full operation recently. Being the
most technologically advanced power unit in the world the BN800 can produce
more safe and clean
energy. A Fast Reactor uses uranium isotope U-238, which is
100 times more
abundant in nature
and leaves minimum
waste at the end.

October 1, 2016

S naps ho t
Executive Engineer (Sales & Dist r i b u t i o n )
Shahadat Ali of
Bangladesh Power Development Board (PDB), Sakhipur office
was closed following complaints by customers. At the same
time, PDB's Noakhali district Executive Engineer Saifur Rahman was appointed as acting executive engineer at the
Sakhipur office.

PDB Executive Engineer


Closed in Tangail

In this connection, a letter signed by Assistant Director-1


(Works) of PDB's Dhaka office Mozammel Haque and Deputy
Director-1 of Official Department at Dhaka PDB Meherunnesa Khanam, was issued recently.
The closed Executive Engineer Shahadat Ali joined PDB's
Sakhipur office around two years ago. Since then, many complaints were raised against him by local customers.
On next day after the recent Eid-ul-Azha, a representative
team of Power Ministry visited Sakhipur and the affected customers upheld different allegations against the PDB official.
The government's
target to
increase
power generation capacity to 24,000 MW by 2021 is to go
close to double in near future as another 71 power plants
have been undertaken to feed the nation with constant supply
of electricity.

71 Power Plants Undertaken


to Increase Capacity

"There are 106 power plants in the country and, InshAllah,


the whole nation will have easy access to power by 2021,"
said an official.
He said the present government by now installed 79 power
plants since 2009 to raise the total number to 106.
"At this moment, the government led by Prime Minister Sheikh
Hasina has undertaken another 71 such projects to increase
power generation capacity to more 22,897 MW in near future, almost double to what we would have by 2021," he said.
The current power generation capacity is 14,980 MW, covering 78 percent of the population. There has been an overwhelming development in the power sector during the last
seven years due to farsighted leadership of Prime Minister
Sheikh Hasina, seldom keeping the nation under load shedding that was a daily phenomenon before 2009.

Maksudul Haque Made


BERC Acting Chairman
Md Maksudul Haque has been appointed as the acting chairman of the
Bangladesh Energy Regulatory Commission (BERC).
He replaced AR Khan as his tenure expired recently.

Md Maksudul Haque

The Power Division will seek


additional Tk
4,500
crore
under the annual development program (ADP) in the current
fiscal year for implementing 102 ongoing projects in the
power sector.

102 Power Projects Need


Extra Tk 4,500cr in FY17

The decision to seek additional ADP funds for power projects


came at a recent meeting of the Power Division with State
Minister for Power and Energy Nasrul Hamid in the chair.
Power Division Secretary Monowar Islam raised the issue of
fund shortfall for implementing the ongoing projects.
The government has allocated Tk 19,126.71 crore for implementing power projects under ADP in the current 2016-17
FY.
Of the total allocation, Tk 6744.04 crore would come from
GoB fund, Tk 6296 crore as project assistance (PA), Tk 3000
crore as loans from
from export credit
agencies and another
Tk 3086.63 crore
would be borne by
the power generations, distributions
and
transmission
companies.
Three organizat i o n s
recently
demanded proper implementation of environmental protection act, forest act and wildlife protection act in a bid to stop
industrialization in the ecologically critical area (ECA) like
Sundarbans.

Call to Stop Setting Up of


Industries Near Sundarbans

They also demanded taking measures to stop setting up of all


kinds of industries including coal-fired power plants in the
areas adjacent to the Sundarbans, said a press release.
Coastal Livelihood and Environmental Action Network
(CLEAN), Transparency International Bangladesh (TIB) and
Committee of Concerned Citizens (CCC)-Khulna placed
the demands at a press conference held in Khulna city.

October 1, 2016

S naps ho t
Although factory
workers informed
of a gas leak three
days prior to the September 10 fire, authorities concerned of
Tampaco Foils Ltd took no step to address it, leading to the
loss of 34 lives till date, said Tongi police on filing a murder
case recently.

Gas Leak Alert Ignored

Police in primary investigation found that the factory's buildings in the Tongi BSCIC industrial area became unfit for use
four years ago, electrical wirings there were faulty and the
boilers had no expiry labels, police said.
Though they (management board) were aware of it, they did
not take any measures. As a result, these people have died
and it is tantamount to killing.
Ten persons have been accused in the case filed by Sub-inspector Ajoy Chakrabarty including Tampaco's owner Mokbul
Hossain Lechhu, his wife and the factory Director Parvin, and
daughter and Deputy Managing Director Habiba.
The others are his son-in-law and member of its board of directors Safiuddin, son and Managing Director Tanvir Ahmed,
General Manager Safikur Rahman, Deputy Managing Director
Alamgir Hossain and managers Manir Hossain, Samir Ahmed
and Hanif.
One case has already been filed with Tongi police by Abdul
Kader, father of dec e a s e d
factory
w o r k e r
Jewel, on
September
11 against
the owner
and seven
others.
A delegation of the Institute of Cost and
Management
Accountants
of
Bangladesh (ICMAB) headed by its President Mr. Arif Khan,
FCMA called on Mr. Md. Mahmud Reza Khan, Chairman,
Bangladesh Petroleum Corporation (BPC) at his office recently.

ICMAB Delegation
Meets BPC Chairman

The ICMAB President appraised the Chairman, BPC about the


role of cost and management accountants and their contribution towards the establishment of transparency, accountability
and corporate governance in the business and industrial sectors of the country. He explained to the Chairman as to how
the industries sector of the country would be profitable
through cost audit and also discussed about the process of implementing cost audit in fuel and energy sector.
The BPC Chairman assured to provide all possible help and
assistance for the development & implementation of cost
audit, said a statement.

Executive
Director
of Centre
for Policy
Dialogue
( C P D )
Prof Mustafizur Rahman recently suggested that there should
be an independent committee to constantly monitor during
implementation stages whether it is harmful to the Sundarbans
and take necessary measures.

CPD Suggests Independent


Monitoring Body for Rampal
Plant

"Why don't you go and say we'll set up an independent committee which, in the process of implementation, will monitor
whether it is harmful to the Sundarban," he said.
Referring to policymakers' response assuring adequate control
system, Prof Rahman said having an independent committee
is the middle way. "It's not the middle way that we'll compromise (with harmful aspects)."
He said people are sensitive about the project because it is
going to be set up near the Sundarban and the people who
are opposing it because it is
near
the
Sundarban
but not because
of
India's involvement
in the project.

C o u n t r y 's
p e t r o l
pump and
tank-lorry
owners and
workers
threatened to go on an indefinite strike from the first week
of October if the government fails to resolve their problems, including cancellation of new abnormal land lease
charge imposed by the Roads and Highways Department
(RHD) for petrol pumps, by that time.

Petrol Pump Owners


Threaten Indenite Strike
from Early Oct

They made the final appeal to the Bangladesh Petroleum


Corporation (BPC) chairman through a letter, dated September 4, to address the problems through discussions,
said Nazmul Haque, convener of Bangladesh Petrol Pump
and Tank-Lorry Owners-Workers Unity Council.
He said the copy of the letter, which was given to the BPC
chairman, was also sent to the state minister for power and
energy and the secretary to the Energy and Mineral Resources Division.
This is our final notice to the government before going on
a non-stop strike across the country, he said.

October 1, 2016

C over

Mollah Amzad Hossain

oal debate is nothing new in


Bangladesh. The move to resist imported coal based power generation
started here, after letting domestic coal
buried through creating confusions. It kicked
off with the movement for cancelling the
Rampal imported coal based power plant in
the name of protecting the Sundarbans. Infrequently, ultra-environmental activists are
protesting other coal based power projects
too. Though not mentioned yet, it is apparent that the movement against Rampal
Power Plant has already shaped up as anti
coal fired power project. Developing countries like Bangladesh has no obligation for
not going for coal fired power generation for
economic development according to latest
Paris agreement of UNFCCC. Still, the global
environmentalist groups are trying to spread
the movement against the Rampal project
among the international community in the
name of protecting the Sundarbans. UNESCO has played to the tune of environmentalist groups, but without dealing the matter
through scientific analysis and evaluation.

October 1, 2016

UNESCO sent a report to the government recently and suggested cancelling


the plant besides Sundarbans. They
claimed that the 1320 MW power plant
would cause irreversible damage to the
mangrove forest. Hence they suggested
relocating the plant to a safer place. The
report prepared by three members UNESCO mission following their visit in
March 2016 deserves review.
UNESCO report has
claimed to have
found several anomalies and inconsistencies among EIA of
the project, statement of the power
company
BIFCPL
and EPC tender document. They also alleged that during
their visit they were
allowed to discuss
with limited number
of experts only. The
discussion with local
community was also
arranged by the company.
For justifying their
suggestions to cancel
the project, the UNESCO report brought
forward four threats,

including pollution of air and water, increase of shipping and cumulative pollution impacts from industrial growth.
The report also questioned the validity
of the Environmental Assessment Impact
(EIA). The report claimed that state of
the art, off the shelf and appropriate
technology is not being adopted for the
project. They also alleged that highest
international standard is also not being
maintained.

UNESCO expressed intention for a visit to


Bangladesh in December 2015. Bangladesh informed them to come in
March 2016. The threemember UNSECO mission in their week-long
tour of Bangladesh visited the project site at
Ramapal, Khulna and
Bagerhat regions. They
discussed the issues of
concerns related to the
project with the officials
of Power, Environment,
Forest and Inland Water
Transport ministries. The
mission included Naomi
Dokh and Myuki Murai
of IUCN and Fanny
Dover of the World Heritage Center.
The concerns over setting up of Rampal
Power Plant besides the Sundarbans
were first raised during the annual convention of UNESCO in 2014. Two letters were sent to Bangladesh
government. They also expressed their
intention for sending a team to
Bangladesh. Bangladesh responded
positively. As its follow up, the mission

Illustration of Rampal Thermal Power Plant

October 1, 2016

11

after their Bangladesh


visit submitted report to
UNESCO in June 2015.
In August 2015 the report along with observations of UNESCO was
sent to Bangladesh government requesting for
sending Bangladesh response by 1 December.
The related ministries
have been tasked for formulating response. Ministries have confirmed
sending response by
early October 2016.

water flowing through


the rivers in Sundarbans
would increase, aluminium would affect soil.
These in turn would have
catastrophic impacts on
plants and animals of
Sundarbans.
The report claimed that
about 10 lakh tonnes of
ash would be produced
annually from the plant.
The ash would have poisonous chemicals like arsenic, lead, mercury,
nickel, valadium, berkelium, barium, cadmium,
chromium, selenium and
radium.

The report mentions that


the present location of
Rampal is 14 KM away
from the outer periphery
of Sundarbans and 4km
outside the environment
critical boundary. The
area earmarked as the
World Heritage Site is
65 km away. Report
quoting Asian Human
Rights alleged irregularities in land acquisition
for the project.
EIA
UNESCO report claimed
that the EIA of Rampal
Project is incomplete
and questionable. Multiple stakeholders were not discussed
during its formulation. Only a handful
of people were consulted. This is not an
internationally practiced process. The
report claimed that the EIA did not discuss about the impacts on trees and
plantations. No experts whether local or
international were consulted.
Confirming review of all project related
documents and information, the report
claimed that they could not access any
information from Bharat Heavy Electrical Limited (BHEL), the EPC contractor.
EIA did not include detailed information
about the type of equipment and machineries and how these will be installed. The mission also claimed that
they did not get any information about
the technology and equipment to be
used for reducing impacts on Sundar-

bans.
Report claimed that ultra-super critical
technology selected for Rampal has
been adopted in Japan, South Korea,
Germany and India. But no such experience is available for using such technology in world heritage and unique
eco-sensitive areas like Sundarbans.
The mission stated that on the basis of
the information they received, there can
be four likely impacts on Sundarbans
from the plant.
Acid Rain in Sundarbans
According to the report, Rampal Power
plant will create huge volume of Sulfur
Dioxide, Carbon Di Oxide and Mercury
emissions. SO2 and Nitrous Oxide mingling with cloud would cause acid rain.
Acid rain would create serious impacts
on bio-diversity of Sundarbans. Acid in

Apprehension of Mercury
Entering Food Cycle
The report mentioned
that the mercury released
from Rampal Plant would
create poisonous environment in Sundarbans.
The poisonous water
would let the mercury
entering fishes and aquatics. These in turn would
enter into human body,
retarding the mental development of children.
The report claimed that
Rampal project would
not adopt appropriate technology of international standard for mercury removal. Moreover, there exists no
technology for 100% removal of mercury.
Air Pollution
The report claimed that the government
informed them about a 900-feet tall
chimney installation for limiting air pollution. It also mentioned that the tall
chimney would reduce local impacts,
but global emissions would not be reduced. Rather tall chimney would carry
emission to Ozone layer. This will
spread emissions to entire Sundarbans
area. Normally, the period from January
to March witnesses wind blowing from
North to North West direction. During
this time the flue gas emitting from Rampal power plant would spread over the

October 1, 2016

12

World Heritage region of Sundarbans at 65 km distance.


Consequently, tall chimney
would rather harm the world
heritage site.
Water Pollution
Around 5,000 cusec of water
per hour will be pumped from
Poshur River for the cooling
tower of RPP. The volume of
water required for other activities of the plant has not been
determined yet. The report
mentioned that polluted water
would be released to the river.
This will harm the river water.
Cumulative Pollution
A city with administrative infrastructure will be developed
at Rampal. Various development activities would also be
initiated. These would also draw water
from Poshur River.
The present land filling and site development activities are also impacting the
environment. Moreover, the project
area will have educational institutions,
hospital, playground, swimming pool
and other infrastructures. The team also
got evidence of land acquisition for
other installations around the plant area.
The report also mentioned about land
acquisition for a second unit of the

power plant in the area. This will create


crisis for sweet water availability and
other additional impacts.
Ship Movements Will Increase
The report pointed out significant increase of ship movements in adjacent
area of Sundarbans. The 35 Km route
would require dredging for ensuring
navigation for coal transportation.
About 3.21 crore cubic meter silt would
be excavated. Maintenance dredging
would be required every year. Where

these huge volume of excavated materials would be stored questioned the report? The impacts from this activity on
biodiversity has not been discussed anywhere.
UNESCO report has discussed 12 probable impacts on Sundarabans out of
which 2 are exclusively from Rampal
Power plant. The others are related to
Mongla Port, Inland Water Transport
and local industrialization.
While attention was drawn to UNESCO
report Nasrul Hamid State
Minister for Power, Energy &
Mineral Resources said, UNESCO is talking in the same
language of environmentalists and local activists. But we
are taking their concerns with
due seriousness. We think the
government has failed to convince them about initiatives
and actions it has taken to
minimize and restrict emissions and pollutions below
acceptable limits. We will
again inform them in a month
about our action plans for
confronting the concerns they
raised. He believes that the
actions in planning would
keep Sundarbans free from
any harmful impacts. That
would consequently remove

October 1, 2016

13

all
concerns.
An official
engaged in
the project
implementation said
on condition
of
anonymity
that the report
has
many unfounded errors.
But
even then
we are taking
their
concerns
s e r i o u s l y.
We
will
send them our response.
Dr Bayzid Kabir, Associate Professor of
BUET, talking about the report mentioned that he did not expect such a
half-cooked report from UNESCO. I
think the mission did not evaluate the
EIA and other relevant documents extensively while formulating the report.
Rather in many areas they appeared to
have just copied the statement of Oil,
Gas and Port Protection Committee.
They have also used the information of
Asia Human Rights NGO. DR Bayezid
categorically questioned the apprehension of acid rain on world heritage site
as an impact of Rampal Power plant.
They have not given any explanation.
Dr Bayzid said he expected UNESCO to
provide suggestions on limitations of
technology and engineering design. But
the report did not have any such intentions even. I consider the report as hollow.
On the other hand the nexus of activists
opposing the project are telling UNESCO raising similar concerns as they
are insisting on have suggested for cancelling the project. They reiterated that
their concerns are valid and they suggested for cancellation of the project.
Conclusion
UNESCO mission in the report claimed
that it did not get detailed information

about technologies those will be used


for emissions control. Consequently
they formulated the report based on information they received. It merits mentioning here that the project related
information was not let out for public
domain at the initial stage. But since activists in the name of Sundarbans protection started agitation, the Ministry of
Power started letting out all information
including EIA. Following DOE approved the EIA with 59 conditions, the
plant design has been significantly upgraded incorporating Flue Gas Desulfurization Plant (FDP) and other emissions
controlling and restricting mechanisms.
Bottom ash handling, adoption of dry
ash cooling method replacing water
cooling has been adopted for better ash
collection and recovery. Covered
smaller vessels for transporting coal
from mother vessels would negate possibility of spillage of coal. Additional
measures are in planning for ash management. The related persons have
claimed that all the information was
provided to the UNSECO mission during their visit. In such circumstance, it is
not correct that UNESCO mission were
unaware of technologies in design for
emissions control.
Another study was done other than EIA
to assess the livelihood of the project affected community. They are being appropriately rehabilitated. Another study

is almost
complete
for air quality survey of
150 square
kilometer
a r e a
around
Rampal
P o w e r
Plant. The
present
quality of
air in this
area
has
been obtained. A
model
is
now being
made about
the quality
of air that
may become after 15 years from now
adjusting to changed condition of Rampal Power plant and possible future industries in the area. A Canadian
organization has almost completed the
study. Another study on coal transportation is also almost complete. The government response to UNESCO will have
information about these studies.
Finally, it can be concluded that UNESCO report is based on third hand information. The absence of technical and
scientific explanation in the report is
also not desirable. Paris Agreement of
12 December 2015 does not obligate
Bangladesh for global emissions control.
But Bangladesh is committed to reduce
emissions by 5% using its own fund. If
global funding is available within time,
the carbon emission can be reduce even
by 30%. Bangladesh does not have any
global issue going for coal fired power
plant. Even then government has
adopted the best possible technology for
environmental protection in Rampal
plant. The project implementation is advancing through intensive monitoring at
every stage. We believe reality would
lead UNESCO changing its position. We
must remember that government is
equally responsible as any citizen of
Bangladesh for preservation of Sundarban.
EP

October 1, 2016

14

C over Ar t ic l e

UNESCO Mission Report on RPP is Hollow


Engr. Khondkar Abdus Saleque

he report of three members


WHC/IUCN Reactive Monitoring
Mission of UNESCO comprising
of Naomi Doak (IUCN), Mizuki Murai
(IUCN) and Fanny Duvier (World Heritage Centre) recommending for cancellation of 1320 MW imported coal fired
Rampal power plant appears hollow
and unreasonable. It resonated the shallow vision observations and opinions of
environmentalists regarding perceived
emissions and pollutions from the
power plant causing irreversible damage to World Heritage site of Sundarbans. An UN organization like
UNESCO is highly expected to prepare
and submit reports evaluating and analyzing all information of technology and
emissions control mechanisms planned
and being developed. But such informed discussions are found missing in
the report unfortunately.

The mission identified three threats of


serious concern which according to
them required urgent immediate attention. The threats according to the reports
are
Quote
Drastically reduced fresh water flow
from the effect of Farakka Barrage and
increased water extraction increasing
siltation and salinity threatening the balance of ecosystem, its functioning and
regeneration.
Four core potential threats related to
the prospective construction and operation of the 1320 MW Maitree Super
Thermal Power plant located at 65 km
from the coastal boundary of the World
Heritage property. These are pollution
from coal ash by air, pollution from
waste water and waste ash infrastructure, increased shipping and dredging
and cumulative impact of industrial and
related development infrastructure.
The World Heritage in accordance to
the report lacks a clear and comprehensive assessment of the combined effects

expected to arise from increasing


coastal developments and associated
activities.
Unquote
Farakka Barrage is in operation for over
four decades now. The impacts of the
barrage on the biodiversity and ecosystem were not discussed during the consideration for approval of World
heritage site. The effects of increasing
salinity on ecosystem may be discussed
and required remedial actions may be
taken into considerations.
65 kilometer is well outside the environmental threatened zone of World heritage property. The perceived threats of
pollution of air and water by coal ash
and waste ash and increased shipping
are exaggerations and not based on real
situation and circumstance.
The report said high likelihood for
i) Findings of The Report: Contamination of the property and surrounding
Sundarbans forest from air and water
pollution arising from both its location,
in a wind risk zone, and its anticipated
methods to minimize impacts.
Observation: The mission either did not
have access to the following information or they did not take these into considerations while formulating the report.
In our opinion use of superior quality
coal (57,000-60,000 kcal/tonnes, 0.60.9% sulfur and less than 15% ash),
adoption of ultra-supercritical technology economizing and facilitating use of
lesser volume of coal would minimize
emissions to acceptable limit. Additionally inclusion of Flue Gas Desulfurization Plant (FGD) prescribed by DOE in
approval document of EIA and low
NOX burner would reduce and restrict
SOX and NOX emissions below acceptable limit. Use of the Electrostatic Precipitator (ESP) and collection of almost
all fly ash by dry ash cooling method
would also absorb Mercury. Extensive

afforestation around the plant would absorb a substantial CO2 emitting from the
plant. A 275 meter tall chimney would
let out emission at a much lower than
acceptable limit (DOE) to the air which
would have very little or no visible impacts on World Heritage site of Sundarban.
The plant would apply dry ash cooling
method and would have closed loop
water recycling process. There will be a
multistage Effluent Treatment Plant
(ETP). The effluent through series of
treatment would produce water of ph7
quality and part of it would be released
to river at less than 2 degree Celsius
temperature. Such water would not
cause any visible impact on aquatic
species.
ii) The substantial increase in shipping
and dredging required in immediate
vicinity of the plant required for the
plants construction
Observation: The power plant during
operation would add only two modern
purpose built covered vessels for transshipping coal from mother vessels anchored in the deep sea. It must not be
considered as an element of concern.
Not to many vessels would also require
to ply even for carrying construction
materials. The plant site would son have
road access as well.
ii) The additional removal of fresh water
from an already increasing saline environment that is starting to alter the functioning of the ecosystem.
Observation: Adoption of closed loop
water recycling process, dry ash cooling
method requiring lesser volume of water
would restrict only 0.05 % of water from
the leanest time flow of Poshur River.
iv) An EIA that does not address the effects on the OUV of the property nor
providing convincing evidence that the
effects on Sundarbans will be mitigated.
Observation: 59 conditions of DOE in its

October 1, 2016

17

approval letter of EIA which have been


duly addressed in the EPC tender document for the construction of the plant.
The plant design would address all concerns of air pollution and water contamination below acceptable limit of DOE
and Bangladesh environmental law provisions. Reference of EIA at this advanced stage of the project is not
relevant. EPC tender document prepared
with the assistance of client engineer
German Company Fischer addresses all
conditions of EIA approval. The design
documentations of EPC contractor (in the
process of development) would confirm
inclusions of technology and facilities.
The report acknowledged the adoption
of ultra-supercritical technology now in
practice in Japan, Korea, Germany and
India. But according to the report such
plant near a property like Sundarban. In
our opinion the basic issue is whether
or not technology addresses emissions
and pollutions to acceptable limit or
not. It does not matter whether it is constructed at prescribed distance from
Sundarban or any other protected property.
Mitigation of Possible Impacts
of Water Pollution
ESP and dry ash cooling method being
adopted at Rampal Power plant would
recover almost 100% of fly ash from
coal in dry condition. Along with it most
of the mercury would also be extracted
from coal. The four cement factories in
the locality have already approached
BIFCPL for using the ash for their cement production. As contingency plan
RPP has provision for temporarily storing ash as concentrated slurry in properly designed ash pond using high
density slurry pump. Higher than highest level of tidal surge bund wall would
prevent water run off. There is no possibility of ash contaminating the Poshur
river water.
RPP would have a completely covered
coal storage facility having adequate capacity of coal for three months use. Covered coal transportation vessels and
covered coal storage facility would
negate all concerns of coal spillage.
We find that the report in a very unpro-

fessional manner has discussed about


275 meter high chimney letting off
emissions to ozone layer causing reported impacts to World Heritage site.
FGD, Low NOX burner, ESP would take
out most of the emmitants from the flue
gas. The tall chimney would reduce velocity causing further drop out of particulate matters. At higher level wind
would disperse the almost harmless flue
gases without causing any harm to any
nearby area not to speak of world heritage site at 65 km distance.
The UNESCO report recommended for
cancellation of Rampal Power Plant
Project at its present Site and relocates
it to an alternate location.
Observation
The concerns for air, water pollution,
water use causing issues, additional
shipping causing problem are addressed
above. There are no valid reasons why
the plant cannot be set up in present location as it would not cause any serious
impact on World Heritage Site of Sundarbans at 65 KM + distance.
In conclusion we can only record our
utter surprise and frustrations reviewing
a highly unprofessional report from a reputed UN organization on a critical infrastructure project. The report is based
on amateur statements and information
and lacks professionalism. Scientific
analysis of technological interceptions
of emissions and pollutions of a coal
fired power plant is sadly missing. Before making concluding recommendations of cancelling a government
approved project they should have requested for additional documents and
information. Such a hollow report creates credibility questions for a responsible organization. Government of
Bangladesh is expected to clarify the
questions raised with additional information which they may have acquired
by now some ongoing studies for air
quality assessment of 150 Square kilometer area around Rampal Power plant
site after RPP and planned industries
come into operation.
EP

Engr. Khondkar Abdus Saleque;


NRB, Energy Professional

October 1, 2016

18

C over P l u s

A Commentary on IUCN/WHCs
Report on Rampal Power Plant
Dr. Kazi Bayzid Kabir

he report produced by the joint reactive monitoring mission (RMM)


of International Union for Conservation of Nature (IUCN) and UNESCO
World Heritage Centre (WHC) for the
Government of Bangladesh has once
more stimulated the debate on the
Bangladesh-India Friendship Company
Ltd.s 2660 MW project to be erected
at Rampal, Bagerhat. The three member
team visited the country from 22 to 28
March of 2016 following the decision
made by the WHC in their 39th session
held at Bonn in 2015.
The mission made ten recommendations
to the state party in their report, out of
which they listed four recommendations
for immediate implementation. We all
know by now that one of them is to cancel the Rampal project (recommendation
2). This article is focused on the recommendation 2 only, the concerns and recommendations regarding the Rampal
power plant.
Before I start my discussion on the report
provided by the RMM, I would like to
briefly mention important events that are
relevant to the Rampal project, which
are chronologically listed below. This information might be useful in shedding
light on some of the misconceptions.
January 2010 A MoU was signed on
energy cooperation between the
Bangladesh and India governments
June 2010 CEGIS started working on
IEE and EIA
August 2010 A MoU was signed between BPDB and NTPC for implementation of 1320 MW coal based thermal
power plant in joint venture
October 2010 Submission of Final
IEE report
March 2011 A draft feasibility report
prepared by NTPC was submitted to
BPDB
April 2011 DoE approved the ToR for
EIA

May 2011 The project received location clearance


January 2012 BPDB and NTPC
signed joint venture agreement
October 2012 BIFPCL was incorporated as a private limited company
November 2012 Feasibility report
was finalized
August 2013 EIA was approved by
DoE
September 2015 Opening of EPC
tender for the plant
July 2016 Contract has been signed
between BIFPCL and BHEL, the EPC contractor
The report produced by RMM somehow
came up with the popular demand
nowadays. However, I could not agree
with some of the arguments presented in
the report. To my knowledge, the following points mentioned in the report are inaccurate and hence worth mentioning.
The report referred to the National Committee to protect Oil, Gas, Mineral Resources, Power and Ports (NCOGMPP) to
say that the site was selected without any
environmental assessment. According to
the feasibility study report, three possible
sites were evaluated out of which one
was found unsuitable as it was not accessible by land transport. The final project
site was selected based on the standard
criteria that are used for site selection.
The project also had to submit the IEE to
the Department of Environment (DoE) to
get the location clearance. Therefore, the
claim regarding the site selection is not
true.
The report also includes claim made by
the group South Asians for Human
Rights. They said the land acquisitions
commenced before the EIA approval. If
we read through our Environmental Conservation Rules 1997, rule 7, we will find
the procedure a red category industry
needs to follow to get the clearance from
the DoE. Firstly, the project will need to

apply for the environmental clearance


certificate using form-3 (ECR 1997) and
supporting documents as per sub-rule 6
of rule 7. DoE then issues a location
clearance certificate for successful applicants. Upon receiving the location
clearance certificate the entrepreneurs
are able to undertake activities for land
and infrastructure development (Sub-rule
9 of rule 7) and shall submit for the approval of EIA prepared on the basis of
program outlined in IEE. The land acquisition is therefore not related to the EIA
approval; rather it can be done after location clearance. As the land acquisition
activities were started after 23 May 2011,
after receiving the location clearance, it
was done as per the ECR 1997. So the
claim regarding EIA approval and land
acquisitions made by the South Asians
for Human Rights is unsubstantial.
The report suddenly concluded that the
EIA is inconsistent with globally accepted
practices. With the flow of the report I
can assume that this decision was based
on the reports made by NCOGMPP and
South Asians for Human Rights, as no
other reason or explanation was provided. These groups produced unequivocally biased reports based on wrong
information and hence cannot be a good
source of information. The EIA for the
project was prepared based on the ToR
approved by the DoE on April 2011, a
standard procedure followed for the
preparation of EIA in the country.
From the ToR for the tender document for
the EPC contractor and the EIA report,
the report assumed that the details of
what will be constructed by BHEL in the
Rampal site in not clear and hence the
EIA might be conceptual. Probably the
mission was unable to find publically
available technical data sheets (1178
pages in total) from the BPDB website or
failed to decode the technical documents. The tender specifications were
prepared as per the EIA report incorporating modifications suggested by the
DoE on its letter of approval for the EIA
(memo
no:
DOE/clearance/5062/2011/206; dated 5 August
2013).
The mission raised four major concerns
related to the Rampal power plant: air
pollution, water pollution, cumulative

October 1, 2016

19

impact, and increased shipping and


dredging.
While talking about the first two concerns the report has actually educated us
well with its excellent literature review
on how coal-based thermal power plants
can cause pollution. These are pretty
common knowledge and can be found
inside any book on coal to power generation. I really do not see the point of
these discussions.
The report claims that the project is
going to implement a supercritical power
plant, though a better technology to aid
pollution reduction (ultra-supercritical) is
already available. A power plant can be
considered as ultra-supercritical if the
main steam pressure is above 25 MPa
(250 bar), and the main and reheat steam
temperatures are above 580 C. As per
the tender document, the EPC contractor
has to design and install steam boiler that
will produce steam (both main and reheat) of a maximum temperature of 600
C and a maximum pressure of 27 MPa
(270 bar). So the power plant is question
is not a supercritical as mentioned in the
RMM report; rather it is an ultra-supercritical one. Seems like the mission failed
to incorporate the latest developments
regarding the Rampal power plant in
their report.
Tall stacks disperse pollutants over
greater distance, which is correctly stated
in the report. However, the report failed
to mention that dispersion over greater
distances (and hence greater area) helps
to reduce the concentration to lower levels and hence reduces the effects of the
concentration of the polluting gases. In
the EIA report, dispersion modelling of
SOx and NOx emission were done over
a distance of 25 km from the point
source (the stack of the power plant).
Considering both the 660 MW units operational, the annual average concentration of SOx will increase from 9.5 g/m3
(background concentration) to 10.49 at
a distance of 14 km (nearest boundary of
the Sundarbans from the power plant)
and 10.10 at a distance if 25 km. These
concentrations are in compliance with
the 2005 amendment of ECR 1997
(Schedule-2), IFC guidelines and WHO
guidelines for forest ecosystem. For NOx,
the annual average concentration will increase from 18 g/m3 (background con-

centration) to 23.9 at the boundary of the


Sundarbans amd 21.6 at a distance of 25
km. Like SOx, NOx concentration are
also compliance with the 2005 amendment of ECR 1997 (Schedule-2), IFC
guidelines and WHO guidelines for forest ecosystem. With these concentrations
there will be no chance of acid rain.
Therefore, the claim made about acid
rain at a distance of 65 km from the point
source in not true.
The power plant will produce a maximum of 5150 m3/h effluent water, the
components of which are: cooling water
blow down 3250 m3/h, rejection from
desalination plant 1200 m3/h, ash water
blowdown 400 m3/h, coal settling pond
300 m3/h. The effluent from these locations will be collected to effluent sump
before sending it to the ETP for treatment.
The report states that the discharge volume does not include wastewater discharges from other infrastructure rather
than the cooling water. From the breakdown shown above, it is clear that the
claim is not true.
The report also claims that the optimization of water usage through internal recycling and reuse has not considered for
the Rampal plant. By analysing the water
balance diagram (Figure 5.10 of the EIA
report), one can conclude that the claim
is not correct. As per the diagram, a portion of the cooling water blow down will
be used in ash water sump and for dust
suppression the coal stock yard. Also a
portion of the ash water blow down will
be recycled to the ash water sump. Water
from power cycle blowdown and the
neutral pit will be preserved to feed it to
the desalination plant. As a result of these
measures, the water consumption in the
power plant will be 3.03 litres per unit of
electricity, on par with the water usage
as per the reference 17 of the report.
The report further mentions about the
collection of ash in cooling ponds! Actually cooling ponds are not for storing ash.
They are an alternative to cooling towers. The Rampal power plant will have
ash ponds with impermeable liners.
However, these ash ponds will be used
only if the ash storage silos are full (if the
produced ash could not be delivered to
the customers for some unforeseen reasons). Both the fly ash and bottom ash
silos will be able to store ash for 15 days

at 100% boiler maximum continuous


rating (BMCR). According to the EOI submitted to the BIFPCL the demand for ash
exceeds their expected production.
Therefore, the ash pond will be barely
used. It must be noted, the size of the ash
pond has been reduced from 100 acres
to 25 acres as per DoEs directive. Also
the elevation of the ash dyke will be 5.60
m from public works datum, 0.60 m
higher than the historical maximum
surge in the plant location.
The concerns regarding increased shipping due to import of coal are over-exaggerated. The coal transportation will add
only two to the fleet of more than a hundred of ships currently navigating
through the Pasur channel every day.
Therefore, the pollution from the additional coal carrying ships will be insignificant.
Analysis of the section of the report relevant to the Rampal power plant, therefore, indicates that the investigation team
somehow could not focus on the actual
facts and scientific knowhow of the technology that will be used in the Rampal
power plant for many instances. Even
though the EIA study clearly showed,
through baseline study and calculations,
that the air and water emission from the
plant will have insignificant impacts on
the Sundarbans at a distance of 14 km
from the plant, the mission concluded
that the OUV of the property (world heritage site) at a distance of 65 km from the
plant will be affected. The report also
contains numerous errors as mentioned
above. As per the executive summary,
the members of the RMM have consulted
with many experts prior, during and after
their visit. I doubt any of those experts
having a sound background on the technology of the power plant to be erected
at Rampal.
A report from an organization carries a
lot of weight. Therefore, it is expected
that before producing such a report the
team will consult with the experts relevant to all aspects.
EP

Dr. Kazi Bayzid Kabir;


Assistant Professor,
Department of Chemical Engineering,
BUET

October 1, 2016

20

Repo r t

Bharat Petroleum Wants


Higher Premium for Diesel
Export to Bangladesh

ndia has proposed to export


lorry-loads of diesel to
Bangladesh from Numaligarh
refinery of the state-run
Bharat Petroleum Corporation Ltd (BPCL) on a regular
basis, pending a joint
pipeline.
Officials said BPCL recently
sent
a
proposal
to
Bangladesh Petroleum Corporation (BPC) on supply of
around 5,000 metric tonnes
(mt) of diesel per month by
tank lorry from Siliguri.

A senior BPC official said the


exporter sought a premium of
US$ 8.31 per barrel to Mean
of Platts Arab Gulf (MoPAG)
diesel assessments on costand-freight (CFR) basis meaning the price would be above
US$ 8.31 per barrel from the
international
benchmark
price of this fuel oil.
BPC has yet to decide on the
diesel import on tank lorry
from the Numaligarh refinery
in the northeastern Indian
state of Assam, said the official. The
premium
would be
a crucial
issue
in
taking decision on
import of
diesel from
the BPCL.
EP

GLOBAL LNG Prices Rise on


Indian, South Korean Demand

sian liquefied natural gas


(LNG) gas prices rose last
on renewed Indian demand
and prospects of South Korea
ramping up term supplies
from Qatar to replace lost nuclear output.
Prices for November delivery
traded at $5.75 per million
British
thermal
units

(mmBtu), up around 15 cents


from previous week - helped
by a surge in gas prices at
Britain's benchmark gas market which increasingly sways
Asian LNG markets.
Last week, front-month gas
prices at the UK hub rallied
12 percent to 27 pence per
therm, or $4.80 per mmBtu,
amid
unprecedented levels of
trading volatility
caused by the
shutdown of a
major
underground gas storage
site in June.
EP

Nasrul: Rampal Plan


Construction to Continue

he construction work on
Rampal power plant will
not be suspended despite the
advice of Unesco, State Minister for Power and Energy
Nasrul Hamid said recently.
The construction work on
Rampal power plant will
continue as no decision has
been taken yet by the government to stop it, he told
reporters after attending a
workshop on the environmental impact of Siddhirganj
power plant.

Power Cell organized the


workshop titled Cumulative
Impact Assessment of Siddhirganj Power Hub at
Bidyut Bhaban in the city.
The remarks of the junior
minister came against the
backdrop of a Unesco report
that suggested the government should cancel the Rampal project. The scheme was
undertaken to build a 1320
MW coal-fired power plant
at a site near the Sundarbans.
EP

Canada Review Says Petronas


Plant Would Hit Environment

heniere Energy's Sabine


Pass export facility in the
United States has shut for
four weeks of planned maintenance, though Royal Dutch
Shell's Maran Gas Sparta vessel is nearing the plant and
could load a cargo held in
Sabine's storage tanks.

from a multi-month outage


with the offer of a cargo to be
loaded onto the Sonangol
Sambizanga tanker on Sept.
25-27.

Angola LNG has returned

A spokesman for B.B. Energy


confirmed that it
was awarded the
December shipment. The firm recently hired trader
Navin
Ganesh,
who is based in
Houston, Texas,
from Trafigura.

Egypt
chose
Glencore,
Trafigura and B.B. Energy to
supply a total of three cargoes following a tender.

EP

October 1, 2016

21

Repo r t

Unesco Calls for Revised EIA


on Rampal Power Plant

xpressing concern over


the potential damages to
the Sundarbans, the Unesco
has requested the government to conduct a revised
Environment Impact Assessment (EIA) before
going
ahead
with
the Rampal
power plant.
The government was also
requested to
submit a revised EIA report with the advice note of the International
Union for Conservation of
Nature (IUCN) before advancing with the physical

work of the power plant.


Following the visit of a threemember reaction mission
team from the Unesco, a report was sent to the government last month, seeking a
specific
assessment of
the potential
impacts of a
thermal power
plant near the
Sundarbans
and the dredging of the
Pashur river, said a source.
The government would have
to respond by October 11.
EP

Power-Gen Asia: MAN Diesel


& Turbo Presents Power
Generation Solutions

AN Diesel & Turbo presented its entire portfolio of innovative power


generation solutions at this
year Power-Gen Asia in
Seoul, Korea, at the companys booth.
With a product range thats
unique in the market, MAN
Diesel & Turbo is able to provide both gas and diesel engines as well as gas and
steam turbines as a one-stopshop solution, says Wayne
Jones, Member of the Executive Board for Global Sales
and After Sales.
Whether its engine or turbine technology, we are able
to provide clients with the
best solution suitable for
each and every project requirement, he adds.
On its booth in Seoul, the

Matarbari Project Hits Snag


Over Security Concerns

espite a three-month extension granted by the


authorities, two previously
aspiring Japanese firms have
grown reluctant to place bids
for the Matarbari coal-fired
power plant project on
grounds of security, delaying
the implementation of what
is a top-priority project for
the government.
According to sources at the
Coal Power Generation
Company Bangladesh Limited (CPGCBL), the implementing agency, July 24 had
been set as the deadline for
submission of the final bid
"Request for Proposal".
Accordingly, two Japanese
firms-Marubeni Corporation
and Sumitomo Corporationwhich were primarily selected as qualified bidders for
the project - were asked to
submit their RfPs as per the

schedule.
But the killing of 7 Japanese
citizens in a terrorist attack at
Gulshan's Holey Artisan Bakery on July 1 has acted as a
big blow for the project, as
the Japanese firms became
unwilling to stay and work in
Bangladesh after the incident.
They initially urged the
CPGCBL to suspend the bidding process until the security situation improves to a
"satisfactory level."
But the CPGCBL disagreed
with the Japanese firms' request and initially extended
the deadline for RfP submission by one month till August
24. But later the RfP submission date had to be extended
again, by another two
months until October 24, according to the sources.
EP

company presented amongst


others its MGT gas turbine
series, with which it has
gained a strong foothold in
the power segment around 6
MW.
Especially designed for efficient and eco-friendly use in
Combined Heat and Power
(CHP) plants, the MGT series
is deployed in the SAIC Volkswagen production works
close to Shanghai (China).
As a prime example, four
MGT turbines in a CHP
setup here replace existing
coal-fired boilers, supporting
the customer in meeting
stricter emission regulations
- especially true for the country of China, where the authorities are heading to
sustainably improve air quality.

Underlined by exhibits on
the Power-Gen booth, the
company also presents its
portfolio of steam turbines
for various power generation
needs, for example biomass,
waste-to-energy, waste heat
recovery or combined cycle
applications.
With a steam turbine production site in Bangalore

(India), MAN Diesel & Tubro


recently added up its production network in the region of Southeast Asia, while
this network already comprises a turbomachinery
plant in Changzhou (China)
as well as an engineering
and production center for
diesel engines in Aurangabad (India).
EP

October 1, 2016

23

Repo r t

BERC Readies Draft LPG


Regulation

he government has finally


stepped in to formulate
the country's first-ever LPG
(liquefied petroleum gas) operation, storage, supply, distribution and marketing
regulation to ensure safety
and quality in mounting usages of the fuel.
The country's energy regulator has
already drafted
the
regulation,
spelling out necessary
safety
measures, which
would be called as the
Bangladesh Energy Regulatory Commission (BERC) LPG
Storage, Bottling, Transportation and Dispensing Codes
and Standards, 2016.
It would cover storage, bottling, transportation and dispensing, including container,
piping and associated equip-

ment and appurtenances of


LPG, a senior BERC official
said.
Insurance has been made
mandatory for the LPG businesses to cover any loss and
damage to the public life and
property due to
fire or any operational reason or
accident etc.
A licensee will be
responsible
for
any mishap that
takes place at his
workstation
or
LPG outlets, on distributor's
premises or during transportation of LPG due to incompetence, negligence or
use of substandard material
or equipment, and will be liable to compensate the loss
of life and property, it spells
out.
EP

Drilling at Magnama May


Start by Feb

tate-run Bangladesh Petroleum Exploration Company (Bapex) and Australian


Santos are mobilizing rigs
and all necessary equipment
to commence hydrocarbon
exploration at offshore Magnama structure in the Bay of
Bengal
this
winter, officials
said.
"Both the firms
are readying
works like engagement of
drilling contractors
and
purchase
of
drilling equipment to kick off
the
explo-

ration," said an official.


It would be the Bapex's firstever offshore exploration
program, he said, adding that
the Santos-Bapex joint venture plans to initiate drilling
at Magnama-2 well.
"We are hopeful of starting
drilling at Magnama by February next," said
the official.
Magnama
structure is located
within
block 16 areas
where
nowshut Sangu well
is located.
EP

GSB Set to Start Study on River


Sand for Strategic Minerals Soon

eological Survey of
Bangladesh (GSB) is set
to conduct a study of the sediments in the Ganges-Brahmaputra-Meghna (GBM) river
systems soon to identify and
assess the economic value of
strategic
minerals
in
Bangladesh's river sand.
To assess the extent, reserve,
mode of occurrence and economic viability of mineral
sand in the river, the GSB received the clearance from the

Energy division and a fund last


month, officials said.
"Now we could be able to determine the value of minerals
in river sand," said a senior official.
He said that the GSB will conduct a study of the sediments
in the GBM river systems for
commercial exploitation of
mineral sands for the first time
in the country.
EP

Tk 1.75b Power Bill Lying Unpaid


in Sylhet Division

ver Tk 1.75 billion has


long been lying unpaid
in arrear electricity bill for
long in Sylhet Division. The
amount includes about Tk
350 million with the different
government offices and departments under different
ministries.
Although it was over Tk 1.66
billion at the end of fiscal year
on June 30 last, the amount
rose to Tk 1.75 billion by
now, the official sources in-

formed.
The PDB, even on repeated attempts failed to realize the
long standing arrears, especially lying with the government departments. They held
meetings in different times and
requested for clearing the dues
several times. There had been
no response over the payment,
sources informed, adding, but,
for reasons the PDB couldn't
proceed much for disconnecting the lines.
EP

Priority REB Projects Face


Fund Shortage

he Power Division is facing difficulties in implementing some major rural


electrification projects for
non-availability of fund, officials said recently.
The Power Division recently
sought Tk 40 billion for six
development projects as their
execution is being seriously
affected due to fund shortage.
The Division has communicated to the Planning Com-

mission (PC) in writing about


its financial difficulties and
asked for additional funds in
the current financial year (FY)
2016-17.
In the current FY2017 Annual Development Programme (ADP), the Division
received Tk 130.40 billion.
A senior official said at least
six priority projects of different Power Division agencies
are struggling due to acute
fund shortage.
EP

October 1, 2016

24

Repo r t

RPCL to Build 1,320MW


Coal-Fired Power Plant in Patuakhali

he government has allowed Bangladesh's public sector company RPCL to


set up a larger 1,320megawatt (MW) coal-fired
power plant to boost electricity generation capacity, officials said.
Power Division officials said
the Rural Power Company
Limited (RPCL), the country's
first Independent Power Producer (IPP), would set up the
ultra-supper critical technology power plant in southern
Patuakhali district.
The company will develop
915 acres of land at Kalapara

upazila of Patuakhali to set


up the power station.
The RPCL recently sought approval of the land acquisition
and development project
from the government for setting up the power plant.
"We have recently sent a land
development project proposal costing Tk 8.70 billion
to the Planning Commission
for approval. Soon after getting endorsement, we will
start site development work
for the power plant," said a
senior Power Division official.
EP

Experts for Keeping Close


Watch on Rampal

number of experts recently called for forming


an independent commission
to monitor the implementation of the coal-based power
plant in Rampal to make sure
all safety controls being
promised by the government
are put in place.
Exactly what is happening
should be monitored by a
neutral commission, said
Ainun Nishat, professor
emeritus of Brac University.
He was backed by Mustafizur
Rahman, executive director
of the Centre for Policy Dialogue, a Dhaka-based think-

IFC Leads $175.5m Investment in


Summit Groups Power Projects

nternational Finance Corporation (IFC), the private investment arm of World Bank,
has led a $175.5 million investment in independent
power producer, Summit
Groups
projects
in
Bangladesh.
The investment was made
through IFC Emerging Asia
Fund, an investment fund
managed by IFC Asset Management Company (AMC),
and EMA Power, a joint venture between Daelim Energy
and Islamic Development
Bank Infrastructure Fund II, as
per a company statement.
With the backing of IFC and
EMA Power, the Summit
Group aims to attract future
rounds of funding from international investors through private and public markets.
The investment, via a newly
set up Singapore company,
Power International, is part of
Summit Groups plans for raising finance from international

markets. The sizable capital


raised from the premier investor group, led by IFC,
shows the commitment that
these investors have towards
Summit
Group
and
Bangladesh,
said
Muhammed Aziz Khan,
chairman and managing director of Summit Group.
This latest funding will help
Summit Group to install
green-field electricity-generation plants, including a 500
MW dual-fuel combinedcycle power plant and a 150
MW heavy fuel oil-based
power plant.
IFC previously also financed
Summit Group-related projects Khulna Power in 1999
and Bibiyana in 2015. At
present, Summit Group has
approximately 1500 MW of
power generation capacity
and is the largest independent
power
producer
in
Bangladesh.
EP

tank.
We are hearing from our
policymakers that there will
be control systems etc. Then
why don't you say that there
will be an independent committee which will monitor
during the implementation
phase whether it is harmful to
the Sundarbans and what
other measures we can take?
They were speaking at a dialogue styled BangladeshIndia Relations Progress
made and the Challenges
Ahead.
After the meeting, Mashiur
Rahman, economic
adviser to the prime
minister, told reporters that if there
was any scientific
basis of the claim
that there are faults in
the Rampal project,
the protesters should
publish it and the
government would
consider it.
EP

Comprehensive Program to
Improve Troubled Power System
Starts in Sylhet

drastic program for improving the existing troubled


power
distribution
system for the districts of Sylhet Division has been started.
The project director has also
started the job at the Dhaka
office.

It would help revamp the existing electricity supply system


in the whole region, which
had been in a sorry state for
long even on producing three
fold of region's electricity demand on the power stations in
the region.

The Tk 18,670 million project, titled 'Power Distribution


system development project
for Sylhet Division' was approved at the ECNEC meeting
on May 3, official sources informed. However, it had to be
revised thrice.

For implementing the threeyear program, Tk 17,315.54


million would be spent by the
government and the rest Tk
1355.23m is to be shared by
the Power Development
Board (PDB) itself, the source
said.
EP

October 1, 2016

25

Repo r t

Singapore Co Again Oers


'Best Bid' to Buy 170,000
Barrels of Naptha

ingapore-based Vitol Asia


has offered again the 'best
bid' to purchase 170,000 barrels of heavy naphtha for delivery during September
28-30 on FOB (free on
board) basis from Chittagong
port, said officials.

naphtha assessments on
close of bid submission
deadline recently.

Vitol Asia submitted the 'best


bid' at a discount of US$1.93
per barrel to the Mean of
Platts Singapore (MOPS)

A total of five bidders including Itochu, Trafigura, Glencore and MRI Trading took
part in the bidding.

MOPS is a benchmark in international oil pricing prepared by S&P Global Platts, a


US-based energy information
provider and analyst.

EP

Govt to Install 660MW Plant


at Mine Mouth of Dighipara

he government is likely to
install a 660MW capacity
coal-fired power plant at the
mine mouth of Dhighipara
coal-mine, the second largest
coalfield of the country situated about 300 kilometers
away from the capital Dhaka.

cided to conduct a feasibility


study through Petrobangla to
implement the project, the
official said.

We have decided to sign a


nonbinding memorandum of
understanding with the Chinese state-owned power construction corporation of
China popularly Power
China Resources Ltd (PCR) to
implement the mine mouth
power project, a concerned
official said.

Recently, the ministry of


power, energy and mineral
resources held a meeting
with the State Minister for
Power and Energy Nasrul
Hamid in the chair. During
the meeting, officials of
Petrobangla said the government would consider a plan
to conduct survey on water
sources to implement the
plant as the Barapukuria
coal-fired plant faces water
crisis.

Besides, the government de-

EP

Centre Gives Rs 5.1K Crore to


Link Eastern India with Gas Grid

he Centre recently approved Rs 5,176 crore for


funding the JHBDPL gas
pipeline project, which will
connect eastern part of the
country with the national
grid.

ect, said a press release.

The implementation of the


project will ensure natural
gas supply to the industrial,
commercial, domestic and
transport sectors in five states
Uttar Pradesh, Bihar,
Jharkhand, Odisha and West
Bengal.

The project will connect


eastern part of the country
with National Gas Grid.

The Cabinet Committee on


Economic Affairs, chaired by
Prime Minister Narendra
Modi has approved viability
gap funding/partial capital
grant at 40 per cent (Rs 5,176
crore) of the estimated capital
cost of Rs 12,940 crore to
GAIL for development of
2,539 km long JagdishpurHaidia and Bokaro-Dhamra
Gas Pipeline (JHBDPL) proj-

The Centre has taken this


historic decision to provide
Capital Support for developing this gas pipeline, it
added.

This grant will encourage


supply of eco-friendly fuel at
affordable tariffs to industries
and will encourage industrial
development in these states,
the release said.
CCEA has also approved the
simultaneous development
of City Gas Distribution
(CGD) networks in cities including Varanasi, Patna,
Ranchi,
Jamshedpur,
Bhubaneswar, Kolkata, Cuttack en-route of the JHBDPL
project.
EP

Thai Investors Show Interest


in Power, Tourism Sectors

hai entrepreneurs are interested to invest in the


country's economic zones,
especially in power and
tourism sectors, officials
sources said.
A joint working group, they
said, visited different economic zones recently to explore
the
investment
opportunities in the country.
The Thai delegation, however, expressed its keen interest to invest in Cox's
Bazaar during a meeting of
the joint working group at
Bangladesh Investment Development Authority.

The investors, they said, collected necessary information about the sites of
Sabrang Tourism special
economic zones and Jaliati
SEZ in Cox's Bazar.
Officials of Bangladesh Economic Zones Authority
(BEZA), however, urged the
Thai delegates to invest in
Mirersarai Economic Zone
in Chittagong for having
plenty of land and investment opportunities under
the government to government and public-private
partnership models.
EP

October 1, 2016

26

Repo r t

Icebreaker to Get a Reactor

he next generation Arktika icebreaker is approaching the time when it


joins Russia's nuclear-powered fleet. The Baltic Shipyard started installing a
propulsion unit on the vessel
in September.
Installation of a propulsion
unit is a key operation in the
construction of a nuclear icebreaker. The first of the two
steam generators of the
RITM-200 propulsion unit
has already been mounted in
its permanent position on the
Artktika icebreaker. The generator weighing around 180
tons was loaded onto the vessel with a Demag floating
crane. The other steam generator is to be mounted
within a month.
"Since it is the first icebreaker
of the Project 22220 series,
we have had to seek solutions for technological challenges arising throughout the
construction period. Engi-

neering solutions are especially difficult to find for such


complicated operations as
the installation of a reactor,
the nuclear icebreaker's
heart. Our shipyard has a
chance to get new experience and skills," said Alexei
Kadilov, CEO of the Baltic
Shipyard.
The new propulsion unit is
unparalleled for its compact
size and cost efficiency. Its
energy-efficient integrated
design provides for the placement of core equipment inside the steam generator shell
and makes the unit twice as
light, half more compact and
25 MW more powerful than
current icebreaker reactors of
the KLT series. The reactor
design enables the icebreaker to be used both in
deep Arctic waters and river
estuaries and improves its
icebreaking speed and other
performance indicators.
EP

The accident resulted in the


gradual
shutdown of all of
Japans nuclear
power plants. This in turn led
to a significant rise in fossil
fuels use, increased fuel imports and rising carbon dioxide emissions. It also brought
electricity prices to unsustainable levels.

IEA Welcomes Energy


Market Reform

apan should balance and


diversify its energy mix
through a combination of renewable and nuclear energy
and efficient thermal power
generation, the International
Energy Agency (IEA) said in
its latest review of Japans energy policies, stressing this
would help the country build
a more secure, affordable,
safe and decarbonized energy system.
Japans energy policy has
been dominated in recent
years by its efforts to overcome the impact from the
2011 Great East Japan earthquake and the subsequent
Fukushima nuclear accident.

Speaking at the launch of the


IEAs report in Tokyo, IEA
Deputy Executive Director
Paul Simons acknowledged
that since the Fukushima accident, Japans energy system
has shown great resilience.
The traditional focus on security of supply has worked,
Mr Simons said. The future
challenge, however, is more
about climate change. Japan

Groups Rally Outside U.N. to


Protest Coal Development
Near Sundarbans

ecently, as President
Obama and Bangladeshs
Prime Minister Sheikh Hasina
were inside the U.N. General
Assembly
meeting,
Bangladeshi-American, environmental, and other groups
rallied outside to protest the
development of coal-fired
power plants near the Sundarbans, a UNESCO World
Heritage site and the worlds
largest continuous mangrove
forest.
In particular, activists demanded the U.S. Export-Import Bank (Ex-Im Bank), the
taxpayer-funded export credit
agency of the United States,
publicly reject financing for
the Orion-Khulna coal plant,
which would be built just
nine miles from the Sundarbans. The Sundarbans spans
the border of India and
Bangladesh and is home to
endangered species like the
Bengal tiger and Irrawaddy
dolphin, and upwards of six

should take concrete steps to


meet its 2030 climate target
and to cut emissions significantly more by 2050.
The IEA report encourages
Japan to increase low-carbon
sources of power supply. Renewable energy supply
should become more cost-ef-

million people.
Friends of the Earth U.S. recently obtained documents
through a Freedom of Information Act Request that reveal U.S. Ex-Im Bank
Chairman Fred Hochberg has
been in talks as late as February 2016 with Bangladeshi
government officials and
General Electric (GE) about
coal projects, which likely include the Orion-Khulna coal
plant. GE, one of the top recipients of Ex-Im financing,
has been contracted to provide parts for the OrionKhulna plant, according to
media reports.
Over the last several months,
hundreds of thousands of
people in Bangladesh have
participated in protests opposing coal development
near the Sundarbans. Similar
protests have also been held
in Paris, Washington D.C, Atlanta, and New York.
EP

fective over time. It should


also have a broader technological and geographical
focus. Nuclear power should
gradually be restored but
only once the highest safety
standards are met and public
trust is regained.
EP

October 1, 2016

27

Renewables
Now Account
for over 30% of
Global Power
Generation
Capacity

ccording to a new report published


by the World Energy Council in
partnership with CESI S.p.A., renewables, including hydro, now account for
over 30% of the total global installed
power generation capacity and 23% of
total global electricity production.
In the past 10 years, wind and solar
photovoltaics (PV) have witnessed an
explosive average annual growth of
23% and 50% respectively, although
their combined contribution to the

Sonagazi to Have 100 MW Solar, 100


MW Wind Power Plants

wo renewable energy projects - one


100MW solar power plant and another 100 MW wind power plant - are
going to be set up in Sonagazi upazila
of Feni district.
State-owned Electricity Generation
Company of Bangladesh (EGCB) will
implement the two projects.
EGCB officials said they have already
received administrative approval from
the Power Division while the Planning
Commission also approved a proposal
for the acquisition of 1000 acres of land
in Sonagazis island areas.

Finally, weve got ECNECs approval,


the highest body for approving development projects, on August 9 this year, a
top EGCB official said.
Recently, a high-power committee,
headed by the chairman of Renewable

global electricity supply is currently


only 4%, according to Variable Renewables Integration in Electricity Systems
2016 How to get it right.
The Report draws upon 32 country case
studies, representing about 90% of installed wind and solar PV capacity
worldwide.
Renewables have become big business:
in 2015 a record USD 286 billion was
invested in 154 GW of new renewables
capacity (76% in wind and PV), by far

and Sustainable Energy Development


Authority (Sreda), selected the lands for
the two projects.
Sreda member and Power Divisions
joint secretary Siddique Zobair said his
organization has been providing all the
necessary policy supports for implementing the two renewable energy projects.
Initially, he said, it was Mirsarai upazila
in Chittagong that was under consideration for the two projects, but the
scarcity of suitable lands prompted the
authorities to select Sonagazi.
EGCB officials said Ecnec has, meanwhile, approved Tk 102.92 crore for
land acquisition. Now, the PGCB will
move for inviting tenders for the projects.
They said the two projects will be implemented
through export credit
agency
(ECA)
financing
where the
bidders will
mobilize
required
funds for
the
projects.
EP

overtaking the investment in conventional generation to which 97 GW were


added.
The success of both the development
of intermittent renewables and their efficient integration in electricity systems

fundamentally depends on the right


market design and regulatory framework and solid regional planning to
avoid bottlenecks, said Christoph Frei,
Secretary General, World Energy Council.
EP

October 1, 2016

29

Atiur Calls for Giving Green Finance


Institutional Shape

ormer governor of Bangladesh Bank


Atiur Rahman has said that greening of
finance is a journey, not a destination.
"Greening of finance is a journey--not a
destination. Much more to be done in institutionalization, experimentation and
implementation," he said while addressing a seminar on "Green Financing and
Sustainable Development: Lessons from
Bangladesh" held at the World Bank (WB)
headquarters in Washington DC recently.

Elaborating on the innovative role of


Bangladesh's central bank in incentivizing the financial system to go for green financing to align itself with the
requirement of sustainable development,
Rahman highlighted moral suasion, refinancing, rewarding good performance of
banks, adoption of environment and social risk management and developing
collaboration at the national and international levels.
Michael Toman, Lead Economist and Research Manager of Environment-Energy
Team, presided over the
seminar, according to a
statement from Washington.
This was the first of the series
of seminars he is scheduled
to speak at the WB and the
International Monetary Fund
(IMF).
EP

Abu Dhabi Solar


Power Project
Attracts Lowest
Bid

bu Dhabi has received six bids to


build a 350-megawatt solar plant in
the emirate, one of which was cited by
the Abu Dhabi Water and Electricity Authority (ADWEA) as equating to the lowest cost for solar power generation by a
commercial project.
The proposed Sweihan plant east of Abu
Dhabi is part of efforts by the oil-rich
capital of the United Arab Emirates to diversify its energy base into renewables
as it seeks to generate 7 per cent of its
power from green methods by 2020.
Of the six Sweihan bids, the lowest

China to Rein in Growth of Green


Energy Industry

fter installing more wind and solar


farms than anywhere else on the
planet, China is ratcheting back the pace
of growth in an industry that has helped
lower the costs of green energy worldwide.
Installations of new wind and solar farms
in China are expected to drop 11 per cent
next year, from a record high this year.
That would be the first decline in the history of the modern renewables business,
now a little more than a decade old, for
a nation that has provided about a third
of the investment for the industry.

After five years of breakneck growth in


supply, China's electricity demand is stagnating, along with a pause in the nation's
economic expansion.
President Xi Jinping's government has
started re-calibrating subsidies for the
business, a move that's likely to hit the industry's leading manufacturers, Xinjiang
Goldwind Science & Technology and
Trina Solar.
"China shapes the whole world market,"
Mr Paolo Frankl, head of the International
Energy Agency's renewable energy division, said recently.
The move is crucial for renewables because China has been the single largest
developer of the technology for eight
years. Its demand for panels and turbines
has pushed manufacturers to build factories throughout Asia, and the scale of its
projects helped bring down the cost of
electricity from low-polluting sources
everywhere.
EP

equated to 2.42 US cents per kilowatthour (kWh), state-owned ADWEA said


in a statement.
"It represents one of the most competitive prices seen to date in the global
solar photovoltaic industry," the statement said.
The cost of generating solar power has
been falling as the cost of the technology
improves, while Middle Eastern nations
have sought to drive down the price
they pay for solar projects to take advantage of the region's year-round sunshine.
EP

October 1, 2016

31

mentally sustainable growth, they


have recognized
the importance of
green finance and
clean energy production, endorsing the
G20 Voluntary Collaboration Action
Plan on Energy Access, the G20 Voluntary Action Plan on Renewable Energy
and the G20 Energy Efficiency Leading
Program issued by the G20 energy ministers.

G20 Leaders Rearm Green


Finance in Hangzhou

he Group of Twenty leaders concluded the two-day summit, hosted


in Hangzhou, China, under the theme
Towards an innovative, invigorated, interconnected and inclusive world economy.

During the discussions at this years


summit, the G20 leaders have confirmed their commitments to address the
issues related to sustainable development, climate change and green finance.
In their final communiqu, the G20
leaders reaffirmed their commitments to
sustainable development in the pursue
of global growth, with reference to the
2030 Agenda for Sustainable Development, the Addis Ababa Action Agenda
and the Paris Agreement.
As a necessary step towards the environ-

Prior to the meeting, a group of insurers,


representing US$1.2 trillion in assets,
have called on the G20 leaders to scaleup their action against climate change
and set a timeline for phasing out fossil
fuels subsidies by 2020.
The issue of fossil fuels subsidization has
been reemerging over the years, as various stakeholders have repeatedly
called for a reform of fossil fuels subsidies.
The increasing need to tackle the issue
became evident as
the last years
Overseas Development Institute
(ODI) report found
that G20 members
are spending USD
452 billion on fossil fuel subsidies,
which is almost
four times more
compared to the
renewable energy
subsidies.

Poland Aims to
Have 1m Electric
Cars on Its Roads
by 2025

oland aims to have 1 million electric


cars on its roads by 2025 as it seeks
to cut carbon emissions from transport
and will offer tax and other incentives,
the energy ministry said recently.
The country is one of the biggest polluters in Europe as it has maintained
coal-fuelled power stations as its major
source of energy. Some Polish towns, especially in the south, also choke in smog
due to traffic fumes and coal burning in
homes.
"The project will contribute to improving
the environment in our country," deputy
energy minister Michal Kurtyka told a
news conference.

EP

China Embarked on Wind


Power Frenzy

hina has been building two wind


turbines every hour, the International Energy Agency (IEA) has said.
This is the worlds biggest program of
turbine installation, double that of its
nearest rival, the US. The nations entire
annual increase in energy demand has
been fulfilled from the wind.
But the IEA warns China has built so
much coal-fired generating capacity
that it is turning off wind turbines for 15

percent of the time.


The problem is that
coal-fired power stations are given priority
access to the grid.

China has now a clear over-supply. In


the province of Gansu, 39 percent of
wind energy had to be curtailed (turned
off because there is not enough capacity
on the grid).

The ministry said that by 2018 it wants


to introduce new laws that would regulate the development of electric cars,
launch special funds to help start production and create the prototypes of Polish electric cars.

The average European wind farm is


forced to stop generating between 1-2
percent of the year.

Last week Poland's four biggest power


producers - PGE, Tauron, Enea and Energa - said they plan to set up a company, ElectroMobilityPoland, to promote
the use of electric cars although it is unclear whether they would actually make
the cars.

EP

EP

October 1, 2016

32

E vent

23rd WEC Set to Shape Future


Energy Landscape
EP Desk

he
23rd
World Energy
Congress
(WEC) is all set take
place on 09-13 October in Istanbul,
Turkey with the
theme Embracing
New Frontiers. The
worlds most influential decision makers, including policy
makers,
opinion
leaders and the
CEOs of top energy
companies will take
part in the event.
Co-hosted by the President of Turkey,
Recep Tayyip Erdogan, and the World
Energy Council, the 23rd WEC is expecting to welcome around 7,000 delegates from across the energy spectrum
to address critical developments in the
energy sector. Over 250 influential senior leaders are confirmed to speak at the
event.
CEOs and top executives of global energy giants including Saudi Aramco, BP,
Gazprom, Royal Dutch Shell, Total,
Rosatom, SOCAR, Lukoil, OMV, EDF,
EnBW, ENGIE, TANAP, E.ON, DESFA
and China National
Nuclear
Corporation will
discuss the energy
agenda at the most
comprehensive
energy event.
Top
technology
companies such as
Bosch, Siemens,
DHL, Silver Spring
N e t w o r k s ,
ThyssenKrupp and
Westinghouse will
guide the debate
on the future

trends of innovation.
The WEC will also witness exchanges
among policymakers of several countries central to the energy issues. Along
with Khalid El-Falih, the Energy Minister
of Saudi Arabia, Alexander Novak, the
Energy Minister of Russia and Maros efcovi, European Commissions VicePresident for Energy Union, the
ministers of energy, environment, economy and industry from a vast array of
countries including Iran, Iraq, UAE, Jordan, Germany, Switzerland, Bulgaria,
Algeria, Nigeria, Argentina and Mexico
will convene at the WEC 2016 to steer
the global energy agenda.

Along with the top executives of the


World Energy Council, global opinion
leaders including representatives of
IAEA, IEA, IPCC, IRENA, OPEC,
UNECE, UNDP, KAPSARC, WHO,
WWF, Oliver Wyman, Accenture, PwC
and World Nuclear Association will
give the cues for
ways to address the
energy trilemma.
Top executives from
the European Bank
for Reconstruction
and Development,
European
Investment Bank, Asian
Development Bank,
Islamic Development Bank, OPEC
Fund for International Development,
Development Bank
of Latin America
and Goldman Sachs will join in to discuss the financing of global energy transitions.
The Congress is expected to offer
unique opportunities for networking
with global players, for discovery of cooperation possibilities, for providing investments and for access to new
markets.
World Energy Council Secretary General Dr. Christoph Frei briefed Anadolu
Agency, the global communication partner of the Congress, on Turkey's energy
outlook and the topics that world energy
leaders will discuss. We are in an
amazing transformation period in energy. We see new
frontiers
and
changes in technology, policies,
and in the way
that markets work.
We see changes
in the way that
risks and resilience affect ene
r
g
y
infrastructure. We
also see changes
in the power shift,
and the supply
and demand

October 1, 2016

35

centers. All those aspects


define the new frontiers of
energy," Dr. Frei says.
According to Dr. Frei, climate change, a key challenge facing the global
energy sector for energy
security and sustainability,
as well as the commodity
price storm, are priority issues to be discussed at the
WEC 2016, where a new
topic of 'resilience' will be
introduced this year.
"What we mean by resilience is that we look to
understand what cyber threats or extreme events bring in terms of new risks
and new infrastructure requirements to
the energy sector," Dr. Frei explains.
The World Energy Congress has appointed The Soufan Group to undertake
a comprehensive analysis of the extensive security preparations underway for
the Congress. The Soufan Groups assessment will complement the strict security measures to be taken by the
Turkish government and Istanbul local
administration, as well as the organizing
committee.
The Atlantic Council plans to hold two
panel discussions - Regional Energy
Market Integration: Challenges and Opportunities; and US Climate and Energy
Policy Scenarios Post-US Elections
2016.
Chair of World Energy Council Turkish
National Committee Murat Mercan
said: We are delighted to
be boosting the synergies
of the World Energy Congress through partnership
of a prominent organization like the Atlantic
Council. We are working
to make this a landmark
event to construe the future of global energy and
devise Turkeys role in it.
The four-day program
would lead delegates
through the critical issues
facing the energy industry: Monday 10th Octo-

Recep Tayyip Erdogan

ber Vision and scenarios for the future


of the global energy system, an exploration of the most dynamic areas and
game-changers shaping the energy of
tomorrow. Tuesday 11th October Business and resource management opportunities, ways to respond to the new
challenges of adaptation and innovation
to ensure a secure and reliable energy
system.
Wednesday 12th October Policy solutions to secure prosperity and address
the necessary institutional change to
balance the World Energy Trilemma.
Thursday 13th October Africa: Securing a sustainable energy future, exploring the critical
drivers and innovations to secure a sustainable energy future for the region.
A session on trade and innovation will
play a central part in discussions at the
23rd World Energy Congress in October, which will see global energy lead-

Dr. Christoph Frei

ers address the critical energy frontiers facing the


global energy sector
today. The imperative of
trade: Accelerating the innovation transfer is one
of the Congress sessions
addressing Governance
frontiers. It will be led by
Morlaye Bangoura, Commissioner, Energy and
Moines, ECOWAS, Nigeria along side Ricardo
Melendez-Ortiz, Chief
Executive Officer, International Centre for Trade
and Sustainable Development (ICTSD), Switzerland and Timothy
Richards, Executive Chair, Rules of
Trade, World Energy Council on the
12th of October.
Marie-Jos Nadeau, Chair of the World
Energy Council, writes in a blog entry
for the Energy Collective that the Paris
Climate Agreement and the inclusion of
energy in Millennium Development
Goals were two key moments in 2015.
According to Nadeau, these developments bear the potential to impact the
way energy is generated and perceived
across the world.
These two moments of 2015 will bring
improved energy access for the 1.1bn
people without access to modern forms
of energy, as well as a more holistic debate about the right type of energy systems for each region, Nadeau says. She
notes that the World Energy Councils
Energy Trilemma Index supports countries in addressing the energy transition,
driven by a variety of factors including environmental concerns, volatile
energy prices and technological advances, through
a focus on the triple challenge of energy security,
access equity and environmental sustainability.
Marie-Jos Nadeau will
be among the sectoral
leaders to guide the debate on energy future at
the World Energy Congress 2016.
EP

October 1, 2016

36

C l im ate

BD Joins Paris Climate Deal Club

angladesh has formally


joined the landmark Paris
agreement
on
climate
change with the foreign minister submitting the ratification
to
the
UN
secretary-general.
Abul Hassan Mahmood Ali
handed over the Instrument

Minister Sheikh Hasina in addressing climate change adversities," the foreign ministry
said.
Bangladesh, though not a
contributor to global warming, signed the deal on Apr
22 this year. It was adopted
last year in Paris.

Bangladesh Braces for


Environmental Hazards: Experts

atural
forests
in
Bangladesh, which are
habitats to wildlife and
havens for many rare plants,
are declining at an alarming
rate for lack of effective conservation efforts, say experts.
"Once about 86 per cent of
the country's total forests
were the natural ones, but
today you'll find a very poor
track of land covered by natural forests as those are
shrinking at an alarming
rate," said Farid Uddin
Ahmed, executive director of
Arannayk Foundation, a joint
initiative of Bangladesh and
US governments.

of Ratification of the Agreement to Ban Ki-moon on


September 21 at the UN
headquarters in New York,
the foreign ministry said.

The deal will enter into force


only when ratified by at least
55 nations representing 55
per cent of manmade greenhouse gas emissions.

If the natural forests decline,


he said, the country will lose
biodiversity and wildlife creating many environmental
hazards.

Bangladesh has now become


one of the first countries to
have made the deal officially
valid.

The agreement, reached in


Paris after years of negotiations, provides a pathway for
countries to reduce emissions
so that the global temperature rise is kept below 2 degrees Celsius.
EP

According to the draft of Forest Sector Master Plan 2016


prepared by Bangladesh Forest Department, natural hill
forests
were
128,630
hectares in 1990, but that declined to 79,160 hectares in
2015.

"It reflects the firm commitment of Bangladesh and the


visionary leadership of Prime

Forest Department data reveal that the worst-affected


forests of Bangladesh are the
inland deciduous Shal forests
and bamboo forests. Shal
forest was on 23,650
hectares in 1990 and it now
depleted to 17,490 hectares.
Natural bamboo forest was
on 89,790 hectares in 1990
and it came down to 15,000
hectares in 2015.
The country's natural mangrove forests, including the
Sundarbans, the largest single
tract mangrove formation in
the world, are also showing a
declining trend, although that
provide important ecosystem
services to local people and
functions as a protective barrier against coastal erosion.
The Sundarbans is a home to
endangered Bengal Tigers
and many species of native
flora and wild animals.
Official data show that natural
mangrove forest was on about
401,000 hectares in 1990 but
it dropped to 390,000 hectares
in 2015.
EP

30 Nations Set to Ratify Paris Deal

t least 30 countries were


set to formally join the
Paris agreement on climate
change recently, moving it
closer to reality, according to
the United Nations.
The global body said 30
states were set to submit their
ratification at the UN General Assembly including Latin
American heavyweights Argentina, Brazil and Mexico.
Other countries include
Bangladesh, Singapore, Thailand and major fossil fuel
power the United Arab Emi-

rates.
The Paris accord, sealed late
last year in the French capital, commits countries to
make plans to keep global
warming at no more than
two degrees Celsius (3.6
Fahrenheit) above pre-industrial levels to try to avoid the
worst effects of climate
change.
To take effect, 55 parties responsible for at least 55 of
global emissions of greenhouse gases must join the accord.
EP

October 1, 2016

37

C l im ate

Air Pollution Fourth Leading


Factor for Premature Death

ir pollution has emerged


as the fourth leading risk
factor for premature deaths
worldwide.
The deaths cost the global
economy about $225 billion
in lost labor income in 2013,
a new study finds, pointing
toward the economic burden
of air pollution.
"The Cost of Air Pollution:
Strengthening the Economic
Case for Action", a joint study
of the World Bank (WB) and
the Institute for Health Metrics and Evaluation (IHME),
estimates that around 5.5
million lives were lost in
2013 to diseases associated
with outdoor and household
air pollution, causing human
suffering and reducing eco-

nomic development.
The study, released early last
month, discovers that while
pollution-related
deaths
strike mainly young children
and the elderly, premature
deaths also result in lost labor
income for working-age men
and women.
It also finds that annual labor
income losses cost the equivalent of almost 1.0 per cent 0.83 per cent of Gross Domestic Product (GDP) in
South Asia. In East Asia and
the Pacific, where the population is ageing, labor income losses represent 0.25
per cent of GDP, while in
Sub-Saharan Africa, where
air pollution impairs the
earning potential of younger
populations, annual labor
income
losses represent the
equivalent
of 0.61 per
cent
of
GDP.
EP

Climate Action in Support of a


Sustainable World

here is only one possible


future for humanity and
that is a sustainable one. In
2015, the global community
converged on this integrated
vision for the future and set
in motion the pathways to
an economic and social
transformation to achieve it.
The vision is articulated
through the Paris Climate
Change Agreement, the
2030 Agenda for Sustainable

Development
and
the
Sendai Framework for Disaster Risk Reduction.
The unity of purpose reflected in these momentous
agreements will now need to
leverage
unprecedented
scale and depth of universal
action involving all actors at
all levels in all regions of the
world. The challenges will
be enormous but the rewards of success will be

UN Secretary Generals Climate


Resilience Initiative Set to Accelerate
Climate Action

artners of a new UN-led


platform to mobilize and
accelerate action on climate
resilience
agreed
recently to move
ahead
with
plans that will
help meet the
needs of a
growing global
population that
is being impacted by climate change.

UN Secretary-General Ban
Ki-moons Initiative on Climate Resilience, known as
A2R (Anticipate, Absorb, Reshape), was launched by
world leaders during the
Paris Climate Conference last
year.
The A2R Leadership Group
comprises Germany, Egypt,
Morocco, Samoa, the World
Bank, the Rockefeller Foundations Global Resilience
Partnership;
Bangladesh
based philanthropic Bank
BRAC, Insurance Development Forum (IDF), Red Cross
and Red Crescent Climate

even greater.
The plan requires a profound
structural transformation that
places at its very heart lowcarbon economies and societies which are resilient to
climate change.
Over the next 15 years, the
objectives of these agreements - linking climate, sustainability and resilience must see unprecedented reductions in global greenhouse gas emissions and

Center, Yale Center for Environmental Law and Policy,


the United Nations Office for
Disaster Risk
Reduction
(UNISDR),
Food and Agriculture Organization of the
United Nations
(FAO) and UN
Environment.
The Leadership
Group
is
charged with implementing
the transformational vision
embedded in the Paris Agreement, the Sendai Framework
for Disaster Risk Reduction
and the Sustainable Development Goals through an unprecedented
global
multi-stakeholder partnership.
It will catalyze climate
change adaptation and disaster risk reduction efforts to
support people in addressing
the challenge of climate
change, contributing to
achieving the Sustainable
Development Goals (SDGs).
EP

unequalled efforts to build


societies that can resist rising
climate impacts.
The current rate of progress
will not deliver success.
A priority requirement is a
much more rapid and fundamental shift in the global
patterns and incentives of investment away from unsustainable power generation,
infrastructure, pollution and
waste.
EP

October 1, 2016

38

C l im ate

UN: Paris Climate Deal 'Will


Enter Into Force by 2016'

N officials have said they


are confident the Paris
climate change agreement
will enter into force by the
end of 2016, with at least 20
countries indicating they will
join it at a UN event on Sept
21, adding to the 27 that have
already done so.
UN Secretary-General Ban Kimoon has invited states to deposit their instruments of
ratification or approval of the
Paris deal at the one-hour
event recently.
Leaders whose countries are
not yet ready to join but plan
to do so this year have been
invited to contribute videos
expressing their commitment,
said Selwin Hart, director of
the U.N. chief's climate

change support team.


"When we start to look at the
countries that are joining the...
agreement and the countries
that are going to commit to
join before the end of the year,
we are absolutely certain that
we will have the Paris Agreement on climate change entering into force by the end of
2016," said David Nabarro,
Ban Ki-moon's special advisor
on the 2030 Agenda for Sustainable Development.
To take effect, the Paris climate agreement needs ratification by at least 55 parties to
the United Nations Framework Convention on Climate
Change, representing at least
55 percent of global emissions.
EP

Moody's: Auto Sector Faces


Credit Risks Due to Carbon
Transition

oody's Investors Service


says that the automotive manufacturing sector
globally faces a rapidly
evolving environment and
rising credit risk as companies need to make material
changes to more effectively
reduce the sector's carbon
footprint and respond to expected growth in the demand
for alternative fuel vehicles
(AFVs).
"Given that the auto industry
is one of the most significant
emitters of greenhouse gases,
there is a clear need for the
industry to improve emissions-reducing technologies
and adapt to the broadening
emergence of AFVs," says
Brian Cahill, a Moody's Managing Director who is a lead
representative for Moody's
on environmental, social and
governance (ESG) topics.
Moody's analysis is con-

The EU Analyzes Key Role of NGVs


as an Ally to Reduce Emissions

ering cost-effective procedures


to make the European economy
more climate-friendly and consume less energy.

resident of Gas Natural


Fenosa Salvador Gabarr,
the European Commissioner
for Climate Policy and Energy
Miguel Arias Caete, and the
General Secretary of the Presidency of the Generalitat of
Catalonia Joaquim Nin inaugurated in Barcelona an event
Emissions, energy efficiency
and natural gas, organized by
Fundacin
Gas
Natural
Fenosa.

Energy efficiency and the use


of natural gas are essential aspects within the European
strategy
for
sustainable
growth, and one of the most
profitable ways to strengthen
the security of energy supply
and reduce emissions of
greenhouse gases.

The European Union is consid-

In

this

regard,

Gabarr

tained in its just-released report, "Environmental Risks:


Automotive Sector Faces Rising Credit Risks from Carbon
Transition".
The report is authored by
Cahill, Ian Lewis, a Moody's
Associate Managing Director,
and Motoki Yanase, a Vice
President with Moody's Corporate Finance Group and
also Lead Analyst for the automotive sector in Japan.
In its analysis, Moody's uses
a baseline emissions scenario
consistent with the nationally
determined
contributions
(NDCs) established as part of
the Paris Agreement signed
by 180 countries as of 7 September 2016.
"Although the NDC scenario
is forecast to be insufficient to
limit global warming to less
than 2 degrees Celsius that
was the commitment under
the agreement, it represents a
plausible central scenario,
as it tracks the
current policy
commitments
of
national
g o v e r n ments," says
Cahill.
EP

stressed during his speech that


natural gas can play a decisive role in the energy grid of
the EU to achieve a more decarbonized system. He recalled the key role of natural
gas as a backup of renewable
energies and stressed the role
that natural gas can play to reduce emissions from road and
maritime transport, which is
one of the main sources of air

pollution.
Indeed, one of the debates focused on natural gas and reducing emissions within
transportation. The speakers
explained that natural gas is
the only economically viable
alternative to conventional
fuels in heavy transport and is
the solution for short-term environmental issues in cities.
EP

October 1, 2016

39

Int er view

Turkey All Set to Secure WEC Delegates


Devrim ztrk

he 23rdWorld Energy Congress is


being organised under the auspices
of the Turkish Presidency unfortunately at a time when Turkey has been
the target of heinous terrorist attacks, as
did many other countries in the world.
But, Istanbul continues to be a popular
destination for leading global political
and economic events and our safety
record in such gatherings has been perfect.

Recep Tayyip Erdoan. President Erdoan will be addressing the Congress


and will hold a special Leaders Roundtable during the Congress.

The very recent security report draws a


very objective and positive picture of the
current state of affairs. This fact in itself
requires supplementary security measures both on site as well as in key strategic locations around the event. In short,
I can assure the delegates that all security
measures are taken in a meticulous way
for this key event.

Turkey is located at the crossroads of the


most important energy markets; around
70 percent of oil and natural gas reserves
of the worldisowned by countries neighboring Turkey, especially to our east. And
to our west, we have the main consumer
countries. So our main aim is to cement
Turkeys location as the main energy
trade hub in its region by meeting supply
with demand. But that is not all.

Turkish Ambassador in Dhaka Devrim


ztrk made the observation ahead of
the World Energy Congress in an exclusive interview with Energy & Power Editor Mollah Amzad Hossain and Online
Editor GSM Shamsuzzoha Nasim.
terFollowing
are the excerpts from the in
view:

What Turkey expects from the 23rd


World Energy Congress as a host country?

The 23rd World Energy Congress will


host some 250 speakers, including ministers of various countries, CEOs and experts. So far, 57 ministers have confirmed
their attendance. We also expect participation by Heads of State and Government.

The theme of the Congress is Embracing


New Frontiers, so with the Turkish National Committees initiative, a full day of
the World Energy Congress 2016 has
been dedicated to Africa and particularly
to Sub-Saharan Africa where two out of
three citizens have no access to secure
energy in their daily lives. You would recall that during our G20 Presidency in
2015, we have organized the first G20
Energy Ministers Meeting ever and the

Following the 22nd Energy Congress held in


2013 in Korea, Turkey
has the privilege of hosting the 23rd Congress.
Since the first event in
1924, the triennial World
Energy Congress has
been a main platform,
where major energy issues have been discussed
by the worlds top leaders
and thinkers in the energy industry.
The Congress will be
held under the auspices
of the President of the
Republic of Turkey, H.E.

preceding High-Level Conference on Energy Access in Sub-Saharan Africa. So


the Congress will also enable us to have
a separate thematic discussion on securing a sustainable and reliable energy access in Africa. We will, with the help of
all attending countries and institutions,
try to find solutions to energy problems
of one of the most neglected regions of
the world with regards to sustainable energy. Lastly, the Congress coincides with
the great transformation period in the energy thanks to wider use of renewables.
Along with other participants we are also
looking forward to learn reap benefits of
these developments to ensure secure,
clean and resilient energy systems.

Turkey has developed World Class energy industry. What preparation did the
country take to showcase the industry
during the WEC?
The Organising Committee and the Ministry of Energy and Natural Resources
have been working in tandem with Turkish companies of all scales to establish
an environment where these companies
can reach to potential clients and partners. All the leading public and private
energy companies of Turkey are supporting the Congress and their representatives will contribute to the debate as
speakers. Some very important side events will
also take place during
the Congress in addition
to the regular program
i.e. Turkish Coal Enterprises will organize a full
day workshop on The
Future of Coal Following
COP21 jointly with
Japan Coal Energy Center.

How would you assure


the delegates about their
security concerns considering the recent terrorist attacks in Turkey?
Devrim ZTRK

Turkey has been unfortunately the target of

October 1, 2016

41

heinous terrorist attacks, as did many


other countries in the world, such as
France or the United States. Istanbul continues to be a popular destination for
leading global political and economic
events and our safety record in such
gatherings has been perfect. The Organising Committee is highly experienced in
managing high-level events and is
closely cooperating with the Ministry of
Internal Affairs as well as the office of the
Governor of Istanbul to ensure appropriate security measures. In order to bolster
their efforts, the Soufan Group is appointed as an independent and international security advisor tasked with
enhancing the security measures further.
The very recent security report of the said
Group draws a very objective and positive picture of the current state of affairs.

energy sector?

It is also important to note that the World


Energy Congress is being organised
under the auspices of the Turkish Presidency. This fact in itself requires supplementary security measures both on site
as well as in key strategic locations
around the event. In short, I can assure
the delegates that all security measures
are taken in a meticulous way for this key
event.

Turkey attributes utmost significance to


the use of its renewable energy resources. We aspire to increase the share
of electricity generated from renewable
sources to 30% by 2023. I believe our
aim is parallel to the Bangladesh Governments goals of 2021 with a special
emphasis on green energy projects.

Some Turkish energy companies are operating in Bangladesh. Is there any plan
of Turkish energy companies to showcase technology and products targeting
Bangladesh market?
Some public and private companies will
be present at the Congress as exhibitors.
Some of them will demonstrate their high
level technology and capabilities, while
others will participate for the prestige of
the event rather than publicizing products or technology.
Turkish companies have constructed airports, energy stations, highways, large
residential projects, bridges that are
worth billions of Dollars in Europe, Russia, Balkans, Middle East, North Africa
and Caucasus. Until now Turkish contractors have not been able to assume
large-scale projects in Bangladesh.
Therefore, we think that our public and
private companies can play an important
role in the infrastructure projects of
Bangladesh.

What plans do you have to strengthen


Turkey-Bangladesh cooperation in

Energy is a prospective field forbilateralcooperation. Turkey is ready to share its


vast experience in the energy sector with
Bangladesh. Renewable energy in particular is also an area in which we can cooperate. Turkish companies have
successfully built many energy and related infrastructure projects. Turkish
companies may also play an important
role in Bangladesh iftheyareinvited to the
tenders of the future energy and related
infrastructure projects.
Turkish Petroleum International Company Limited(TPIC), a subsidiary of Turkish national oil company Turkish
Petroleum Company (TPC) has already
expressed its interest to cooperate with
Bangladesh Petroleum Company.

What surprises waiting for the delegates


at the inaugural ceremony of the WEC as
showcased in the past events? Is there
any special plan?
There will be a huge opening ceremony
with audio-visual shows during which
we will display the rich cultural and historical background of Turkey and will
have references to the energy sector. We
believe the audience will be impressed
by the show. Moreover, we are expecting
participation by some Heads of State and
Government in the opening ceremony of
the Congress. Additionally, during the
Congress, we expect important intergovernmental agreements and business
deals to be signed and announced.

Do you have anything to add?


On the evening of July 15th, a clandestine faction led by Fethullahist Terrorist
Organization (FETO) within the Turkish
Armed Forces attempted to stage a coup.
This attempt targeted our constitutional
democracy, democratically elected President and Government. Theplot was
thwarted by the people of Turkey from all
backgrounds and political views. Turkish
people displayed a historic solidarity as

they stood bravely in front of the tanks


and reclaimed their democratic rights.
The Turkish media also played a key role
in foiling the coup attempt.
Turkish Government has fully taken the
situation under control and has ensured
the public order and security. The economic wounds of coup attempt were
temporary and relatively easy to manage.
Its short duration and failure allowed life
to return to normal quickly, hence the
minimal effects on the economy. Turkey
stacked with the market model and
Turkeys economy after the coup remains
resilient and stable.
We are predicting 4.5% growth for the
year 2016. The data for the first half of
the year matched that prediction. In the
second half of the year if we can achieve
4% growth, that will be good considering the recent developments. We managed the process well, as we have done
until now, the effect of the coup attempt
are limited. We do not expect major effects from the coup attempt on the economy.
We welcome the recent steady economic growth and development trend in
Bangladesh. We are glad to witness
Bangladesh government imposing important projects and plans to sustain this
trend. Turkish investors are keen to explore new business opportunities in
Bangladesh. So far, a very high percentage of Turkish investments in Bangladesh
were realized in textile sector. I believe
our companies are ready to extend their
investment to other sectors like energy,
construction etc.
I would like to take this opportunity to reiterate our firm belief that Turkey and
Bangladesh enjoy a close, deep-rooted
and brotherly relationship. We wish to
develop and deepen our relations with
Bangladesh in all fields to the mutual
benefit of our countries and peoples.
Particularly strengthening bilateral relations on trade and commerce will contribute to establishing lasting and
mutually beneficial partnership for our
countries. With this in mind, we gladly
note that the bilateral trade volume
recorded a 25-fold increase, reaching 1.2
billion USD in 2015 from 47 million
USD in 2002.
EP

October 1, 2016

42

Int er view

Power Vision 2021

Success in Coal Power


is the Key

he countrys power generation capacity would reach very close to


the target of 24,000 MW by 2021,
if it not achieved completely. But the
main challenge to reach there is bringing at least few large under implementation coal-fired power plants into
commercial operation. I am highly optimistic that at least two plants - 1320
MW Rampal and 1320 MW Payera
Plant - will come into operation by then.
Engr. Khaled Mahmood, Chairman of
Bangladesh Power Development Board
(BPDB), spoke about the high hope in
an exclusive interview with Energy &
Power Editor Mollah Amzad Hossain.
Following is the excerpts from the interview:

EP: You are associated for a long time


with the initiatives for developing new
power generation plants along with the
development of the power sector. Time
rolled on and you are now chief executive of BPDB. What are your visions?
What type of challenges you have for
implementing the vision?
KM: Gas supply crisis is deepening. No
new gas based projects can be taken up
before LNG starts flowing through the
national gas grid. Not many imported
oil-based power plants would be feasible. These will increase generation cost.
Now the main challenge is how quickly
we can implement the coal-based
power plants. Shallow drafts of our
coastal areas are also a major challenge
for coal import. Only Maheskhali and
Matarbari areas have required drafts.
Payera port area has close to the re-

quired draft. BPDB subsidiaries, North


West Power Generation Company
(NWPGCL) and Ashuganj Power Company Limited, are working there. Our
challenge is to start working in Maheskhali as early as possible. We have engaged a consultant for Maheshkhali.
Works are progressing. We have acquired 5,500 acres of land. In a month,
we will get possession of the land. The
consultant in a draft report suggested dividing the land in 5 blocks, but we are
thinking about 8 blocks to accommodate 8 plants of 1320 MW capacity.
Petrobangla is working on importing
LNG. By end 2018, LNG import would
commence from the floating terminal.
Consistent with the depletion of own
gas reserve, the LNG import will increase.
We are working on IPPs for imported
LNG-based power generation. Recently,
three companies have been awarded for
500 MW imported oil-based power
plants. But smaller power generation
plants have turned vulnerable for power
grid security. For overcoming this problem, proposals sent to power division
for two liquid fuel-based turbine-dependent 375 MW (Syedpur 150 MW and
Barishal 225 MW) power plants.
The prime challenges for us are sourcing
coal and setting up enabling coal import
infrastructures for bringing the coalbased power plants into commercial operation on schedule. It is definitely a
challenging task. But we will be successful.
EP: The government has a vision for
supplying power to all by 2021. Is it

Khaled Mahmood

We are working on the UNESCO


report. It is now very clear that the
report is not realistic. Even then the
government will clarify its position
to UNESCO. Initiative is being
taken to inform UNESCO once
again about the environmental
impact management action plans.
We hope UNESCO will understand
the reality.

possible to achieve the vision?


KM: We are trying to bring coal-based
power plants into commercial operation
for achieving the vision 2021. Matarbai
1320 MW, Rampal 1320 MW and Payera 1320 MW are included in this plan.
The first round of bidding for Maheskhali power plant is also complete.
This plant may also come into operation
by around 2021. We are expecting that
coal based 660 MW power plant of Singapore company Sembcrob and 412
MW Bheramara power plant of NWPGCL would also come on stream during this period. Consequently even if we

October 1, 2016

43

cannot reach 24,000 MW, we will


reach very close to the target.
EP: Some 67% of power generation is
gas based and 30% oil-based. But the
gas crisis is deepening day by day. Does
it mean that by 2021 the power generation would become more dependent on
liquid fuel?
KM: You are aware that Petrobangla has
signed an agreement with Excelerate for
LNG import. Initiatives have been
launched for another 8-10 more LNG
terminals. Petrobangla is now very serious with LNG. So the gas crisis would
be gradually confronted with LNG. We
will increase liquid fuel based power
generation marginally. But there is no
possibility of becoming imported oilbased at all.
EP: PSMP 2015 is about to be finalized.
Imported coal has been given priority in
power generation here. Some 35% of
57,000 MW power will come from
coal. Is it really possible achieving this?
KM: We want to proceed in three stages
- 2021, 2031 and 2041. The generation
target in 2041 is 60,000 MW - 50% of
this will be coal based. PSMP will have
the guidelines. We are trying to work accordingly. We are also stressing upon
cross border power trading. We are in
discussion with Adani Group for 1600
MW power import. In this process, we
are working on a plan for importing
10,000 MW power from regional countries.
We are working in a coordinated manner for making Maheskhali an energy
hub. More than 10,000 MW coal based
power will be generated here. PSMP has
included all these.
EP: The local and international debates
have peaked on Rampal Power Plant,
which is scheduled to come in operation by 2017. Do you think it will be
possible to proceed with the implementation for bringing it to commercial operation by 2021?
KM: We have made significant progress
in Rampal Power Plant. After the Prime
Ministers press briefing about the environmental impact management and
other matters, there is no confusion

among the general people. It is very


clear now that the environmentalists are
not on the right path. Recently at a discussion in parliamentary standing committee there were 8-10 activists and one
BUET expert. The technology and management of emissions have been clearly
demonstrated. Consequently, the project will proceed as usual and the plant
will come into operation on time.
EP: How you are viewing the UNESCO
suggestion to cancel Rampal Power
Project?
KM: We are working on the UNESCO
report. It is now very clear that the report is not realistic. Even then the government will clarify its position to
UNESCO. Initiative is being taken to inform UNESCO once again about the environmental impact management action
plans. We hope UNESCO will understand the reality.
EP: BPDB subsidiary NWPGCL is proceeding with Payera Power Plant Project implementation. Many observe that
if Rampal project cannot be implemented, it may also delay implementation of Payera project. Do you believe
that Payera power plant can come to
commercial operation on time?
KM: We have learnt a lot from the first
Joint Venture Rampal project. That assisted in advancing the works at Payera.
I believe that this power plant will come
into operation ahead of schedule. I see
no worry at all about Payera power
plant.
EP: The government requested JICA to
advance implementation period of
Matarbari Power Plant from 2023-2024.
But JICA recently has requested to suspend the bid submission time for indefinite period. What is going to be the fate
of this project?
KM: I have no such information that
JICA has advised us to suspend the bid
submission deadline for indefinite period. But upon request of two selected
bidders, we have extended the deadline
of submission of financial proposal by
three months. We hope that no further
extension will be required and we will
receive financial proposals. If necessary,
we will let them submit proposals in

Japan. We are optimistic about Matarbari Mega Power Plant Project commissioning as per schedule.
EP: You have adopted a plan for an energy hub at Maheskhali Island. MOU
has been signed with a Malaysian Company for a power plant here. Another
MOU was signed earlier with Chinese
Company. When the first power plant at
Maheskhali may come into commercial
operation?
KM: We have discussed about it earlier.
Eight blocks have been created for eight
1320 MW Power plants in Maheskhali.
Consultant has almost finalized the report. The tender process for the first
power plant is almost ready. Talks with
ADB are in progress for another plant.
MOU has been signed with four companies of Hong Kong, Malaysia, China
and Korea for four other plants. Besides
the power plants, the infrastructure development works for coal port and LNG
will progress in accordance with the
plan.
BPDB is providing top most priority to
develop Maheskhali as an energy hub.
We believe that power plants will start
coming into operation one by one from
2022.
EP: BPDB signed a MOU with Reliance
Group for imported LNG based power
plant. But PPA for this has not been concluded yet. How long will it take? What
will be the power tariff?
KM: Indian company Reliance has
given a proposal for importing LNG and
setting up 3000 MW capacity LNG
based power plants. These include 750
MW at Meghnaghat, 750 MW at Coxsbazar and 1500 MW at Anowara. Negotiation for concluding PPA with them
is progressing. The question of pricing
power has not come yet. We expect to
reach the final stage of negotiation in
three months.
EP: Bangladesh private sector company
Summit group has submitted a proposal
for a 1600 MW imported LNG based
power plant. What stage is it now?
KM: Summit group is a partner of
progress of the government. The government will definitely consider their

October 1, 2016

44

proposal as and when received. I am


not aware of any such proposal submitted. BPDB has not yet received any such
proposal.

dependent. Will it be possible to supply


power at affordable price meeting the
higher price obligations of imported
fuel?

EP: Tenders have been received for another 1000 MW furnace oil based
power plants. How long will it take for
signing the contracts? When these will
come into commercial operation?

KM: From my experience I can tell you


that the government is really serious
about electricity. When we introduced
quick rental plants, there were talks
whether we can bear the brunt of higher
price. How we will absorb the addi-

KM: Tenders for 10 plants of 100 MW


each have been received before Eid.
The evaluation is in progress. Within a
month the financial proposal will be
opened after completing technical evaluation. The selected bidder will have to
bring the plant into commercial operation within 18 months of signing the
contract.
EP: BPDB has signed agreement with
Orion Group and S Alam Group for coal
fired power generation. What are stages
of implementation?
KM: S Alam is at a bit advanced stage.
They are waiting for financial closure.
The engineering for the plant is in
progress. We are considering this a positive development. Orion is also working, but the works have been
significantly delayed for protracted approval process of environmental clearance. But the works are progressing
now.
EP: 10,000 MW of power is planned to
be saved by 2041 through energy efficiency programs. How this can be
achieved?
KM: Technology is fast changing. Combined cycle and gas turbine efficiency
has increased significantly. We are replacing old plants with new technology
by using combined-cycle power plants.
On the other hand for all new power
plants, we are using advanced technology. All coal-fired power plants would
use modern fuel-efficient technology.

tional pressure on the economy? But we


have overcome that situation. Own fuel
is depleting. We have no other option
left but to import fuel. When we will go
for imported fuel use, our economy will
have the capacity to absorb the price
shock. There wont be issues supplying
power at affordable price to the end
users.
EP

Re p or t

Govt Urged to Ensure Energy, Land for


New Industries

peakers at a recent seminar urged


the government to address energy
and land crises in the national industrial policy 2016 on a priority basis.
"The government should ensure energy and land for new industries immediately before readying special
economic zones. Special zones may
take two years or more, but industrialization should not wait until then,"
Dhaka Chamber of Commerce and Industry (DCCI) acting president Humayun Rashid told the seminar.
DCCI organized the seminar on "National Industrial Policy-2016: Opportunities of Industrialization and
Investment in Bangladesh" at its auditorium in the city.
Associate Professor of Dhaka University Muhammad Ismail Hossain presented a keynote paper at the
program.

Industries Minister Amir Hossain Amu


spoke as the chief guest while executive member of Board of Investment
Nabhash Chandra Mandal, Senior
Economist of Policy Research Institute
(PRI) Dr Ashikur Rahman and Joint
Secretary of the Ministry of Industries
Yasmin Sultana spoke as panelists.
The Industries Minister said IP 2016
has included agriculture and agro-processing, agricultural manufacturing,
ICT, light engineering, jute and jute
products, and pharmaceuticals on a
priority basis to diversify export basket.
He said the new IP 2016 has adopted
a policy to create a private sector investment-friendly environment in the
country to increase industry's contribution to GDP 35 per cent and employment 25 per cent.
EP

For efficient use of power, well-coordinated works are in progress for upgrading transmission grid, distribution
networks.
EP: BUET Professor Dr M Tamim in a
presentation claimed that if we do not
explore our own coal power sector, we
would soon become 90% imported fuel

October 1, 2016

45