SolarIrrigationProgram

Presentedby:

IslamSharif
ChiefExecutiveOfficer InfrastructureDevelopmentCompanyLimited

PanPacificSonargaonHotel DhakaBangladesh
20 September 2011

Present Irrigation Scenario in Bangladesh

ContributionofagriculturesectortoGDP 20.16% Irrigationpumpsrunbyelectricity
Total:266,000 Areacoverage:1.7millionhectares Consumption:1300MW,27%ofthecountrystotalgeneration

Irrigationpumpsrunbydiesel
Total 1.34million Areacoverage 3.4millionhectares Consumption 900,000tonsofdieselperyear

Proposed Solar Irrigation Pump Program

Target Installationof18,750solarirrigationpumps Averagecapacity 8kWp Projectedinstalledcapacity 150MW Areacoverage:Ricecultivation:160,000hectares Vegetablecultivation:430,000hectares

Area Selection for Installation of Pumps

Areasnotinundatedduringrainyseason Potentialfor3to4cropsperyear Farmersalreadyusingdieselpumps Depthofwatertable Availabilityofsurfacewater

Institutional Arrangements
ProjectExecutingAgency IDCOL Implementedby NGOs/MFIs/Privateentities ResponsibilityofPOs
selectionofareasandtargetcustomers Installationofpumps Operationandsupplywatertoagroupoffarmersatanaffordablerate Collectionofpayments

IDCOLsrole
Technicalsupportincludingcollectionofirrigationdata Promotionofthetechnology FinancialsupporttothePOs Monitoringofpumpperformanceandqualityassurance
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Selection of POs and Suppliers

SelectionofPOs AnindependentPOselectioncommitteewillbeformed. NGOs/MFIs/PrivateentitiescanapplytobecomeaPO. Organizationswithmanagementcapability,financialstrengthand/or microfinanceexperiencewillbeselectedasPOs. Adetailed selectioncriteriawillbeestablishedforofPOs. SelectionofEquipmentSuppliers Anindependenttechnicalcommitteewillbeformed. Committeewillsettechnicalspecificationsandrequirements. Interestedmanufacturers/vendorswillapplyforlistingof equipments. POswillinstalltheequipmentsapprovedbytechnicalcommittee.
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Implementation Plan

2012 SelectionofPOs InstallationofPumps EquivalentCapacity (MW) 10 500 4

2013 20

2014 20

2015

2016

Total 50 18,750 150

1,500 3,500 5,500 7,750 12 28 44 62

Financing of a Solar Irrigation Pump Project

Financing Method ( Sample of an 8 KW solar irrigation pump)

Projectcost Grantamount(50%ofprojectcost) RemainingCost IDCOLLoan(30%ofprojectcost) Equityparticipationbythesponsor (20%ofprojectcost)

USD42,600 USD21,300 USD21,300 USD12,780 USD8,520

Financingterms Loanamount Loanduration Graceperiod Interestrate Principal repayment Payment frequency USD12,780 8years 1year 6% 28equalinstallments Quarterly

Fund Requirement and Financing Plan

FundRequirement
Particulars PumpCost MonitoringandSupervision Total CostperPump (USD) 42,600 Numberof Pumps 18,750 Total (millionUSD) 800 6 806

FinancingPlan
Particular Source Grant InstallationCostofPumps Loan Equity Total Grant Percentage 50% 30% 20% 100% 100% Amount (millionUSD) 400* 240** 160 800 6* 806

MonitoringandSupervision Total

*&**grantandconcessionarycreditsupportfromdonors
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Other Benefits of the Program

SavingofElectricity: 675MWhofelectricityperday DieselSavings: 47,000tonsworthUSD45millionperyear CO2EmissionReduction: 126,000tonsofCO2peryear.

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Cost Benefit Analysis

Benefit/(Cost) (USDmillion) (806) 900 18 112 (150) 262

Particulars EstablishmentCostofpumps DieselSavingin20years CDMRevenue@US$7perton in20years Net Setupcostofa150MWPlant NetBenefitoftheProgram

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Q&A

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ThankYou

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