Definition and scale of sector
Why the sector was chosen in the West Midlands
Bangladesh is suffering from severe environmental degradation.
Rivers and other water bodies are being choked. As the country continues to industrialise, an increasing amount of industrial waste (some of it toxic) is being dumped. In rural areas, chemical run-off from agricultural land into neighbouring water bodies is damaging human health, and the country's fish stock.
Waste disposal in the cities is a growing problem. Although the large informal sector ensures that significant recovery and recycling takes place, the rising use of toxic and non-biodegradable materials in the economy has made even the household waste stream a major problem for public health and the environment. In addition, biodiversity is being threatened (an unknown number of animal and plant species have become extinct), and forests are gradually disappearing.
The energy sector in Bangladesh has been the largest recipient of foreign investment in the country. Still, with a population of 130 million -- almost 100 million of whom have no access to commercial forms of energy like power and gas -- and with abundant known reserves of natural gas in the country, there is considerable scope for new foreign direct investment (FDI) in the sector. What is holding up further FDI and a potentially explosive growth of the sector is the Government's current policy of not allowing exports of natural gas to the much larger market in neighbouring India.
However, it is widely believed that this may change ifthe impending general election, expected before October, 2001, results in a stronger government with a significant majority in the Parliament. There is somewhat less opposition currently to the export of power produced from natural gas, but the long-term commitment that is necessary for this to happen is still not there.THE FULL REPORT PLEASE CLICK HERE
As part of its strategic sectoral focus, Board of Investment has been undertaking regular studies of different industrial sectors of Bangladesh with a view to identify the status of the industry as a whole and uphold the potential to the investors. Following is a comprehensive brief on steel industry of Bangladesh.
With proven and recoverable gas reserves of 13 trillion cubic feet, and a daily current production of over 900 million cubic feet per day, natural gas, is currently the greatest economic prospect, and remains a major interest for all investors, in terms of exploration, production, support and downstream activities.
To date, the gas sector, has been by far the largest recipient of all foreign investment in the energy sector, attracting over US$400 million of foreign investment, which has mostly come from American and European multinational energy companies, through production sharing contracts with the Bangladesh government. Other sources of foreign investment are used to finance exploration and distribution.
Natural Gas-based Industries
Bangladesh has a substantial gas reserve of about 20 trillion cubic feet (tcf) There is a huge demand for fertilizer in Bangladesh as the agriculture is the principal sector of the economy.
The private sector power generation policy announced in 1996 under which private power companies are exempt from income tax for 15 years. Several barge-mounted power plants are in operation. But an extensive demand gap for electricity is crucial.
Opportunities exist in developing new plants (barge-mounted and other, large, small and mini), constructing transmission and distribution system, rehabilitating or upgrading existing plants and supplying a variety of support services. Investment opportunities are available on a build-operate-transfer (BOT) basis.
Interest by foreign investors in the power sector has increased considerably since it was opened up for private Investment,to both foreign and domestic companies. Shortage of funds, has forced the Bangladesh Government to encourage the development of the sector by private enterprises. This development, which includes both European and Asian investors, however is mostly dominated by the American multinational energy firms
Bangladesh is still at a low level of electrification with only 16% of it population having access to electricity and per capita generation is only 96 KW per annum. Hence, there is a great need and urgency to expand the electrification programs. The government of Bangladesh has attached priority for the development of the power sector.
The present installed generation capacity is 2908 MW. But the available generation capacity is about 2200 MW due to old age of few power plants. The route length of transmission line is 3500 Km, the total length of distribution network is 1,28,000 KM and the number of consumers is 35,00,000 at present.
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