Power sector in BangladeshBangladesh is progressing through a phase of development where automation is the key to its economy and business. As the country continues to industrialize the importance of power generation and electricity supply becomes a key government priority.At present, 48.5% of the total population of Bangladesh is enjoying the electric facilities. As of April 2010, the total numbers of transmission and distribution lines are recorded to 8,359 km and 266,460 km respectively. However, 53,281 villages have been electrified so far. In Bangladesh per capita generation is 220 KW hr which is comparatively lower than other developed countries in the world.Recent Status:Installed capacity (Feb 2011) 6,658 MWDerated generation capacity 5,480 MWGeneration 3,900-4,300 MWMaximum generation (Feb 2011) 4,699 MWPeak demand 5,800 MWAccess to electricity 47%Per capita generation 220 KW hr

Public and private sector produces 63% and 37% of electricity respectively. Public sector produces electricity through Bangladesh Power Development Board (BPDB), Ashuganj Power Station Company LTD (APSCL) and Electricity Generation Company of Bangladesh (EGCB). On the other hand, private sector produces power through small independent power producers and rental that government buys at a constant price. BPDB individually produces 46% of the total production.

Present Power Generation of Bangladesh Power Development Board (BPDB) includingPrivate Power Plants and its Key Statistics are given below8

Presently, the demand for power is about 6000 MW per day, while generation ranges between 3200 MW to 4100 MW, recording a daily shortage of 1900 MW to 2800 MW. The installed capacity as per fuel is shown below9, though the data does not include 110 MW heavy furnace oil (HFO) Power Station at Shikalbaha, Chittagong and 20 MW HFO Power Plant in Khulna.

Almost 81% of the electricity is based on natural gas, 6% on HFO, 4% on diesel, 4.77 % on coal and 4.39% on hydropower. Only a small portion is based on liquid fuel other than diesel.In addition to the abovementioned generation transmitted through the public grid, many companies, especially in the industrial sectors, such as, textiles, pharmaceuticals and chemicals, generate electricity for own consumption (captive generation). The approximate production from captive generation is in the range of 1800 MW of which 1200 MW is based on gas and 600 MW are based on liquid fuel. Various independent power producers (IPPs), which own one third of the total generated capacity, have turned out to be the most reliable source of generation capacity.The energy situation is seen as one of the biggest obstacles to do business in Bangladesh as well as to attracting foreign investments. It might seriously hamper the GDP growth in the years to come as for every 1 % GDP growth the power sector must grow with 3 %, which effectively means that the power sector must grow with 18-25 % every year. Though everyone seems to agree on the seriousness of the energy situation, the governments have not been able to act accordingly and develop new generating plants meeting the demand. The reason for the power crisis is not only the resource situation, but also lack of political initiatives. However, the government has a vision of 100% coverage in 2020; at present only 40% of the population has access to electricity. 100% electrification is equivalent to 16000 MW installed capacity in total. To achieve this very ambitious goal by 2020, the investments needed are estimated to 12 Billion USD per every 5 years to cope with the development. In addition to erecting new power plants, the supply of energy source must be developed as well, be it local coal resources or exploration of new gas resources onshore and offshore. The government may participate with only 20% of the investment; the rest must come from private investors and institutional investors such as the WB and the ADB.Recently, government has taken very ambitious plan to install at least 5000 MW capacity power plants, with each power plant ranging from 50 MW to 500 MW. Most of the power plants are planned to be private in nature, such as Build Own and Operate (BOO), Build Own and Transfer (BOT), Independent Power Plants (IPP), Public Private Power Plants (PPPP) and some of them are rental power. Out of 3500 MW Power Projects 2000 MW will be generated from coal, 1400 MW from HFO and only 100 MW from natural gas. It is also learned that other power projects under planning either may be coal or HFO. This is the first time government is not giving any assurance of supply of fuel/source of energy; moreover, it is well declared that the project owner must arrange the energy source for new power projects. Most of the projects are private power projects, such as rental (1-3 years), BOOs, IPPs and the PPPs, where government will have maximum 20% of shares.

About SIEMENS

Defendant SIEMENS BANGLADESH LIMITED ("SIEMENS BANGLADESH"), headquartered in Dhaka, Bangladesh, was a wholly owned subsidiary of Siemens Aktiengesellschaft ("Siemens"), a corporation organized under the laws of Germany with its principal offices in Berlin and Munich, Germany. Through its operating groups, subsidiaries, officers, directors, employees, and agents, Siemens was engaged in a variety of business activities for, among others, national, state, and municipal governments. This included, among other things, developing, constructing, selling, and servicing telecommunications equipment and systems; power generation, transmission, and distribution equipment and systems; transportation equipment and systems; medical equipment and systems; and industrial and traffic equipment and systems. SIEMENS BANGLADESH was a regional company that contracted for and managed projects relating to all Siemens operating groups.

In fiscal 2011 (October 1, 2010 September 30, 2011), Siemens sales to customers amounted to EUR 52 million and new orders totaled EUR 227.47 million.

Siemens currently has about 120 employees in Bangladesh.

In fiscal 2011, Siemens won its biggest high-voltage direct-current (HVDC) project ever in Bangladesh.

Siemens has been active in the country since 1956, primarily in the Energy Sector as well as the Healthcare Sector, where it has supplied more than half of the medical diagnostic equipment used in the countrys hospitals and clinical laboratories.

Siemens signed a contract with China National Machinery Import & Export (CMC) to build a 150-MW combined cycle power plant at Sirajganj for North West Power Generation Company Limited (NWPGCL), a public utility in Bangladesh. Siemens contributed a gas turbine and the necessary technical field assistance.In addition, the Sector delivered a number of rental power plants to provide power to plants, steel mills, real estate companies and construction firms, and completed a turnkey 105-MW rental power plant for a leading industrial group in Bangladesh. Siemens also signed agreements for two similar power projects which will be completed at the beginning of fiscal 2012. Siemens ended the fiscal year winning another medium-voltage contract with an exportoriented company operating in the Karnaphuli Export Processing Zone.

ManagementThe Managing Director of Siemens Bangladesh is Mr. Shouvik Bhattacharya. He graduated from Massachusetts Institute of Technology (MIT), MA, USA, in the early 80s, with degrees both in Electrical Engineering and in Computer Science. While working for a US company he has served international clients, particularly managing large projects in Japan, Australia and Holland, building and setting up their network management systems. The organizational structure of Siemens Bangladesh consists of Managing Director Mr. Shouvik Bhattacharya and Chief Financial Officer (CFO) Mr. Bul Hassan at its head who takes all the major decisions and under him there are other departments such as HRM which handles all the employment related work of it, and there is Operational department which mainly is categorized into two parts, one which serves the foreign client and the other sees the local clients, also there are Sales and Finance Department under the Managing Director and Chief Financial Officer which does its job respectively to operate the business.Operations

Products, solutions and services for the entire energy conversion chain from power generation and transmission to distribution.

Siemens Energy Sector is the worlds leading supplier of a wide range of products, solutions and services for power generation, transmission and distribution as well as for the production, conversion and transport of the primary fuels oil and gas. Siemens is the only supplier worldwide with comprehensive knowhow encompassing the entire energy conversion chain and, in particular, plant-to-grid connections and other types of interfaces. Siemens focuses primarily on the requirements of energy utilities and industrial companies particularly those in the oil and gas industry.

In October 1956, Siemens Bangladesh Ltd. Set foot here hoping to tap into Bangladeshs growing economy. This more than 50 year of association have brought major modernization and infrastructural development for Bangladesh. During which Siemens Bangladesh has established itself as a key player in energy sector. Siemens in Bangladesh helps to generate, transmit and distribute electrical power at the highest levels of efficiency. It also helps to produce, convert and transport the primary fuels oil and gas. Sensing the current need and future potential for growth, Siemens Bangladesh is actively investing in power and energy sector of Bangladesh. The company under took several investment heavy programs.

InfrastructureThe energy sector of Siemens Bangladesh is responsible for Products, solutions and services for the entire energy conversion chain from power generation and transmission to distribution.It also handles production, conversion and transport of the primary fuels oil and gas. It provides worldwide with comprehensive knowhow encompassing the entire energy conversion chain and, in particular, plant-to-grid connections and other types of interfaces. It focuses primarily on the requirements of energy utilities and industrial companies particularly those in the oil and gas industry. Fossil Power Generation Fossil Power Generation offers highly efficient products and solutions for power generation based on fossil fuels, ranging from individual gas and steam turbines and generators to turnkey power plants. Renewable Energy Renewable Energy offers environmental friendly energy development, connecting a number of activities in the wind energy business both for onshore and offshore wind parks, with highly efficient, solid and reliable wind turbines. Oil & Gas Oil & Gas offers customer products and solutions used for the extraction, conversion and transport of oil and gas. Energy Service Energy Service provides comprehensive services for complete power plants as well as rotating machines such as gas and steam turbines, generators and compressors. Power Transmission Power Transmission offers products and solutions in the high-voltage field such as High Voltage Direct Current, substations, switchgear and transformers.Key Projects In 1967, Siemens was involved in constructing the Ashuganj power plant and acquired a major market share in energy sector. In fiscal 2011, Siemens won its biggest high-voltage direct-current (HVDC) project ever in Bangladesh. In addition, the Sector delivered a number of rental power plants to provide power to plants, steel mills, real estate companies and construction firms, and completed a turnkey 105-MW rental power plant for a leading industrial group in Bangladesh.

Projects in Pipeline Siemens signed a contract with China National Machinery Import & Export (CMC) to build a 150-MW combined cycle power plant at Sirajganj for North West Power Generation Company Limited (NWPGCL), a public utility in Bangladesh. Siemens contributed a gas turbine and the necessary technical field assistance. Siemens also signed agreements for two similar power projects which will be completed at the beginning of fiscal 2012. Siemens ended the fiscal year winning another medium-voltage contract with an export-oriented company operating in the Karnaphuli Export Processing Zone. Dhaka Power Distribution Company Ltd on 18th December, 2011 signed a contract with Siemens AG and Siemens Bangladesh Ltd. to install two heavy GIS substations in the city to improve the power supply situation. As per the contract, Siemens will supply and install the two 132/33 kV power GIS substations in Lalbagh and Mothertek areas, which are under the DPDCs power supply network. DPDC secretary Mohammad Hasanat Chowdhury and Siemens senior project director Gerhand Cerny signed the contract on behalf of their respective sides at a function at DPDC office.