ndpworld bn energy. s,ector management...

4'~ ~~0 n. NP Bank0

~oilt NDPWorld BnEnergy. S,ector management Program

~~~ . ~~~Activity, Coi6ip!etiik*epor't9 ~~ .No. (0I83

14

Aciiy:, PA10RITY wMSTmW PROGRAM F~OR ENRGY

,~~aC MaIgy 1983I

port te oin LNDP/WorMd Banik Energ Stor Managemnent Pr6gramThis document has a restricted distribution. Rts contents may not be disclosed

0 wvhut authoriition from the Government, the -UNDPbor the Word~ Bank.

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Energy Sector Managnment Program

The Joint UNDP/World Bank Energy Sector Management Program isdesigned to provide a rapid and flexible response to governments whorequest assistance in implementing the policy, planning and institutionalrecommendations of the Energy Assessment Reports produced under anotherJoint UNDP/World Bank Program, or in carrying out prefeasibility studiesfor energy investments identified in these reports.

The Energy $ector Management Program can provide the followingtypes of assistance for countries which have had assessments:

o assistance to improve a government's ability to manage itsenergy sector, for example by defining staffing and workprograms, evaluating management information needs,identifying sources of public and private finance,developing a medium-term investment plan;

o prefeasibility work on priority investment plans,especially those which will improve the efficiency ofenergy use, bring about economic fuel substitution, orprovide enough affordable energy to rural areas;

3 specific short-term assistance in institutional andmanpower development, both at the sectoral and agencylevels.

The Program aims to supplement, advance and strengthen thsimpact of bilateral or multilateral resources already available fortechnical assistance in the energy sector.

Funding of the Program

The Program is a major international effort and, w'hile the cerefinance has been provided jointly by the UNDP and the World Bank,important financial contributions to the Program have been made by theGovernments of the United Kingdom, the Netherlands, Denmark, Finland,Norway, Sweden, Australia and New Zealand.

BANGLADESH

PRIORITY INVESTMENT PROGRAM FOR ENERGY

May 1983

a

'V

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0

BANGLADESH


PART I

INTRODUCTORY REPORT TO THE INVESTMENT PORTFOLIO

.

Table of Contents

Page No.

Bangladesh: Priority Investment Program for Energy ....... 1

Scope and Aim of Priority Investment Program............. 1Overviev............................, 3Exploration for Hydrocarbon in Bangladesh................. 4Historical Back4round. .......... ........ ........ *.... 4Present Exploration Activities .......... 5Exploration Drilling Proposed by Petrobangla ........ ..... 7Gas Utilization in Bangladesh............................ 7Development# Transmission and Distribution of

Natural Gas . . ...................... . 9Development of Gas Fields Proposed by Petrobangla....o.... 11Transmission and Distribution Network Proposed by GOB.... 12Refinery Subsector .................................. .... 15Power Subsectoro .............. o. 16External Assistance .................................... . 17Potential Smaller Scale Projects ........................ 22Ranking of the Projects. ... . . ....... .................. .. . 23Benefit-Cost Analrsis.................... ............... . 25Observationo............................................. 26Recommandations ......................................... o. 29

Part II Investment Portfolio............................ 32

Power Projects:

1. Upgrading of East-West InterconnectorCo 230 KV operationo................ ........... .... 33

2. Ashuganj-Comilla 230 KVTransmission Line ........................ ....... . 42

3. Kaptai Hydro Power StationEatention ............Dhaka Pour 45

4. Greater Dhaka Power Distribution Project,Phase II ............ o .............. oo ............... 48

5. Power Distribution ProjectWest Zone ooo...oo...0....000............................. 50

6. Ghorasal-Tongi 230 KVTransmission Line o................................ 55

7. Greater Chittagong PowerDistribution Project Phase IIo.................... 58

8. Augmentation of Grid Substations..oo ............. 61

Table of Contents

Page No.

9. Power Distribution ProjectEast Zone. ....... . .* 64

10. System Loss Reduction Scheme..................... 68

11. Barisal - Patuakhali Bhola 132 KVTransmission Line .............. 71

12. Area Coverage Rural ElectrificationPhase Ift.A 73

13. Feasibility Study for AshuganjThermal Power Station, 2nd Extention............. 76

14. BPDB Tariff Study.... ftuytfttt ... f 79

15. Pre-stressed concrete Pole ManufacturingPlant at Aricha ............ . 81

16. 60 MW Gas Turbine Power Station (East Zone)Land Baseda........................................ 83

17. 60 MW Gas Turbine Power Station (East Zone)Barge Mounted ........... 85

18. Pre-feasibility study for Minihydro PowerGeneration........................................ 87

19. Canal drop small hydro power plant at Teesta........ 89

20. Feasibility study for a 100/150 MW SteamPower Station in West Zone o ne.. .f 92

NATURAL GAS PROJECTS

1. Development of Kauta Gas Field andInterlinking with Titas System 94

2. Greater Dhaka Gas Distribuition...................... 97

3. Development of Rashidpur Gas Field andinterlinking pipelines to Titas System ..........ft 102

4. Gas Transmission and Distribution to Mymensingand Jamalpur via Kishorganj................ 105

5. Syihet Tea Estate Gas (Supply)Distribution (Phase II) 109

Table of Contents

Page No.

. Gas Grid System in Eastern Zone (study) ...... 113

7. Feasibility study of converting raiLlway and

river transport to Compressed Natural Gas (CNG)... 115

4U

BANGLADESH

. 'PIOXIsTV INVEMSTMNT PROGRAM FOR ENERGY IN BANGLADESH

-Introduction

1. The purpose of this study is to establish a priority ranking of

energy projects In Bangladesh, as well as to: (a) ensure that implemen-

** . tation of critical projects is not inhibited by a lack of financial

resourceo, (b) eliminate duplicate and parallel projects in order to

optimize future energy investment in Bangladesh; and (c) to promote a co-

ordinated approach toward a priorit" investment program for energy (PIPE)

in Bangladesh. All the available projects were reviewed with the domes-

tic executing agencies' planning staff in Dhaka. The present exercise is

based on GOB energy policies as well as the World Bank report No. 3873-BD

'Ianladesh:* Issues and Options in Energy Sector."' It is hoped that IDA

will provide assistance and support towards promoting an investment plan

for the energy sector in consideration of the overall financial con-

straints prevailing in Bangladesh.

Scope and Aim of Priority Investment Program for Energy (PIPE)

2. The PIPE was assigned to translate specific energy projects and

pr9grams into an investment portfolio, with a three-fold objective to:

(a) provide a comprehensive and det-lled schedule of investments

needed in the energy sector, for which investment decisions are

to be made during 1983-85;

(b) prepare a specific portfolio of investment projects and programs

including ranking the priorities based on the economics of the

projects;

(c) assist donors in the selection of projects for their support

within the framework of the sector investment priorities.

-2-

3.. The Government of Baugladesh gave its full support to the World

Bank representatives In the process of the project Inventory and ce.lcula-

tiohi of the net present value of the projects. All the information

preeented in the project briefs was prepared and supplied by various exe-

cuting agencies in Bangladesh. The Secretary of Petroleum and Natural

resources devoted a great deal of his valuable time in chairing several

lengthy meetings and coordinating the work for preparation of this docu-

ment. The sub-sectors covered in PIPE are represented by the main energy

supply agencies;

(i) for power, the Bangladesh Power Development Board (BPDB),

and Rural Electrification Board (REB)

ii) for oil and gas, the Ministry of Energy, Petrobargla, and,

the Yarious gas companies

iii) for refinery operations, Bangladesh PetroleLm Corporation

(BPC)

The Power Development Board and the Rural Electrification Board

submitted a total of 33 projects out of which 20 were selected and

thought to have merit which could be considered for inclusion in the

portfolio. Petrobangla proposed 17 projects, seven of which could be de-

velope&' for inclusion in the portfolio, and the seven projects proposed

by the Bangladesh Petroleum Corporation should be considered late in 1984

when the result of the consultants' study on the ERL is available. The

projects to be considered for inclusion in the portfolio are summarized

in Table 5 and 6. The total investment cost of the projects selected is

a&bout Taka 18,498 million (US $804.3 million), of which Taka 9,191.62

-3

million '(US$ 1.1)0 millioun would be in foreipn exchange. Individual

p;oject proform-a are enclosed as the complementary Part II of the report.

Overview

4. Commercial energy sources (petroleumi products, coal, gas and

electric power) in Bangladesh amount to about thirty-four percent of

total energy demand. Import of petroleum products accounted for about

522 of total commercial energy in 1980/1981. Tlhe net petroleum imports

of around 1.6 million tons in 1980-1981 cost about US 460 million using

* - ~about 60%-70% of the country'sa foreign exchange earnings .I/ According to

Petrobangla, the quantity of imported oil has not changed considerably in

1982 from that of previous year however the foreign currency is expected

to cost US $ 600 million. 2/ The imported oil accounts for 46% 3/ of the

total commercial energy, while natural gas will be 47%,, Imported coal 5%

and hydropower contributes the remaining 2% 4/. Since the quantity of

imported fuels have remaiued unchanged and oil prices remained stable or

even lower in the spot market in 1982, it would be safe to assume that

I/ World'Baik report No. 3873-BD, Oct. 1982.

2/The sharp increased cost of imported oil of US$600 million for 1982,as projected by Petrobangla compares to US$460 million as cited inthe World Bank Energy Assessment Report. Such increase could only bktattributed to Increased demand but not to price escalation. However,Petrobangla does not forecast a sharp increase in demand for 1982.The US$600 million projection should be treated with reservation.

3/ The World Bank Energy Report #5873-BD states that, 52% of total com-mercial energy was imported in 1980/1981, while Petrobangla's projec-tion for 1982 is 46Z in 1982. This is probably due to increasednatural gas consumption in 1982.

4/ Petrobangla project information for Saudi Assistance, Oct. 1982.

... .

-4-

,the foreign currency cost for the country would be in the rsnje of 1981

and not the amount indicated by Petrobangla. tn either case, the finan-

cial burden of hydrocarbon imports,even with nominal growth, is untenable

for the government and expeditious strategies have to be adopt-d focused

on the development of indigenous energy sources, to replace imports. The

only lndigenous comercial energy aource presently available in

Bangladesh is natural gas discovered in thirteen fields, twelve of which

are located in the eastern part of the country and one offshore. Five

fields are producing with a total offtake of 237 MMCFD, supplying gas to

four independent gas distribution systems; 1- Titas-Habiganj, 2- Sylhet,

3- Chhatak and 4- Bakhrabad.f

Exploration for Hydrocarbon in Bangladesh

Historical Background

5. Since 1910 there have been numerous exploratory attempts in search of

hydorcarbon deposits in Bangladesh. Early drilling activities were

abandoned in 1914, after the first three wells did not encounter

hydrocarbon deposits. In 1933, however, two wells were drilled by Burma

Oil Company in the Patharia district, penetrating depths of 2871 feet and

.3436 feet where oil and gas showe were recorded. From 1951 to 1960

Pakistan Petroleum Limited drilled tight exploration wells which resulted

in discovery of the Sylhet and Chhatak gas fields and subsequently

drilled five appraisasL ells on these structures. A total of seven wells

drilled on the Sylhet structure, two of which are gas producers at

present. Standard Vacum Oil Company drilled three exploratory wells

during 1959 and 1960, penetrating to the total depth of 12,521 feet, all

of which were completed as dry holes. Pakistan Shell Oil Company drilled

eleven wel1s curing 1960 to 1969, which resulted in discovery of the

Titas, H.biganj, Rashidp4r, Bakhrabad and Xailashtilia gas fields.

Atlantic Richfield Company (ARCO) drilled one exploration weU in 1976,

to, a total depth of 12,804 feet, which was, abandoned as dry hole. In

1977 Union Oil Company drilled one we.l on the off shore Kutubde struc-

ture and encountered gas. The Beanibazar and Kasta gas discoveries were

made through financial and technical assistance of the FRG and the USSR

in 1982. (See Annex I1 for details).

6. Since prospects of liquid hydrocarbon occurrences have not been ruled

out in Bangladesis and various investigations indicate probability of

finding oil; GOB officials have given top priority to further exploratory

endeavours. However, the Bangladesh government authorities, at all

levels, believe that the major (multi-national) oil companies have no

further interest to invest in exploration drilling. They also have given

up hope of obtaining financial support from multilateral institutions.

GOB presently is seeking financial support for eyploratiou from Saudi

Arabia as well as Eastern Europe.

Present Exploration Activities

7. Presently, GOB lacks a clear cut exploration strategy. Considering

the fact that exploration is a capital intensive and high risk investment

undertaking, the government is not in a position to use its own limitede

resources for that purpose. Soliciting foreign aid has not been

successful, especially after the unsuccessful termination of the German

multiwell drilling program. Petrobangla, under the directive of the

Ministry of Energy and Mineral Resources, intends to pursue exploration

drilling, using its own manpower and equipment. At the same time,

-6-

however, Petrobangla encourages foreign private participation. Final

decisions should be made on either alternative and a clear cut course of

action shoulld be adopted.

8. Studies and research on the hydrocarbon accumulation in Bangladesh

have been or are anticipated to be carried out by the following entities.

(a) USSR: geological and drilling activities have been carried out

in Bangladesh since 1972. A total of 23.2 million Ruble have

been allocated for these activites of which 17.7 million Ruble

have been disbursed. Six exploratory wells have been drilled

but the results of the studies are not available in English.

(b) U.S. AID: has supported an investigation of "Tectonic set up of

Bangladesh and its relation to hydrocarbon accumulation"; a

joint study by Bangladesh Center for Policy Research represented

by Prof. Monirul Hoque of Dhaka University and Mr. Lynn Watney,

chief subsurface geology division of Kansas Geological Survey.

According to the US AID representatives in Dhaka, the result of

the second phase will be available in 1983.

(c) The World Bank: The Second Hydrocarbon Project also includes a

comprehensive study on the Habitat of Hydrocarbon in Bangladesh;

(d) France: GOB has recently asked the French government for tech-

nical assistance in planning exploration drilling anticipated by

the new French rig Petrobangla has acquired through French fi-

nancing. A protocol has been signed and the Institute Francais

du Petrole (IFP) will be sending a team of oil and gas experts

to assist the GOB in this field, early in 1983.

-7-

(e) Federal Republic of Germany: German geological and geophysical

experts have also been occupied with separate exploration drill-

ing, seismic and geological investigations in Bangladesh which

is going to continue at least for. another year, with the excep-

tion of multiwell drilling which terminated in December, 1982.

Exploration Drilllng Proposed by Petrobangla

9. The Government of Bangladesh is pursuing oil exploration drill-

ing intensively. A project has been submitted by Petrobangla to inten-

sify the search for oil and consequently offset the country's adverse

balance of payment position. It proposes the drilling of three explora-

tory wells, each to about 5,000 meters depth. The total cost is esti-

mated at about US$32 million of which roughly US$26 million would be

foreign exchange. The government rationale for such a high-risk and

capital intensive venture is based on. following:

i) consideration of the fact that previous exploratory drilling

has resulted in an impressive success ratio of one gas

discovery for every three wells drilled;

ii) geological and geophysical conditions in Bangladesh do not

preclude presence and possibility of finding oil;

iii) the burden of foreign exchange drain used for import of fuel.

Gas Utilization In Bangladesh

10. It is imperative that import of commercial fuels be reduced as

much as possible and replaced by indigenous natural gas. Every 100 NMCFD

of gas utilized from local sources implies a savings of about US$150

million of foreign exchange. The status of current production of gas

fields in Bangladesh is summarized in the following table.

-8-

TABLE 1 - PRODUCING GAS FIELDS IN BANGLADESH

GAS SYSTEM NO. OF WELLS CAPACITY OFFTAKE PRINCIPALOF DISTRIBUTION PRODUCING MMCFD MMCFD CONSUMERS

1- Titas;- 5 Wells/ 150 150 Domestic: Dhaka, Ghorasal,Habiganj Titas Ashuganj towns,

Power Ashuganj,Shahibazar,

2 Wells/ 60 56 Hubiganj Tea ValleyHabiganj Ashujang Fertilizer

Factory

Total 7 210 206

2- Sylhet 1/ 2 21 21 Sylhet Tea EstateTowns in Sylhet DistrictSylhet Fertilizer PlantCement and Pulp Factories

3- Chhatak 2/ 1 30 7.5

3 51 28.5

4- Bakhrabad- 5 150 -- Power, Fertilizer, Indus-Feni tries, Commercial, Domes-

tic in the Chittagong,Bakhrabad and Feni areas

1/ The two fields are not connected - they are two separate systems.

2/ Due to water encroachzent into the gas zone in Chhatak field, GOB is in theprocess of constructing a 30 mile pipeline from Kailashtilla to the Chhatakcement and paper mill to replace the gas supply source - Chhatak - which has tobe shut down for reservoir testing and possible workover operations.

Source: Petrobangla

-9-

11. In the past the power subsector has been the largest natural gas

consumer in the country, 38% of the total in 1981, followed by Fe:tilizer

Industry with 36%. Other industries had a share of 16%, while domestic

and commercial sectors together accounted for the remaining 10%. The

projected rate of growth for the two major consumers, power and ferti-

lizer up to the year 1985 is estimated to be 29.6% and 41.8% respective-

ly, consuming about 70% of the total supply. See Table 2.

Table 2

Projected Natural Gas Demand by Major Consumer Group

Summary

M4MCF

AnnualPercentage Percentage Average Growth

Category 1980/81 Share 1984/85 Share Rate, X1980/81-1984/85

Power 18,619 38.0 28,458 29.6 11.2%Fertilizer 17,730 36.0 40,170 41.8 22.7%Industry 7,891 16.1 20,506 21.4 27.0Commerce .1,282 2.6 1,888 1.9 10.2%Households 3,429 7.0 5,020 5.2 10.2%Totals 48,951. 100.0 96,042 1GO.O 18.4%

Source: World Bank Energy Assessment Mission

Development, Transmission and Distriibution of Natural Gas

* ^ 12. In an effort to replace imported fuel by natural gas,

Petrobangla plans to extend the gas distribution network countrywide.

Gas utilization promotion in recent years has resulted in 165,560

domestic gas connections 1/, and connections of three fertilizer

factories, four power stations, one cement plant, 581 small industries,

- 10 -

106 brick kilns and 3,774 commercial enterprises. Table 2 shows natural

gas consumption by sector. More than 1,100 miles of gas transmission and

distribution pipeliUe have been constructed in the eastern part of

Bangladesh. The following table summerizes the specifications of the

transmission pipelines constructed or under construction for each of the

independent distribution systems.

Table 3

Existing and Under Construction Gas Transmission Pipelines in Bangladesh

Pipeline and Diameter Length Line Flow WorkingDistribution System Inches Miles Capacity Pressure

MMCFD psig

Already Constructed

A- Titas-Habiganj System1- Titas-Dhaka 14" 60 170 10002- Iabiganj-Shahjibazar 8" 1.5 36 4503- Rabiganj-Ashuganj 12" 35 90 1000

B- Sylhet-Chhatak System4- Sylhet-Fenchuganj 8" 33 25 6505- Chhatak-Cement 4" 12 9 6506- Sylhet-Kailashtitta- 8" 8 30 650

Under ConstructionA- Titas-Habigsnj System

1- Habiganj-Sylhet 6"&4" 60 7 -Tea Estate

2- Titas-Narshingdi 16" 31 197 10003- Narshingdi-Joydevpur 14" 26 60 1000

B- Sylhet-Chhatak System1- Kailashtitta-Chhatak 6" 25 20 6502- Chhatak-Sunamganj 4" 12 9 -

C- Bakhrabad System1- Bakhrabad-Chittagong 24" 110 336 9602- Bakhrabad-Comilla 6" 11 24 9003- Bakhrabad-Chandpur 4" 31 9 900

Source; Petrobangla

1/ Source: Petrobangla pcsition paper on Natural Gas, October 1982.

- Ul -

Development of Gas Fields Proposed by Petrobangla

13. In view of the expected shortfalls in gas supply for the Titas

Habiganj system, ADB has committed its support to the drilling of three

new development wells in the Titas field, which would add 90 MMCFD to the

system. Two wells resulting in an additional 60 MMCFD to the Titas-

Habinganj system, are planned through, French financing, FF 50 million in

the Eabiganj Field, raising the total supply to 360 MMCFD by 1985. How-

ever, GOB feels that in the greater Dhaka region, the main industrial

area, there will be greater demand in the immediate future, and therefore

according to GOB the development of Kampta and Rashidpur fi0lds would be

justified. The proposed drilling of a new well in Kampta and workover of

the existing well will add an additional 25 MMCFD to the Dhaka area, this

is believed by Petrobangla to be sufficient to stabilize gas storage and

eliminate low pressure problems within the area's distribution system.

In Rashidpur, there are two existing wells which GOB proposes to bring

into production, after workover with a 55 mile, 18' pipeline to be con-

structed for transport of the Rashidpur gas to the Ashunganj area and

connection to the Titas System, resulting in an additional supply of 60

MMCFD. See Annex I, Peak Gas Demand and supply position based on

Petrobangla's estimates.

14. Petrobangla's natural gas expansion program under implementation

or planned is shown in Table 4.

- 12 -

Table 4

Additional Gas Production Capacity Anticipatedor Planned in Bangladesh

Field No. of Wells Capacity (MMCFD) Financed by:

Titas 3 90 Asian Development BankSubiganj 2 60 FranceBakhrahad 5 150 World BankRashidpur 2 60 NoneKuata 2 25 NoneTotal 1a; _

15. At present the supply position in the Chhatak-Sylhet and

Bakhrabad systems should satisfy the demand for the next five to ten

years, except for the recent critical water encroachment in Chhatak where

the. amount of water has Increased from 3.1 gallons to 25 gallons per

MMCF. Consequently Petrobangla is constructing a new pipeline 30 miles

long to transport gas from Kailashtilla to the cement and paper plants

preventing shut down of the two industries. However, the Titas-Habiganj

system is facing a critical shortfall, with a present gas demand of about

230 MMCFD against a supply of only 210 MMCFD. Petrobangla expects the

future demand in the system to rise to 270 MMCFD by mid-1983, mainly due

to increased demand by the power subsector, industries and brick manufac-

turers. By 1989 demand is projected to rise to about 500 MMCFD. Con-

sequently, Petrobangla believes that the four additional gas wells at

Kamta and Rashidpur should be developed as soon as possible.

Transmission and Distribution Network Prop.osed by GOB

16. There are three gas transmission and distribution projects that

have been proposed by the GOB in parallel with implementation of gas de-

velopment projects:

- 13 -

T. The Greater Dhaka gas distribution project. This would follow

the construction of two transmission pipelines(Narsingdi-Ghorasal and

Titas Narsingdi) which have been financed recently by ADB. The proposed

network covers Jinjira, Kaliganj, Ianiganj and Tangail.

II. The Mymensing, Jamalpur and .shorganj project. Its main ob-

jective is the extension of gas distribution facilities for Lndustrial,

commercial and domestic purposes. Also envisaged is extension to the

East Bank of the Jamuna River for gas supply to the fertilizer factory

anticipated to be built in that area.

III. The Sylhet Tea Estate Phase II project. This is the contin-

uation of the SyDhet Tea Estate distribution network which is under im-

plementation with Belgian financing, supplementary fund requirements are

being negotiated with the British ODA. The project objective is to

replace fuel oil by gas as the main source of energy for the Tea industry

in that area, and also to supply gas to commercial and domestic con-

sumers.

- 14 -

Table 5:

List of Projects Proposed for Development of Gas Proposed -

In Million Taka 1/

Total ForeignCost s Exchange

1. Development of Kmata Gas Field 264 180

2. Development of Rashidpur Gas Field 531 298

3. Greater Dhaka Gas Distribution vf351 108 V

4. Transmission and Distribution to 478 213Hymensing, Jamalpur & Kisborganj

5. Distribution Network Gas Supply to 154 46Sylhet Tea Estate Phase I

6. Gas Grid System in Eastern Zone(Study) 5.00 4.00

7. Feasibility Study of Convertingrail and river transportationto CNG 3.45 3.45

Total 1,786.45 852.45(US$77.2) (US$37.1)

I/ TK. 23 - US$1)

17. Since gas distribution and transmission are carried out under

four independent systems (Bakhrbad, Sylhet, Chhatak, and Titas-Habiganj)

each has to be dealt with separately in respect to the demand and supply

position within each system. (See the gas demand and supply positions

attached as Annex I). If the projects financed by ADB and the French for

the Titas-Ilabigani System are implemented on time, the gas industry will

be temporarily relieved of impending shortfalls. The GOB proposal for

development of wells in Kamta and Rashidpur will result in an additional

- 15 -

supply of 85 MMCFD to the Titas system sufficient to satisfy the pro-

jected demand growth up to 1987.

Refinery Subsector

18. Several projects for development and conversion of the Eastern

Refinery Limited (ERL) were supplied for inclusion in the Priority

Investment Program for Energy. Only one project was identified to be in

an advanced stage. It is already in the pipeline for financing and will

probably be presented to the World Bank Board prior to July 1983. The

Project consists of five components: (a) rehabilitation of the Eastern

Refinery Limited (ERL) facilities in Chittangong - to restore its mecha-

nical integrity, increase capacity utilization by 22%, improve its opera-

tions, reduce its energy consumption -- and the execution of a techno-

economic study to determine further modifications required to ensure that

the refinery's yield pattern would be in balance with the changing long-

term demand profile for petroleum fuels in the country; (b) technical

assistance to improve the accounting, financial and management informa-

tion systems of the Bangladesh Petroleum Corporation (BPC), the parent

company of ERL; (c) an energy conservation and diversification program to

identify and prepare programs to improve the efficiency of energy use in

the industrial and power sectors as well as financing of energy conver-

sion facilities to enable selected industries in the Chittagong area

currently using imported petroleum fuel to switch to natural gas; (d) the

carrying out of detailed feasibility studies on gas-based export-oriented

projects to provide a basis for Bangladesh to capture the foreign ex-

change potential of its abundant natural gas resource; and (e) research

and development on the possibilities of using natural gas-derived metha-

- 16 -

nol an an extender of middle distillate petroleum products and in other

non-conventional applications. Implementation of the Refinery Rehabili-

tation Component is expected to be completed by March 1986; the technical

assistance to improve BPC's accounting and management information system

is expected to be initiated by September 1983 for completion by March

1985; the energy conservation and diversification component is expected

to begin in March 1983 and scheduled for completion by September 1985.

The detailed feasibility studies of gas-based export-oriented projects

would be executed over a 28 month period starting May 1983; while the

research and development on methanol use as an extender of middle distil-

late petroleum products would support a three-year continuation of the

research work in this area being carried out by the Chemical Engineering

Department of the Bangladesh University of Engineering and Technology

(BUET). 1/

Power Subsector:

19. Although the total investment in generation, transmission and dis-

tribution of power in Bangladesh has been greater than in other energy

subsectors, still there is much more to be accomplished. According to

the World Bank energy report, "electricity demand in Bangladesh has grown

at an annual average rbte of 13% bet"eewn 1976 and 1980 and at a rate of

slightly over 9% the following years. Consumption is dominated by the

industrial sector which accounts for 59% of the public utility sales and

an estimated 70% of total electricity' including captively generated

electricity by industrial enterprises. The next important user group is

1/ Based on the draft copy of the staff appraisal report No.4295-BD, January 1983.

- 17 -

the commercial sector with a 14% share, followed by the domestic one with

12%. Agriculture and rural areaas use only 2% of the power generated in

the country. In those villages, towns and cities that have access to

*- electricity, the number of households connected i8 very small, ranging

from a fraction of 1X to less than 20% in the Greater Dhaka area. 1/

External Assistance:

20e In the past, Bangladesh has been able to secure foreign funds for

implementing power projects, especially for power generation. Presently

several donor agencies are showing interest to finance power projects.

In order to place power system planning on a sound basis, the Government,

with the assistance of Power Board's planning department adopted a long-

range power development plan which is based on least cost options and

availability of indigeneous energy resources. The Government agreed,

under the Greater Khulna Power Distribution Project (credit 934-BD), to

an annual review of the plan in consultation with IDA. The plan was

reviewed recentlj by the World Bank power mission to Bangladesh and found

acceptable. The projects submitted by BPD8 for the "Priority Investment

Projects for Energy" portfolio are part of the Long-Range Powr Plan.

21. The Power Development Board and the Rural Electricification Board

submitted a total of 33 projects out of which 20 were selected and

thought to have enough merit to be considered for inclusion in the port-

folio. The list of the projects in the power subsector for which the GOB

is seeking financial support, is summarized in the following Table 6:

1/ Source: World Bank Report No. 3873-BD

½'

- 18 -

Table 6:

Priority List of Power Projects Proposed by BPDBCost in Million Taka (TK. 23 - U.S. $1)

Total ForeignCost Exchange BCR NPV

1. Upgrading of E.W. Inter-Connectorto 230 KV1 289.5 155.16 0.98 (-) 105.56

2. Ashuganj-Comilla Transmission Line 875 450 0.69 () 454.453. Kaplai Hydro Power Extension 1911 1082 0.497 (-) 73574. Greater Khaka Power Distribution

Project - Phase It 2783.205 1513.6 0.713 () 1235.615. Power Distribution Project

(West Zone) 1318.17 440.57 0.781 (-) 726.496. Chorasal-Tangi 230 KV

Transmission Line 403.7 223^3 0.63 () 248.587. Greater Chittagong Power Distribution 1588.24 793.35 0.778 (-) 556.608. Augmentation of Grid Sub-stations 311.76 171.71 1.0897 40319. Power Distribution Project E. Zone 2219 321.02 0.83 () 1142.2010. Syst" Less Reduction Scheme 197 13111. Barisal-Patukhah 132 KV

Transmission Line 348.48 165 0.584 (-) 175.2312. Rural Electrification Phase III-A 2939 1800 Same as Phase II-B13. Feasibility Study- Ashugani Thermal

. Power, 2nd Extension 6 614. BPDB Tariff Study 11 1015. Pre-stressed Concrete

Pole-Production Plant 99 47 2.32 (+)3677.2716. Gas Turbine Power Generation

in E. Zone (Land Based) 577.5 412.5 0.96 (-) 23.1117. Gas Turbine Power Generation

in E. Zone (Barge Mounted) 559.20 451.50 1.49 351.1318. Pre-feasibility study for

Mlini-Hydro Po;wer Generation 2.2 1.219. Canal drop small hydro power

plant at Teesta 264.00 158.0020. Feasibility study for AICO/150 MW

steak power station in West Zone 8.64 7.26

Total 16,711.6 8340.14(US$726.6 (US$362.61)

1/ The costs reflect January 19, 1983 revisions made by BPDB and areconsistent with those submitted to the Second Five Year Plan.

22. BPDB considers the country's generation position to be in a cri-

tical situation both in the East and West zones. The installed genera-

tion capacity generation capability and peak demand of the system is

summarized below by BPDB as of May 1982:

-19 -

Installed Capability Firm PeakCapacity (May '82) Capacity Demand

East Zone 562 481 366 450 MV

West Zone 295 197 118 ./ 146 MV 2t

Consequently the BPDB is operating the power system without adequate firm

capacity. Thereforo, load shedding measures are adopted at the slightest

mishap. BPDB's two grids, East and West have been combined together on

1st December 1982 with the commissioning of East-West Interconnector.

The generatior. capability of the integrated Grid as of December '82 is

812 MW. The maximum demand of the integrated system is 650 MW, recorded

so far.

23. In the context of past experience and local condition BPDB pro-

poses, the following contingencies &re to be recognized by the Power

Board planning Division.

(a) The largest machine on planned maintenance.

(b) The second largest on forced outage.

(c) One gas turbine out of service.

On the basis of the above, the present firm capability of the system is

812-(60+55+21) = 676 MW. The generation projects under implementation

which would be completed by June 1985, would provide 435 MW generation

capacity in addition to the; present capacity of 812 MW. By June 1985,

1/ Large portion is in-srnal combustion turbine, not suited forbase-load.

2/ The peak demand is restricted.

- 20 -

the anticipataed peak demand would be 936 MW. The generation capability

of PDB system by that time would be 1215 KW and the firm capacity would

be 1215-(210411014603) - 835 MW. Therefore, the firm capacity will fall

short of peak demand by abcut 100 MW. Hence, about 120 NW capacity is

additionally required to have the firm capacity above the demsnd line.

The capacity has to be built up very quickly i.e., within next two

years. See Generation Addition vs Load Demand, next page.

- - - r" N N

( 1 0 s (1 0 (l 0 At 0 00 0 0 0 0 0 0 0

East West Interconnector CommissionedNJ -. < G)

0) a)! Khulno 110 MW ST. G Ca 00 \1 4 Chittogong 60MW ST. rn

L 1 1 <.Ashugonj 30 MW ST. r t o\i*p oll 8arisal 25 MW Retirement 32 MW O 14 0 Z0 -4 0

I .CA g East and West Zone 2 x 60 MW GT.(Not Yet In- en - ch i _ duded In SFYP)0 3>

- 0 * - ~ ~ ~ ~ ~ ~ ~ ~ ~~~~ M

_i' @I g _ 1gtoGhorosol 210 MW ST. Fm 0 East Zone 60 MW GT. G Z

M < &.1 w 0E C o'Ri > Ashuganj 150 MW ST.(IstUnlt) rf

Z Ch N _ 55= > Kaptoi 50MW HyiroO4th.Unit)

Z 'a3 0 \'8 O Retirement 5MW r;C 7 > zo ts Ashuganji150MWST1ZndUnit) a

Z o = o 0 O_MW HydroGth.UnfiXWP_ 3o G horosal 210MW ST12ndsp)z mo N~~~r 0~ N \ West Zon*45OMW ST.O Z

| | | @ 'S, I IRetirement 10 MW

0.

o. 01 C \w 10 ~ ~ 1

0 z- 0

0 > - -- -i _ Chittogong I50MW ST. 0-< * 1} p _ rWest Zone 150 MW ST. 0

00-1 N~~~~

co o ID ^z 0 2 0 z > _\ \^ 8>> _ Ashugonj150MW O0 m 3 zD Q 1 1> g N(3rd.Unit)

- 2

0~~~~~~~~~T

- 22 -

Potential Smaller Scale Projects

24. There are several smaller scale projects proposed that may have

a high pay-off. These will be of interest to individual donors with lim-

ited funds. The following have been suggested:

1) A study of energy sector institutions.

2) A study for reorganization of oil and gas agencies.

3) A study of the Gas Grid system in the Eastern Zone. An

engineering study on country-wide Gas Grid system has been

carried out by local conoultants in 1981. GOB feels that

additional study is needed, estimated cost of which is about

US$200,000.

4) A study of prospective future gas demand. (A US $200,000

project.)

5) A study and equipment of a comprehensive communications system

for BPDB, estimated cost is US $2 million.

6) A pre-feasibility study for mini-hydro power generation,

estimated cost US $100,000.

7) A study of Peat as an anergy source: (The Danish government is

presently involved in a study and experiment on "peat as rural

energy source').

8) Utililation of compressed natural gas for the transport sector

An experimental program is presently underway with IDA financ-

ing. It is thought that this exercise should also cover the

utilization of CNG on locomotives and river transport as well.

9) Cost minimization and risk analysis of electricity supply

alternatives for the west side.

- 23 -

10) A study of Energy conservation/substitution for Xhulna pulp and

paper mill to replace the present 50,000 ton of oil consumed

annually.

Project proformas for the first six studies are prepared and

could be included in the portfolio. Efforts will be made to collect

necessary information for preparation of project briefs for the remaining

three studies.

Ranking of the Projects

25. For ranking of the projects in order of priority investment for

the energy sector in Bangladesh, the following criteria is proposed.

i) projects should satisfy accepted economic criteria and be ranked

according to the average net present value per dollar of investment

required.

ii) Each project should be checked against financial viability of the

venture.

iii) All projects should clearly identify foreign exchange flows and

local investment funds over time including those required for proper

operations.

iv) Projects should be classified on the basis of reLiable information

supplied and estimates provided about the required additional time and

resouces needed to arrive at a full feasibility of assessment.

v) Projects should identify required government subsidies, if any,

during its operating life.

vi) Projects should identify potential redundancy or other proposed

alternatives that would have bearing on all or part of its output.

- 24 -

vii) Projects should identify needs for managerial, technical and other

physical inputs (e.g., cement, transport, operating personnel) and spell

out the required training component of the project.

26. In addition to the above-mentioned, selection of Xhe projects

should fit harmoneously into the overall development policies of the

country, within the given resource constraints. All projects should

satisfy projected demands and not create excess capacity. They should

generally lead to increased productivity and generate additional invest-

ment rather than increasing consumption only.

27. It should be stressed that some of the aformentioned cri.-ria

cannot be quantified for Bangladesh, in addition there are imperceptible

parameters which effect the net present value of various projects. Even

though the methodology employed for calculation of the net present value

and cost benefit ratio is precise, they are not necessarily representing

the reality accurately. Theefore it is difficult to measure the vlue of

the projects included in the portfolio, for the exact order they are

ranked. However, due attention should be paid to two important and quan-

tifiable factors: firstly, the project leads to furthering utilization

of natural gas, and secondly, the project results in replacement of

imported fuel by indigenous natural gas.

- 25 -

BENFIT-COST ANALYSES 1/

28. The methodology applied by Petrobangla for estimating the bene-

fits and costs of gas development projects is inappropriate. It is

neither an economic nor a financial analysis although it contains

elements of both and mixes them up. The following comments are made

based on a review of the Kamta project analysis.

The projected output of Kamta is constant throughout the project

life. It is also assumed equal to full flow capacity for 365 days

per year. These assumptions are inappropriate. All production of the

Titas system in total would have considerable excess capacity rela-

tive to demand, in order to meet peak load requirements. Each well,

on average, therefore, would operate at considerable lower levels

than maximum capacity. This average is the appropriate measure.

Furthermore, towards the end of life of the reservoir potential out-

put may decline, reducing average annual production, this should be

considered.

29. The well head price is shown in financial terms, ie.e. by apply-

ing the going authorized tariff per MCF. This is appropriate for the

financial analysis but not for the economic one. The economic value is

given by the replacement value of the gas either in the form of alterna-

tive fuels that would be used (e.g. fuel oil, coal, firewood, etc.) or

the net value of output minus all production cost, as measured by the

value of imported fertilizer for example, minus all gas-based fertilizer

1/ This part was prepared by G. Schramm after reviewing the datacollected in the field.

- 26 -

production costs except gas costs, pro-rated on a MCF basis. Adjustments

must be made to the net value of gas thus evaluated by accounting for net

differences in systems supply costs (e.g. gas trausmissin plus distribu-

tion versus fuel oil delievery costs).

30. It is inappropriate to use annual price inflators (e.g. 10% for

value of gas and exclse tax), but not for others (e.g. manpower, mainten-

ance, etc). It is also inappropriate to combine capital costs on the one

hand and to add depreciation plus interest on the other. This represents

double counting. Furthermore, it is inappropriate to count excise duties

as either a cost or a benefit in the economic analysis. These are simple

transfer payments.

31. Use of a 152 discount factor implies a real net of interest of

5%, after 10% per year inflation. Is that an appropriate rate in

Bangladesh? The Planning Commission recommended a 15% discounting real

rate in 1981. The easiest way to undertake the economic benefit-cost

analysis is to use constant costs and prices; the appropriate real rate

of interest; the net value of gas as specified under 29 above; to eli-

minate depreciation, excise duty and Interest on loan from the cost

categories. cash flow anaysis in current terms (i.e. inflated prices and

costs as projected for all categories). This analysis must include

actual interest payments, depreciation charges and all appropriately

inflated operating costs.

OBSERVATION

32. Bangladesh has one of the lowest levels of per capita energy

consumption in the world (100-130 kg. of oil equivalant) of which over

two-thirds comes from traditional energy sources like bio-mas, agricul-

- 27 -

tural waste, firewood, etc., and the balance makes up the commrcial

energy, i.e., petroleum, natural gas, coal and hydro-electricity.

Natural gas contributes about 46% of annual commercial energy require-

ment. Imports consisting of petroleum (1.6 million toe) and coal makes

up a little over 502 of commercial energy requirement, which is only 18%

of tota' energy consumption. Nevertheless, at this low level, import of

fuel swallows up 70% of the country's hard earned foreign exchange earn-

ings. Payments for imports of fuel is already adversely affecting the

country's ailing economy and threatens to become a critical issue in the

near future unless immediate measures are adopted to arrest the looming

gap, the country's economy will continue to deteriorate.

33. Natural gas is the only Indigenous commercial energy source with

attractive development potential, particularly because of its highly comr-

petative cost compared to imported fuels. Use of gas as an inexpensive

source of energy is bound to spur some accelerated economic activities in

the country. The responsible authorities in Bangladesh feel that natural

gas should be available to consumers where and when the undertaking is

economically feasible. It is against this background that maximum utili-

zation of natural gas has become a national priority.

34. Considering the serious economic and balance of payment diffi-. .

culties which Bangladesh has been facing during the past year. It should

be understandable that the government agencies would resort to ad-hoc

decisions in order to remedy the immediate crises which appear regulalry

due to undiversified economic structure of the country as well as clima-

tic arages or other causes. In view of the above, it would be difficult

to implement a medium term development plan without deviating from long-

-28 -

term plan goal. In fact, this is true for any developing country, espe-

ciallv for a newly-born country with high aspirations and hopes of great

achievements but inherited with archaic administratiave traditions, form-

ing a major hurdle in the course of development. Therefore it is advis-

able to adopt priority investment programs for implementation of projects

addressing the immediate needs of the country, until a comprehensive and

well planned long term scenario is available.

35. In spite of the fact that natural gas have been utilized as a

major source of energy in Bangladesh for several years, and future devel-

opment of the country is also dependent on natural gas reserves. No sys-

tematic and dependable investigation have been carried out for a precise

and accurate evaluation of the gas fields in Bangladesh. Recently GOB

has signed an aid agreement with the U.S. AID to the order of US $ 1.2

million to finance Bechtel for a preliminary data collection and study of

the existing information as the first step towards appraisal of gas

fields in Bangladesh. Another and more useful undertaking is anticipated

as a component of the World Bank second hydrocarbon project, for detail

development-seismic survey of the major gas fields in the country. Both

of the two mentioned projects are very useful and complemenmtary to the

other. Based on the result of the above mentioned two gas field ap-

praisal undertakings, a third and final reservoir study of the gas fields

will be needed to give a precise and dependable gas fields performance,

rate of future production, decline of each field and an optimum future

production program for each field. Petrobangla proposed a US $ 40

million project for gas fields appraisal to be a part of PIPE investment

portfolio. In view of the two projects financed or considered by U.S.

- 29 -

AID and the World Bank, it was agreed to wait after the result of the two

studies are available, and then pursue the project.

36. A recent critical situation is threatening shut down of Sylhet

cement and paper mill plants due to a reservoir problem which has

occurred in the Chhatak gas field. The Chhatak well has been supplying

about 8 MMCFD of gas to the cement and pulp factories in the area. Since

September 1982 to January 1983, the quantity of water produced per MMCF

of gas has increased from 3.1 gallons to 25 gallons. This is either

indicative of the reservoir reaching its depletion stage, or "water

coaning' due to poor production practices. In either case it is evident

that appropriate reservoir engineering study and practices should be

adopted.

RECOMMENDATIONS

37. The most Important constraint hampering the development of the

hydrocarbon industry is the prevailing organizational and administrative

system which is not responsive to Bangladesh's oil and gas operations.

It is recommended that a comprehensive study be carried out in three

phases:

(a) First phase, short period, two to three months, by one or two

experts for diagnosing the shortcomings in general and preparing

a scope of work and terms of reference for the comprehensive

* . investigation which would form the basis of a dynamic institu-

tional building.

(b) Second phase of the exercise would require experts'in Technical,

financial and administrative branches of oil and gas field who

would undertake preparation of: (i) job specifications for staff

- 30 -

members at all levels including managers, supervisors, senior

managers, directors, board members and the highest executive

officers, (1i) job qualifications and also job classification,

(iii) introducing management systems which would expedite the

operations and eliminate bureaucratic hurdles and, (iv) create

various incentives which would attract skills rather than repel

them.

(c) Third phase, is assisting the agency to Implement the recommen-

dation and reorganization of the institutions, as proposed by

Phase II, with the view to revising those recommendations which

are not applicable; also create and staff a bureau of organiza-

tion, method and systems in order to carry on the future organi-

zational studies in house.

38. A reservoir engineering study is recommended to commence imme-

diately after the completion of the U.S. AID (Bechtel) gas field

appraisal project and coordinated with IDA's s,cond hydrocarbon projects'

- production Seismic survey. This study should aim to: (a) analyze all

the previous reservoir studies, (b) the recoverable reserves of the

country, (c) give an optimum gas off-take scheme for each field and

(d) prepare a program for updating of reservoir information and reservoir

monitoring system.

39. In the absence of a gas off-take scheme development of gas

fields are to be coordinated with the result of the detailed production

seismic survey which is to be implemented under the IDA second hydro-

carbon project. Gas distribution projects catering to the needs of power

- 31 -

and industry rank higher priority. Implementation of such projects

should take into consideration the peak demand supply position of the

area.

40. Since one of the constraints both in power and gas distribution

agencies is shortage of subscriber meters, it is recommended that attempt

should be made for assembly and production of these meters in Bangladesh

by formation of joint venture investments with partnership of foreign

producers, the public entities and private sector. A task force can be

assigned to investigate the options and prepare preliminary project to

fulfill this aim.

a

S

- 32 -

BANGLADESH

PRIORITY INVESTMET PROGRAM FOR ENERGY

PART II

INVESTMENT PORTFOLIO

A stocktaking exercise of potential projects inthe energy sector was carried out in Dhaka,Bangladesh from October to December 1982. PartII, represents a selected number of projects withhigher priority for investment.

U -

- 33 -

1:1

BANGLADESH


1. Sector : Eaergy

2. Sub-sector : Power

3. Name of Project : Upgrading of East-West Inter-connector to 230 KV operation.

4. Sponsoring Ministry : Ministry of Energy and MineralResources

5. Executing Agency : Bangladesh Power DevelopmentBoard

6. - Other Agencies Involved

7. Location : Ishurdi, Pabna

8. In-house Implementation : Partly

9. Name and address of the firm : Not yet decidedimplementing the project

10. Main objectives : To provide 230 KV sub-stationat Ishurdi to upgrade theoperation of East-West Inter-connector by December 1985;.

11. Brief Description Main : Procurement of equipuent &Components/Activities materials and installation,

commissioning of 230KV sub-station equipment at Ishurdi.

12. Estimated Cost (1982) : Total: Tk. 289.15 millionF.E.: Tk. 155.16 million

13. Financing (donor prospect) : Not known to BPDB

14. Implementation Period : Commencement: January 1984Completion: December 1985

15. Proposed Physical & FinancialProgram

- 34 -

1:2

Physical Schedule of Works

Procure-ment of Installation

Preliminary Work/ materials/ of equipment Testing &Year Engineering Study Equipment & Materials commissioning

1983-84 100% - - -

1984-85 - 30% 40% -1985-86 - 10% 60% 100X

Financial Schedule of Works (In TAKA Million)

Year Local Foreigu Exchange Total

1983-84 15.61 9.24 24.851984-85 32.43 95.00 127.431985-86 85.95 50.92 136.87

Total 133.99 155.16 289.15

16. Status of the project and : Project brief for solicitingfeasibility studies finance submitted to Govern-

ment. Detail project underpreparation by BPDB.

17. Contribution & inputs required : Nonefrom other agencies

18. Major outstanding policy issues : None

19. Anticipated constraints : (1) Foreign Exchange Finance(2) Local Currency Supply

20. Timetable for completion of : See Item No. 14the project

21. Estimated reduction in oil : Gross saving due to Inter-demand resulting from project connector 686,000 toe. Saving(Oil savings calcuation, see as result of marginal utilityAnnex-1) of upgrading 239,000 toe.

22. Economic & Financial Parameters: B.C.R. = 0.8(rate of return, net present N.P.V. - -105.56value, etc.)(Detail r-"pulations, Annex-2).

23. Sponsoring agency remarks : None

- 35 -

Annex-11:4

Preliminary

-Up-grading of East West Inter-connector

Project Analysis (Financial)

Cost: Total - Tk. 289.15 millionF.E. - Tk. 155.16 million

(IN MILLION TAKA)Discounted Discounted

Capital Operating Total value of Total value of totalYear cost cost/yr. cost total cost benefit benefit

e 15% @ 15%

1983-84 24.85 - 24.85 21.61 - -

1984-85 127.43 - 127.43 96.36 - -

1985-86 136.87 46.22 183.09 120.42 59.11 38.861986-87 - 51.35 51.35 29.36 65.68 37.55--987-88 - 57.05 57.05 28.36 73.97 36.781988-89 - 63.39 63.39 27.40 81.08 35.051989-90 - 70.43 70.43 26.48 90.09 33.871990-91

to - 78.26 78.26 172.03 100.10 220.042004-05 (each year) (15 years) (each year) (15 years)2005-06

to - 77.31 77.31 17.92 98.89 22.932014-14 (each year) (10 years) (each year) (10 years)Salvage value@ 19% ofmaterial cost 9.30

539.94f 434.38

BCR , 434.38 - 0.80

.9 539.94

NPV - 434.38 - 539.94 - -105.56

B Revised costing based on January 1983.

- 36 -

ANNEX-11:5

Up-grading of East West Inter-connector

Project Analysis (EconOmic)

Cost: Total - Tk. 289.15 million

F.E. - Tk. 155.16 million



@ 15% @ 15%

1983-84 22.52 - 22.52 19.58 - -

1984-85 115.96 - 115.96 87.68 - -1985-86 124.55 46.22 170.77 112.28 59.11 38.861986-87 - 51.33 51.33 29.36 65.68 37.551987-88 - 57.05 57.05 28.36 73.97 36.781988-89 - 63.39 63.39 27.40 81.08 35.051989-90 - 70.43 70.43 26.48 90.09 33.871990-91


to - 77.31 77.31 17.92 98.89 22.932014-14 (each year) (10 years) (each year) (10 years)Salvage value@ 10% Ofmaterial cost 9.30

521.09 434.38

BCR 434.38 - 0.83

521.09

NPV - 434.38 - 521.09 - -86.71

- 37 -

ANNEX-11:6





@ 7% @ 7%

1983-84 24.85 - 24.85 23.11 - -

1984-85 127.43 127.43 110.86 - -1985-86 136.87 46.22 183.09 150.18 59.11 48.471986-87 - 51.35 51.35 39.03 65.68 49.921987-88 - 57.05 57.05 40.62 73.97 52.671988-89 - 63.39 63.39 42.47 81.08 54.321989-90 - 70.43 70.43 43.67 90.09 55.861990-91


to - 77.31 77.31 122.56 98.89 156.772014-14 (each year) (10 years) (each year) (10 years)Salvage value

a 10% ofmaterial cost ____ 9.30

1016.39 995.07

NPV - 995.07 - 1016.39 - - 21.32

BCR - 995.07 0.979

1016.39

-38-

ANNEX-11:7





@ 6% @ 6%

1983-84 24.85 - 24.85 23.36 --

1984-85 127.43 - 127.43 113.29 - -1985-86 136.87 46.22 183.09 153.66 59.11 49.591986-87 - 51.35 51.35 40.57 65.68 51.891987-88 - 57.05 57.05 42.62 73.97 55.461988-89 - 63.39 63.39 44.63 81.08 57.081989-90 - 70.43 70.43 46.84 90.09 59.911990-91


to - 77.31 77.31 157.71 98.89 201.742014-14 (each year) (10 years) (each year) (10 years)Salvage value

e 10% ofmaterial cost ___ 9.30

1128.24 1131.42- =

NPV - 1131.42 - 1128.24 - +3.18

BCR - 1131.42m 1.003

1128.24

- 39 -

ANNEX-11:8


Project Analysis (Economic)



@ 7% @ 7%

1983-84 22.52 - 22.52 21.63 - -

1984-85 115.96 - 115.96 101.23 - -1985-86 124.55 46.22 170.77 140.35 59.11 48.471986-87 - 51.35 51.35 39.03 65.68 49.921987-88 - 57.05 57.05 40.62 73.97 52.671988-89 - 63.39 63.39 42.47 81.08 54.321989-90 - 70.43 70.43 43.67 90.09 55.861990-91


to - 77.31 77.31 122.56 98.89 156.772014-14 (each year) (10 years) (each year) (10 years)Salvage valued 10% ofmaterial cost 9.30

996.45 995.07=

NPV - 995.07 - 996.45 - - 1.38

BCR = 995.07 - 0.998

996.45

9-

- 40 -

ANNEX-11:9





@ 6Z @ 6%

1983-84 22.52 - 22.52 21.24 - -

1984-85 115.96 - 115.96 102.09 - -1985-86 124.55 46.22 170.77 143.28 59.11 49.571986-87 - 51.35 51.35 40.57 65.68 51.891987-88 - 57.05 57.05 42.62 73.97 55.261988-89 - 63.39 63.39 44.63 81.08 57.081989-90 - 70.43 70.43 46.84 90.09 59.911990-91


to - 77.31 77.31 157.71 98.89 201.742014-14 (each year) (10 years) (each year) (10 years)Salvage valuefa 10% ofmaterial cost 9.30

1105.54 1131.42

NPV = 1131.42 - 1105.54 m + 25.88

BCR . 1131.42 - 1.02

1105.54

- 41 -

ANNEX-11:10


1. Economical:Discount rate : 7%Net Present Value : -1.38Discount rate : 6%Net Present Value : +25.88

Internal Rate of Return - LDR + (HIDR-LDR) NPV at LDR* NPV at LDR - NPV at HDR

- 6% +(7X - 5%) 25.8825.88 + 1.38

- 6% + 25.88 - 6% + 0.45%

- 6.45%

2. Financial:

Discount rate 7%

NPV - 21.32

Discount rate 6%

NPV = + 3.18

IRR - LDR + (HDR - LDR) NPV at LDRNPV at LDR - WV at 1DR

- 6% + (7% - 6%) 3.183.18 + 21.38

- 6% + 3.18 - 6% + 0.13

-6.13

3. ARR (Financial)

3 Undiscounted benefit - Undiscounted operating costTotal capital cost (Financial)

6th year - 100.10 - 78.26 x 100% 21.84 x 100of operation 289.15 289.15

- 7.55%

- 42 -

2:1

BANGLADESH


1. Sector : Energy


3. Nam of project : Ashuganj-Comilla 230KVTransmission Line

4. Sponsoring ministry : Ministry of Energy & MineralResources

5. Executing agency : Bangladesh Power DevelopmentBoard

6 Other agencies involved : Trading Corporation ofBangladesh for allocation ofcement

7. Location : Comilla District

8. In-house implementation : Partly. Top supervision &local support.

9. Name & address of the firmimplementing the project

10. Main objectives : 1) To transmit power toChittagong area.

2) To stabilize power inDhaka area.

3) Overall system reli-ability.

11. Brief description main : 80 km, 230 KV double ckt.components/activities transmission line. Procure-

ment & installation of equip-ment/materials for linesupport, sub-stationstructure, high voltageswitchgear, transformer, etc.

12. Estimated cost (January 1983) : Total: Tk. 875.00 millionF.E.: Tk. 450.00 million

- 43 -

2:2

13. Financing (donor prospect) : Being considered by ADB under1982-83 country programme.

14. Implementation period : 1983-84 to 1986-87

15. Proposed physical & FinancialProgram


ProcurementPreliminary of materials Installation Testing and

Year Works /equipment of equipment commissioning

1983-84 100% 10% - -1984-85 - 50% 10% -1985-86 - 40% 70% -1986-87 - - 20% 100%

Financial Schedule of Works

Year Local Foreign Exchange Total

1983-84 4.09 20.00 24.091984-85 1.62 26.00 27.621985-86 306.23 356.60 662.731986-87 113.06 47.50 160.56

Total 425.00 450.00 875.00

16. Status of the project andfeasibility studies


18. Major outstanding policy issues : Needs to be included in theSecond Five Year Plan

19. Anticipated constraints : 1) Foreign exchange finance2) Local currency supply

20. Timetable for completion of : See Item 14.the project

21. Estimated reduction in oil : Eastern Grid is already ondemand resulting from project indigenous natural gas

- 44 -

2:3

22. Economic & Financial Parameters : B.C.R. - 0.69(rate of return, net present N.P.V. - -454.45value, etc.) Justification is to utilize the(Detail calculations at power generation in AshuganjAnnex-1) Power.

S

- 45 -

3:1

BANGLADESH

* PRIORITY INVESTMENT PROGRAM FOR ENERGY

1. Sector : Energy


3. Name of project : Kaptai Hydro Power StationExtension


S. Executing agency . Bangladesh Power DevelopmentBoard

6. Other agencies involved : Trading Corporation ofBangladesh for allocation ofcement

7. Location : Kaptai, Chittagong Hill Tracts

8. In-house implementation : Partly. Top supervision &construction in-house

9. Name & address of the firm : M/S Tokyo Electric Powerimplementing the project Services Co. Ltd. - Consultant

10. Main objectives : To build a Power Plant annexedto existing one, with 2 x 50 MWhydro-turbines project include

11. Brief description main : Procurement, installation &tomponents/activities commissioning of 2 x 50 MW

Kaptai type water turbinegenerators including powerhouse, intake channel, excava-tion of penstock tunnel, steellined concrete penstock tait-race, etc.

12. Estimated cost (August 1982) : Total: Tk. 1911.35 millionF.E.: Tk. 1081.94 million

13. Financing (donor prospect) : Part finance (4 billion yen)committed by OECF (Japan).Balance likely to be financedby OECP

- 46 -

3:2

14. Implementation period : 6 yeare (inclu-Ing engineering)Commencement: July 1981Completion: June 1987

15. Proposed physical & financialprogram


InstallationSurvey/ Land Lease/ Construction of equipment

Year Desipn Development Residential Functional & Machinery

1981-82 22.5% - - - -1982-83 44.2X - - - -1983-84 33.31 20% 20% 20X 20%1984-85 - 23% 23% 23% 27%1985-86 - 27> 27% 27% 30%1986-87 - 30% 30% 30% 23%


(in million Taka)Year Iocal Foreign Exchange Total

1981-82 3.00 10.30 13.301982-83 31.307 148.443 179.751983-84 153.798 248.868 402.6661984-85 193.575 221.843 415.4181985-86 223.243 216.433 439.6761986-87 224.494 236.049 460.543

Total 829.417 1081.936 1911.353

16. Status of the project & feasi- : Project proposal submitted tobility studies goverment for approval. The

project is based on feasibilitystudies by OTCA & JICA of Japanin 1969 & 1980 respectively.YEPSCO of Japan is doing thedetail engineering. Tenderdocuments will be submittedin December 1982.

17. Anticipated constraints : 1) Shortage of local currency

2) Further commitment fromOECF (Japan)

- 47 -

3:3

3) Skilled workers for tunnelexcavation need to beimported

18. Estimated reduction in oil : 58,247 toedemand resulting from project

19. Economic & financlal parameters : B.C.R. - 0.497(rate of return, net present N.P.V. - -7357.23value, etc.)

20. Sponscring agency remarks : The extension is primarilyaimed at increasing peakingcapacity. The evaluationhas been done on marginalbenefit on account of addedenergy output.

-48-

4:1

BANGLADESH


1. Sector : Energy


3. Name of project : Greater Dhaka Power Distri-bution Project, Phase II


5. Executing agency : Bangladesh Power DevelopmentBoard

6. Other agencies involved : None

7. Location : Dhaka District

8.. In-house implementation : Partly. Top supervisionand local support

9. Name and address of the firm : Not yet decidedImplementing the project

10. Main objectives : To meet growing load demandof the urban areas & bulksupply to R.E.B. sub-stationswithin Dhaka District

11. Brief description of main : Procurement, installation andcomponents/activities commissioning of equipment/

materials for 132 KV, 33 KyV,11 KV & 0.4 lines andassociated sub-stations

12. Estimated cost (1983) : Total: Tk. 2783.205 millionF.E.: Tk. 1513.600 millionLC.: Tk. 1269.605 million

13. Finsacing (donor prospect) : Expected part financing fromU.K.

14. Imple-pntatton period : 1983-84 to 1987-88

15. Proposed physical & financial :program

-49-

4:2

Physical Schedule of Work

InstallationSurvey/ Land Acquisition Construction of equipment

Year Design and Development Residential Functional & Machinery

1983-84 10% 20% 5% 10% 5%1984-85 5O% 30X 10% 30% 30%1985-86 30% 30% 10% 30% 30%1986-87 10% 20% 75% 20% 35%

Financial Schedule of Work

In million TakaYear Local Foreign Exchange Total

1983-84 5.00 10.00 15.001984-85 15.00 15.00 30.001985-86 374.881 446.58 821.5611986-87 624.802 744.30 1369.1021987-88 249. ̂ 297.72 547.641

Total 3' .6fr 1513.600 2783.205=. , = =.

16. Status oi the project : Technical and economic sludy byand feasi,lity studies Ewbank & Partner of UK in

progress.



19. Anticipated constraints : 1. Foreign exchange finance2. Shortage of local currency.

20. Timetable for completion : See item 14.of the project

21. Estimated reduction in oil : NoneDemand Resulting from Project

22. Economic & Financial parameters : B.C.R. - 0.713(rate of return, net present N.P.V. = (-)1235.61value, etc.)

23. Sponsoring agency remarks : None

- 50 -

5:1

BANGLADESH


1. Sector : Energy

2. Subsector : Power

3. Name of Project : Power Distribution Project(West Zone)

4. Sponsoring Ministry : Ministry of Energy andMineral Resources


6. Other Agencies involved : None

7. Location * Western Zone of Bangladesh

8. In house implementation : Partly.Only construction through localcontractor

9. Name and Address of the firm : Various local firms.implementing the project

10. Main objectives : To supply power tc the ruralareas, district towns andgrowth centres.

11. Brief description main : Procurement & installation ofcomponents/activities equipment & materials for sub-

transmission and distributionlines and sub-stations. (Fordetails see Annex ).

12. Estimated cost (1980) : Total: Tk. 1318.17 millionF.E. : Tk. 440.57 million

13., Financing (donor prospect) : Partly financed under FrenchCredit (Tk. 165.38 million)


15. Proposed physical &financial program

- 51 -

5:2

Ehysical Shaeiie of 1bzks

IrtaUlation&u=/ land actd.stion (bwtnctlon of equimnt

Year D and jpogn ,atdertial Fuictional and mddmry

Up to Jme '82 20% 5% 5% loX 30N1982-83 4(2 302 2C2 402 2021983-84 30% 40% 40% 40% 30X1984-85 la0 2% 35X 102 20

Financial Schedule of WorksIn million Taka

Year Local Foreign Exchane Total

ExpenditureUp to June '82 605.84 18.90 624.741982-83 172.10 40.00 212.101983-84 59.80 229.00 288.801984-85 39.86 152.67 192.53

Total 877.60 440.57 1318.17

16. Status of the project : About 30% of physical facilitiesand feasibility studies proposed under the project has

already been built



19. Anticipated constraints : 1. Foreign exchange finance2. Local currency supply.

20. Time table for completion : See item No. 14of the project

21. Estimated reduction in oil : 141,679 tons (rural energy fordemand resulting from project lighting & irrigation pumping

and milling power).

22. Economic & Financial parameters: B.C.R. - 0.78(rate of return, net present N.P.V. - (-)-26.49value, etc.)(Detail calculation at Annex-2)

- 52 -

5.3

23. Sponsoring Agency remarks : Without implementation of thisproject electrificationprogramme will hamper &dependence for oil import tocontinue.

- 53 -

Annex-15:3

Power Distribution Project (West Zone)

Physical.facilities

1. 33 KV lines 1196 Km


3. 0.4 KV lines 1130 Km

4. 33/11 KV Sub-stations

a) 2.5 MVA 3 Nos.

b) 1.5 NVA 44 Nos.

5. 33/.4 KV Sub-stations

a) 100 KVA 76 Nos.

b) 50 KVA 204 Nos.

c) 25 KVA 308 Nos.


a) 250 KVA 3 Nos.

b) 100 KVA 202 Nos.

c) 50 KVA 512 Nos.

d) 25 KVA 1180 Nos.

- 54 -

Annex-25:4

4

POWER DISTRIBUTION PROJECT (WEST ZONE)

Proect Analysis (Financial)(Based on Latest Tariff)

Total Cost-: Tk. 1318.17 millionF.E. - Tk. 440.57 milllon

BASE YEAR: 1979-80 (IN MILLION TAKA)Discounted Discounted


1976-77 5.96 - 5.96 9.061 - -1977-78 30.42 - 30.42 40.23 --1978-79 115.54 - 115.54 132.87 -1979-80 105.04 - 105.04 105.04 - -1980-81 124.19 174.88 299.07 260.06 167.14 144.341981-82 243.59 178.33 421.92 319.03 185.52 140.281982-83 212.10 269.67 481.77 316.77 287.88 189.281983-84 288.80 290.57 579.37 '331.26 319.54 182.701984-85 192.53 313.77 506.30 251.72 354.69 176.341985-86 - 348.28 348.28 150.57 393.70 170.211986-87 - 386.06 386.06 145.13 437.00 164.281987-88 - 428.01 428.01 139.92 485.07 158.571988-89 - 474.56 474.56 134.90 538.44 153.061989-90 - 526.23 526.23 130.08 597.66 147.731990-91

to - 526.23 x 526.23 x 597.66 597.662014-15 25- 13155.75 1.587 x 25 x 1.587

- 835.13 - 14941.50 - 948.49

Total: 3301.77 2575.28

NPV - 2575.28 - 3301.77 - (-)726.46

BCR =2575.28 0.78

3301.77

Base Year for Present Worth: 1979-80

- 55 -

6:1

BANGLADESH

PRIORITY INVESTIENT PROGIAM FOR ENERGY

1. Sector : Energy


3. Name of project : Ghorasal-Tongi 230 KVTransmission line


5. Executing agency : Bangladesh Power DevelopmentBoard.

6. Other agencies involved

7. Location : Dhaka District.

8. In house implementation : Partly.Top supervision by BPDB

9. Name and address of the firm : Not known yet.implementing the project

10. Main objectives : i. To transmit bulk of powerto Dhaka.

ii. To relieve East-WestInter-connector.

11. Brief description main : 230 KV transmission line. 17components/activities miles (27.36 Km.) of 2 x 1

circuit lines. Procurementof poles, conductors, 230/132KV transformers, high voltageswitchgears and sub-stations.

12. Estimated cost (1983) : Total : Tk. 403.70 millionF.E. : Tk. 223.30 million

13. Financing (donor prospect) : Being considered by ADB under1982-83 country programme.

14. Implementation period : August 1983 - April 1986.

- 56 -

6:2

15. Proposed physical &financial program.

.PHYSICAL SCHEDULE OF WORK

Preliminary Procurement of Installation Testing andYear Works materials/equipment of equipment commissioning

1983-84 100% 20% 10% -

1984-85 - 40% 40% -1985-86 - 40% 50% 100%



1983-84 21.16 25.76 46.921984-85 14.19 22.10 36.291985-86 145.05 175.44 320.49

Total: 180.40 223.30 403.70

16. Status of the project : Project study underway by ADB.& feasibility studies

17. Contribution & inputs required : Nonefrom other agencies.


19. Anticipated constraints : 1. Foreign exchange finance2. Shortage of local currency.

20. Timetable for completion : See item 14of the prgject

21. Estimated reduction in oil : East Grid is already ondemand resulting from project indigeneous fuel

22. Economic & financial parameters: B.C.R. X 0.63(rate of return, net present N.P.V. -248.58value, etc.)

- 57 -

6:3

23. Sponsoring agency remarks : BPDB needs this project to meetthe increasing load demand ofDhaka Area. At present "East-West Interconnector" is trans-ferring Power from Rongi toIshurdi. There is a 230 KVdouble circuit transmission linefrom Ghorasal to Tongi presentlyenergized at 132 KV to meet loaddemand of Dhaka Electric Supply.In order to transfer adequatepower and to increase securityof power supply to West Zone,another 230 KV double circuittransmission line from Ghorasalto Tongi is required which willbe directly connected toexisting Tongi-Ishurdi line andTongi-Ishurdi line will then bedisconnected from Tongi Sub-station.

- 58 -

7:1

BANGLADESH

PRIORJTY INVESTMIENT PROGRAM FOR ENERGY

1. Sector : Energy

2. Subsector : Power

3. Name of projectl : Greater Chittagong PowerDistribution Project Phase-II

4. Sponsoring Ministry : Ministry of Energy andMineral Resources.

5. Executing agency Bangladesh Power DevelopmentBoard.


7. Location : Chittagong

8. In house implementation : PartlyTop supervision and localsupport.


10. Main objectives : To meet the increasing loaddemnd of Chittagong andChittagong Hill Tracts.

11. Brief description main : Procurement installation andcomponents/activities commissioning of equipment/

materials for 132 lV, 33 KV,11 KV and 0.4 KB lines andassociated sub-stations. (Fordetails see Annex-1.)


13. Financing (donor prospects) : Being considered by ADB undercountry programme for 1982-83.


15. Proposed physical 6financial program

- 59 -

7:2


* IDnstallationSurvey/ Land acquisition Construction of equipment

Year Des!1n and development Residential Functional and machinery

1983-84 10% 10% 5% 20% 15%1984-85 40% 30% 15% 30% 30%1985-86 40% 50% 30% 40% 35%1986-87 10% 10% 30% 10% 10%1987-88 - - 20% - 10%


In million TakaYear Local Currency Foreign Exchange Total

1983-84 5.00 5.00 10.001984-85 10.00 10.00 20.001985-86 233.932 233.505 467.4371986-87 389.887 389.175 779.062

Total: 155.954 155.670 311.624

16. Status of the project : Study undertaken by ADB.and feasibility studies


18. Major outstanding policy issues : To be included in SecondFive Year Plan.

19. Anticipated Constraints : Foreign Exchange finance.Local currency shortage.

20. Timetable for completion : 1983-84 to 1987-88.of the project

21. Estimated reduction in oil : Not known.demand resulting from project

22. Economic & financial parameters : See Annex-1.(rate of return, net present BCR: 0.778value, etc.) NPV: (-)556.60

23. Sponsoring ageacy remarks : None

- 60 -

Annex-17:3

Greater Chittagong Power Distribution Project Phase-II

1. 132 KV Transmission Line 104 Km



4. 11/.4 KV lines 97 Km

5. 0.4 KV lines 806 Km

6. 132/33 KV Sub-station (new/addition) 4 Nos.totalling 240 XVA

7. 33/11 KV bub-station (new/addition) 8 Nostotalling 160 MVA

8. Distribution Transformers, 700 Nos., totalling 145 MVA.

A Subject to change after detail planning.

7~~~~~~~ S

!)

- 61 -

8:1

BANGLADESH


1. Sector : Energy


3. Name of Project : Augmentation of Grid sub-stations



6. Other Agencies involved

7. Location : 25 sub-stations all over thecountry.

8. In house implementation : Partly

9. Name and address of the firm : BPDB.implementing project

10. Main objectives : To enhance the capcity ofexisitng Grid sub-stations torelieve over loaded transformersand cater for new demand.

11. Brief description main : Replacement/Addition of newcomponents/activities transformer and addition of some

switchgear high voltage bays inthe existing sub-stations.

12. *Estimated cost November 1982) : Total: Tk. 311.76 millionF.E. : Tk. 171.71 million

13. Financing (donor prospect) : Not known to BPDB.

14. Implementation period : Commencement: 1982-1983-Completion : 1985-86.


- 62

8:2

Physlcal Schedule of Works

Preliminary Procurement of Installation Testing andYear Works materials/equipment of equipment commissioning

1982-83 100% 25% -1983-84 - 50% 20% -

1984-85 - 25% 40% -1985-86 - 40% 100%



1982-83 1.50 Nil 1.501983-84 60.34 f 90.11 150.451984-85 64.71 69.10 133.811985-86 13.50 12.50 26.00

Total: I W.0V' 171.71 311.76

16. Status of the project : Project brief for soliciting& feasibility studies : finance submitted to Govt.

Detail project underpreparation by BPDB.



19. AnticiVsted constraints : Foreign finance.

20. Estimated Reduction in oil : This will facilitate substituteDemand Resulting from project oil no doubt in terms of light

and motive power, but it cannotbe quantified easily.

21. Economic & Financial Parameters : (a) Benefit cost ratio of the(rate of return, net present Project:value, etc.) i) Financial - 1.087% @ 15%

discount rate.ii) Economic - 1.0897% at 15%

discount rate.(b) Internal rate of return ofthe Project:

- 63 -

8:3

i) Financial - Insignificant* ii) Economic - Insignificant

(c) Annual financial rate ofreturn in the year outputreaches normal capacity (Specifyyear): 64.74% on the 10th yearof operaton i.e. 1994-95.

22. Sponsoring Agency Remarks : This project is very importantand urgent, because of overloadof existing substations.

- 64 -

9:1

BANGLADESH


1. Sector : Energy


3. Name of project : Power Distribution Project(East Zone)



6. Other Agencies involved

7. Location : Eastern Zone of Bangladesh

8. In house implementation : Only construction throughlocal contractor.

9. Name and address of the firm : Variousimplementing the project

10. Main objectives : To supply power to the ruralareas, district towns andgrowth centers.

11. Brief description main : Procurement & installationcomponements/activities of equipment & materials for

sub-transmission and distribu-tion facilities in EasternZone. See Annex.

12. Estimated cost (1980) 1/ : Total : Tk 2219.69 millionF.E. : Tk 821.02 million

13. Financing (donor prospect) : No foreign finance known.



1/ Execution and operation costs are not included.

- 65 -

9:2


InstallationSurvey/ Land aequisition Construction of equipment

Year Desige development Residential Functional and machinery

Up to Jan '82 10% 5% 5% 10% 30%1982-83 40% 30% 20% 40% 20%1983-84 30% 40% 40% 40% 30%1984-85 10 25% 35% 10% 20%



Exp. up toJune '82 589.56 18.90 608.461962-83 172.10 40.00 212.101903-84 382.20 457.27 839.471984-85 254.81 304.85 559.66

Total 13898.67 821.02 2219.69

16. Status of the project : Project proposal approved by& feasibility studies Government

17. Contribution & inputs : Nonerequired from other agencies


19. Anticipated constraints : 1. Foreign exchange finance.2. Local currency supply

still remains outstanding

20. Time table for completion : See item 14of the project

21. Estimated Reduction in oil : 263,211 tons (rural energyDemand Resulting from project for lighting & irrigation

pumping and milling power).

22. Economic & Financial Parameters : B.C.R. - 0.83rate of return, net present N.P.V. - (-)1142.20value, etc. (See Annex-2)

23. Sponsoring Agency Remarks : Without implementation of thisproject electrificationprogramme will hamper anddependence on oil import willcontinue.

- 66 -

MAnex-19:3

Power Distribution Project (East Zone)

Physical facilities:



3. 0.4 KV lines 1511 Km

4. 33/11 KY Sub-stations

a) 2.5 MVA 94 Nos.

b) 1.5 MVA 66 Nos.


a) 100 KVA 273 Nos.

b) 50 KVA 248 Nos.


a) 250 KVA 248 Nos.

b) 100 KVA 286 Nos.

c) 50 KVA 166 Nos.

d) 25 KVA 72 Nos.

I

- 67 -

Annex-29:4

POWER DISTRIBUTION PROJECT (EAST ZONE)

Project Analysis (Financial)(Based on Latest Tariff)

Discount rate: 15%Total Cost: - Tk. 2219.69 million

F.E. - Tk. 821.02 million



1976-77 5.16 - 5.16 9.02

1977-78 18.16 - 18.16 27.61

1978-79 125.68 - ~'125.68 166.21

1979-80 98.84 - 98.84 113.67

1980-81 147.36 335.04 482.40 482.40 313.77 313.77

1981-82 213.26 342.69 555.95 483.43 348.28 302.85

1982-83 212.10 513.19 725.29 548.42 540.44 408.65

1983-84 839.47 553.42 1392.89 915.85 599.88 394.43

1984-85 559.66 597.94 1157.60 661.86 665.87 380.71

1985-86 - 663.84 663.84 330.04 739.11 367.47

1986-87 - 734.77 734.77 317.66 820.42 354.69

1987-88 - 813.22 813.22 305.72 910.67 342.35

1988-89 - 898.36 898.36 293.67 1010.84 330.44

1989-90 - 971.98 971.98 276.30 1122.03 318.96

1990-91to - 971.98 x 971.98 x 1122.03 x 1122.03 x

2014-15 25 - 24299.50 1.835 25 1.835X 1783.58 - 28050.75 - 5573.24

6715.44 5573.24

NPV - 5573.24 - 6715.44 = (-)1142.20

BCR = 5573.24 - 0.836715.44

Base Year for Present Worth: 1980-81

- 6E -

10:1

BANGLADESH


1 Sector : Energy


3. Name of Project : System Loss Reduction Scheme. 1/


S. Executing Agency : Bangladesh Power DevelopmentBoard


7. Location : Entire Area of Bangladesh

8. In house implementation : Some local consultant/contractor will be engagedfor specific work.


10. Main objectives : To reduce the existing systemloss in BPDB system from 32%to 18% by 1985. I.

11. Brief description main : Procurement & installation ofcomponents/activities meter test sets, capacitors,

energy meters and associatedtools & tackles.Reorganization and enforcementof a system of checking in theadministration of energy sales.

12. Estimated cost (1982) : Total: Tk. 197 millionF.E. : Tk. 130.5 million

1/ The project should be given higher priority.

2/ ODA is presently financing a management study for BPDB whichcovers part of this project. The activities should be coordinatedwith CDA financed project.

- 69 -

10:2

13. Financing (donor prospects) : ADB loan, Swiss & Saudi grantexpected.

14. Implementation period : Commencement: 1981-82Completion : 1984-85

15. Proposed physical 8financial program


Year Installation of Equipment and Machinery

1982-83 40%1983-84 60%


In Million TakaYear Local Foreign Exchange Total

1982-83 25.421 78.330 103.751

1983-84 41.106 52.182 93.288

Total 66.527 130.512 197.039

16. Status of the project : Partly financed by ADB for& feasibility studies procurement of Capacitor

Bank. To minimize the non-technical loss, re-oganizationin administrative system isalready under process. Theavailable Capacitor Bank instore is under process ofinstallation.

17. Contribution & inmputs required : Nonefrom other agencies

18. Major outstanding policy issues : -

19. Anticipated Constraints : Communication between CommercialOperation and different area &sub-area electric distributionmanagement.

- 70 -

10:3


21. Estimated Reduction in oil : Not applicableDemand Resulting from project

22. Economic & Financial Parameters : Not applicable(rate of return, net presentvalue, etc.)

23. Sponsoring Agency Remarks : It is the responsibility of theCommercial Operation of BPDB toremove the apparent constraints.

- 71 -

11:1

BANGLADESH


1. Sector : Energy

2 Sub-sector : Power

3. Name of project : Barisal-Patuakhali Bhola 132 KVTransmission line




7. Location : Barisal & Patuakhali Districts

8. In house implementation : Construction by contractor

9. Name & address of the firm : Not yet decidedimplementing the project

10. Main objectives : To extend Grid supply up toPatuakhali to meet growingdemand of the area.

11. Brief description main : Procurement installation andcomponents/activities commissioning of 96 Km single

circuit 132 KV line equipmentsand materials and associated2 x 20 MVA sub-stations# atPatuakhali.


13. Financing (donor prospect) : Not known to BPDB



- 72 -

11:2


Preliminary Procurement of Installation Testing andYear Works materlals/equipment of equipment commissioning

1983-84 100% 20% 10% -

1984-85 - 50% 20% -

1985-86 - 30% 40% -

1986-87 - 30% 100%



1983-84 4.83 6.00 10.831984-85 2.27 56.49 58.761985-86 127.38 92.31 219.89.1966-87 49.00 10.00 59.00

Total 1W U 1-65.0 348.48

16. Status of the project : Project study underway (in& feasiblity studies house)



19. Anticipated Constraints : 1) Foreign exchange finance2) Local currency supply

20 Estimated Reduction in oil : 8695 tonsDemand Resulting from project

21. Economic & Financial Parameters : B.C.R. - 0.584(rate of return, net present N.P.V. - -175.23value, etc.)

.7)~ ~ ~ ~ ~ ~ ~~~~~~7

- 73 -

12:1

BANGLADESH


1. Sector : Energy

2. Subsector Power

3. Name of Project : Area Coverage RuralElectrification, Phase III.A


5. Executing Agency : Rural Electrification Board

6. Other Agencies involved : Power Development BoardBSCIC, BADC

7. Location : 12 PBS Areas in differentdistricts of the country.Final areas will be determinedafter study.


9. Name and address of the firm : Prequalified local Consultantsimplementing the project and Contractors

10. Main objectives : To provide electric power torural areas for production,employment creation, ruralhousehold and communityservices in project areas.

11. Brief description, main : a. Physical works involved:components/activities

Mileage of line

1. Three Phase Primary line 20522. Single Phase Primary line 24613. Secondary line 2687

7200

- 74 -

12:2

b. Physical Tarpets:

Connections (Nos.)

1. Residential/Commercial 1661282. Irrigetion 35883. Industrial 1392

171108

12. Estimated cost : Foreign currency: Tk. 1798.914 mln.Total : Tk. 2389.279 aln.

13. Financing (Donor prospect) : None so far

14. Time table for completion of : July 1983 - June 1989the project

15. Proposed physical and financial :program

Physicl Scihdule of Wbzk

YearItems of Nbzk 198-64 1984P-85 198346 198647 1987-68 19888

1. itutioi &Mdo=Mt 50 50 - ' -_detail survq

2. Lad aquAstion & d&wqopise, 40 40 20 - - -

civil cowtmctcmi3. Procuremet of mterals - 25 40 20 15 -4. Eectrical cmtruction - - 25 40 20 15

Finaa Schedu of Wob*

In mllion TakaYear load cwenx X of t" F_g_ __no %of toal1983-84 11.610 1 - -1984-85 200.839 19 408.583 231980-86 337.704 33 675.204 37186-87 227.372 22 373.758 211987-88 168.130 16 305.617 17198-9 94.710 9 35.752 2

ITOW 1040.365 100 114 100

-75-

12:3

16. Status of the project and : The project has not yet beenfeasiility study submitted to the Govarnment. A

feasibility study was carriedout by Messrs. NRECA/CAI of USAfor a project of similar naturenamely ACRE, Phase-I. Based on

ii that study 3 more projects beingimplemented. Since the projectis of similar nature no detailfeasibility study is thought tobe required. E[owever REB willcarry out a brief study todetermine the locations of the12 Rural Electric Socleties.

17. Contribution and inputs : Power at 33 KV from Powerrequired from other agencies Development Board


19. Anticipated constraints : Financing source both for localcurrency as well as foreignexchange component.

20 Implementation period : Commencement: July 1983Completion : June 1989

21. Estimated reduction in oil : a. Kerosene : 35,803,872 lbs.demand resulting froa project b. Diesel : 3,424,939 gallons

c. Lubricant: 131,874 gallons

22. Economic & financial parameters : I.R.R. for A.C.R.E. Phase II.b(rate of return, net present project (IDA financed) is 20%.value, etc.) This project is of same nature.

e

- 76 -

13:1

BANGLADESH

PRIORITY INVESTMENT PROGQUM FOR ENERGY

1. Sector : Energy

2. Sub-Sector : Power

3. Name of Project Feasibility Study for AshuganjThermal Power Station, 2ndExtension.

4. Sponsoring Ministry Ministry of Energy & MineralResources.

5. Executing Agency : Bangladesh Power DevelopmentBoard.

6. Other Agencies Involved : None

7. Location Ashuganj

8. In house implementation : Partly .... Assisting theconsultants.

9. Name and Address of the firm : not yet known.lmplementing the project

10. Main Objectives : Engineering study for additionof 4th unit to the existingThermal Power Plant at Ashuganj.

11. Brief description main : Please see Annex.components/activities

12. Estimated cost : Total : Tk. 6.8 millionF.E. : Tk. 5.44 million

1.3. Financing (donor prospect) : Not known to BPDB.

144 Implementation period : 4 (four) months.Commencement: August 1983.

15. Proposed physical and : Please see planning schedule'financial program at Annex-2

3-6. ;" Status, of the project and : Project proposal to be submittedfeasibililty studiei to Government.

- 77 -

13:2

17. Contribution and inputs : Nonerequired from other agencies

*

- 18. Major outstanding policy issues : None

19. Anticipated Constraints : Foreign Exchange Fiuance.

20. Time table for completion : 4 (four) months.Commencement: August 1983.

21. Estimated Reduction in oil : Not applicable.Demand Resulting from project

22. Economic & Financial : Not applicable.Parameters (rLte of return,net present value, etc.)

23. Sponsoring Agency Remarks : As per generation additionschedule of BPDB, approximately150 Mi is required by December1989. As it requires about 7 to8 years to build a Thermal PowerPlant from date of conception ofproject, the feasibility studyis required to be done shortly.

24. Number of Documents attached : 1 (One)

4

- 78 -

Annex-i13:3

FEASIBILITY STUDY FOR ASHUGANJ THERMALPOWER STATION SECOND EXTENSION

SCOPE OF WORK:

The work envisages on engineering study to be furnished in the form of aProject Report in connection with the construction of a steam powerstation having a capacity around 150 MW in the premises of existingthermal power plant at Ashunganj in Comllla district of Bangladesh. mheworks would include but not be limited to the following:

1. Reconnaisance survey of Ashuganj and other alternative sites andto determine the most suitable location based on geological,hydrological, mateorological, seismological date, transport andcommunication facilities.

2. Collection of data of existing power system of Bangladeshrelevant to the study of the proposed feasibility.

3. Study and review the forecast on power demand and energyconsumption available with the PDB and make independentaseessment of the same as required.

4. Undertake load-flow, short-circuit and stability studies to testthe system with and without East-West Interconnector and itsperformance before and after the installation of the proposedplant considering different alternative cases, i.e. peak load,tight load or fault location at different points etc. and fivenecessary recommendations.

5. Study the mid-term power development programme of BangladeshPower Development Board.

6. Study the sources and supply of gas in global perspective ofEastern Zone of Bangladesh an show financial implication ofalternative fuels. Recommend reinforcement in gas supply asrequired.

7. Study the source, quality and availability of plant coolingwater and boiler make-up water. Study the implication of thisaddition.

8 Study the local availability of equipment and materials whichcan be utilized for the proposed plant and suggest foreignprocurement otherwise.

9. Select appropriate technology and most economic plant/unit sizefor the proposed construction after comparing with the alterna-tives with respect to existing system demand as well as forecastdemand.

10. Preparation of itemized cost estimates for the proposed plant indetail showing foreign and local currencies involved and theannual phasing of expenditure.

11. Study the financial and economic justification of the proposedplant in exhaustive details.

12. Preparation and submission of draft report.13. Submission of final report.

- 79 -

14:1

BANGLADESH


1. Sector : Energy

2. Sub-Sector : Power

3. Name of Project : BPDB Tariff Study

4. Sponsoring Ministry : Ministry of Energy and MineralResources.

5. Executing Agency : Bangladesh Power DevelopentBoard.


7. Location

8. In house implementation : Partly. BPDB personnel will beattached to the ForeignConsultants.


10. Main objectives : Tariff Study based on long-runmarginal cost.

11. Brief description main : Scope of work not yet drawn.components/activities

12. Estimated cost : Total: Tk. 11 million (US$0.5M.) (out of which 0.05 MillionTk. 1.1 million convertible).

1L. Financing (donor prospect) : Not known to BODB

14. Implementation period : Commencement : January 1984Completion : June 1984.

15. Proposed physical and : Work to be completed in 6financial program months.

16. Status of the project : This project is a covenant ofand feasibility studies the loan agreement in the

Ashuganj thermal power stationextention, nothing has been doneas yet, due to lack of financingresource.

- 80 -

14.2

17. Contribution and inputsrequired from other agencies.

18. Major outstanding policy : Noneissues

19. Anticipated constraints : Foreign Exchange Finance.

20. Time table for completion : See Item 14.of the project

21. Estlimted Reduction in oil : Not applicable.Demand Resulting from project

22. Economic and Financial : No direct application.Parameters (rate of return, N.P.V. +229.66net present value, etc.)

0

fl~~~~.

' )

, )

0

- 81 -

15:1

BANGLADESH


1. Sector : Energy


3. Name of Projeet : Pre-stressed concete PoleManufacturing Plant at Aricha.



6. Other Agencies involved : Trading Corporation ofBangladesh for allocation ofcement.

7. Location : Aricha Dhaka.

8. In house implementation : Partly; Top supervision andcivil works.

9. Name and address of the firm : Not yet decided.implementing the project

10. Main objectives : Setting up a plant for produc-tion of P.C. Poles for BPDB.

11. Brief description main : Procurement and installation ofcomponents/activities spun concrete pole (pre-

* stressed) manufacturing equip-ment and execution of ancillarycivil works.

12. Estimated cost (1982) : Total : Tk. 98.966 millionF.E. : Tk. 43.551 million

13. Financing (donor prospect) : P.R. China has shown interest.

14. Implementation period : Commencement : 1982-83Completion : 1983-84

15. Proposed physical andfinancial program

_,

- 82 -

15:2

Physical schedule of works

Installation ofLand acquisitlon Construction equipment and

Year development Residential Functional machinery

1882-83 100% 40% 60% 60%1983-84 60% 40% 40%

Financial schedule of works

(In million Taka)Year Local Foreign Exchange Total

1982-83 22.862 23.656 46.5181983-84 32.553 19.895 52.448

Total 35.415 43.551 98.966

16. Status of the project and : P.P. and Project Report preparedfeasibility study and submitted for Government

approval.


18. Major outstanding policy : To be included in Second Fiveissues Year Plan.

19. Anticipated Constraints : 1) Foreign currency financing.2) Local currency shortage.

20. Time table for completion : See item 14.of the project

21. Estimated Reduction in oilDemand Resulting from project

22. Economic tnd Financial : Indicators Financial EconomicParameters (rate of return, B.C.R. = 2.32 2.39net present value, etc.) N.P.V. - + 3677.27

23. Sponsoring Agency Remarks : Nonedetail project pro?. see BPDBdocument (Pp. June 1982)

Ii

t,,

- 83 -

16:1

BANGLADESH


1. Sector : Energy


3. Name of Project : 60 KW Gas Turbine Power Station(in East Zone) Land Based.




7. Location : Ashunganj, Comilla.



10. Main objectives : To meet the gap between avail-able generation capacity andpeak load of the integrated gridsystem by 1985-86.

11. Brief description main : Procurement, installation andcomponents/activities commissioning of 60 MW gas tur-

bine generator and associatedequipment and extension of132 KV switchyard.

12. Estimated cost (1983) : Total: Tk. 577.50 millionF.E. : Tkc. 412.5 million

13. Financing (donor prospect) : Not yet known.

14. Implementation period : July 1983/84 - September 85/86.


-84 -

16:2

- ,.Physical Schedule of Wcrk

InstallationSurvey/ Land Acquioition Construction of equipment


1983-84 100% 100% 20% 20% 10%1984-85 - - 40% 40% 80%1985-86 - - 40% 40% 10%

Financial Schedule of -


1983-84 36.59 41.25 77.841984-85 61.16 330.00 391.161985-86 67.25 41.25 108.50

Total: 165.00 412.50 577.50

16. Status of the project : Project study underway (inand feasibility studies house)



19. Anticipated Constraints : 1) Foreign exchange finance2) Local cv.rrency shortage


21. Estimated Reduction in oil : 68338 tons oil equivalent (toe)Demand Resulting from project

Z2* Economic and Financial : N.A.Parameters (rate of return,net present valu2, etc.)

23. Sponsoring Agency Remarks . None

. ~ ~ ~ ~ ~ ~

- 85 -

17:1

BANGLADESH


1. Sector : Energy


3. Name of Project : 60 MW Gas Turbine Power Station(East Zone) (Barge Mounted)



6I Other Ageucies involved : None

7. Location : Bakhabad, Comilla


9. Name and address of the firm : Not yet decidedimplementing the project

10. Main objectives : To meet the gap between avail-able generation capacity andpeak load of the integrated gridsystem by 1984/85.

11. Brief description main : Procurement, installation andcomponents/activities commissioning of 60 MW gas

turbine and extension of 132 KVswitchyard.



14. Implementation period : Commencement : 1983-84Completion : 1984-85


- 86 -

17:2




1983-84 100% 100% 40% 90% 90%1984-85 - - 60% 10% 10%



1983-84 90.30 451.5' 541.80*'Z4-85 17.40 - 17.40

Total 107.70 451.50 559.20vm& ====C.. ., ,=

16. Status of the project : Project study underway (inand feasibility studies house)



19. Anticipated Constraints : 1) Foreign Exchange finance2) local Currency shortage


21. Estimated Reduction in oil : 68338 tons oil equivalent (toe)Demand Resulting from project

22. Economic and Financial : N.A.Parameters (rate of return,net present value, etc.)

23. Sponsoring Agency Remarks : Without implementation of thisproject electrifi-stion programwill hamper and dependence foroil import to continue.

C'~~~~~~~~~~

- 87 -

18:1

BANGLADESH

£ PRIORITY INVESTMENT PROGRAM FOR ENERGY

1. Sector ; Energy


3. Name of Project : Pre-feasibility study for mini-hydro power generation.



6. Other Agencies involved : Bangladesh Water DevelopmentBoard.

7. Location Chittagong, Chittagong HillTracts, Sylhet, Mymensingh,Rangpur and Dinajpur.

8. - In house implementation : Partly.


10. Main objectives : To examine the possibility ofpower generation by installingmini-hydro plants usingpotential of small rivers and

a streams.

11. Brief description main : See No. 23components/activities


13. Financing (donor prospect) : Not known to BPDB.

14. Implementation period : 10 months.

15. Proposed physical and : The work will be completedfinancial program within 10 (ten) months.

- 88 -

18.2

16. Status of the project : Reconnaissance survey in 1981and feasibility studies by "Working Group" formed by

Bangladesb Government.

17. Contribution and inputs : Contribution from Bangladeshrequired from other agencies Water Development Board.


19. Anticipated Constraints : Foreign Exchange Finance.

20. Time table for completion : Please see Item No. 14.of the project

21. Estimated Reduction in oil : Not applicable.Demand Resnlting from project

22. Economic and Financial : Not applicable.Parameters (rate of return,net present value, etc.)

23. Sponsoring Agency Remarks

Potential of small rivers like, Matamuhuri, Halda, Monu Dharla andnumerous small streams of Chittagong Hill Tracts, Chittagong,Sylbet, Mymensingh, Rangpur and Dinajpur districts deserve investi-gations in decail. A country-wide survey of potential isessential.

In 1981, a Working Group' formed by the erstwhile Ministry ofPower, Water Resources and Flood Control submitted a report afterreconnaissance survey of a few sites in five districts ofBangladesh. It recommended 12 sites for detailed investigation.No further progress has been acLieved so far. Small and mini-hydropossibilities are to be investigated which Bangladesh can tap withgreat benefit to its economy.

- 89 -

19:1

BANGLADESH

PRIORITY INVESTMENT PROGRAM FOR ENERGYV~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1. Sector : Energy


3. Name of Project : Canal drop small hydro powerplant at Teesta.



6. Other Agencies involved : Bangladesh Water DevelopmentBoard.

7. Location : 23 miles downstream of maincanal of Teesta Barrage Projectin the district of Rangpur.

8. In house implementation : Partly. Top supervision, somecivil construction, checking andtesting.


10. Main objectives : To construct a small hydro plantof approximately 8000 KWcapacity.

11. Brief description main : Detailed design, procurement ofcomponents/activities hydro-turbines, generators,

switchgears and ancillaryequipment; civil construction,installation of machinery,testing and commissioning ofapproximately 4 x 2000 KW for ahydro power plant. The powerplant will utilize the canaldrop of main canal of TeestaIrrigation Project.

12. Estimated cost : Total : Tk. 264 millionF.E. : Tk. 158 million

-90-

19.2

13. Financing (dono; prospect) : Not known to BPDB.

14. Implementation period : January 1984 - June 1986.





1984-85 100X 100% 20Z 501 40%1985-86 - - 80% 50% 60%

O



1986,-85 45.6 60.00 105.601985-86 60.40 98.00 158.40

Total: 106.00 158.00 264.00

16. Status of the project : Pre-feasibility studies wereand feasibility studies done by ACEC of Belgium and

NRECA of U.S.A. Detailedfeasibility and Engg. has beenproposed..

17. Contribution and inputs : Hydraulic structure will be donerequired from other agencies through Water Development Board.

18. Major outstanding policy : 1. Coordination between Waterissues and Power Board.

2. Inclusion of the program inthe second plan.

19. Anticipated Constraints : 1. Foreign exchange finance.2. Local currency shortage.

20. Time table for comple:ion : See item 14.of the project

- 91 -

19.3

21. Estimated Reduction in oil : 9750 tons to 14,350 tons.Demand Reault ing from project

1. Z-n-nomlc and Financial : Not yet computed.Parameters (rate of return,net pres*nt value, etc.)

2. Sponsoring Agency Remarks : None

- 92 -

20:1

BANGLADESHPRIORITY INVESTNENT PROGRAM FOR ENERGY

1. Sector s Energy


3. Name of Project : Feasibility study for A 100/190MW Steam Power S1tation in WestZone.


5. Executing Agency Bangladesh Power developmentBoard.


7. Location : General area in Northern Part ofWest Zone.

8. In house implementation : Partly; in assisting theconsultants with local support.

9. Name and address of the firm :implementing the project

10. Main objectives : Engineering study for a thermalpower plant of 100/150 MW inWest Zone of Bangladesh.

11. Brief description of main : An engineering study forcomponents/activities construction of a steam power

plant with 100/150 MW capacityin the Western part of thecountry. Some of the maincomponents are:

1. Survey of possible sites forselection of the most suitablelocation.

2. Study and review the forecast onPower demand and energyconsumption.

3. Study and recommendation on:load-flow, short-circuit,performance, stability of theplant and operation.

-93-

20.2

4. Study the sources and supply ofalternative fuels and theirfinancial implications.

5. Preparation of cost estimate forlocal and foreign currencyrequirements and financial andeconomic justification of theproject.

12. Estimated cost (June 1982) : Total : Tk. 8.64 millionF.E. : Tk. 7.26 million

13. Financing (donor prospect) : Not known.


15. Status of the project : Project proposal submitted toand feasibility studies Government for approval.

16. Contribu ,.on and inputs : Nonerequired from other agencies


18. Anticipated Constraints : Foreign Finance.

19. Sponsoring Agency Remarks : This study is of utmost impor-tance In view of generationshortage in West Zone on the onehand and high cost of fuel atpresent on the other.

- 94 -

G-l :l

BANGLADESH


1. Sector : Energy

2. Sub-Sector : Oil and Gas

3. Name of the Project : Development of Kamta Gas Fieldand Interlinking with TitasSystem.


5. Executiig Agency : PETROBANGLA


7. Location : Kamta Gas Field, Dhaka andJoydevpur, Dhaka

8. In-house implementation : Partly

9. Name and address of the : 1- PETROBANGLAfirm implementing the 2- Titas Gas T&D Co., Ltd.project

10. Main objectives : The project aims to drill a newwell and workover the existingwell at gas field produce 25MMCFD of gas. Construction of apipeline about 10 miles long and6" dia to supply gas to rhakaarea which may be sufficient tostablize gas shortage and low . -

pressure problems in Dhaka area.

11. Brief description/main : (i) Land acquisition and deve-lopment

(ii) Right of way(iii) One development well Dril-

ling(iv) Construction of functional

and residential buildings.(v) Procurement of equipfent

and materials.(vi) Workover operation on the

existing well.

-95-

G-1:2

(vii) Installation of well com-pletion equipment andsurface facilities.

(viii) Pipeline laying (6" dia 10miles long).

(ix) Expert Services.

12. Estimated Cost (1982) : Total Cost: Tk. 264 mln- Foreign Exchange: Tk 180 mln

(US$7.81 mln)

13. F tnctng (donor prospect) : None

14. Implementation period : One year.

15. Proposed physical and : One year.financial program

lt,. Status of the project : This project has been includedand feasibility studies in ADN, T.A., for future

financing. The study will becompleted by December 1983.

17. Contribution and inputs : Nonerequired from other agencies.

18. Anticipated constraints : Financial

19. Major outstanding issues : None other than mobilization offinancing.

20. Time table for completion : December 1983 to December 1984.of the project

21. Estimated reduction in oil : US$ 78.00 mln per annum 1/demand resulting from project

22. Economic and financial : B.C.R. - 1.162/parameters (rate of return, N.P.V. - +229.66net present value, etc.)

1/ There is no basis for such a considerable amount of saving byreplacing imported commercial fuel, especially the supply from thisfield is aimed to remedy the low pressure critical situation of theDhaka area.

2/ Calculations are not correct.

- 96 -

G-1 :3

Sponsoring agency romarks : Kamta well No. 1 was drilled toa depth of 3614M. Productiontesting confirmed commercial gasin only one zone. Other fivezones yeilded water with gas.Reinterpreted Seismic data showsthat well No. 1 is drilled offthe crast of 2nd closure byabout 1 km. It can be assumedfrom test results and Seismicdata that well No. 1 passedclose to the gas water con-tact. A second well on thesouthern closure has a goodchance to discover gas in allthese 5 horizons. Moreoverthere is a possibility toencounter reservoir bed withinthe interval 3600 - 4200 M.After the development of thefield, this may produce about 25MMCFD of gas. A pipeline of 6"diam and 10 miles long would belaid from the field to Joydevpurfor gas supply to Dhaka area,which may be sufficient tostabilize gas storage and lowpressure problem in Dhaka area.

11 's~ ~ ~ ~ ~ ~ ~~~~~~~1

1/ Investment decision should be based on the reservoir evaluation ofthe discovery.

-97_

G-2:1

BANGLADESH

PRIORItY INVESTMENT PROGRAM FOR ENERGY

1. Sector Energy

2. Sub,-2actor : Oil and Gas

3. Name of the Project : GREATER DHAKA GAS DISTRIBUTIONPROJECT

4. Sponsoring Ministry s Ministry of Energy and MineralResources

5. Executing Agency PETROBANGLA/UAWITS0

6. Other agencieti involved : None

7. Location: i) Jinjira, Dhakaii) Manikganj, Dhaka

iii) Aricha, Dhakaiv) Tangail, Tangailv) Kaliganj, Dhaka

8. In-house implementation : Contractor

9. Name and address of the : Petrobangla/Titas Gas T&D Co.,firm implementing the Ltd. will supervise. LocalProject. contractor will be selected.

10. Main objective : The existing Greater Dhaka GasDistribution System did notcover ctrtain areas in andaround Dhaka, such as Jinjira,Mainkganj, Tangail andKaligonj. This projectenvisages to extend gasdistribution facilities to theabove townships and industriallydeveloped zones. The componentsof the project are as follows:

i) Jinjira Gas DistributionNetwork.

ii) Savar-Mainkganj-Arichas GasDistribution Line and Distri-bution Network.

- 98 -

G-2 :2

iii) Tangail - Joydevpur Gas Distri-bution Network.

iv) Kaligonj Gas DistributionNetwork. 1/

11. Brief description of main : i) Land acquisition andcomponents/activities ii) Right of way

iii) Civil construction workiv) Procurement of material

and equipmentv) Fabrication and Erection

of DRS and RMS(Regulating and MeteringStations)

vi) Pipelaying

a) 3 zi 4ira12" dia 4000 rft4" dia 4000 rft2" dia 10000 rft1* dia 10000 rft3/4" dia 100000 rft

b) Savar-Meinkganj-Aricha4" die 10000 rft2" dia 15000 rftl1 dia 25000 rft

3/4" dia 30000 rft

c) Tanoail10" dia 220000 rft4" die 30000 rft3" dia 30000 rft2" dia 40000 rft1" dia 50000 rft

3/4" dia 10000 rft

d) Kaliganj6* dia 75000 rft4" dia 15000 rft2" dia 10000 rft1" dia 15000 rft

3/4" dia 10000 rft

1/ Already the greate: Dhaka area is in need of supply if addi-tional distribution Network is created Transmission pipeline shouldbe implemented parallel to this project and the Economics of bothshould be considered. ADB is financing the feeder pipeline.

99

G-2:3

vii) River, canal andhighway crossingincluding the riverBuringanga.

12. Estimated cost (1980) : Jinjira(US$ 1 - Tk. 23.00) Total Cost : Tk. 46.00 mlun

Foreign Exchange : Tk. 17.00 mln(US$ 0.74 mln)

Savar-Nanikgonj - Aricha

Total Cost : Tk. 120.00 mlnForeign Exchange : Tk. 33.00 mln

* :1 (US$ 1.43 1.n)

Tan_gail

Total Cost t Tk. 152.00 mlnForeign Exchange : Tk 48.00 mml

(US$ 2.10 mln)

Kaligani

Total Cost : Tk. 33.00 mlnForeign Exchange : Tk. 10.00 mln

(US$ 0.43 mln)

For the whole Project

Total Cost : Tk. 351.00 mluForeign Exchange : Tk. 108.00 mlu

(US$ 4.70 mla)

The cost has been estimated duringNovember 1980 and based on pricesprevailing at that time.

1. Financing (donor prospect) : None

2. Implementation period : Three years


ft

-100-

G-2:4

PHYSICAL PROGRAM

Suarvey/ Land development/ CivilYear Design acquisition Construction Procurement Pipelaying

1 100% 70% 30X 50%2 - 30% 30% 50% 50%3 _ - 40% - 50%

FINANCIAL PROGRAM(TK in MLNS)

Year Local Currency Foreign Exchange Total

1 48.00 50.00 98.002 107.00 58.00 165.003 88.00 - 88.00

TOTAL: 243.00 108.00 351.00

Both physical and financial programs are tentative.

16. Status of ths project and : This is an approved project.feasibility study. Titas Gas Transmission and Dis-

tribution Co. Ltd. has prepared aProject Preparation Report onGreater Titas Franchise Area GasDistribution in April 1982 onwhich basis this project profilehas been prepared.

17. Contribution and Inputs : For financial requirementrequired for other agencies Planning Commission and External

Resources Division will bedirectly involved.

18. Anticipated constraint Financial

19. Major outstanding policy issue : None

20. Time table for completion of : It will take 3 years to complete.the project A tentative program is shown in

item 15.

1.01 -

G-2:5

21. Estimated Reduction in Oil : It is estimated thit about 6Demand resulting from Project MNCF of gas will be consumed per

day in these four townships.This gas -411 save Tk. 437.00mln (US$ 19.00 mln) of importedoil annually. 1/

22. Economic and Financial : Benefit cost Ratio: 1.14 2/parameters (Rate of Return Internal Rate of Return: 29Tnet present value, etc.) N.P.V. - +145.35

23. Sponsoring Agencies' Remarks : Implementation of this projecthelp to supply gas to Jinjira,Manikganj, Kaliganj and Tangailfor industrial, commercial anddomestic use.

After the implementation of theproject no. of connection wouldas follows:

Name of the Industry Brick field Commarcial DomesticTown

Jinjira 120 70 90 560

Manikgonj- 10 8 30 4000Aricha

Tangail 60 5 170 1000

Kaliganj 1 2 10 500

TOTAL: 191 85 300 15060

The source of supply (average requirement 6 MMCFD) of gas will befrom existing Titas System.

1/ The saving is overestimated.

2/ These numbers ar taken from the PP 1980 which included the twopipelines now being financed by A.D.B., and are not correct.

- 102 -

G-3:1

BANGLADESH


1. Sector : Energy


3. Name of the Project : Development of Rashidpur Gas.4' .- '-' Field and interlinking pipeline

to Titas System.


5. Executing Agency : PETROBANGLA

6. Other Agencies involved : Titas Gas Company

7. Location : Rashidpur area

8. In-house implementation : Partly. Contractors will beused for pipeli.neimplementation.

9. Name and address if firm : Will be selected when projectimplementing starts.

10. Main objective : The project aims co utilize thegas production resources ofRashidpur field which has beenshut in since the field wasdiscovered.

11. Brief description/main : i) Land acquisition andcivil work

ii) Workover of 2 wellsiii) Production of facilities,

procurement and installationiv) 55 miles of 18' pipeline

12. Estimated cost : Total cost: Tk. 531.10 millionsForeign Exchange Tk. 298.50millions- US$ 13.00 millions


14. Implementation Period : Two and half years

^ 103 -

G-3:2

15. Proposed physical and:financial program

PHYSICAL PROGRAM

Year CIVIL WORK Pipeline Surface Equipment andLand acquisition construction well workover.development/RBW and material

1 60X 50% 70%

2 40X 352 30%

3 15%

FINANCIAL PROGRAM

Year CIVIL WORK Pipeline Surface equipment andLand acquisition material and well workoverdevelopment/RBW construction

LC FE LC FE LC FE

1 30 70 100 17 67.1

2 20 56 70 18 31

3 18 30

TOTAL 50 147 200 35 98.1 - Tk.53110

16. Status of the project : Rashidpur well No. 1 was drilledat. feasibility study in 1960 and well No. 2 completed

in 1961. Both wells were consi-dered as profilic gasproducers. However, due tovarious constraints and lack ofpipeline connection todistribution system, the wellshave been shut in. Thecomponents of the project havebeen approved by the GOB.

- 104 -

G-3:3

17. Contribution and inputs : Nonarequired from otheragencies.

18. Anticipated constraints : None


20. Time table for completion : See #14

21. Estimated reduction in oil : This project will add 60 MMCFdemand resulting from Project which is equal to 0.53 million

tons of oil equivalent (TOE)annually. Total price of whichis = US$ 133 millions. 1/

22. Economic and financialparameters

23. Sponsoring agency remarks.: Rashidpur Gas Field has 2 shut-in wells, which could be quickly

worked over and brought into production. The connection and de-velopment of this field with the existing Titas System willprovide a lot of flexibility and reliability and also meet addi-tional gas demand of the system starting from 1985-86. The de-velopment of this field would supply 60 MNCFD of additional gaswhich is equivalent to 0.53 million tons of oil equivalent (TOE)annually and save around US$ 133.00 million annually againstimported fuel. The total estimated cost of the project isUS$ 23.00 mln. including US$ 13.00 million in foreignexchange. It will be seen that one year's saving in foreignexchange (11S$ 133.00 mln) far exceeds project's total investment(US$ 23.00 mln). This would more than justify immediateimplementation of the project. 2/

-3

1/ There is no basis for this figure.

#/ The same quantity of gas may be produced from Titas or Habiganj withconsiderably lower cost.

- 105 -

G-4: 1

BANGLADESH


1. Sector : Energy


3. Name of the Project : GAS TRANSMISSION AND DISTRIBU-TION TO MIMENSINGH AND JAMALPURVIA KISHOREGANJ.

4. Sponsoring Ministry Ministry of Energy and Mineral

5. Executing Agency : PETROBANGLA/UNITS


7. Location : (i) Bhairab bazar, Mymensingh(ii) Kishoreganj, Mymensingh

(iII) Mymensingh(iv) Jamalpur(v) Bahadurabad Ghat, Jamalpur

(vi) Jagannathganj Ghat,Mymensingh

8. In-house implementation : Partly

9. Name and address of the : Petrobangla and Titas Gas willftrm implementing the project supervise. Local or Foreign

contractors will be selected.

10. Main objective : The main objective of theproject is to extend the gasfacilities to Mymensingh,Jamalpur, Kishoreganj fordistribution of gas, industrial,commercial and domestic pur-poses. This also includes an

extension up to East Bank of theRiver Jamuna for the purpose ofsupplying gas to fertilizerfactory which is planned to beconstructed.

11. Brief description/main :(i) Land acquisition andactivities development

(ii) Right of way

- 106 -

G-4:2

(iii) Civil construction work(iv) Procurement of material and

equipment(v) Fabrication and Erection of

DRS and RMS (Regulating andMetering Stations).For more information seeAnnex-1.

12. Estimated Cost : For Transmission :(US$1 - TK23) Total Cost :Tk. 374.00 mln.

Foreign Exchange :Tk. 172.00 mln.(US$ 7.50 mlm.)

For Distribution :Total Cost : Tk. 104.00 mln.Foreign Exchange : Tk. 41.00 mln.

(US$ 1.80 mln.)

Total Cost : Tk. 478 mln.F.E. : Tk. 213 mln.

(US$ 9.3 mln.)

13. Financing (donor proposed) : None

14. Implementation period : Three years

15. Proposed physical andFinancial program

- 107 -

G-4:3

PHYSICAL PROGRAM

Year Survey/ Land acqn./ Civil Procure- Pipelaying Distributiondesign developmevt const. ment (Trans) network

1 100% 70% 30% 80% - -2 - 30% 30% 20% 100% 30%3 - - 60X - - 70%

TOTAL 100% 100% 100% 100% 100%

FINANCIAL PROGRAM(Tk. in million)

Year Local Currency Foreign Exchange Total Cost

1 45.00 170.00 215.002 154.00 43.00 197.003 66.00 - 66.00

TOTAL 265.00 213.00 478.00

Both Physical and Financial programs are tentative.

16. Status of the Project and : An Engineering Study for Gas &feasibility study. Eastern Bank of the Jamuna River

(under approved PC-II form) hasbeen carried out by Titas GasTransmission & Distribution Co.,Ltd., in 1981, on which basis thisproject profile has been prepared.

17. Contribution and Inputs : Nonerequired for other agencies

18. Anticipated constraints : Financial


20. Time table for completion : It will take 3 years to completethe work. Refer to #14.

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G-4 :4

21. Estimated Reduction in Oil : Tk. 160-0.00 mln. anntually mDemand resulting from US$ 70 mln./Year. 1/Project

22. Ecooomic and Financial : N.A.Parameters (Rate of Return,net present value, etc.)

23. Sponsoring Agencies' Remarks: In view of the increasing crises of the liquid and other

indigenous fuel, it is felt very much necessary to extend thegas facilities up to Mymensingh, Jamalpur and Kishoreganj fordistribution of gas for Industrial, Commercidal and Domesticpurpose of use. There are quite a good number of small scalecommercial and dtestic customers at present and after extendingthe gas facilities in these areas, more commercial consumer insmall scale will come up.

At the initial stage No. of connections would be as follows:

Industrial Commercial Domestic

Mymensingh 57 600 10000Jamalpur 2 200 2000Kishoreganj 13 200 3000'Total 72 1000 15000

The industrial customers Jute Mills, Sugar Mills, MetalIndustries, Rice Mills, Brick Fields, Oil Mills, etc. The sourceof supply (average requirement 23 MMCFD) of gas will be fromTitas as well as Eabiganj gas field. At Titas 3 wells under ADBassistance and at Hibiganj 2 wells under French Assistance willbe completed by 1985. The pipeline will be extended up to theEast Bank of the river Jamuna for the purpose of gas utilizationby fertilizer factory at the river bank is i9 minimize thetransportation cost of fertilizer factory.- The objective offertilizer factory at the river bank is to minimize thetransportation cost of fertilizer and to facilitate storing fortimely distribution to the farmers.

1/ The saving is overestimated.

2/ No firm plan is underway for construction of a fertilizer factory inthat area.

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G-5: 1

BANGLADESH


1. Sector : Energy


3. Name of the Project : SYLHET TEA ESTATES GAS (SUPPLY)DISTRIBUTION PROJECT (PHASE II)


5. Executing Agency : PETROBANGLA


7. Location : Small township in and around LugalaJuri Area, Sylhet

8. In-house implementation : Contractor

9. Name and address of the : Local Contractor to be selectedfirm implementing theProject.

10. Main objective : 57 Tea-Estates (remaining Tea-Estates after the completion of 1stphase), 100 commercial and 4000domestic units in and around Lunglaand Juri Areas, in the District ofSylhet.

11. Brief description/main i) Land acquisition anddevelopment

ii) Right of wayiii) Civil construction works.iv) Procurement of material and

equipmentv) Pipeline, Laying(Transmission)a) 6' ND, 110,000'b) 4" ND, 264,000

vi) Distribution Networka) 3" ND, 160,000'b) 2" ND, 110,000'

110-

G-5:2

c) 1" NDs 40,000'd) 3/4 ND, 100,000'

'I, vii) River Crossing, 4000'viii) Rail crossing, 1000'ix) Road crossing, 2000'x) Fabrication and Erection of

DRS (2 Nos.) and RMS (67Nos.)

12. Estimated Cost : Total Cost : Tk. 154.00 mln.(US$1 - TK23) Foreign Exchange : Tk. 46.00 mln.

(US$ 2.00 mln.)

The cost has been estimated inJanuary 1982 on the basis of currentprices.


14. Implementation : Two years

15. Proposed Physical andFinancial Program

PHYSICAL PROGRAM

Year Survey/ Land acquisition Civil Procurement PipelayingDesign Development Construction & Installation

1 100% 702 100% 100% 50%2 - 30% - - 50%

TOTAL: 100% 100% 100% 100% 100%

FINANCIAL PROGRAM(TK in Millions)

Year Local Currency Foreign Exchange Total

1 55.00 46.00 101.00.2 53.00 - 53.00

TOTAL: 108.00 46.00 154.00(US$ 2.00 mln)

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G-5 :3

16. Status of the Project . The Sylhet Tea-Estate gas supply projectwas originally envisaged at supplying gasto Tea-Gardens of Rashidpur, Sirmangal,Shamshernager, Lungla and Juri areas in thedistrict of Sylhet. 13 Nos. of Tea-Gardenin Laksherpur Valley in the vici y of

.' E Habiganj Gas Field has been connected withGas supply in the later part of 1977. AProject Proforma prepared in 1978 wasbroken into two phases for the supply ofgas to 47 Nos. of Tea-Gardens in the 1stphase and 57 No. of Tea-Gardens in the 2ndphase. The lt phase of the ProjectProforma has been approved by ECNEC on17.5.1980. The 2nd phase of the projectProforma is under consideration of thesponsoring Ministry.

The 1st phase of the Project is underimplementation *mder Belgian Credit of BFr120.00 mln. Pipeline material along withother accessories have been procured underBelgian Credit. These materials will meetabout 70% of the whole project. Tocomplete the whole project additional fundsof US$ 2.20 mln is required. ODA, UK hasagreed to provide the additional funds.

The detailed pipeline route survey and gasoff take has been done by theImplementation Division who is responsiblefor the execution of the Project on behalfof Petrobangla.

17. Contribuion And Inputs- : Nonerequired from other agencies

18. Anticipated constraint : Financial


- 112 -

G-5:4

20. Time table for completion of : It will take two years tothe project complete after the commencement of the

work. The work is supposed to becommenced after the completion of the1st phase, or as soon as funds were madeavailable.

21. Estimated Reduction in Oil : Estimated gas consumption inDemand resulting from Project 4.44 MMCFD and is expected to save Tk

220.00 mln annually against import offuel.

22. Economic and Financial : Benefit Cost Ratio (BCR) : 0.82paramaters (Rate of return, Internal Rate of Return (IRk) : 10.5%net present value, etc.) (Calculated considering 20 yrs. as

economic life of the Project).

23. Sponsoring Agency's remarks : The project after implementation willsupply gas to 57 Tea-Estates, 100commercial units and 4000 domesticcustomers in and around Lungla and Juriareas in the district of Sylhet.Moveover, this project might createfacilities for installation of moreGlass and Ceramic Industries, Brickmanufacturing plants, Steel Re-rollingMills, Price Processing plants and othersmall industries to meet the demand ofthe project area.

The gas offtake estimated for theproject is MMCFD which is expected tosave Zk. 220.00 mln annually against ofimport of fuels.

Use of gas in place of expensiveimported fuel will make the price of teavery comparative in the world market andquality of tea will be improved. Use ofgas will also solve difficult and costlytransportation and storage problemassociated with furnace oil.

- 113 -

G-6 :1

BANGLADESH


1. Sector : Energy


3. Name of the Project : GAS GRID SYSTEM IN EASTERN ZONE

4. Sponsoring Ministry : Ministry of Energy and Mineral Resources

- -~ 5. Executing Agency Petrobangla


7. Location : Eastern Zone of Bangladesh(A map is enclosed for location)

8. In house implemenWatlon : None

9. Name and address of the firm : Consultant will be selected.Implementing the Project

10. Nain objective : The main objective of the project is torecommend a suitable gas grid system inthe eastern zone of Bangladesh fortransmission of gas from fields to thevarious load centers and alsointerconnection of the gas fields forthe reliability, flexibility and effic-iency.

11. Brief description/main : Feasibility Study.components/activities (copy of terms of reference is enclosed)

12. Estimated Cost : Total Cost of Tk. 5.00 mln.Foreign Exchange Tk. 4.00 mln.

(US$0.17 mln.)


14. Implementation period : Six months.

15. Proposed physical and : Six months.financial program

- 114 -

G-6:2

16. Status of the project and : An Engineering Study on Country-feasibility studies wide Gas Grid System has been carried

out by local consultants in 1982. GOBfeels that additional study is needed.

17. Contribution and Inputs : Nonerequired from other agencies

18. Anticipated Constraint : Financial


20. Time Table for completion : It will take six months to completeof the Project the study.

21. Estimated Reduction in Oil : No direct results.demand resulting from project

22. Economic and Financial : Not applicable.parameters (Rate of return,net present value etc.)

23. Sponsoring agency's remark : The study will help to finalize longterm planning of gas transmission anddistribution network system in theeastern zone of Bangladesh. The studywill also find out the detail economicbenefit of a gas grid over individualtransmission lines as well as the exactimpact of the grid to the nationaleconomy.

a

l~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

- 115 -

G-7: 1

BANGLADESH


1. Sector : Energy

2. Sub-sector Petrobangla

3. Name of Project : Feasibility of converting railway andmarine equipment to Compressed NaturalGas (CNG).

4. Sponsoring Ministry : Ministry of Energy and Mineral Resources

5. Executing Agency : Petrobangla

6. Other Agencies involved : Ministry of Railway, Highways and RoadTransport (Railway Board); Ministry ofPorts, Shipping and Inland Waterways(Inland Water Transport Authority andChittagong Port Authority).

7. Location : Entire area of Bangladesh.

8. In house implementation : Partly, civil works, top supervision,and administrative assistance.

9. Name and address of the firm : To be determined.implementing the project

10. Main objective : To determine the technical and economicfeasibility of large scale conversion ofrailway and marine equipment to CNG.

11. Brief description main : Survey to determine types ofcomponents/activities equipment, location, routes and fuel

eonsumption. Evaluation of equipmentrequirements. Economic analysis.

12. Estimated cost (1983) : Total Cost of TK. 3.5 mln.Foreign Exchange Tk. 3.5 mln.(US$150,000)


- 116 -

G-7:2




Project Mouth Task Area

1 On-site survey2 Analysis of data3 Preparation and Presentation of

Final Report


Mcfnth Local Foraign Exchange Total

1 -0- 50,000 50,0002 -0- 65,000 65,0003 -0- 35,000 35,000

16. Status of the project and : Current project on convertingfeasibiUty studies highway vehicles underway.

17. Contribution and inputs : Donation of equipment for conversion,required from other agencies facilities and personnel for conversion

and refuelling.

18. MaJor outstanding policy issues : None

19. Anticipated Constraints : None

20. Timetable for completion of : See item 14the project

21. Estimated Reduction in oil : Railway: 60,000 LT/yr OILresulting from project 5,300 LT/yr COAL

22. Economic and Financial : Marines: about 100,000 LTParameters (rate of return, estimated precise information

- net present value, etc.) not available.

AMUEK I Page I of 3SOURCEs Petrobangla PEAK GAS MMfAND AnD SUPPLY POSITIOM (Yiguz.s in imcrD)

Gas DistributionSystem & Customer 981-82 1982-83 L963-84 1984-85 1985-86 1986-47 1987-88 1988-89 1989-90

1- Titas - BabiganJSyRtem

I. Power StationAshuganjGhorasal 91 107 129 150 180 201 215 ais 235SiddbirganjShabjibasar

It. FertilizerAshuganj 90 92 102 210 110 non no 110 110Ghorasal Potash

III. OthersSmall IndustriesCommercial 63 76 88 97 105 113 122 133 145Domestic

A. Sub-Total (Demand) 244 275 319 357 395 424 547 457 490B. Dewand with diver-

sity of 0.9 219 245 287 322 356 381 403 412 441

C. Gas Supply based 210 240 300 360 360 360 360 360 360on firm finaiced ADB Fionaced 3 wells at Titss and French flanced 2 eilL at abiganj resulting in totalprojects additional supply of 150 NOCID.

D. Additional GasSupply based on - - 25 85 85 85 145 175 175proposed develop- Projects proposed developmeit of BEsta field 25 XCFD and Rashidpure 60 XMCPD.gfnt projects *Other development projects to meet the demand is unspecified.

F Total Supply basedon Pirm plus pro- 210 240 325 445 44'S 445 505 535 535posed.

M= I Page 2 of 3

PAX GA DM AND SUMPLY POSmON (Figres in )M)

Gas DistributionSystem & Customer 1981-82 198283 1983-84 1984-85 1985-86 1986-87 1987-88 198889 198990

II. C}HEATA, SYLUTGAS FIELDS

A. Gas Demand&' 29 42 45 46 46 48 60 67 70(Fertilizer,Cement, Papermill)

B. Gas Demand withdiversity of 0.9 26 38 41 42 42 43 54 60 63

C. Gas Supply 61 61 lOS* 105 105 105 105 105 105Position with Two wells at Syihet; 1 ell at Chhatsk. Proposed work over program in the NE area is for 1 wellfirm and pro- in Kalaubtlla, emd 2 Vells at Sylhet,* present supoly position of 61 W4CFD satisfy the demandposed Programme to 1990.

III* BAKHRABAD GASSYSTEM(Bakhrabad &Feni Gas Field)sPower - - 15 1S 15 1S 15 15 15Fertilizer - - 45 105 105 105 105 105 105Methanol - *- - -5 5SOthers - - 38 39 55 56 64 79 94

A. Sub-Total (De--'mand): - - 53 109 175 176 239 254 269

B. Demand withdiversity of 0.9 - 48 98 158 13<S 215 229 242

C. das Supply Posi-tion based on - - 90 150 150 150 150 150 150firm program Five producing wells at Bakhrabad will supply 150 MfCPD.

11, 2/: Petrobangla's projected demand appears to be over estimated both for Bakhrabad and the Sylhet-Chhstak systems.The present supply position should satisfy the demand up to 1989-1990.

( , 4 .

AN=E I Page 3 of 3

PEAZ GAS DifAN AND SUPLy PoSniTO (Fianras In MICFD)

Gas DitributiouSystem & Customer 1981-82 1982-83 1983-BA 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90

D. Gas Supply Posi-tion based onfirm & pro-posed well & - - 90 150 210 300 330 360 390pipeline dtve-lopment pro- In order to neet the demand projected Petrobangla proposes to drill 4 additional wells atBrame Bakhrabad and 4 ells at Faid Field. (The proposed program is unspecified).

IV. TOTAL SYSTEMDEMLWD INEASTERN ZONEsPower 91 107 144 165 195 216 230 230 250Fertilizer 110 112 122 175 235 235 235 235 235Methanol - - - - - - 55 S5 55Others 72 98 151 162 186 197 226 259 289

A. Total Demand 273 317 417 502 616 648 746 779 829

B. Total Derandwith diversityof 0.9 246 285 375 452 554 583 671 701 746

4. .

.~~~~~~~~~~~~~~~~~~~~~~

ANNEX II Page 1 of 7WELLS DRILLED iN uxouDzSx

CLASSIFI- YEAR OP TOTAL DEPTR FOBMATION R 8 N A R K SWELL NO. NAME OF WELL COMANY CATION 5M ET lElRFE AT AT . DEPTH T

1 2 4..... ~~~~34 5 6. 7 8

1. Sitakund-l TPPC Exploration 1914 760/2500 HB Gas show in MB

2. Sitakund-2 IPPC Exploration 1914 760/2500 M, Gas show in MB

3. Sitakund-3 IPPC Exploration 1914

4. Sitakund-4 BOC Exploration 1914 1023/3350 LB? Gas show in MB & LB

5. Patharia-1 BOC Exploration 1933 875/2871 BB Oil and gas shows in MB

6. Patharia-2 BOC Exploration 1933 1047/3436 IMB Ol show in MB

7. Pstharia-3 PPL Exploration 10.12.51 1649/5411 LB Oil and gas show in_ & LB

8. Patharia-4 PPL Exploration 23.2.53 830/2723 MB Dry hole

9. Patiya-l PPL Exploration 14. 9.53 3102/10176 NB Dry hole

10. Sylhet-1 PPL Exploration 12.5.55 2377/7800 UB Gas shows in BB,blow out.

0 * * * ,-* 4 . 4 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4

ANNE it Page 2 of 7

1 2 3 4 5 6 7 8

11 8Sylbet-2 m Appraisal 7.10.56 2817/9245 UB Ga show In BB.

12. Sylhet-3 PPL Appraisal 19.7.57 167515497 Bs Gas producer (BB)

13. Sylhet-4 PPL Appraisal 15.10.59 2850/9350 UB Gas producer (BB andUB)

14. Sylhet-5 PPL Appraisal 22.3.63 575/1885 TS Gas show in Tipam

15. Sylhet-6 PPL Appraisal 3.7.64 1405/4610 BB Gas producer, BB

16. Lalmai-l PPL Exploration 12.2.58 2991/9813 MB Dry hole

17. talmai-2 PPL Exploration 27.10.60 4116/13506 LB Dry hole

18. Chhatak-l PPL Exploration 14.4.59 2314/7,000 UB Gas producer, BB and UB

19. Kuch__ a- SvOC Exploration 26.6.59 2875/9433 Lower gondwana Dry hole

20. Bogra-l SVOC Exploration 8.2.60 2187/7176 Pre-cambrian Dry hole, gas shows inUB

At xIkage 3 of 7

1 2 3 4 5 6 7 8

21. Hazipur-l SVOC Exploration 5.9.60 3816/12521 Ba,ail Dry hole

22. Fenchugonj-l PPL Exploration 18.4.60 2438/8000 UB Gas show ln BB

23. Rashidpur-l PSOC Exploration 20.7.60 3860/12663 UB Gas well, gas in BB & UB

24. Bashidpur-2 PSOC Appraisal 23.6.61 4593/15071 LB Gas well, gas in BB & UR

25. Kailastila-l PSOC Exploration 22.3.62 4138/13577 UB Gas well, gas in BB & UB

26. Uabigonj-l PSOC Exploration 22.5.63 3505l11500 UB Gas producer, BB.

27. Eabigonj-2 PSOC Appraisal 1963 1555/5102 BB Gas producer, BB.

28. Titas-1 PSOC Exploration 23.8.62 3756/12325 im Gas producer (gas inBB and .B).

29. Titas-2 PSOC Appraisal 6.11.63 3223/10574 UB Gas producer (gas inBB and UB).

30. Titas-3 PSOC Development 28.8.69 2839/9315 VB Gas producer (gas inBB and UB).

r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

AM=E U Page 4 of 7

1 2 3 4 5 6 7 8

31. Titas-4 PSOC Development 15.10.69 2890/9350 D3 Gas producer (gas inBB and UB).

32. Titas-5 RGFCL Development Jan 81 3296/10814 UB Gas producer (gas InBB and UB).

33. Jaldl-1 OGDC Exploration 10.3.65 2391/7546 U Dry bole

34. Jaldi-2 OGDC Exploration 27.11.67 3360/11024 MB Gas shovs in UB & MB

35. Jaldi-3 OGDC Appraisal 25.5.70 4500/14765 LB Gas and condensateshows In UB and LB

36. Semutang-1 OGDC Exploration 22.5.69 4088/13413 LB Gas well, gas in BB

37. Semutang-2 OGDC Appralisa 5.5.70 1535/5036 BB Gss well, gas in BB

38. Sewutang-3 OGDC Appraisal 11.10.70 1552/5092 BB Dry hole

39. Semutang-4 OGDC Appraisal 21.1.71 1464/4093 BB Dry bole

40. Bakhradab-l PSOC Exploration 6.5.69 2838/9310 DB Gas well, gas in BB & UB

(S~~~~~~~~~~~~~~~~~~~~~~~~

AgNNPflt Page 5 of 7

1 2 3 4 5 6 7 8

41. Dakhrabad-2 JAPEZ Development 13.10.81 2606/8550 UB Gas well, gas In 33 &UB

42. Bakhrabad-3 JAPEM Development 16.4.82 2846/9339 UB Gas vell, gas in BB 6UB

43. Bskhrabad-4 JAPEX Development 9.82 2218/7276 UB Gas well, gas in BB &UB

44. Bskhrabad-5 J_ EM Development us 6as vell, gas in BB &UB

45. Cosas BaZBr- PSOC Exploration 16.12.69 3698/12134 UB Abandoned

46. BODC-1 BODC Exploration 10.3.76 4598/15086 Lb. Abandoned

47. BODC-2 BODC Exploration 17.6.76 4435/14551 LB Abandoned

48. BODC-3 ic Exploration 20.3.78 4503/14724 UB Dry hole

49. ARCO-1 ARCO Exploration 4.2.76 3902/12804 BB Abandoned

50. Bl1A-l INANAFTAPLIN Exploration 31.5.76 4095/13436 BB Abandoned

51. BINA-2 INA_N APLI_ Exploration 1.3.77 4294/14089 Dry hole

+ * t J~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~_ s ,.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

_ ------- ,.

. ~ ~ ~ ~ - .- V

ANEX II Pa"e 6 of 7

1 2 3 4 5 6 7 8

52. KUTU3DIA-1 UNION Exploration 28.1.77 3505111500 MB Gas well -

53. Muladi- T Petrobangla Exploration 16.12.76 4732/15521 UB Abandoned

54. Muladi-2 Petrobangla Exploration 23.7.80 4556/14940 UB Abandoned

55. Begumgonj-1 Petrobangla Exploration 29.1.77 3656/11991 DB Gas well

56. Begungonj-2 Petrobangla Exploration 29.8.78 3577/11732 U Dry bole

57. Singra-1 Petrobangla Exploration 19.3.81 4100/13448 lower Gondwana Abandoned

58. peni-l Petrobangla Exploration 1.12.80 3200/10496 Gas well, gas In BB &

59. Kamta-1 Petrobangla Exploration 15.3.82 3614/11854 MB Gas well, gas in BB.

60. Beantbaaar-l Petrobangla Exploration 12.5.81 4110/1348:0 LB Gas well, gas In UB..___.-_____ (MDP) - . .

61. Atgrai-l Petrobangla Exploration 13.4.82 4962/16276 Barail Abandoned

JW~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

AM=I II Page 7 of 7

41B WELLS

1 2 3 4 S 6 7 8

1. Sitakuad-l BOC GIB 1939 1100-600 - Two major thrusts un WB

2. Sylhet-1 PPL oIn 1951

3. Sylhet-2 PPL GIB 1952

4. Jaldi-1 OGDC GIB 17.3.65 1315/4429 8B Gas shows In TMI-A

5. Jaldi-2 OGDC GIB June '66 1368/4488 1B Gas shows in BB

6. Semutang-1 OGDC GIB 16.9.66 338/1109 BB Gas show In B3 andblow out

ABBREVIATIONS.

IPPC - Indian Petroleum Prospecting Company BODC - Bdngal Oil Development Company DT - DupitilaBOC a Burmah Oil Company ARCO a Atlantic Richfield Company TS - Tipam SSt.PPL - Pakistan Petroleum tLiited UNION - Union Oil Company BB 1 Boka BilPSOC - Pakistan Shell Oil Company GIB - Geological Informstion Borehole UB - Upper BhubanOGDC - Oil & Gas Devblopment Corporation MB - Middle BhubanSVOC - Standard Vaccum Oil Company LB - Lower Bhuban