বিনিয়োগ সম্ভাবনা

Investment Potentials in Bangladesh Power Sector

Bangladesh has been experiencing an annual average GDP growth rate of over 7 percent for the last couple of years. Even during the global economic turmoils, it has managed a growth rate of over 6 percent, helped by robust domestic and foreign demands in the recent past and steady flow of remittances for nonresidents. Its the second largest garment exporter, 7^th fish producing country, 4^th rice producing 3^rd vegetable producing country and 37^th largest economy in the world.  Its macro fundamentals are sound and the rating agencies have held on to their assessments.

Bangladesh is an investor friendly country. There has never been an instance of nationalization of FDI, nor any case of default in payment. Its incentive package for FDI and for power sector in particular, is one of the most lucrative. Its capital account is freely convertible for FDI. The Independent Power Policy of Bangladesh has been able to attract FDI since 1996 and the track records on all counts have been excellent.

From GOB’s power sector Road Map, following investment potentials can be identified:

• Natural gas/LNG based power plants
• Renewable energy projects  
• Cross-border power projects including  Hydro power plants
• Projects to enhance energy efficiency, energy conservation and DSM
• Projects for transmission and distribution capacity expansion
• About US$ 22 billion invested during 2009 to 2020
• US$ 127 billion investment will be required for  new generation by 2041
• US$ 31 billion would be required for transmission network by 2041
• US$ 35 billion would be required for distribution network by 2041
• Average US$ 8 billion would be required each per year

Key Facts of Bangladesh:

Conclusion

The Government of Bangladesh is committed to realizing its ‘Vision’ to turn it into a middle income country by 2021 and reach a develop country by 2041. It needs support from development partners, multinational financial institutions, foreign investors and international power sector players. Bangladesh is a proven case of secured investment in power sector offering a win-win situation for all parties involved.