A Z M Anas
Myanmar has started crafting a master-plan to speed up electricity exports to Bangladesh, offering a renewed hope for the power-scarce nation to boost generation, officials said Friday.
Bangladesh is facing severe power crisis, compounded by energy supply crunch and years of lower investment.
Around 87 per cent of power plants in the country are running on fast-depleting natural gas while the country has failed to commission large stations since 1997 as makeshift policies turned away foreign investors.
"It's a right and timely step. I think the master plan will help us overcome hurdles to electricity exports," chairman of state-run Power Development Board (PDB) ASM Alamgir Kabir said.
A high-powered Myanmar team came to the capital last week for discussions with government officials and other stakeholders to identify the potential challenges and opportunities for the two-nation power trading.
Myanmar's master plan is seen as crucial for the government, which is desperately seeking to add more power to the national grid to placate people who are becoming increasingly angry owing to lack of electricity supply.
The daily blackouts amount to 1500-2000 megawatt, harming the industrial production while threatening to slow down economic growth.
"They (team) had talks with us. It also reflects the Myanmar government's sincerity to kickstart the process of cross-border power trading," the PDB chief told the FE.
Shwe Taung Development Co, a Myanmar company, has expressed its interest to set up a 500-megawatt hydroelectric plant in Rakhine state intended to export power to Bangladesh.
A local company, which has already got lease of land in Rakhine state to set up two power plants, is also considering exporting electricity to Bangladesh after meeting the demand of the state.
Bangladesh needs to bridge the gap between demand and supply and also additional power to keep the wheel of industry humming. Public and private companies are generating below 4000mw of electricity, although peak-hour demand tops 6000mw a day.
The World Bank has estimated power outages cost the economy 2.0 per cent of its annual national growth, undercutting its ability to grow faster. In a report, the bank said the country must grow seven to eight per cent a year to become a middle income nation over the next decade.
The government, however, is pressing ahead with a plan to generate 9000mw of electricity by 2015, which will require an investment of $9.0 billion.
As quick fix, it has taken steps to install nine oil-based and dual-fuel peaking power plants in a year with a total capacity of 620mw.
Bangladesh is also in discussion with the Indian government to import 250mw of electricity and building grid infrastructure on the border points to facilitate transmission.
Technical experts from the ministry of energy have already visited Rakhine state to make a feasibility study on the prospects of electricity import as Myanmar has agreed to Bangladesh's proposal to arrange a visit to the state.
Officials figured, the amount of bilateral trade between Dhaka and Yangon is set to shoot up from the present US$140 million to $500 million during 2009-10 fiscal year.
The Financial Express.