Energy sector investment priorities:
[I]nvestment for the energy sector is proposed to be increased substantially in the Fifth Plan and higher growth rate is projected for the sector.
--- Public Sector Outlay for Energy (in million Taka): 1996/97 = 14,083.00; 1997/98 = 13,831.00; 1998/99 = 15,859.50; 1999/2000 = 19,109.50; 2000/01 = 19,800.50; 2001/02 = 19,760.50 Tot FYP = 88,361.00.
--- It is recognised that the pace of power development has to be accelerated in order to achieve the overall economic development projections of the country and avoid looming power shortages. Specially, for investment in expansion of industry, power development has become prerequisite.
--- The development of the oil and gas sector is vital for further strengthening of the national economy. [...] Additional investment is, therefore, required to enable Bangladesh to utilise its available gas reserves and to increase exploration activities for new gas and oil fields.
--- A comprehensive programme of training linked with career development of professionals will be implemented; research and development activities will be increased for productivity and cost effective advances in the energy sector;
Financial incentives for energy infrastructure:
Projects/programmes for improved stoves for urban cooking, rural cooking and improved devices will be undertaken for bio-mass fuel consuming industries. Necessary support and incentives will be made available to the entrepreneurs from the credit institutions.
--- special incentive package for oil and gas exploration in the west zone will be given.
--- Measures will be taken to provide tax incentives to those entrepreneurs who will come forward to set up natural gas based industries.
Tax and duty exemptions for energy equipment:
Measures will be taken to provide tax incentives to those entrepreneurs who will come forward to set up natural gas based industries. --- One immediate positive step to encourage use of solar energy will be to allow duty free import of photo voltaic cells.
Independent power producers:
The government's present energy policy provides for participation of local and expatriate private entrepreneurs in generation and distribution of power. Private sector participation will get priority to ensure adequate energy supply to industry and agriculture and rural development.---Encouraging private investment in power sector, particularly as joint venture or on BOT/BOO principles through various incentive packages.
Investment climate development:
The government's present energy policy provides for participation of local and expatriate private entrepreneurs in generation and distribution of power. Private sector participation will get priority to ensure adequate energy supply to industry and agriculture and rural development.
Public Private Partnerships:
A public-private and donor cost-sharing approach to technology demonstration and dissemination may be explored.
--- Encouraging private investment in power sector, particularly as joint venture or on BOT/BOO principles through various incentive packages.
--- For further long-term gas supply commitments, particularly for the planned power plants, the government is encouraging private sector participation in the oil and gas exploration activities through the Production Sharing Contract (PSC) with the International Oil Companies.