Energy sector investment priorities:
[T]he longer term strategy embedded in the SFYP power sector plan is to use budgetary allocations to promote low-cost, sustainable expansion of power generation, transmission, and distribution capacity.---Sectoral Public Investment Allocation for Energy in Crore Taka: [...] Total SFYP:45656: % of total: 17.3.---The Government is keen to encourage private investments in energy and power.
Financial incentives for energy infrastructure:
Provision for fiscal incentives for setting up new power plants as per the Industrial Policy 2010.
--- Increasing financial capacity of BAPEX by forming Gas Development Fund.
Tax and duty exemptions for energy equipment:
Provision for cheap imports of machineries for power plants as per the Industrial Policy 2010.
Independent power producers:
Efforts will be made to exploit all possible sources of primary energy (hydro-power, gas, coal and solar energy). This will be pursued in some combination of public investment, PPP, and pure private investment.
--- The energy sector will be further liberalized for improving its service delivery to consumers.
--- Actions are underway to implement a pilot IPP project to produce power from waste.--- Approval for importing liquefied natural gas by private sector as an alternative to natural gas and building necessary infrastructure.
Project permitting:
Speedy processing of tenders and signing agreements for offshore blocks.
Investment climate development:
Provision for incentives for FDI into the power sector as per the Industrial Policy 2010.--- [O]pening up of power trade will facilitate new investments from India’s private sector into Bangladesh for power as well as primary fuel.---Measures for improving investment climate will include ensuring more energy supply in the rural areas with emphasis on bio-fuel and solar energy use.---The Government is keen to encourage private investments in energy and power.---Attracting investments from the private sector to increase the generation capacity of the country and maintain an adequate and reliable power supply.
Public Private Partnerships:
Huge primary asset accumulation and procurement are required for investment in the power and energy sector. Strategies have been made to meet this need by involving private sector with Government.
--- The possibility of establishing private electricity distribution companies will be explored.
--- Efforts will be made to exploit all possible sources of primary energy (hydro-power, gas, coal and solar energy). This will be pursued in some combination of public investment, PPP, and pure private investment.
--- Mobilization of funds for electricity generation projects through private sector participation in the form of public-private/private (national)– private (international)/private (national/international).
--- Increase of power generation to reduce demand-supply gap through public-private partnerships and through power imports from neighbors.
--- Addressing the power shortages as a matter of urgency through a combination of investments from the private sector and the public sector.
--- Organize public information campaign about the merits and benefits of privatization.