Power sector in Bangladesh

Bangladesh is progressing through a phase of development where automation is the key to its
economy and business. As the country continues to industrialize the importance of power
generation and electricity supply becomes a key government priority.
At present, 48.5% of the total population of Bangladesh is enjoying the electric facilities. As of
April 2010, the total numbers of transmission and distribution lines are recorded to 8,359 km and
266,460 km respectively. However, 53,281 villages have been electrified so far. In Bangladesh
per capita generation is 220 KW hr which is comparatively lower than other developed countries
in the world.
Recent Status:
Installed capacity (Feb 2011)

6,658 MW

Derated generation capacity

5,480 MW

Generation

3,900-4,300 MW

Maximum generation (Feb 2011)

4,699 MW

Peak demand

5,800 MW

Access to electricity

47%

Per capita generation

220 KW hr

Public and private sector produces 63% and 37% of electricity respectively. Public sector
produces electricity through Bangladesh Power Development Board (BPDB), Ashuganj Power
Station Company LTD (APSCL) and Electricity Generation Company of Bangladesh (EGCB).
On the other hand, private sector produces power through small independent power producers
and rental that government buys at a constant price. BPDB individually produces 46% of the
total production.

Present Power Generation of Bangladesh Power Development Board (BPDB) including

Private Power Plants and its Key Statistics are given below8

Presently, the demand for power is about 6000 MW per day, while generation ranges between
3200 MW to 4100 MW, recording a daily shortage of 1900 MW to 2800 MW. The installed
capacity as per fuel is shown below9, though the data does not include 110 MW heavy furnace
oil (HFO) Power Station at Shikalbaha, Chittagong and 20 MW HFO Power Plant in Khulna.

Almost 81% of the electricity is based on natural gas, 6% on HFO, 4% on diesel, 4.77 % on coal
and 4.39% on hydropower. Only a small portion is based on liquid fuel other than diesel.
In addition to the abovementioned generation transmitted through the public grid, many
companies, especially in the industrial sectors, such as, textiles, pharmaceuticals and chemicals,
generate electricity for own consumption (captive generation). The approximate production from
captive generation is in the range of 1800 MW of which 1200 MW is based on gas and 600 MW
are based on liquid fuel. Various independent power producers (IPPs), which own one third of
the total generated capacity, have turned out to be the most reliable source of generation capacity.
The energy situation is seen as one of the biggest obstacles to do business in Bangladesh as well
as to attracting foreign investments. It might seriously hamper the GDP growth in the years to
come as for every 1 % GDP growth the power sector must grow with 3 %, which effectively
means that the power sector must grow with 18-25 % every year. Though everyone seems to
agree on the seriousness of the energy situation, the governments have not been able to act
accordingly and develop new generating plants meeting the demand. The reason for the power
crisis is not only the resource situation, but also lack of political initiatives. However, the
government has a vision of 100% coverage in 2020; at present only 40% of the population has
access to electricity. 100% electrification is equivalent to 16000 MW installed capacity in total.
To achieve this very ambitious goal by 2020, the investments needed are estimated to 12 Billion
USD per every 5 years to cope with the development. In addition to erecting new power plants,
the supply of energy source must be developed as well, be it local coal resources or exploration
of new gas resources onshore and offshore. The government may participate with only 20% of
the investment; the rest must come from private investors and institutional investors such as the
WB and the ADB.
Recently, government has taken very ambitious plan to install at least 5000 MW capacity power
plants, with each power plant ranging from 50 MW to 500 MW. Most of the power plants are
planned to be private in nature, such as Build Own and Operate (BOO), Build Own and Transfer
(BOT), Independent Power Plants (IPP), Public Private Power Plants (PPPP) and some of them
are rental power. Out of 3500 MW Power Projects 2000 MW will be generated from coal, 1400
MW from HFO and only 100 MW from natural gas. It is also learned that other power projects
under planning either may be coal or HFO. This is the first time government is not giving any
assurance of supply of fuel/source of energy; moreover, it is well declared that the project owner

must arrange the energy source for new power projects. Most of the projects are private power
projects, such as rental (1-3 years), BOOs, IPPs and the PPPs, where government will have
maximum 20% of shares.

About SIEMENS
Defendant SIEMENS BANGLADESH LIMITED ("SIEMENS BANGLADESH"),
headquartered in Dhaka, Bangladesh, was a wholly owned subsidiary of Siemens
Aktiengesellschaft ("Siemens"), a corporation organized under the laws of Germany with its
principal offices in Berlin and Munich, Germany. Through its operating groups, subsidiaries,
officers, directors, employees, and agents, Siemens was engaged in a variety of business
activities for, among others, national, state, and municipal governments. This included, among
other things, developing, constructing, selling, and servicing telecommunications equipment and
systems; power generation, transmission, and distribution equipment and systems; transportation
equipment and systems; medical equipment and systems; and industrial and traffic equipment
and systems. SIEMENS BANGLADESH was a regional company that contracted for and
managed projects relating to all Siemens operating groups.

In fiscal 2011 (October 1, 2010 September 30, 2011), Siemens sales to customers
amounted to EUR 52 million and new orders totaled EUR 227.47 million.
Siemens currently has about 120 employees in Bangladesh.
In fiscal 2011, Siemens won its biggest high-voltage direct-current (HVDC) project ever
in Bangladesh.
Siemens has been active in the country since 1956, primarily in the Energy Sector as well
as the Healthcare Sector, where it has supplied more than half of the medical diagnostic
equipment used in the countrys hospitals and clinical laboratories.

Siemens signed a contract with China National Machinery Import & Export (CMC) to build a
150-MW combined cycle power plant at Sirajganj for North West Power Generation Company
Limited (NWPGCL), a public utility in Bangladesh. Siemens contributed a gas turbine and the
necessary technical field assistance.
In addition, the Sector delivered a number of rental power plants to provide power to plants, steel
mills, real estate companies and construction firms, and completed a turnkey 105-MW rental
power plant for a leading industrial group in Bangladesh. Siemens also signed agreements for
two similar power projects which will be completed at the beginning of fiscal 2012. Siemens
ended the fiscal year winning another medium-voltage contract with an exportoriented company
operating in the Karnaphuli Export Processing Zone.

Management
The Managing Director of Siemens Bangladesh is Mr. Shouvik Bhattacharya. He graduated from
Massachusetts Institute of Technology (MIT), MA, USA, in the early 80s, with degrees both in
Electrical Engineering and in Computer Science. While working for a US company he has served
international clients, particularly managing large projects in Japan, Australia and Holland,
building and setting up their network management systems.
The organizational structure of Siemens Bangladesh consists of Managing Director Mr. Shouvik
Bhattacharya and Chief Financial Officer (CFO) Mr. Bul Hassan at its head who takes all the
major decisions and under him there are other departments such as HRM which handles all the
employment related work of it, and there is Operational department which mainly is categorized
into two parts, one which serves the foreign client and the other sees the local clients, also there
are Sales and Finance Department under the Managing Director and Chief Financial Officer
which does its job respectively to operate the business.

Operations

Products, solutions and services for the entire energy conversion chain from power generation
and transmission to distribution.
Siemens Energy Sector is the worlds leading supplier of a wide range of products, solutions and
services for power generation, transmission and distribution as well as for the production,
conversion and transport of the primary fuels oil and gas. Siemens is the only supplier worldwide
with comprehensive knowhow encompassing the entire energy conversion chain and, in
particular, plant-to-grid connections and other types of interfaces. Siemens focuses primarily on
the requirements of energy utilities and industrial companies particularly those in the oil and
gas industry.

In October 1956, Siemens Bangladesh Ltd. Set foot here hoping to tap into Bangladeshs
growing economy. This more than 50 year of association have brought major modernization and
infrastructural development for Bangladesh. During which Siemens Bangladesh has established
itself as a key player in energy sector. Siemens in Bangladesh helps to generate, transmit and
distribute electrical power at the highest levels of efficiency. It also helps to produce, convert and
transport the primary fuels oil and gas. Sensing the current need and future potential for growth,
Siemens Bangladesh is actively investing in power and energy sector of Bangladesh. The
company under took several investment heavy programs.

Infrastructure

The energy sector of Siemens Bangladesh is responsible for Products, solutions and services for
the entire energy conversion chain from power generation and transmission to distribution.
It also handles production, conversion and transport of the primary fuels oil and gas. It provides
worldwide with comprehensive knowhow encompassing the entire energy conversion chain and,
in particular, plant-to-grid connections and other types of interfaces. It focuses primarily on the
requirements of energy utilities and industrial companies particularly those in the oil and gas
industry.
Fossil Power Generation Fossil Power Generation offers highly efficient products and solutions
for power generation based on fossil fuels, ranging from individual gas and steam turbines and
generators to turnkey power plants.
Renewable Energy Renewable Energy offers environmental friendly energy development,
connecting a number of activities in the wind energy business both for onshore and offshore
wind parks, with highly efficient, solid and reliable wind turbines.
Oil & Gas Oil & Gas offers customer products and solutions used for the extraction, conversion
and transport of oil and gas.
Energy Service Energy Service provides comprehensive services for complete power plants as
well as rotating machines such as gas and steam turbines, generators and compressors.
Power Transmission Power Transmission offers products and solutions in the high-voltage field
such as High Voltage Direct Current, substations, switchgear and transformers.

Key Projects

In 1967, Siemens was involved in constructing the Ashuganj power plant and acquired a

major market share in energy sector.

In fiscal 2011, Siemens won its biggest high-voltage direct-current (HVDC) project ever

in Bangladesh.
In addition, the Sector delivered a number of rental power plants to provide power to
plants, steel mills, real estate companies and construction firms, and completed a turnkey
105-MW rental power plant for a leading industrial group in Bangladesh.

Projects in Pipeline

Siemens signed a contract with China National Machinery Import & Export (CMC) to
build a 150-MW combined cycle power plant at Sirajganj for North West Power
Generation Company Limited (NWPGCL), a public utility in Bangladesh. Siemens

contributed a gas turbine and the necessary technical field assistance.

Siemens also signed agreements for two similar power projects which will be completed
at the beginning of fiscal 2012. Siemens ended the fiscal year winning another mediumvoltage contract with an export-oriented company operating in the Karnaphuli Export

Processing Zone.
Dhaka Power Distribution Company Ltd on 18th December, 2011 signed a contract with
Siemens AG and Siemens Bangladesh Ltd. to install two heavy GIS substations in the
city to improve the power supply situation. As per the contract, Siemens will supply and
install the two 132/33 kV power GIS substations in Lalbagh and Mothertek areas, which
are under the DPDCs power supply network. DPDC secretary Mohammad Hasanat
Chowdhury and Siemens senior project director Gerhand Cerny signed the contract on
behalf of their respective sides at a function at DPDC office.