BANGLADESH: Fifth Five Year Plan

Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Draft Year: 
1997
Effective Start Year: 
1998
Effective End Year: 
2002
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Power, Multi-Sector
Energy Types: 
All, Power, Renewable, Hydropower, Solar, Wind, Other
Issued by: 
Planning Commission, Ministry of Planning, Bangladesh
Notes: 
See attached document for the full length text.
Source: 
Planning Commission, Ministry of Planning, Bangladesh
File: 
Fifth Five Year Plan
Overall Summary: 
The Fifth Five Year Plan was prepared in July 1997. It reflects the views of public leaders, academicians, practitioners, business leaders, development partners and NGOs. The final form as was approved by the National Economic Council on March 4, 1998. The Plan reflects hopes and aspirations of the people. It proposes to raise the average growth rate to 7 per cent, domestic savings to about 12 per cent and investment to about 22 per cent of GDP. To yield this growth, in 5 years from 1997 through 2002, a total investment outlay of about Tk. 1960 billion will be pressed in. The Plan follows a structured yet very flexible framework tp ensure recursive strengthening of development policies and goals. Great attention is given to the development of the energy sector.
Access
Bi-, multi-lateral mechanisms to expand access: 
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. Action research programme, training programme, extension and dissemination programme will be provided. In addition to that, promotion of awareness about bio-mass fuel conservation and improved devices will be encouraged.
Energy access priorities: 
Expand power supply in the rural areas to boost rural economy and thereby alleviate poverty and ensure women's participation in the rural areas.---ensure reliable and uninterrupted power supply through maximum utilisation of the existing capacities, adding generation capacities by Optimizing energy mix and balanced expansion of transmission and distribution network.
Energy access action plan: 
--- provide cylindered liquid natural gas for the rural people. --- Dissemination of various forms of renewable energy technologies like solar, wind and mini-hydro, specially in rural areas and other remote and isolated location of the country. ---Reduce the cost of supply through implementation of least cost expansion plan and efficient system operation with a view to making the electricity available to the consumers at a reasonable price.
Energy access targets: 
Energy Supply by 2001-2002: [...] Number of Villages Electrified 32,52.
Clean cooking solutions: 
Ban on the use of fuelwood in brick fields will continue and be made more effective and other modes of efficient use of energy will be promoted, e.g., improved cooking stove. --- introduction and dissemination of improved cooking stove: replacement of traditional stoves by an improved version having better energy conversion efficiency will help conserve biomass in the rural areas; moreover, use of the technology in the urban area, will help reduce consumption of fuel wood; technologies are available and efforts will be made to popularise them during the Fifth Plan.---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. Action research programme, training programme, extension and dissemination programme will be provided. In addition to that, promotion of awareness about bio-mass fuel conservation and improved devices will be encouraged.
Efficiency
EE priorities: 
In view of the prevailing low generation and consumption of energy, efforts should be made to develop this sector in such a way that the needs of all sectors can be met adequately, efficiently and economically.
EE action plans: 
Ban on the use of fuelwood in brick fields will continue and be made more effective and other modes of efficient use of energy will be promoted, e.g., improved cooking stove.
Renewable Energy
RE priorities: 
Dissemination of various forms of renewable energy technologies like solar, wind and mini-hydro, specially in rural areas and other remote and isolated location of the country. --- Efforts will be made to popularise the use of biogas technology in the country.
RE action plans: 
In the Fifth Plan period a pilot project will be undertaken to use wind to generate power in a selected local area.
Environment
Energy environmental priorities: 
[E]nsure environmentally sound, sustainable power development with minimum damage to environment. Information, technology and financial programmes to support pollution abatement [...] involve specific programmes to promote clean technologies, improved energy efficiency through access to information, and training and credit.
Pricing
Energy pricing: 
Energy price equalisation measures, as deemed appropriate, will be put in place for those least developed areas where the price of fuel oil in BTU terms will be higher than the ruling natural gas prices, as long as gas can not be made available in those areas. --- [M]ake the utilities self-reliant through efficient management, reasonable restructuring of electricity tariff and favourable financial arrangement so that reasonable portion of capital expenditure can be financed out of internally generated funds;---Reduce the cost of supply through implementation of least cost expansion plan and efficient system operation with a view to making the electricity available to the consumers at a reasonable price.
Energy Supply and Infrastructure
Infrastructure development priorities: 
Wood energy development: Further research programmes on development of wood fuel, efficient use of wood, etc., will be undertaken in the Plan period to reduce strain on wood supply.---[E]nsure reliable and uninterrupted power supply through maximum utilisation of the existing capacities, adding generation capacities by Optimizing energy mix and balanced expansion of transmission and distribution network.---Generation, transmission and distribution of more electricity at least cost through optimisation of fuel mix; to this end special attention will be given to use coal deposits.---Energy Supply by 2001-2002: Generation Line 53.93km. Rural Electrification: Distribution Line 135.11km; ---Currently two massive projects, namely, Barapukaria Coal Mine [...]and Madhayapara Hardrock Mine [...]are under implementation in the division. Direct benefits (value addition) from these two projects have been projected to be Tk. 3.38 billion a year when completed by around 2000 AD. These will also enhance opportunities for secondary and tertiary activities in the area. The coal mine will particularly help to overcome its energy problem. A 300 mw power plant based on coal will be undertaken and completed during the Fifth Plan period. In addition, projects will be drawn up for mining coal at Jamalgonj and Khalispir and limestone at Joypurhat. --- [G]ive special attention to meet the power shortage in the north-western region and to line up power connection to deep tubewells installed for agricultural use.---[B]alancing of transmission and distribution networks to match generation capacity and extension of transmission and distribution networks to connect growth centres, both urban and rural, and to meet irrigational needs. Addition of more 230 kv and 132 kv transmission lines for efficient transfer of power from generating stations to the major load centres. --- build a national gas grid for equitable regional distribution. --- augmentation of the capacities through rehabilitation of power plants, transmission lines and grid substations.
Regional integration priorities: 
South Asia Development Triangle encompassing Bangladesh, Bhutan, Nepal and eastern and the north-eastern parts of India [...] aims at creating an enabling environment for rapid economic development through identification and implementation of specific projects for co-operation in the core economic sectors. The sectors are [...] energy.
Investment
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.
Governance
Energy management principles: 
Making appropriate institutional, fiscal, legal and administrative arrangement for the successful implementation of the strategies. --- improve management and engineering capability of the utilities. --- Issues such as those relating to simplification of procedures for [...] energy will be reviewed regularly and where necessary. --- conduct geological and geophysical surveys in order to explore and discover new sources of indigenous energy resources. --- raise resource management efficiency, reduce system loss [...] of the power sector.---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.
Energy institutional structures: 
Agencies like Rural Electrification Board (REB) and the Local Government Engineering Department (LGED) are involved in dissemination of various types of renewable energy technologies. The Department of Forest and other extension agencies are also involved in planned plantation [...]. --- Institutional Development: Petrobangla: The gas sector in Bangladesh is dominated by the Petrobangla Group consisting of eight state-owned companies; Bangladesh Petroleum Corporation: BPC was set up in 1976 with the objective of importing, refining and marketing of petroleum oil and lubricant products; Geological Survey of Bangladesh: GSB, the national geoscientific organisation; Bangladesh Petroleum Institute: BPI was established in 1992 as a research and training institute; Hydrocarbon Unit: A hydrocarbon unit was established in 1994 in the Ministry of Energy and Mineral Resources. --- measures will be taken to establish a regulatory authority which will be manned by competent persons for licensing energy utilities, setting prices and consideration of related issues.
Technology
Clean energy technology priorities: 
Time has come to revisit the conventional ‘green-revolution’ technologies that depend upon the intensive use of energy [...].
R&D renewable energy: 
A feasibility study will be undertaken in the Fifth Plan period to find out ways and means to use tidal and wave power.
R&D energy efficiency: 
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. Action research programme, training programme, extension and dissemination programme will be provided. In addition to that, promotion of awareness about bio-mass fuel conservation and improved devices will be encouraged.