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.
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.