Top ideas for Infrastructure

1. Infrastructure Research Ideas Dhaka June 16, 2015

2. Bangladesh Priorities WORKING WITH 30-50 economists including Nobel Laureates, 100+ sector experts engaging major development organizations, NGOs, government, businesses, youths, rural and urban Bangladeshis to identify, analyze and prioritize interventions that will deliver greater benefit per taka spent, helping move Bangladesh towards Vision 2021 and a more prosperous long term future.

3. In cooperation with the Research and Evaluation Division of BRAC, Copenhagen Consensus Center organized roundtable discussions with an aim to figure out smarter solutions to the most problematic issues facing Bangladesh. These roundtables are one of several sources for research ideas. Sourcing ideas and solutions Smarter solutions for Bangladesh Complete set of papers on 30-50 solutions PRIORITIZATION Government NGOs Academia Pvt sector Think tanks Development organizations Eminent Panel Assessment Government and donor seminars Rural polls Newspaper polls among readers Youth forums across the country Private sector meetings Social, economic and environmental benefit-cost research by top Bangladeshi, and international economists Extensive peer review by sector experts and academics 100+ ideas on policies & investments 20162015 Continuous engagement with the public via electronic, print and social media Working with civil society, government and sector experts Widely advocating results of prioritization exercises OUTREACH

4. Research ideas

5. Infrastructure: Energy; (1 of 7) • Adopt and implement the Coal Policy on an urgent basis. • Increase public investment in electricity. • Encourage private power supply. • Improving power sector efficiency by minimizing transmission and distribution (T&D) losses. • Decrease cost of electricity production. • Substitution of coal for gas as the primary fuel for generating electricity. • Reliance on gas and liquid fuel until FY2018. • Shift from domestic gas and imported liquid fuel to imported coal and LNG after FY2018.

6. Infrastructure: Energy; (2 of 7) • Increase reliance on IPPs based on large and efficient power supply. • Accelerate the implementation of scalable power generation through renewable energy (mainly wind and solar power). • Leverage potential of wind energy mainly in the coastal areas and offshore islands. • Regional energy sharing: Expand trade with India and explore hydro-power import opportunities with Nepal and Bhutan. • Maintain proper coordination of investment in T&D. • Expansion/up-gradation of 90,000 km electric distribution line by BREB.

7. Infrastructure: Energy; (3 of 7) • Construction/Up-gradation of 385 sub-stations in rural areas by BREB. • New consumer connection - 4 million rural customers. • Electrification of 4,000 villages by BREB. • Replacement of 5 million digital meters by pre-paid meter in rural areas. • Expansion of electric distribution line - 1250 Km by DESCO and 2591 km by WZDC. • Construction/Modernization of sub-station in urban areas. • New consumer connection - 426,000 by DESCO.

8. Infrastructure: Energy; (4 of 7) • New Pre-paid meter - DESCO 1050,000 and WZDC 804,956. • Reduce system loss - 9% (DESCO) and 9.5% (WZDC). • Adoption and implementation of a proper O&M strategy [presently, 22% loss with 2,200 MW). • Upgrading the “dead simple-cycle gas power plants” as combined-cycle gas turbine (CCGT). • Consider turn-key type investments to reduce IPP procurement problems. • Implement a demand side management (DSM) policy to reduce peak capacity use by 440 MW. • Design and implement a gas allocation policy.

9. Infrastructure: Energy; (5 of 7) • Prioritize LPG usage in domestic and CNG (mini cab) sectors. • Minimize difference between LPG and pipelined gas tariffs. • Consider biogas as the alternative of pipeline natural gas. • Investment for on-shore exploration. • Strike joint venture or “Strategic Partnership” between BAPEX and IOCs. • Use of coal as coking coal. • Export Barapukuria coal as coking coal or steam coal.

10. Infrastructure: Energy; (6 of 7) • Pursue LNG import with Qatar and Australia. • Design and implement the coal center with the capacity of 12 million ton in Matarbari area. • Substitution of low thermal efficient gas-fired power plants with more energy efficient plants. • Incentives for adoption of improved fuel use. • Promote use of energy conservation technology in industry. • Conserving gas consumption by households through proper metering and pricing policy based on usage. • Design financial incentives and regulatory schemes for improved cooking stove.

11. Infrastructure: Energy; (7 of 7) • Target energy subsidy in high priority sectors that maintains budgetary discipline. • Capping the level of subsidy for primary energy at 1 percent of GDP. • Proper coordination of investment in transmission and distribution. • Ensure efficient O&M in running power plants. • Scaling up production and usage of renewable energy sources through government support and subsidies. • Making solar panels more affordable for rural households.

12. Infrastructure: Transportation; (1 of 8) • Construction of Padma Multipurpose Bridge by 2018. • Construction of energy efficient buildings. • Relocation of all markets, shopping malls, restaurant, and school at least 500 meters away from main roads. • Extension of railway communication among big cities. • Building feeder road alongside the main road for parking buses. • Building flyovers in intersections. • Ensuring super elevation where the road is curved. • Removing illegal establishment i.e. hat-bazar alongside the main roads.

13. Infrastructure: Transportation; (2 of 8) • Building road divider in risky zones to mitigate road accidents. • Easily accessible public transport system. • Establishment of a national driving training institute. • Continue to repair, maintain, improve and expand existing roads on a priority basis. • Construction of a tunnel underneath the Karnaphuli river in Chittagong. • Conversion of important highways into four lanes starting with Dhaka-Chittagong. • Continuation of investment to modernize railway.

14. Infrastructure: Transportation; (3 of 8) • Construction of circular rail road track around Dhaka city. • Construction of the 3rd Sea port at Payra in Patuakhali. • Construction of a sea port and an LNG terminal at Moheshkhali. • Strengthen fleet capacity in making Biman a profitable organization. • Strict axle load control policy to reduce road damages caused by overloading. • Adopt policies for strict roadside land use development and right of way (r.o.w) control. • Shift from bituminous pavement to concrete pavement.

15. Infrastructure: Transportation; (4 of 8) • Developing coastal embankment/polder infrastructures. • Implement the MRT Line-6 project from Uttara to Motijheel. • Construct a fly-over starting from Shantinagar crossing over the Buriganga. • Development of an elevated rail-based mass transit (MRT) system in Dhaka. • Introduce bus rapid transit (BRT). • Giving autonomy to urban development authorities (UDA) for coordinated development of metropolitan cities and urban areas. • Reclaim footpath from street vendors.

16. Infrastructure: Transportation; (5 of 8) • Develop adequate pedestrian friendly walking and crossing infrastructures. • Undertake double tracking of all major railway corridors by phases - Dhaka-Chittagong, Dhaka-Sylhet, Dhaka- Khulna, and Dhaka-Parbatipur. • Strengthening Trans-Asian railway connectivity. • Railway modernization to an Electric Traction System (ETS) - Chittagong Port to the hinterland. • Connect large EPZ/SEZ mouth ICDs through container transport railway infrastructure. • Implementing the STP (Strategic Transport Plan 2004- 2024) and DHUTS (Dhaka Urban Transport Studies 2010-2050).

17. Infrastructure: Transportation; (6 of 8) • Revamp the Dhaka-Sylhet railway communication. • Establishing a container terminal either at Shayestagonj or Srimangal. • Construct in phases the Dhaka-Mongla and Chittagong-Cox’s Bazar rail lines. • Enable railway transfer of coal from Matarbari to the coal-fire based power stations. • Maintenance of navigable waterways through regular dredging. • Facilitating flow of passenger and cargo by development of inland river ports. • Develop inland container river port for transportation of containers by waterways to/from two sea-ports.

18. Infrastructure: Transportation; (7 of 8) • Introduce mechanical equipment for handling cargo. • Develop rural launch landing stations providing pontoon facilities. • Digitize all the services provided by BIWTA introducing web based data base application. • Restoration of the Buriganga and waterways around Dhaka city. • Reducing port induced semi-trailer truck traffic by developing intermodal rail and river connectivity. • Enhancing container storage port yard facilities at Karnaphuli. • Increasing container handling capacity through expansion of terminal/yard facilities.

19. Infrastructure: Transportation; (8 of 8) • Accelerate use of Mongla Port facility. • Construct a deep seaport in Sonadia of Cox’s Bazar. • Set up coal transshipment terminal at the Matarbari port. • Expansion of operational and passenger facilities of Hazrat Shahjalal International Airport. • Development of Cox’s Bazar Airport into international airport. • Enhancement of Cargo aircraft parking facilities at Shah Amanat International airport (SAIA). • Construction of a new airport at Southern region. • Emphasis on operations and maintenance (O&M) spending.

20. Full List of Attendees and Interviewees Zubair K M Sadeque, Senior Energy Finance Specialist, South Asia Sustainable Development, World Bank Mustafizur Haque Chowdhury, Chief Engineer, Rural Electrification Board of Bangladesh. Mohammed Abdul Khalekh, Project director, Rural Electrification Board of Bangladesh. Richard Lorenz, Senior Infrastructure Adviser, UNPOS. Sharif Md. Rezaul Karim Assistant Director (Estate), Bangladesh Bridge Authority. Mohammad Amimul Ehsan, Sub-Divisional Engineer, Roads and Highways Department, Ministry of Roads, Transport and Bridges. Md. Shahin, Sub-Assistant Engineer, Ministry of Road, Transport and Bridges, Eng. Md. Masud Alam, Deputy Director, Bangladesh Road and Transport Authority. Md. Moshiar Rahman, Additional Secretary, Director (Administration), BRTA, Ministry of Road and Transport and Bridges. Md. Shahidul Islam, Assistant Director (Eng.), BRTA Chatta Metro Circle-2.

Top ideas for Infrastructure