Tag Archives: Barapukuria coal mine Bangladesh in coal dilemma

Tag Archives: Barapukuria coal mine
Bangladesh in coal dilemma
28JUN
Bangladesh rushes head-long into coal, protests grow as vital wetlands
threatened
Published Date: 20-02-2012
Source: New Age Xtra
Source Date: 14-02-2012

Parlous prospects face many thousands of Bangladeshi citizens – and the
country's fragile environment – as the government seems to be rushing
headlong into dependency on coal-fired power.

Plans to mine the Phulbari deposit continue being stalled, due to intense
domestic political wrangling prompted by continuing resistance.
See: Bangladeshi activists demonstrate in London against GCM Resources
So now, the government envisages importing coal from overseas. Although no
contracts have yet been signed, Indonesia, Australia and South Africa are
cited as possible sources of supply.

Late last month, Bangladesh signed a deal with India to construct the first
joint-venture coal-fired power plant, just 10 km north of the world's
largest protected wetlands.

The proposal created a wave of protest from within the country.

Twelve prominent Bangladeshi citizens have called for the plant to be
cancelled immediately, at least in its currently-proposed location.

Beginning of an end?
Mahfuzul Haque explores the possible hazards of the Indo-Bangla agreement
on the $ 1.5 billion Rampal power plant
New Age Xtra (India) 14 February 2012
To enhance the electricity generation situation of the country, Bangladesh
government signed an agreement with India on January 29, 2012 to produce
coal-fired electricity as the Power Development Board (PDB) of Bangladesh
and the National Thermal Power Corporation (NTPC) of India partnered to
build a 1,320 megawatt coal-fired power plant at Rampal in Bagerhat. The
first ever joint venture between the two country's governments in
electricity production will cost around $1.5 billion, according to PDB, and
it will start supplying electricity to the national grid by 2016.

Two units of the plant, with 660 MW generation capacity each, will be built
over 1,834 acres of land which will be located about 10 kilometres north of
the Sundarbans, the world's largest mangrove forest. The plant will be the
largest power plant in the country based on imported coal.

According to the agreement, PDB and NTPC will contribute equally 30 per
cent of the total cost while the rest 70 per cent will come from bank
borrowing. ASM Alamgir Kabir, chairman of PDB, informs the media that the
price of power from the joint venture would range between Tk 5 and Tk 7 per
unit.

Prior to that on December 20, 2011, PDB inked deals to build three coal-
fired power plants to generate about 1,087 MW electricity based on imported
coal with a consortium of local Orion Group and Chinese Long King to
initiate electricity generation by 2014 with a price of Tk 4 per unit.

BPDB has also floated international tenders to build six more coal-fired
power plants to generate up to 2,775 MW of electricity based on imported
coal in different areas across the country, especially in Chittagong, Dhaka
and Barisal areas.

According to PDB website, two power plants will be built in Dhaka area
having a capacity of 600 MW to 800 MW, another two having the same capacity
will be in Chittagong and another plant will be set up in Barisal having
capacity of 100 MW to 300 MW.

Before ascending to power, the incumbent Awami League-led government
pledged in its manifesto to enhance the capability of the country in
electricity generation as it is one of the burning demands of the entire
nation. During three years of its tenure, the government took some
initiatives to improve the electricity generation by adopting mainly quick
rental power plants, which consume huge amount of fossil-fuel. The move has
already affected the indicators of the country's economy as the government
has to provide a large amount of subsidy for importing fuel and it has also
to buy the produced electricity costing at a high rate. The government has
been facing criticisms from different quarters for not adopting proper
policy for electricity generation.

Now, after almost three years, the government is taking another path to
increase electricity generation depending on the coal-fired power plants.
Finance Minister AMA Muhith also echoed the government's move toward coal-
based power plants as he said in the agreement ceremony on January 29 that
electricity from coal-fired power plant will be cheaper than that of the
oil-fired plants.

—

The Indo-Bangla agreement is the implementation of a MoU (Memorandum of
Understanding) signed between the two governments during the visit of the
prime minister of Bangladesh to India in January 2010. Later, BPDB and NTPC
inked a MoU in August 2010 in Delhi for setting up coal-fired power plant.
It was initially considered that the coal to run the power plant will be
imported from India. Later, PDB found the coal of India not having proper
quality and thus changed its decision. Now PDB is considering Indonesia,
Australia and South Africa as the tentative sources for coal import.

The project falls under the red category of industrial classification made
under the Environment Conservation Rules of 1997 that requires Location
Clearance Certificate and Environment Clearance Certificate from the
Department of Environment (DoE). In 2010, BPDB entrusted Centre for
Environmental and Geographical Services (CEGIS), a public trust under the
Ministry of Water Resources, with the responsibility of conducting Initial
Environmental Examination (IEE) and Environmental Impact Assessment (EIA)
with purpose of obtaining clearance certificates from DoE.

But experts say, before initiating such type of projects there should be
some studies which will find out whether the proposed project is
economically viable, technically possible, socially acceptable and
environmentally tolerable. If these steps are followed properly and
findings are adequate, then the project becomes feasible.

Engineer M Inamul Haque, chairman of Institute of Water and Environment
alleges, 'The required steps had not been taken properly, rather the
government is in a rush to implement the project.' According to Article 7
(4) of Environment Conservation Rules 1997, location clearance certificate
and thereafter environmental certificate shall be obtained from DoE for
industrial unit falling under red category.
After examining both Lobanchara of Khulna and Shapmari area of Bagerhat
district, the CEGIS submitted the IEE report in September 2010 recommending
Shapmari for the project. The report states that the potential impacts
during the pre-construction phase will be the loss of agricultural land
(shrimp farming ponds, crop lands) and homestead land due to land
requisition. At the construction phase, it will affect through visual
intrusion, local air pollution due to generation of dust particles and
emissions from engine vehicles, noise from machinery and engine vehicles,
solid waste from construction site and labour colony.
During post-construction or operation period, air pollution might occur due
to emission of sulphur dioxide, nitrogen dioxide and SPM (suspended
particular matter). The report also warns about the accidental release of
fly ash which will have an impact on ecosystem.
The report also reveals that the most likely impacts from the thermal power
plants are deterioration of surface water quality due to sediment runoff,
runoff from coal yard, and discharge thermal plume. It presumes that
the water quality will reduce due to leakage and spillage of oil and
chemical. It continues, 'Excess mining of ground water intake for cooling
purpose may reduce the ground water level, subsequently killing juvenile
fish and other micro lives in water resources.'
Environmentalists tell Xtra that coal is one of the large toxic emitters.
It emits carbon mono-oxide, carbon dioxide, sulphuric acid, which are risky
to bio-diversity. Even when coal is kept on soil, it emits hydro-carbonates
that usually mix up with the soil. Due to this, plants do not grow in these
areas later on.
Moreover, a large amount of sweet water, mainly from surface and deep
underground sources, will be needed in cooling the machines and in the
recycling process of the steam. The discharged and waste water will affect
the flora and fauna. Coal burning emissions and greenhouse gas will pass
over the Sundarbans in dry seasons when wind blows from north to south,
affecting the trees heavily. 'In monsoon there will be acid rain that will
severely affect the green land, vegetation and habitat,' says Engineer
Inamul Haque.
The CEGIS report recommends that good housekeeping of the stockpiles,
fencing around the boundary, vehicle management, use of high potential and
advanced machinery with noise control devices, and waste management might
mitigate the pre-construction impacts. Maintaining the DoE standard of
emission by using advanced technologies of pollution control might reduce
the air pollution.
Proper maintenance of the storage system, provision of rain water
harvesting and retention ponds may mitigate the declination of ground
water. The fisheries and wildlife habitat might be protected by creating
minimum disturbance during the construction phase. Disturbance to the
dolphin habitat might be reduced by limiting the construction activities
within day time period and avoidance of their surfacing time and dolphin
conservation programme might be initiated to mitigate the potential impacts
on their mitigation. Regular inspection and maintenance, continuous
monitoring from the control room and adopting safety plans would be
necessary for the security of the environment.

Engineer Inamul Haque criticises the recommendations in the report for
leaving an uncertainty on the impacts with words such as 'might', 'may',
'might be' etc. He says to Xtra, 'through the "eye wash" study of CEGIS,
the government claims that the project is feasible.'
In the report, CEGIS states that most of the people are supportive towards
the project, except the landowners, whose lands will be acquired. Further,
it recommends that proper resettlement and compensation as per government's
regulation, and employment opportunity for the local people might resolve
the public concerns and would make them cooperative towards the projects.

Public concerns lie in the affects of the project that will be responsible
for threatening the bio-diversity of the Sundarbans, a critical zone
declared by DoE. Dr Abdus Sattar, chairman of environmental science
department of Bangladesh Agriculture University of Mymensingh, found in his
study that the project will threaten the livelihoods of 50,000 people while
it will also exacerbate deforestation.

The Bangladesh Poribesh Andolon (BAPA) is also worried about the project
and said in a statement that the power plant units would release toxic
chemicals that will harm the neighbourhood and the Sundarbans. BAPA said
the project is contradictory to the environmental laws in force as it has
not obtained environmental clearance yet.

In this regard, an official of DoE informs Xtra, seeking anonymity, that
the project only obtained location clearance certificate and after
completing EIA, the project will get the environmental clearance
certificate.

Finance Minister AMA Muhith said at the signing ceremony that new
technology would be introduced at the plant, so that it becomes more
environmentally sustainable.

Twelve noted citizens of Bangladesh have also demanded immediate
cancellation of the proposed project through a statement while urging the
government to select another location for the plant after assessing
environmental impacts and public opinion. The statement said 'Although we
welcome the government initiative to generate more electricity but we are
seriously concerned over selection of Rampal as the project site.'

The statement also said the primary environmental report, based on which
the government gave location clearance for the project, did not discuss the
impacts of the power plant on the Sundarbans although the site is very near
to environmentally vulnerable area of the forests. Even the Department of
Environment granted a certificate without paying hardly any attention to
the issue. The law does not allow such a project outside an industrial
area.

The eminent personalities who made the appeal are: Sultana Kamal, executive
director of Ain o Salish Kendra; Professor Abdullah Abu Sayeed, president
of Bishwa Sahitya Kendra; Muhammad Zafar Iqbal, professor of Shahjalal
University of Science and Technology; Rasheda K Chowdhury, executive
director of Ganosakkharata Ovijan; Syeda Rizwana Hasan, chief executive of
Bangladesh Environmental Lawyers Association; MA Matin, secretary general
of BAPA; Abu Naser, chairman of PABA; Sara Hossain, honorary director of
Blast; Khushi Kabir, coordinator of Nijera Kori; Badiul Alam Majumder,
founder secretary of Sujan; Farah Kabir, executive director of ActionAid
Bangladesh and Iftekharuzzaman, executive director of Transparency
International Bangladesh.

***

In their 2008-election manifesto, the incumbent government mentioned
about formulation of coal policy after ascending to power but the
government could not adopt any decision so far after three years of
assuming power. Since 2005, ten editions of the proposed coal policy have
been made but none did get the final whistle.
Prime Minister Sheikh Hasina recently said that local coal will be kept
reserved for utilisation by the future generation adding that after
adoption of policy the coal will be extracted. Experts see the decision
merely as a 'political one'. Dr AB Mirza Azizul Islam, economic advisor to
former interim government, says, 'The present government has every
opportunity to go for a policy to extract indigenous coal as it has the
greater majority in the parliament.'

The government is now planning to build more coal-fired power plants as it
has a target to generate 7,000 MW from the coal-fired power plants by 2016
and a total of 15,000 MW by 2030. The country has around three billion
tonnes of high quality bituminous coal reserves in five discovered
coalmines. The country's only coal-based 250MW-power-plant is located in
Barapukuria, which consumes around 2,500 tonnes of coal every day.

'Thus the proposed Rampal power project will need around 13,000 tonnes a
day,' observes MM Akash, professor of economics department at University of
Dhaka. 'This will need huge amount of money that will add more problems in
the country's balance of payment and foreign exchange reserve,' he adds.
This will create an extra havoc in the country's economy, thinks Mirza
Azizul Islam. He says, 'There should be cost-benefit assessment before
initiating such steps.'

He also doubts whether the government's analysis has been done properly or
not. Dependency on imported coal would initiate uncertainty in behaviour of
price and the transport cost would be higher as it will come from large
distance.

The government has allowed nearly two dozen small liquid fuel-based power
plants which forced the nation to import more fuels. A statistics shows
that the demand for fuel has increased almost two folds over the fiscal
year.

Bangladesh Petroleum Corporation imported fuel worth Tk 165.66 billion in
2009-2010 fiscal while the import cost increased to Tk 285 billion in the
next fiscal. As the government has to provide large amount of subsidy to
import fuel, the retail prices of diesel, kerosene, petrol and octane have
been increased by Tk 15 per litre and furnace oil by Tk 18 per litre since
May 2011. The import of a large volume of diesel and furnace oil for these
plants has put additional pressure on the government resources and external
reserve, which has led to high government borrowing.
***

BD Rahmatullah, former director general of Power Cell, thinks that the
method the government is adopting to enhance electricity generation is not
sustainable.

He criticises the government for not adopting environment friendly and cost-
cutting methods in electricity generation. Production of gas, the key
source for power generation, has already started declining.

Rahmatullah criticises the government for not concentrating enough on the
reserve of gas. He suggests that the government should increase the
efficiency of BAPEX to find gas. He also thinks that there is a vast
opportunity to mitigate energy demand from renewable sources.

Engineer Inamul Haque, however, alleges that the government has opened the
domestic market for India in the name of 'partnership'.

He says, 'NTPC could not initiate coal-fired power plants in some provinces
of India because of the environmental risks and local people's protest. But
why then are both the governments in a rush to implement the project
without examining the imminent impacts?'

Experts urge the government to step forward at adopting wise decisions
through consultation with the concerned quarters. Otherwise, the overall
economy will be under pressure, biodiversity will face major threats and
the entire nation will be the ultimate sufferers.

—

Anu Muhammad, professor of the department of economics at Jahangirnagar
University, explains to Mahfuzul Haque how the wrong policy of the
government for power generation is putting the country's economy and
environment at stake

… 'It will be difficult to get rid of the danger we have already fallen
into'

MH: The government has claimed that they have drastically changed the whole
power situation through rental power plants. But we have already seen its
effects on the economy for importing huge amount of fuel. What do you think
is the actual scenario?

AM: We observe lacks in the steps government has been adopting to bring
solution in electricity generation. The government has no comprehensive
approach and is also influenced by some vested interested groups. As a
result, the output we got so far became the cause of creating more
problems.

The government so far added electricity supply of about 3,000 MW in the
national grid but at the same time the supply of 1,700 MW of electricity
from public sector power plants are no longer part of the national grid as
most of these plants are inactive due to lack of maintenance and also
scarcity of gas supply. Thus, the government has added net 1,300 MW of
electricity to the national grid.

If the government repairs the existing power plants and increases gas
supply, it will cost not more than 1,000 crore takas. Per unit cost of
electricity from the public sectors power plants is less than two takas.
Spending about 1,000 crore takas, we can get 1,700 MW of electricity
costing two taka per unit. But the electricity supplied from quick rental
power plants cost 12 to 16 taka per units.

The government also has to supply huge amount of fuel for the plants and as
a result the government spends more 20,000 crore takas just for importing
fuels. Thus, the price of electricity is increasing and the government has
to increase subsidy in electricity and again more subsidy is going toward
importing added fuel.

For importing fuel, the government is taking more loans from the banks and
pressure is increasing on the price of dollar. The burdens of government's
bank loans are going on the people. Moreover, investors are getting less
money from the banks because of government's heavy borrowing. Import cost
is also increasing because of depreciation of taka and inflation rate is
continuously increasing.

MH: Do you see any respite from rental and quick rental power plants in the
near future?

AM: It will be difficult to get rid of the danger we have already fallen
into. Because the rental power plant contracts have already been signed and
that will run at least two to three years more. As short term solutions, if
the government renovates and repair existing power plants instead of rental
plants, there will be respite. But the government does not pay any heed to
these solutions.

MH: Recently we are seeing an inclination toward coal-based power plants.
Without the national coal policy, we would have to import coal. Would that
not affect us, economically?

AM: We see two types of agreements; one is with domestic company and
another with foreign company. We do not know the details from where coal
will be imported.

The per unit cost of electricity with domestic company in agreement will be
four takas and we do not know the exact price of electricity in the
agreement with India. Unofficially it might be Tk 8 per unit.

Moreover, the government has no ground-work on the places of the plants and
its impacts as it is yet to finalise the source of coal and how it will be
imported. Moreover, 70 per cent of the total investment of the agreement
with India for Rampal power plant will come from bank borrowing. It will
bring more financial, social and environmental loads.

MH: How do you perceive the recently signed agreement of coal-based Rampal
power plant between Bangladesh and India?

AM: The agreement is very risky and dangerous as the location is near the
Sundarbans. The government has no environmental impact assessment. The
mangrove forest is not only important for Bangladesh but also for the whole
world and its contributions are beyond monetary evaluation. Again, the
adjacent Mongla port will be affected.

In this agreement Bangladesh and India will invest 30 per cent equally and
the rest will come from bank loans. But India will hold 50 per cent of
total ownership investing only 15 per cent. It is not a rational agreement
as Bangladesh is giving a large part of green lands, taking environmental
risks and evicting a large number of people from that area.

Moreover, Bangladesh has expertise to do such project from its own as it
has about 10 years of experience in handling such plants. If required,
Bangladesh can also hire foreign experts. There is no base in involving
India in the agreement for just 15 per cent investment. I also doubt that
India will claim 50 per cent of total produced electricity.

MH: What can be the ideal solution at the moment?

AM: We are very lucky that we have reserve of primary fuels for power. We
have gas reserves and there is vast possibility to get more significant
reserves.

If we ban export of gas and utilise properly then it is possible to solve
power crisis for the next several decades.

Moreover, we have coal resources. If we can utilise the resource with safer
technology then it will be a safe energy resource. We also have potential
renewable energy resources.

If we can enhance our national capability for utilisation of the three
resources then we will get sustainable energy security. What is needed in
this regard is a comprehensive plan from the government.



1 Comment
Posted by probirbidhan on June 28, 2012
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ভাবনা


Tags: Anu Muhammad, Asia Energy, Bagerhat, Barapukuria coal mine, energy
security, GCM Resources, mangrove forest, NTPC,PDB, Phulbari coal, quick
rental power plant, Rampal, Sundarbans
UN experts think open-pit coal mine a threat to human rights
29FEB
The construction of an open-pit coal mine in Bangladesh could displace
hundreds of thousands of people, mostly indigenous and marginalised and
jeopardise their access to basic needs, a group of United Nations
independent human rights experts has warned.

"The Government of Bangladesh must ensure that any policy concerning open-
pit coal mining includes robust safeguards to protect human rights. In the
interim, the Phulbari coal mine should not be allowed to proceed because of
the massive disruptions it is expected to cause," the experts said
Wednesday in a statement, according to the official UN website.

The group noted that if opened, the proposed mine would immediately
displace an estimated 50,000 to 130,000 people, with up to 220,000
potentially being affected over time as irrigation channels and wells dry
up. In addition, the project would reportedly extract 572 million tons of
coal over the next 36 years from a site covering nearly 6,000 hectares, and
destroy some 12,000 hectares of productive agricultural land.

"The Phulbari development would displace vulnerable farming communities,
and threaten the livelihoods of thousands more by doing irreversible damage
to water sources and ecosystems in the region," the experts said.

A national coal policy is currently pending in a parliamentary committee,
and according to the Office for the High Commissioner of Human Rights
(OHCHR), early indications suggest that the practice of open-pit coal
mining will be permitted, giving a green light to the development of the
Phulbari mine in the north-western part of Bangladesh.

The project would not only displace thousands of people but would also have
serious environmental consequences, the experts stressed, as the mine is
located in Bangladesh's most fertile agricultural region where production
of staple crops such as rice and wheat support the entire country's food
needs.

"Nearly half the Bangladeshi population is food insecure, and nearly one
quarter severely food insecure. Local food production should be
strengthened, not sacrificed for industrial projects," said the Special
Rapporteur on the right to food, Olivier De Schutter. Experts also warned
that the mine could potentially destroy waterways supporting 1,000
fisheries and nearly 50,000 fruit trees.

"Access to safe drinking water for some 220,000 people is at stake," said
Catarina de Albuquerque, Special Rapporteur on the right to safe drinking
water and sanitation. The experts also emphasised that the consequences of
the open-coal mine would primarily affect indigenous populations which are
already living in vulnerable conditions.

"Displacement on this scale, particularly of indigenous peoples, is
unacceptable without the indigenous peoples' free, prior and informed
consent, and poses an immediate threat to safety and standards of living,"
said Raquel Rolnik and James Anaya, Special Rapporteurs on adequate housing
and indigenous peoples, respectively.

Furthermore, the experts questioned the transparency and legitimacy with
which the project has been conducted, as there are concerns over repression
of human rights defenders peacefully protesting the mine.

"People must be informed throughout, and must not be intimidated out of
exercising their rights to express their opinions and peacefully assemble,"
said Maina Kiai, the Rapporteur on freedom of peaceful assembly and
association.

"The Phulbari coal mine may entice developers. But for many Bangladeshis
the wholesale environmental degradation of the Phulbari region will
exacerbate food insecurity, poverty and vulnerability to climate events for
generations to come," the experts warned.

The group of seven independent experts consists of Mr. De Schutter, Ms.
Albuquerque, Ms. Rolnik, Mr. Anaya and Mr. Kiai, as well as Frank La Rue,
Special Rapporteur on freedom of opinion and expression; and Magdalena
Sepúlveda, Special Rapporteur on extreme poverty and human rights.

US BEHIND

In a latest WikiLeaks release of December 2010, US diplomats frequently put
pressure on the Bangladesh government to reopen the controversial Phulbari
coal mine, which had been closed following a violent protest.

A diplomatic US cable shows that US ambassador to Bangladesh James Moriarty
held talks with the energy adviser of prime minister Sheikh Hasina in 2009.
During the discussion, Moriarty urged adviser Tawfiq-e-Elahi Chowdhury to
approve the plans by British company Global Coal Management (GCM) to begin
open-cast coal mining at Phulbari, The Guardian newspaper reported.

On 26 Aug 2006, three boys, 'Salekin', 20, 'Tariqul', 21, and 'Amin', 13,
were killed and more than 200 people injured at Phulbari when paramilitary
forces opened fire on a peaceful demonstration protesting the open-pit
mining proposed by the UK-based Asia Energy.

GCM, then working with the name of Asia Energy, were forced to shut down
operations in the country in 2006 after the grassroots demonstrations
turned violent. Hasina, then the opposition leader in parliament addressed
the agitators on September 13 and vowed to meet their demands including
banning of open-cast mining and forcing Asia Energy out of the country.

But the company continued to maintain a strong presence in the country and
has continued to lobby for rights to operate the coal mine ever since, the
report says. Since coming to power in January 2009, several key players of
the ruling Awami League government have been trying to popularise the open-
pit method, arguing it would yield higher economic benefits.

Earlier in December 2010, Steve Bywater, GCM's chairman, said a
Bangladesh's parliamentary standing committee had recommended that the
country needs to move towards extracting coal reserves using open-cut
mining methods.