GE eyes big power investment

[CaPtAiN_pLaNeT]

GE eyes big power investment


GE eyes big power investment | Business | bdnews24.com

Wed, Oct 3rd, 2012 10:35 pm BdST

Dhaka, Oct 3 (bdnews24.com)—General Electric (GE) is keen to invest directly in a big way in the power sector in Bangladesh which plans to produce 20000 megawatt electricity by 2021.

The Chairman and CEO of the American conglomerate, Jeffrey Immelt, made his intention known to the editors of news media at a meeting in Dhaka's Westin Hotel on Wednesday.

Immelt came to Dhaka on Tuesday to witness the signing of an agreement among GE, Isolux Ingenieria SA of Spain and Summit Power to supply Frame 9F 3-series gas turbines for two new power plants that together would produce 675 megawatts of power.

When his attention was drawn to the nuclear power cooperation between Bangladesh and Russia, a smiling GE chief said they also produced nuclear reactor. They will monitor the cooperation and try to learn from it.

The US conglomerate has received contracts worth $89 million to supply one 9F 3-series gas turbine and spare parts to Isolux that is building the Siddirganj Power Plant for the Electricity Generation Company of Bangladesh Ltd.

A second 9F 3-series gas turbine will go to Summit Corporation, a Bangladeshi independent power producer that is building a new plant in Bibiyana.

Immelt said GE was committed to fostering innovations and technologies that build, power, move and help cure the world. This vision is an enabler that would help the people of Bangladesh live better lives, he added.

Immelt was accompanied by President and CEO of GE India and South Asia John Flannery, Vice President - Growth Initiatives Vishal Wanchoo, and President and CEO of GE Healthcare India and South Asia Terri Bresenham during the business trip.

He left Dhaka on Wednesday night at the end of two-day visit. Earlier in the day, at a meeting with Prime Minister Sheikh Hasina, Immelt expressed interest to invest more in the power and energy sector.

The CEO described Bangladesh as the 'new tiger of Asia', praising its social and economic development.

The Prime Minister told GE could help Bangladesh develop human resources in power and energy sector and improve power management.

With its innovation and advanced technologies, the General Electric dominates in the field of energy, health, transportation and finance.

Bangladesh also imports GE products relating to health and aviation.

bdnews24.com/ssz/bd/2213h

 

[eastwatch]

Today BD has just achieved only a few pockets of development. More development in industrial sector is possible with new inputs in the electricity sector. I hope, GE is sincere and will come back to invest directly after the next general election. BD needs power before it can invest more in industries.

 

[CaPtAiN_pLaNeT]

Today BD has just achieved only a few pockets of development. More development in industrial sector is possible with new inputs in the electricity sector. I hope, GE is sincere and will come back to invest directly after the next general election. BD needs power before it can invest more in industries.

I think Bangladesh will require more power then 20000 MW as planned by 2021 if it wants to achieve 10% GDP growth a year. What is your thought on it??? I am saying it because even country like Japan with almost same population has already a electricity production of more then 150K MW at the moment. Current electricity generation is very tiny for a nation of 150 million. Hope policy maker will be sincere in this regard.

 

[eastwatch]

I think Bangladesh will require more power then 20000 MW as planned by 2021 if it wants to achieve 10% GDP growth a year. What is your thought on it??? I am saying it because even country like Japan with almost same population has already a electricity production of more then 150K MW at the moment. Current electricity generation is very tiny for a nation of 150 million. Hope policy maker will be sincere in this regard.

Instead of answering to your question I ask you and others a question. Many national development economists say, there are 5 stages of economic development before a country march forward from the stage of traditional rural society where people do all those economic activities that have been done by their forefathers for Centuries.

1) Preparation stage for economic take-off: whereby the country witnesses a few POCKETS of developments here and there, but the traditional society is strongly visible. Indonesia, Vietnam etc may be such countries. Nepal, Myanmar, Laos, Cambodia may be in this stage.

2) Economic take-off stage: whereby the country witnesses quite a surge in economic activities and the economy becomes a little self-propelled but the future still may remain uncertain. Many countries of the world have fallen down from this stage in the past. India, BRIC countries may be in this economic take-off stage.

3) Stage of economic development: whereby there are construction of buildings, industries, power plants, roads, bridges, mass transportation system, manufacturing plants and hundred others just like pop corns here and there. Economy becomes self-sustained. China, Korea, Malaysia may be such countries.

4) Stage of economic maturity: whereby people have jobs and earnings. They keep on earning and spending. People become rich in the sense that they possess quite a high purchasing power. This is what you can see in SE asian countries.

5) Stage after maturity: eonomy does not grow further. Rather, it tends to produce lesser amount of goods and services, some people lose jobs, govt expenses are more than its earnings. Today's USA, Japan and many of the EU countries are going through this stage of economy.

I believe there are sub-stages in between any two stages, and any one stage can be very long, specially the economic take-off stage. It is the longest. So, could you please analyze the position of Bangladesh and tell which stage of economic development we are in now.

 

[Yogi]

whats the current power generation capacity of BD n what is the energy deficit???

 

[flame_retardant]

I like your definitions but I'm pretty sure you've got the countries listed wrong.

Instead of answering to your question I ask you and others a question. Many national development economists say, there are 5 stages of economic development before a country march forward from the stage of traditional rural society where people do all those economic activities that have been done by their forefathers for Centuries.

1) Preparation stage for economic take-off: whereby the country witnesses a few POCKETS of developments here and there, but the traditional society is strongly visible. Nepal, Myanmar, Laos, Cambodia may be in this stage. Indonesia, Vietnam etc may be such countries. - Vietnam for sure doesn't belong in this list. It's atleast at the Economic take-off stage - current FDI investment in Vietnam is >20billion a year. I doubt Indonesia belongs here either

2) Economic take-off stage: whereby the country witnesses quite a surge in economic activities and the economy becomes a little self-propelled but the future still may remain uncertain. Many countries of the world have fallen down from this stage in the past. India, BRIC countries may be in this economic take-off stage. Pretty accurate

3) Stage of economic development: whereby there are construction of buildings, industries, power plants, roads, bridges, mass transportation system, manufacturing plants and hundred others just like pop corns here and there. Economy becomes self-sustained. China, Malaysia may be such countries.

4) Stage of economic maturity: whereby people have jobs and earnings. They keep on earning and spending. People become rich in the sense that they possess quite a high purchasing power. This is what you can see in SE asian countries - pretty sure this isn't right either. Singapore has the highest per capita GDP in the world. Other SE-Asian countries (Indonesia, Malaysia, Phillipines etc aren't at this phase yet) Taiwan may be in this phase but Taiwan is East-Asian not SE Asian.

5) Stage after maturity: eonomy does not grow further. Rather, it tends to produce lesser amount of goods and services, some people lose jobs, govt expenses are more than its earnings. Today's USA, Japan and many of the EU countries are going through this stage of economy. South Korea is an OECD country - it belongs here.

I believe there are sub-stages in between any two stages, and any one stage can be very long, specially the economic take-off stage. It is the longest. So, could you please analyze the position of Bangladesh and tell which stage of economic development we are in now.

Bangladesh is in Stage 1. You rated SE Asian countries economic development above South Korea which tells me you don't have a good idea of Asian economies. You should read more about Asian countries & development.

 

[eastwatch]

I think Bangladesh will require more power then 20000 MW as planned by 2021 if it wants to achieve 10% GDP growth a year. What is your thought on it??? I am saying it because even country like Japan with almost same population has already a electricity production of more then 150K MW at the moment. Current electricity generation is very tiny for a nation of 150 million. Hope policy maker will be sincere in this regard.

Please read the other post I have sent for your understanding at what stage our economy really is in. It is only in the first stage. We are still preparing ourselves for a future economic take-off. India is almost taking off, not Bangladesh. Power is just one of the needed matrics for development. More and more power stations will be built as its demand rises. However, it may not rise that fast because of govt entanglement.

GE will certainly not build 20,000MW capacity power plants within a year. It may take 10 or 15 years to do so. When power is available the companies will keep on investing more capital which will raise the production, profit as well as savings. If more power is available the savings will be used to build factories of a new sector.

This is how the economy grows. A 10% growth cannot be expected for BD with its weak economic fundamentals. How do you deduce this kind of growth when the investment is less than $25billion. and the GDP is $130 billion. An yearly $25 billion investment can raise the output by an additional $7.5 billion (assumed). So, it is only a 6% growth. We will need an extra $20 billion/yr foreign investment to raise the growth to 10%.

However, I believe foreigners think BD is yet to do many home works before they can invest. No power, no road and bridge infra, people are fundamentalist, clownish politicians are self-centered and talk-only. Even if these things are corrected, I believe, it will take at least another 10 years when our economy grows @10%, if ever.

My personal feeling is a 10% growth may not be achievable even when the GDP has reached $300 billion. BD may not reach that stage in the next 10 years, the GDP at that time being around $250 billion.

 

[eastwatch]

@Moderator, I am unable to edit my posts. Is something wrong with my computer or you have changed the system? How about others? Do you guy are also facing problem?

 

[Contrarian]

I agree with most of what you say Eastwatch.

However there is one thing that might raise BD's economic growth faster than the curve other South Asian neighbours have gone through.
BD's social growth is fastest of the lot. Human resources if tapped will enable BD to even out the odds faster than others.

To reach Economic Stage 3 i think India will take 8-10 years or roughly around 2020.
Then India will also boom because of 2 factors:
Faster pace of slowing population growth.
Greater Literacy.

Both these will yield lesser poverty.

 

[TopCat]

I agree with most of what you say Eastwatch.

However there is one thing that might raise BD's economic growth faster than the curve other South Asian neighbours have gone through.
BD's social growth is fastest of the lot. Human resources if tapped will enable BD to even out the odds faster than others.

To reach Economic Stage 3 i think India will take 8-10 years or roughly around 2020.
Then India will also boom because of 2 factors:
Faster pace of slowing population growth.
Greater Literacy.

Both these will yield lesser poverty.

India must have a Plan to accommodate its massive Peasant society to the manufacturing sector if it really wants a real take off. Its just my opinion.

 

[Azazel]

India must have a Plan to accommodate its massive Peasant society to the manufacturing sector if it really wants a real take off. Its just my opinion.

We do,Invest heavily on Infrastructure.In next five year plan GoI is planning to invest $1 trillion in infrastructure.India is going to Urbanize very fast.

 

[Contrarian]

India must have a Plan to accommodate its massive Peasant society to the manufacturing sector if it really wants a real take off. Its just my opinion.

There is a plan. A quite ambitious plan i might add. NIMZ.
But when talking about the subcontinent, you are never quite sure whether plans would translate into reality.
The thing that would really make a difference is that for the first time the states like UP, MP and Rajasthan have shown a decline in growth rates. This is a first. India's growth rates till now had been declining despite these states showing increasing growth rates every decade!

Since they house more than 50% of India's total population, it would make a huge difference to the popn growth rates by the next decade.