Monthly Progress Report (20) April 2021

1. Major Activities of the Month

In April, some of planned activities had to be postponed due to a lockdown amidst the third and the most severe COVID-19 outbreak in Bangladesh. The lockdown started from 5th April 2021 and is still continuing as of the end of the month. The international consultant members of the Project Implementation (PI) Consultant team, having left Bangladesh, continued their contribution activities remotely, while the national expert members of the Project Implementation Consultant team physically continued their work with SREDA. The works include energy audit related analyses, sub-project follow ups and DASH data analysis (ongoing). There were also activities supporting the GoB portion of the Project, including the training programs.

It was almost at the end of the month, on Thursday 29th April that JICA’s official concurrence on the enhanced eligible technology and equipment list was notified to SREDA. A revised Business Process Manual Annexes (version 6.0) incorporating the enhanced list was released immediately on the Project MIS library for the implementing financial institutions to refer to. The MIS will be accommodating loan applications based on the new list from early May.

1.1 GoB Training for Sub-project Owners

1.1.1 Pahartali Textile & Hosiery Mills

On 4th April 2021, a training program was organized by SREDA for one of the sub-project owners under BIFFL, Pahartali Textile & Hosiery Mills. It was planned initially to be convened physically at their factory premises in Chattogram. However, due to the rapid spread of COVID-19 at the time, the training program was rearranged to be conducted remotely on Zoom environment. The PI Consultant team’s international expert, Mr. Yasushi Iida participated in the seminar remotely from Japan as one of the key lecturers and made a presentation focusing on the benefits of EE&C promotions and technologies that may be introduced in the spinning sector.

1.1.2 Shun Shing Cement

On 5th April 2021, another training program was organized by SREDA for Shun Shing Cement Industries, which is one of the sub-project owners under IDCOL. The program was also held remotely instead of initially-planned on-site setup, but using Zoom environment. The PI Consultant team’s international expert on finance, Dr. Takeshi Kikukawa, made a presentation focusing on EE&C promotion and benefits to the cement sector.

1.2 Energy Audit

1.2.1 Energy Audit Equipment Procurement

Upon finalizing the list of energy audit equipment to be procured in the project, the PI Consultant team received the quotation from the following two local electronics distributors:

• Power Tech Electric (official sales agent of HIOKI)
  165 Nawabpur Road, Dhaka-1100. Bangladesh
• Express Systems Limited (official sale agent of FLIR Systems)
  Road-1, Shaymoli, Dhaka-1207

Evaluation of the quotation and selection of suppliers were made in the following manner. Considering that the payment will be made via international remittance from Japan to Bangladesh, the prices were quoted in US dollars. Power Tech Electric originally quoted each item with tax-exclusive price, hence the taxes (VAT, AIT etc.) and telegraphic transfer charges had to be added onto the initial quotation to make it comparable with the quotation of ESL that presented all-inclusive price. ESL says that they are dealing with the products of FLIR and its affiliates only, and cannot offer products of the other manufacturers. Then, on each of the items for which both distributors quoted, the lower quotation was selected. Otherwise, i.e. on items for which only one distributor quoted, such distributor was selected.  

After notifying SREDA of the finalized procurement list and obtaining internal approval at Mitsubishi Research Institute on the payment, the PI Consultant team issued a purchase order to the distributors between 12th and 14th of April 2021, and received a reply of acceptance from both of the suppliers. Upon the request from Power Tech, prepayment of the quoted amount was made in late-April, and Power Tech confirmed the receipt of payment. Currently (as of end-April), both distributors are in the process of arranging the order. According to the distributors, it usually takes 5-6 weeks from purchase order to delivery, but now it may take longer considering the effect of lockdown in Bangladesh. The delivery of the ordered items is expected to be made in June 2021.

1.2.2 Advisory for Energy Auditor Certification Exam

SREDA will be organizing their second energy auditor certification exam during the course of the year. Based upon the experience from the first energy auditor certification exam, some improvements are required.

The PI Consultant team’s international energy audit expert, Mr. Norio Fukushima, reviewed thoroughly the first energy auditor certification exam questions, and analysed the questions by comparing them with the Indian and Japanese exams for the same purpose. After a detailed analysis, Mr Fukushima prepared a comprehensive improvement proposal with various points for further improvements. The followings are some of the items included in the list of proposed improvements:

• To reduce the number of questions on renewable energy and project planning (finance and accounting). On the other hand, increase number of questions on EE&C policies and regulations and industrial sector specific technical questions in a selective form;
• To focus more on energy audit related questions, such as energy audit procedures and energy audit data calculation (such as how to calculate heat loss of boiler by measuring oxygen percent in flue gas), and;
• To change questions on technologies which are not commonly used in Bangladesh (such as fluidized bed combustion boiler) and to replace them with more commonly used technologies.

These improvement proposals are expected to be reflected on the upcoming energy auditor certification exam.

1.2.3 Energy Audit Report Presentation to Ministry of Industry

As reported in Monthly Progress Report of January 2021, the PI Consultant team conducted simple energy audits at the following four state owned enterprises:

• Eastern Cables limited (under BSEC);
• Bangladesh Insular and Sanitaryware Factory limited (under BCIC);
• DAP Fertilizer Company limited (under BCIC);
• Eastern Tubes limited (under BSEC).

In planning such audit, SREDA collaborated closely with Ministry of Industry. To follow up and to give feedback from these activities, SREDA organized the remote meeting with Ministry of Industry on 19 April 2021, and reported the main findings. The PI Consultant team’s national energy audit experts contributed to prepare for such reporting presentation.

1.3 Awareness raising activities

1.3.1 Project leaflet

A series of workshops and seminars are planned as awareness raising activity. To widely publicize about the EECPFP and to distribute material in awareness raising occasions, the tri-fold Project leaflet was developed in Bangla. Five hundred copies were printed.

1.3.2 Newspaper advertisement

Newspaper advertisement was designed, with target to appear in major English newspapers in Bangladesh, including the Daily Star, the Financial Express and Dhaka Tribune. The newspaper is planned to be published after lockdown.

1.4 Revising the eligibility list

The PI consultant team communicated remotely to JICA Bangladesh office to have the submitted Business Process Manual Annex (Ver 5.1) to be concurred. This Annex contains the revised eligibility list. JICA Bangladesh office provided their concurrence on 29th April. The PI Consultant team made the concurred version (Ver 6.0) available to the two implementing financial institutions, and also worked in MIS to accommodate necessary changes.

2. Appendices

Appendix 20-1: Mujib Borsho Special Training on Energy Efficiency & Conservation in Textile and Garments Industry for Pahartali Hosiery Mills Ltd (4/April/2021)

Appendix 20-2: Mujib Borsho Special Training on Energy Efficiency & Conservation in Cement Industry for Shung Shing Cement Mills Ltd (5/April/2021)

Appendix 20-3: Tri-fold leaflet on EECPFP