Encouraging Foreign Direct Investment (FDI) in Bangladesh's Power Sector: The key factors for long-term investment sustainability

This book explores the factors that influence investment decision-making for foreign direct investment (FDI) in Bangladesh's power sector, focusing on the country's vision to become a middle-income country by 2021 and universal power access. It identifies key factors that encourage FDI, such as regulatory aspects, economic and financial opportunities, and political stability. It also highlights barriers to FDI, such as land acquisition and transparency in private power procurement. The book suggests that more exploration of onshore and offshore gas fields and the extension of gas transmission networks is necessary to ensure a regional balance of primary energy supply and support the development of additional gas-based power plants.

Format: Paperback / softback
Length: 98 pages
Publication date: 27 April 2023
Publisher: Springer International Publishing AG

This comprehensive book delves into the intricate factors that shape investment decisions for conducting foreign direct investment (FDI) in Bangladesh's power sector. It is meticulously organized around six central themes, providing a comprehensive analysis of the landscape.

Firstly, the book explores Bangladesh's ambitious vision to achieve middle-income status by 2021 and ensure universal power access for all its citizens. It provides a comprehensive overview of the benefits and costs associated with FDI from a host nation's perspective, highlighting the potential opportunities and challenges that arise.

Secondly, the book offers a detailed outlook of Bangladesh's power sector, spanning from 1994 to 2020 and beyond. It examines the sector's historical development, current status, and future prospects, shedding light on the key factors that drive FDI investment. These factors are categorized into four broad categories: regulatory, economic, financial, and political and social considerations.

Thirdly, the book identifies the key barriers that hinder FDI in Bangladesh's power sector and explores the policy implications for long-term investment sustainability. It emphasizes the importance of regulatory aspects in attracting FDI, particularly in addressing issues such as land acquisition and private power procurement. Additionally, it advocates for transparent and competitive selection processes to enhance transparency and accountability in the private power sector.

Furthermore, the book suggests exploring onshore and offshore gas fields, along with extending gas transmission networks, to ensure a regional balance of primary energy supply (gas). This will facilitate the establishment of additional gas-based power plants, contributing to Bangladesh's efforts to diversify its energy mix and meet the growing demand for electricity.

The main arguments presented in this book are compelling and thought-provoking. The author emphasizes that regulatory aspects are of paramount importance for firms seeking to invest in the power sector, particularly in addressing issues related to land acquisition and regulatory frameworks. Land acquisition, often cited as a key barrier to FDI, remains a persistent challenge that hinders the development of large-scale power projects.

Moreover, the book advocates for a transparent and competitive selection process in private power procurement. This will promote fairness, transparency, and accountability, ensuring that the best projects are selected based on merit and not influenced by political or other non-commercial factors. Additionally, the exploration of onshore and offshore gas fields, coupled with the extension of gas transmission networks, is crucial in ensuring a regional balance of primary energy supply. This will enable the establishment of additional gas-based power plants, promoting energy security and reducing dependence on imported fuels.

In conclusion, this book is a valuable resource for policymakers, investors, and scholars interested in understanding the dynamics of FDI in Bangladesh's power sector. It provides a comprehensive analysis of the key factors that influence investment decisions, identifies the barriers to FDI, and offers policy recommendations for long-term investment sustainability. By examining the regulatory, economic, financial, political, and social aspects of FDI, this book contributes to the ongoing debate on the development of Bangladesh's power sector and its role in achieving sustainable economic growth.

Weight: 191g
Dimension: 235 x 155 (mm)
ISBN-13: 9783031279898
Edition number: 1st ed. 2023