Rampal project: priorities and concerns

Bangladesh's $1.6 billion Rampal thermal power project in Bagerhat district, under southern Khulna Division, has been in the midst of controversies for its possible negative impacts on the already fragile ecosystem of the Sundarbans. Sheikh Hasina-led Awami League (AL) government believes that the 1320 MW capacity power plant is essential to meet the country's ever-growing demand for electricity.

The project is also important from the standpoint of the AL government's mid-term and long-term development agendas. The government holds that the power plant will significantly contribute towards the development of Rampal Upazila – an area that has remained deprived in terms of infrastructure over the years.

An India-Bangladesh joint venture

The Rampal project was first conceived in 2010. Bangladesh signed an agreement with India for the joint coal-based power project on January 29, 2012. India's state-owned National Thermal Power Corporation (NTPC) and Bangladesh Power Development Board (BPDB) will have equal ownership of the plant and also the electricity it generates.

Subsequently, in 2013, Bangladesh India Friendship Company Limited (BIFPCL) was formed to deal with power trading between the two South Asian countries. The BIFPCL is a 50:50 joint venture between NTPC and BPDB. On February 29, 2016, BIFPCL inked an agreement with India's state-owned Bharat Heavy Electricals Limited (BHEL) to build the plant. The Rampal power plant, which is also referred to as "Maitree (Friendship) Project", will be constructed over 1,834 hectares near the Mongla sea port.

Progress of work

Amidst organised campaigns by various environment groups against it, the Rampal project could not make much headway in the initial years. Local reports say the project was originally scheduled to be awarded by early 2014, and completed by 2017, but the process was held up as the BIFPCL failed to obtain donors in the face of environmental concerns. The company has acquired land and started the construction work, including land filling and building infrastructure. Since the AL government wishes the BIFPCL to make the power plant operational within its tenure, the company aims at completing the mission by the end of 2019 with the entire power to be supplied to Bangladesh.

Likely adverse impacts

Bangladesh's environment groups say the coal-fired Rampal power project could threaten the delicate ecosystem of the Sundarbans, which is just 14 kms away from the plant. Part of the Sundarbans is also a UNESCO World Heritage Site, and a number of international bodies have expressed reservations over the Rampal thermal power plant. The entire electricity generation process will be based on coal imported from countries like Indonesia and Australia. The plant, comprising two units of 660 MW each, is estimated to burn 4.72 million tonnes of coal a year. Fearing adverse impact on the largest mangrove forest of the world, several environment organisations, local civic bodies and left parties have been consistently demanding cancellation of the project, saying it would cause environmental disasters.

The environmentalists have cautioned that the plant will release several toxic gases, including carbon monoxide, oxides of nitrogen, sulpher dioxide and large amount of fly ash to the surrounding environment, polluting the ecologically sensitive Sundarbans. The environmentalists are also seriously concerned over the project since Bangladesh is highly vulnerable to climate change. They have noted that the Sundarbans, which act as a natural guard against recurrent cyclones, should not be disturbed.

The power plant will also affect the livelihood of thousands of people who rely on the Sundarbans and the nearby Passur river. Many non-governmental organisations (NGOs) and rights groups have warned that the movement of coal in small vessels through the Passur river on a daily basis is bound to contaminate its water. In such a scenario, the local people, who have been engaged in fishing, will be rendered jobless.

The groups opposed to the project maintain that thousands of local inhabitants have already been dislocated for the construction work. Reports suggest that the government's land acquisition for the project have dispossessed many from their residences and farms. Moreover, the critics say the power plant will encourage industralisation and urbanisation, eventually destroying the forest. A number of NGOs and leftist political organisations have been staging protest demonstrations in Dhaka and Rampal to mobilise public opinion against the AL government's decision to build a thermal power plant near an ecologically sensitive area like Sundarbans.

Bangladesh's chronic power crisis

The recent debate over the Rampal project is to be seen against the backdrop of the critical condition of Bangladesh's power sector, without underestimating the environmental concerns. The country has been facing severe shortage of electricity since its inception. It currently has an installed capacity of 10,283 MW which is far below the actual requirement. This South Asian nation of 160 million faces a daily shortage of up to 1,500 MW of electricity, hampering the growth of the economy. Bangladesh has one of the lowest per capita electric consumption at 371 kilowatt-hours, with 74% of its population having access to electricity. The country badly needs international financial and technical support to develop its power infrastructure. In the last few years, India has been assisting the eastern neighbour in meeting its rising demand for electricity.

AL government's position

The AL government continues to back the Rampal project even after relentless campaigning against it. The AL leaders have rejected the notions of the critics, saying they hardly reflect the ground realities. The government claims that the power project will help mitigate the perennial power crisis to an extent and add impetus to the local economy. The construction of the Rampal power plant has been part of an ambitious government plan to enhance power generation to 20,000 MW by 2021.

Studies indicate that Bangladesh's environment department has approved the project's environment impact assessment (EIA) report. The government officials have downplayed the threats and insisted that the emissions of carbon, sulpher, fly ashes and other types of air pollution will be "kept at a minimum level to avoid any adverse impact on the environment". They assured that the BIFPCL would import high quality coal, erect a 275 metre high chimney, use state-of-art technology and undertake other steps to ensure that the plant's impact on the nearby Sundarbans remains at a negligible level.

The government argues that the project will lessen the financial dependency of the local people on the mangrove forest by opening the opportunity of alternative employment. State Minister for Power, Energy and Mineral Resources Nasrul Hamid observed that the local people, who had been involved in illegal tree-felling and other illicit activities in the Sundarbans to earn a living, would get job opportunities in the plant.

BIFPCL's assurance

Intervening into the ongoing debate over the implications of the Rampal power plant, the BIFPCL, which is piloting the project, said the site was chosen "at a safe distance" from the Sundarbans after careful observation. The company has pointed out that the plant is located 69 km away from the UNESCO World Heritage Site and 14 km from the border of the Sunderbans. The BIFPCL has emphasised that "modern ultra-super thermal technology" will be used in the plant to prevent emission of harmful dark smoke and ash. Furthermore, the senior company officials have cautioned that delay in setting up the project will impede "overall development" of Bangladesh.

Debate over the appropriate source of energy

The environmentalists have also raised questions over the AL government's penchant for coal-based power plant even though the major source of energy in the country is natural gas. They have urged the government to change the coal-dependent energy policy and instead look for biogas, mini-hydroelectric, wind and solar to fulfill the country's energy requirements. The BIFPCL on the other hand defends the use of coal as fuel to generate power in the proposed plant. The company argues that Bangladesh produces a mere 2.26% power from coal, while 40% of power comes from coal in the United States, 41% in Germany, 68% in India, 78% in Australia, 79% in China and 93% in South Africa.

Necessity for a legal framework to protect environment

There is a need to see the Rampal issue from the perspective of democratic governance, especially establishment of rule of law in the country. The Hasina government has undoubtedly facilitated democratic intuition building despite periodic political turmoil, but it can do more. Unlike neighbouring India, where the 1972 Wildlife Protection Act ensures a 15 km exclusive zone around national parks and reserve forests, Bangladesh has not enacted a law nor formulated guidelines specifying minimum distance for a coal-fired power plant from reserve forests or ecologically vulnerable areas. As a significant part of Bangladesh's political elites come from the legal profession, it is assumed that they understand the importance of introducing a legal framework that guarantees much needed infrastructure development across the country without posing any threat to the environment.