Dhaka: The interim government has been able to save Tk 14,131.81 crore by taking a series of cost effective measures in the energy sector during the last one year, an official said. ‘After assuming the office on August 8, 2024, the current government took a series of cost effective measures, including law amendments and formation of consortium, to save public money in the energy sector,’ he added.
According to Bangladesh Sangbad Sangstha, the interim government saved Tk 302.7 crore by repealing the “Quick Enhancement of Electricity and Energy Supply (Special Provision) Act, 2010 and following the Public Procurement Rules, 2008 for buying 49-cargo energy at lower premium rate through 23 organizations. It was reported that Petrobangla and Oman-based OQ Trading Ltd signed a short-term deal on July 22, 2025, to import 17 Liquefied Natural Gas (LNG) cargos, which will save Tk 308.13 crore.
A consortium was formed with selected local and foreign commercial banks to provide non-funded and funded guarantee facilities under a $350 million guarantee facility of the World Bank’s International Development Association (IDA). This initiative, effective from November, is expected to save Tk 2,772 crore over a seven-year period, with plans to increase the facility to $700 million from 2027.
The government achieved significant savings through effective Government to Government negotiations and international tenders, saving Tk 7,054 crore in the 2024-25 financial year compared to the previous year. Additionally, Tk 2.40 crore was saved from the procurement of stone crash explosives between April and June 2025.
Revenue generation saw a boost with the power and energy ministry securing Tk 640.71 crore annually from a gas deal with Karnaphuli Gas Distribution Company Limited and KAFCO. Another agreement with Jalalabad Gas Transmission and Distribution System (JGTDSL) and LafargeHolcim Bangladesh raised Tk 463.26 crore as revenue per annum.
The energy division’s roadmap, prepared with Petrobangla and its distribution companies on February 20, 2025, aimed at reducing system losses. Implementing this plan led to a reduction in system losses in the 2024-25 fiscal year compared to the previous year, resulting in savings of Tk 218.94 crore.
Bangladesh Energy Regulatory Commission (BERC) reduced gas prices at the retail level and re-fixed gas prices for the industrial and captive tier, which is expected to add an additional Tk 98.22 crore in revenue annually. Moreover, the interim government initiated a plan to reduce project costs, including a 150-well search and development initiative and the procurement of three rigs under BAPEX’s capacity building initiatives.
BAPEX’s efforts in searching, developing, and conducting workover on 19 wells contributed to supplying 82 mmcfd gas to the national grid, saving Tk 1,943 crore. Further savings were realized from infrastructure projects, including Tk 193.29 crore from the installation of a Single Point Mooring (SPM) with a double pipeline, and Tk 45.11 crore from the Chattogram to Dhaka fuel pipeline.
Construction and modification projects also contributed to savings, with Tk 31.04 crore from the Bakhrabad-Meghnaghat-Haripur gas transmission pipeline construction project (amendment-1), and Tk 27.64 crore from the Gas Station Installation and Modification Project (amendment-1) of Gas Transmission Company Limited. Additionally, Tk 9.75 crore and Tk 8.24 crore were saved from Eastern Refinery Limited (ERL) and the Bagura-Rangpur-Syedpur gas line respectively.
The government also saved Tk 6.55 crore from the workover of seven wells at Titas, Habiganj, Bakhrabad, and Meghna fields, and Tk 3.34 crore from constructing a gas distribution network in Rangpur, Nilphamary, Pirganj, and surrounding areas. Cost effective measures further resulted in savings of Tk 2.16 crore and Tk 1.33 crore from the prepaid meter project under the Karnaphuli Gas Distribution Company Limited (KGDCL) and the upgradation work of the gas distribution network at Fouzdarhat-Sitakunda-Mirsarai areas, respectively.