Bangladesh: Fuels
Conventional fuels
Number of fuel refineries: 1
Lead phaseout: Leaded gasoline banned in 1999
- 1997 - action plan for reduction of lead levels in gasoline
- 1998 - regular gasoline made lead free
- July 1999 - Ministry of Environment banned leaded gasoline
Alternative fuels
Compressed Natural Gas: CNG was first introduced in 1982 through a World Bank pilot project. In the last 16 years, over 1000 vehicles were converted and four CNG stations were set up.
In 2002, ADB aproved a loan package totaling US$72.6 million equivalent to fund the conversion of thousands of Dhaka's vehicles to run on CNG.
The Dhaka Clean Fuel Project will:
- Lay 60 km of natural gas transmission pipeline between Dhanua and Aminbazar, Savar, and two city gate stations at Ashulia and Savar
- Construct 97 km of pipelines to improve distribution of natural gas in Dhaka
- Establish six large and 20 small compressed natural gas (CNG) filling stations around Dhaka
- Purchase 10,000 CNG conversion kits for petrol-driven vehicles as well as 300 CNG-fueled buses and 2,000 CNG-fueled auto rickshaws
- Set up three workshops to convert vehicles to CNG, and conduct repairs and maintenance
- Carry out technology development and training in the workshops, bring in new safety codes, standards, and regulations on the use of CNG for transport
- Carry out public promotion campaigns
The total cost of the project is estimated at US$113.4 million equivalent. The Nordic Development Fund will provide cofinancing of US$9.3 million and the Government and sector agencies will finance US$31.5 million.
The private sector will absorb the major portion of the initial supply of CNG buses and all of the auto rickshaws. Financing will be provided through commercial banks and/or leasing companies. The CNG filling stations, meanwhile, will be initially procured by Rupantarita Prakritik Gas Company Ltd (RPGCL) in existing filling stations and operated by private operators for a gradual transfer of ownership.
The executing agencies for the project, which is due for completion by end-2006, are Titas Gas Transmission and Distribution Company, the Gas Transmission Company Ltd., and RPGCL.
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