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

ISBN-13: 9783031279898 / Angielski

Tareq Mahbub

Opis

This book identifies and investigates the determinants that influence investment decision making for conducting foreign direct investment (FDI) in Bangladesh’s power sector. The book is organized around six core themes. These are: the first private power generation policy of 1996 that paved the way for the participation of domestic and foreign IPPs in the power sector and the key incentives provided to attract FDI; an overview of Bangladesh’s power sector including the current developments in the  increase of generation capacity that has more than tripled in the last decade, cross-border power trade, the use of coal, liquefied natural gas (LNG), renewable energy and potential nuclear power in the energy mix; identifying the key investment areas that are drawing FDI in the power sector; the key factors that are influencing FDI; potential challenges; and future policy inferences for sustainable FDI in the power sector.

The main arguments posited in this book are: institutional factors are the most important in drawing FDI in the power sector; land acquisition is a perineal problem that continues to hamper the development of large-scale power projects; there is a need for a transparent and competitive bidding system to improve transparency and accountability in private power procurement through FDI; and more exploration of onshore and offshore gas fields with the extension of gas transmission networks across the country that secure a regional balance of primary energy supply (gas) for setting up additional gas-based power plants. The primary objective of this book is to identify the key factors that attract FDI from the four broad categories of investment prospects namely, regulatory, economic and financial, political and societal. Therefore, it considers a broader and more holistic view of the roles of various institutions and their causal mechanisms in attracting sustainable FDI in Bangladesh’s power sector.

Spis treści

1-Introduction.- 2-Benefits and costs of FDI/Social welfare effects of FDI.- 3-An overview of the Bangladesh power sector.- 4-Private sector power generation policy of 1996 and key policy incentives to attract private and foreign investment.- 5-The four areas of FDI attractiveness in the power sector.- 6-Key factors for FDI attractiveness in the power sector.- 7-Some key challenges/key barriers in FDI attractiveness in the power sector.- 8-Policy inferences for sustainable FDI generation in the power sector.- 9-Conclusion.

O autorze

About the Author:

Tareq Mahbub is a Professor at the Melville School of Business at Kwantlen Polytechnic University, British Columbia, Canada. He completed his PhD in management from the renowned Asian Institute of Technology (AIT) Bangkok, and MBA in International Business from Carleton University, Ottawa. His areas of interest are foreign direct investment (FDI), FDI and intellectual property rights, international market entry modes and FDI and renewable energy. He has over 10-years’ experience in the pharmaceutical sector working as Business Development Manager for a top-notch US FDA and UK MHRA certified international pharmaceutical company in the areas of new market development, contract manufacturing, under-licensing and strategic alliances both in the regulated and moderately-regulated markets.

Blurb

This book identifies and investigates the determinants that influence investment decision-making for conducting foreign direct investment (FDI) in Bangladesh’s power sector. This book is organized around six core themes. These are: Bangladesh’s vision to become a middle-income country by 2021 and have universal power for all; an overview of the benefits and costs of FDI from a host nation’s perspective; an outlook of Bangladesh’s power sector starting from the years 1994-2008 through 2011-2015 to 2016-2020 and beyond; the key factors that encourage foreign investors to conduct FDI in the Bangladeshi power sector subsumed under four broad categories of investment prospects namely, regulatory, economic and financial, political and social; the key barriers that deter FDI in the Bangladeshi power sector; and policy implications for long-term investment sustainability in the power sector.

The main arguments posited in this book are: regulatory aspects are the most important for firms when conducting FDI in the power sector; land acquisition is a perineal problem that continues to hamper the development of large-scale power projects; there is a need for a transparent and competitive selection process to improve transparency and accountability in private power procurement; and more exploration of onshore and offshore gas fields with the extension of gas transmission networks be enhanced that ensure a regional balance of primary energy supply (gas) for setting up additional gas-based power plants in the country.