Missing Link in Energy Corridor

A new factory requires a great deal before production can begin. Land must be secured, machinery installed, and workers recruited. Amid these preparations, the question of electricity and gas inevitably arises. For business owners, uncertainty is a serious concern, particularly when orders must be delivered on time. This makes Prime Minister Tarique Rahman's 5 November announcement of plans to develop electricity and gas infrastructure from Mongla towards northern Bangladesh especially significant. He made the announcement during talks with a Chinese delegation in Mongla. Earlier, in his presence, Invest Bangladesh and China Railway Construction Corporation had signed a cooperation agreement. That day, he also laid the foundation stone for the Mongla Port modernisation project. These announcements have renewed interest in the prospects for industrial investment beyond the country's established manufacturing centres. But businesses need far more than a route marked on a map. Even a factory near a transmission line can face difficulties if its local connection is inadequate. Such details need attention as the proposed corridor is planned.

Bangladesh's large-scale manufacturing is concentrated around Dhaka and Chattogram, though prospects vary across northern towns. Distance from major ports raises transport costs and delays for raw materials and finished goods. Power interruptions compound these challenges: shutdowns can disrupt production and delivery, especially for refrigeration-dependent food processors and workshops running machinery all day. World Bank Enterprise Surveys data show that 71.35 per cent of surveyed Bangladeshi firms experienced outages in 2022. The national figure offers no separate estimate for Rangpur or Saidpur, but highlights the difficulties businesses face. Larger manufacturers can better afford backup facilities, while smaller firms must weigh that expense against other needs. This uncertainty matters when considering expansion: land may be cheap, but operating costs continue long after construction.

A gas transmission network already serves parts of the north. The Gas Transmission Company Limited's (GTCL)’s Bogura-Rangpur-Saidpur project includes a 150-kilometre pipeline and installations in Saidpur, Rangpur and Pirganj. According to GTCL, the project achieved 100 per cent physical progress: the pipeline was commissioned, and gas was supplied to Pashchimanchal Gas Company Limited (PGCL)'s distribution and regulating stations. This existing investment warrants careful consideration in any new plan. A transmission pipeline carries gas across a region, but each factory depends on how gas is delivered to its premises. Available volumes, local distribution capacity and suitable pressure all affect the service each customer receives. Reports published on 5 November provide few details about the proposed route, cost or implementation timetable, and do not clarify how the project would relate to existing facilities. Examining the current network more closely would help identify where additional capacity is needed and where improvements to local connections would suffice. This would require information from the companies operating the system and from businesses seeking access. Without those details, it is difficult to estimate the commercial benefits of further construction.

Vietnam offers a useful comparison. The World Bank’s Vietnam Development Report 2019 found that over half of the northern industrial parks studied lay within one kilometre, measured in a straight line, of a main transport corridor. However, proximity alone did not prove the corridors caused park development. The report also noted poor coordination between national transport plans and provincial industrial development. Bangladesh's proposed electricity and gas corridor raises a similar planning issue, though its technical needs differ. Transmission companies set investment programmes, distribution companies manage customers and local networks, and industrial agencies attract businesses. Their plans must align: otherwise, accessible industrial sites may lack essential connections while other facilities go underused. The Vietnamese example highlights the link between industrial locations and supporting services; Bangladesh must assess it against its own demand, networks and finances.

The next stage of the Mongla-to-north initiative deserves a detailed examination of what industries in the region actually require. Existing manufacturers should be consulted about the problems they face, including connection delays and production interruptions. Their experience would provide a useful starting point alongside projections for new factories. The relevant public agencies also need to assess the capacity of existing facilities and estimate the cost of serving additional customers. 

The cooperation agreement with China Railway Construction Corporation is non-binding and provides a basis for exploring investment opportunities. Financing and economic assessment for individual projects remain separate decisions. Public information about these matters would help prospective investors and allow closer scrutiny of spending. Once construction begins, progress reports should cover the number of industrial customers connected and the system's operational performance. Northern Bangladesh has reason to welcome investment that improves its prospects for manufacturing and employment. The details will become especially important for smaller businesses deciding whether expansion is financially manageable. A manufacturer looking at premises in Saidpur, for example, would need a clear estimate of connection charges, the quantity of gas available and the likely monthly cost before purchasing machinery or committing to new orders. Those figures belong in the discussion while the route and budget are still being worked out.
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The writer is an Assistant Professor in the Department of Philosophy at IUBAT and is currently on study leave, residing in Oslo, Norway