Development Finance Impact Project: -Digital Artifact

Welcome

Presented by

Enamul Haque, Assistant General ManagerJagorani Energy Limited

(a renewable energy & IT service company in Bangladesh)

Financing for Development MOOC participant

December 9, 2015

The General Public, Government of Bangladesh, Policy Makers, International & National Non-

Governmental Organizations (NGO’s), Multinational & Local Companies, Philanthropists, Banks,

International Financing Institutions.

THE TARGET AUDIENCE

Project Name:Solar Irrigation Project

Primary Objective: To address Govt. of Bangladesh’s development priority of supporting

agriculture;

To access the farmers to green energy sources;

To facilitate the farmers with uninterrupted and affordable irrigation system;

To increase the agro production ensuring proper irrigation;

To make a green & healthy environment reducing carbon emission;

To help ensuring food security.

The Idea/Problem

Bangladeshi farmers rely on some 266,000 electrically powered water pumps – which consume around 1,300 MW electricity to irrigate 1.7 million hectares of land.

An additional 1.3 million diesel-run pumps are operated during the peak growing season to irrigate another 3.4 million hectares of land, using 900,000 tonnes of fuel. 

Electricity supply for irrigation is presently inadequate & Cost of Fossil fuel is increasing which makes cost of crop production higher for farmers.

Integrating affordable Renewable Energy Integrating affordable Renewable Energy Technology with AgricultureTechnology with Agriculture

The Idea/Solution

The Idea/Solution

In Day time Solar energy is available, So A solar PV module can In Day time Solar energy is available, So A solar PV module can produce enough power to run an electric motor and pump.produce enough power to run an electric motor and pump.

No Battery required as more than 7 hours of sunshine is available No Battery required as more than 7 hours of sunshine is available in Bangladesh (full sun 4.5 hours/day)in Bangladesh (full sun 4.5 hours/day)

Irrigation cost is less than presently available Diesel Powered Irrigation cost is less than presently available Diesel Powered Pump.Pump.

Low Maintenance, No Environmental pollution & Long Life.Low Maintenance, No Environmental pollution & Long Life.

Project Location

Any Off grid and areas in Bangladesh

Expand irrigated area in the off-grid locations;

Boost food production; Limiting its reliance on fossil fuels.

Why is it needed?

Ownership and Management

Financing Institution will provide Financing to the Entrepreneur; Farmers’ Group (Solar Irrigation System Entrepreneur) will buy

from the technology provider; Solar Irrigation Technology Company will install the Project; Farmers’ Group will manage water distribution & credit collection; Farmers will pay Water cost at the end of each Season.

Proposed Role of Each Party

Role of Financing InstitutionTo provide financial support for the project realization;To access the farmers to interest free/Low interest rate loan.

Role of Farmers Group• To introduce the project benefit to the farmers;• To manage water distribution & payment collection;• To payback regularly to the financing institution.

Project PlanMethodology of Implementation

Detailed socio economic Area survey;Entrepreneur selection;Installation of technology;Testing and final operation;Handover to the Entrepreneur; Monitoring & Service.

Project Impact

Direct Benefit: 1. Increase agro production;2. Reduce cost of production;3. Maximize return on investment;4. Demand of electricity for Irrigation will reduce. Indirect Benefit:1. Electricity supply at community level will increase;2. Reduce environment pollution;3. Use of fossil fuel will decrease & save foreign currency;4. Finally it will improve education, health, lifestyle & support the

process of poverty alleviation.

Financial Analysis a 15 HP Solar Irrigation Project

Total amount of Land can be Irrigated : 33±2 Acres; Cost of Project: USD 45000.00; Project Life: 25 Years; Pay Back Schedule: USD 7500.00/Year; Breakeven Time: 6 Years;

Financial AnalysisComparison between Solar & Diesel Irrigation

For 33±2 Acres Land annual Diesel consumption 4500 litter. Total Cost of Diesel Irrigation/year USD 3937.50 Cost for 25 Years : USD 98437.50

Comparison between Solar & Diesel Irrigation

One Solar Irrigation Project can benefit the farmer (98437.50-45000.00) = 53437.50 USD

Particulars Solar (USD) Diesel (USD)25 Years Irrigation cost 45000.00 98437.50

Bottle Neck

Despite of great benefit solar irrigation is still out of Bangladeshi farmers’

reach because of its first time large

investment.

Conclusion

The Public, Private & International financing authority should come forward to invest in the Solar Irrigation sector.

I strongly believe that the proposed solar irrigation project will help the off grid rural people of Bangladesh

to achieve sustainable development.