Bangladesh

Date posted:

Nov 13 2008

Responsible Party:

Enforcement Agency

I. Objectives or Impact:

The transport sector is identified to be one of the contributors of air pollution in Dhaka. In particular, two-stroke auto rickshaws or baby taxis were identified as one of the strongest contributor. It was also found out that this vehicle emits a hydrocarbon; volatile organic compound; and particulate matters. The program to achieve better air quality was kicked-off by conversion to Compressed Natural Gas (CNG) and the startup of fueling stations in October 2001. In December 2002, the Ministry of Communications issued a ban on two stroke baby taxies. The following year, a new fleet of CNG three-wheeler was introduced.

Sector/subsector:

The objective of the policy was to ease air pollution problems in major cities like Dhaka. It was easy for the government to pinpoint the source of pollution in the capital since there are no heavy industries or power stations near the city.

II. Description of the Good Practice (Outputs):

The program employed command and control schemes to address the problem. The government introduced an option by bringing in CNG. The program was also accompanied by an air quality-monitoring project funded by the World Bank and the Dhaka Clean Fuel Project of the ADB.

With the introduction of CNG in 2001 and the start-up of fueling stations, about 25,000 light vehicles were converted to CNG. Initially, conversion to CNG was thought to be prohibitive, averaging to about US$583 per vehicle. However, increasing prices of fuel triggered the demand for conversion. Currently, an average of about 3500 vehicles are converting to CNG. Currently, there are more than a hundred refueling stations in the country.

Currently, the government is also converting their fleet to CNG. As of today, almost half of their fleet converted to CNG. The government also recently established the Bangladesh Energy Regulatory Commission, which aims to monitor and make regulations on CNC use.

Currently, the government is also looking at CNG conversion for diesel buses and trucks. The plan is to do it side by side with the phasing out of old buses and trucks. It is also planning to look at pricing issues on fuel. For example, there is an incentive in the other sectors to use diesel fuel since it is provided with subsidy.

III. Outcomes or Results:

The introduction of CNG resulted to an improvement in air quality of urban cities, like Dhaka. As of date, around 50,000 baby taxis converted to CNG. Initially, the public found the initial phase out of old rickshaws difficult. However, the benefit of the program was realized with the improvement of air quality in the city. Currently, the increasing price of fuel creates an incentive to convert to CNG.

IV. Essential Elements for Success:

Policy Framework: Enabling Policy, Regulation, Inter-agency/Multiparty Agreements

The government carefully planned the move towards promotion of alternative fuels. The country’s Environmental Conservation Rules requires the use of catalytic converter and diesel particulate filter for petrol and diesel driven vehicles. Also, this policy was effective since ban on old buses plying the city was done side by side.

In terms of the program’s operation, a national standard that will guide daily program routines (conversion, refueling, etc) needs to be developed. The various components, from licensing, conversion, monitoring, and enforcement of emission standards, need to be properly assigned to respective agencies.

Human Resources and Skills

A well-integrated organization is required to man the program’s operation. A licensing office should be prepared to handle the annual increase of applicants for vehicle regulation, inspection, and CNG conversion. A pool of trained technicians and fleet managers should be developed to handle the day-to-day operation (refueling, ensuring of safety, conversion).

On the side of monitoring of air quality and emission standards, technicians should be regularly available. Also, the tasked agency should be prepared for expert who can handle the equipment used for emission testing.

Material and Resources

The program is quite intensive in the use of capital equipment, from licensing to monitoring of air quality. For the CNG stations, fueling stations should be carefully designed for efficiency and safety. The size of the fueling station should be appropriate given the daily demand for CNG. The government should also invest on proper emission testing equipment.

Institutional Support

The business of CNG refueling and conversion is becoming lucrative given the demand for CNG. In Bangladesh, a large number of entrepreneurs is applying license to operate fueling and CNG converting stations. The government recently granted more than 2000 permits to operate for CNG fueling stations alone. The mechanisms on accreditation and monitoring should be laid down since there are both safety and pricing concerns in this business.

In terms of emission testing, an office should be properly designated on handling the daily emission testing activities. A procedure on how to properly conduct testing should also be prepared.

V. Further Information:

http://www1.eere.energy.gov/cleancities/pdfs/cci_bangladesh_trip_rep_8-0...
http://www.icngvevents.com/
http://www.cleanairnet.org/caiasia/1412/propertyvalue-15441.html

Promotion of Compressed Natural Gas (CNG) in Bangladesh via Command and Control Schemes