IDCOL to Support in Scaling Up Electric Vehicle Uptake in Bangladesh
16 February 2022, Dhaka - Infrastructure Development Company Limited (IDCOL) organized a workshop today on “Scaling Up Electric Vehicle Uptake in Bangladesh” at Hotel InterContinental, Dhaka. The workshop is organized as part of the UK Government funded “Road to a Green Bangladesh” project that is identifying scalable business models and a financing ecosystem for businesses with an aim for electric vehicle (EV) uptake in Bangladesh.
Earlier, IDCOL in partnership with Ricardo-AEA Limited, UK received funding from the UK Government Department for Business, Energy and Industrial Strategy (BEIS) under its UK PACT (Partnering for Accelerated Climate Transitions) Green Recovery Challenge Fund (GRCF).
In this project experts from Ricardo, IDCOL, HIVOS-Energia and other Bangladeshi organizations such as LightCastle Partners and Policy Exchange has engaged with the individual transport providers / SMEs / cooperatives with an aim for EV uptake in Bangladesh.
Mr. Abdul Baki, Additional Secretary to Economic Relation Division and Executive Director & CEO (in-charge) of IDCOL said “IDCOL is opening dialogues and bringing in the mainstream EV market players to develop an ecosystem where with the right set of business models the sector will grow to be bankable guided by the policy framework. IDCOL also intends to catalyze private sector investment targeted towards the infrastructure development for wide scale EV adoption in Bangladesh”.
Globally transport sector has the highest reliance on fossil fuels than any other sector and accounts for 37% Carbon-di-oxide (CO2) emissions from end users. In Bangladesh, it is the third largest sub-sector under the country's energy sector emissions. In the keynote presentation of IDCOL’s Chief Investment Officer Mr. Nazmul Haque, total running cost of Internal Combustion Engine (ICE) vehicles vs EVs were compared for electric two and three-wheelers under the current duty structure. It was analyzed that a targeted reduction of Total Tax Incidence and/or smart subsidy scheme might remove the EV viability gap and encourage EV purchase. Support may be provided to the private sector for setting up charging station network in major cities along with low-cost financing for various EV stakeholders.
Mr. Md. Nazrul Islam, Honorable Secretary to the Road Transport and Highways Division graced the occasion as Chief Guest. Mr. Md. Habibur Rahman, Honorable Secretary to the Power Division graced the occasion as Special Guest and Ms. Fatima Yasmin, Honorable Secretary to Economic Relation Division graced the occasion as Chair. Mr. John Warburton, Senior Environment Advisor from the British High Commission was also present at the event.
Ms. Fatima Yasmin, Secretary, Economic Relations Division and Chairman, IDCOL Board said, “Based on prior experience of developing similar financial instruments, IDCOL is perfectly positioned to develop a set of incentives for the purpose of building up the EV infrastructure. With support from the development partners, IDCOL can reduce the uncertainty of market uptake through development of flexible financing solutions for the private sector.”
Mr. Md. Habibur Rahman, Secretary, Power Division and Director, IDCOL Board said, “Power division is planning to establish EV charging station networks in major cities and highway routes where there will be a possibility of rapid deployment of EVs. When the market is ready, the power system of Bangladesh will also support with sufficient amount of EV charging networks.”
Mr. Md. Nazrul Islam, Secretary, Road Transport and Highways Division said, “Low cost and efficient transport network is a key determinant to drive growth and influence trade flows. The Government has set a clear vision to rally the collective national effort through Public-Private Partnership strategy by identifying key transport projects and allocating resources accordingly.”
