Project Concept

1. Project Name:
Improving Kiln Efficiency in the Brick
Making Indutry in Bangladeh
!. Propoed "E# Implementing $gency:
%nited Nation &evelopment Program
'%N&P(
). *ountry or countrie in +hich the
project i ,eing implemented:
Bangladeh
-. *ountry eligi,ility:
.atified %N#*** on $pril 1/0 111-
/. "E# focal area'(:
*limate *hange
2. 3perational program45hort6term
meaure:
3P/: .emoval of Barrier to Energy
*onervation and Energy Efficiency
7. Project linkage to national prioritie0 action plan0 and program:
8he National Environment Management $ction Plan 'NEM$P( identified the iue of
,rick kiln a a priority environmental concern for Bangladeh. 9ence0 the
Environmental *onervation $ct 111/ and .ule 1117 +ere legilated to control ,rick
kiln emiion. In addition0 the "oB ha adopted a :Brick Burning '*ontrol( $ct0 11;10
'$ct <; of 11;1( and provided further clarification through the Brick Burning
'*ontrol( $mendment $ct0 111! +hich control ,rick ,urning0 re=uire licene from
the appropriate authoritie and retrict ,rick ,urning uing +ood fuel. It hould ,e
emphai>ed that the propoed project i country6driven and take the "overnment of
Bangladeh? Environmental *onervation $ct 111/ and Brick Burning '*ontrol( $ct0
11;10 '$ct <; of 11;1( a it ,ai.
;. 5tatu of national operational focal point revie+ 'date(:
5u,mitted: March !@@! $ckno+ledged: Endored: $pril !@@!
1.Project rationale and o,jective:
Brick manufacturing i a ignificant contri,utor to "9" on the Indian u,6continent.
$t preent0 "9" emiion from ,rick manufacturing in Bangladeh are etimated to ,e
over /.@ million ton annually. 8he purpoe of thi propoed project i to remove
,arrier to the adoption of an energy efficient technology to reduce "9" emiion in
Bangladeh. 8he ucceful application of the technology i eApected to reduce "9"
,y a,out !./ million ton and i conidered to ,e a leat6cot initiative. Bith teadily
riing demand for ,rick0 "9" emiion from ,rick manufacturing are eApected to
gro+ and hence the project +ill enure a reduction in the gro+th of future "9"
emiion a +ell.
In 11;10 the "oB prohi,ited the ue of fire+ood in ,rick kiln ,ecaue of +idepread
deforetation in Bangladeh. 9o+ever0 ince the Bangladeh Brick Manufacturer and
1
3+ner $ociation 'BBM3$( etimate that a much a !/C of the fuel upplie to
,rick kiln are till from fire+ood0 it i unclear +hat effect thi regulation ha had. 8he
ue of tree for fuel ha ,een cited a an indirect caue of local deforetation.
8herefore0 to the eAtent that fuel u,titution can ,e fotered0 the project +ould alo
remove preure on Bangladeh? carce car,on ink. 8hi project +ould alo ,e
amongt the firt climate change mitigation project in Bangladeh that i ,aed on
innovative market6,aed mechanim.
8he Bangladeh %niverity of Engineering and 8echnology 'B%E8(4 Pem,ina .eport
and the BBM3$ eApect the num,er of ,rick kiln to gro+ ,y more than /@C in the
neAt decade ,ecaue of demand increae. In Bangladeh0 ur,an population and ur,an
income are eApected to gro+ over the neAt decade and a thee occur demand for
houing +ill eApand leading to gro+th in demand for ,rick. In an aggregate tarved
nation0 ,rick are the major :,uilding6,lockD for all type of infratructure project.
%nle market tranformation meaure are affected0 mot of thi capacity eApanion
+ill occur along the ame line a the eAiting :indutryD. It i in thi conteAt that the
propoal ha ,een developed to mitigate eAiting "9" emiion and reduce the future
rate of gro+th.
Brick Making Indutry in Bangladeh
8he Bangladeh ,rick making market i non6formal and can ,et ,e decri,ed a a
:footlooeD indutry +ith typical characteritic. 8he entitie etimated to ,e a,out
;@@@ in num,er are typically 5mall to Medium Enterprie '5ME( mot of +hich are
one peron or one family enterprie. Production i eaonal confined to the five dry
month of the yearE technology i outdated0 a,out 1/@ year oldE la,or productivity i
lo+E capitali>ation non6eAitent0 operating motly on e=uity capitalE and management i
informal. Mot ,rick maker are located in peri6ur,an and rural communitie. 8hough
more invetigation are re=uired to ,etter undertand the profile of ,rick indutry
o+nerhip0 it i likely that cooperative ,rick kiln operation do not eAit in Bangladeh.
$lmot 1/C of the Bangladeh ,rick :indutryD utili>e the old Bull 8rench Kiln
'B8K( technology. 8ypically0 a lo+6grade coal from India along +ith fire+ood and
rice huk0 are ued to fire the kiln. B%E8 and the 8ata Energy .eearch Intitute
'8E.I( in their reearch on B8K found that the kiln tend to ,e poorly contructed and
are highly inefficient in term of fuel conumption. 8hey alo found eAceive air
leakage and heat lo from the ytem cauing high level of emiion. 8he follo+ing
alient feature of B8K operation in Bangladeh provide one +ay to etimate the
level of emiion and to compare the technological option:
3ne B8K conume 2@@ tonne of lo+ grade coal from India to produce over !
million ,rick during the /6month Bangladeh dry eaonE
8hi lo+ grade coal ha a heating value of 1-.2 million joule 'MF( per kilogram of
coal 'ource: *oal India Gtd.0 "oB? Minitry of Energy and Mineral .eource and
BBM3$( +hich +hen ued for producing ! million ,rick in one B8K0 provide 2
;.;8F4kiln per yearE
If the average emiion factor for coal i 1-.2 tonne of *3! per 8F0 each kiln
produce an etimated ;)@ tonne of *3! per yearE
8he ;@@@ B8K in Bangladeh emit a,out 2.2 million tonne of *3! each year.
!
"enerally0 o+ner of ,rick manufacturing facilitie have limited acce to loan0 and
the ,rick they produce are entirely for the local market0 mainly for reidential unit.
EAcept for check on phyical =uality uch a chipping or ,reakage0 there i preently
no =uality control of ,rick produced and old in the country. 8he B8K technology
,eing ued in Bangladeh re=uire replacement on an annual ,ai +hich i during the
/ dry month of the year. B8K operation are ,aed on informal management uing
age6old technology that ha ,een paed from generation to generation. 8hey are alo
undercapitali>ed operating motly on e=uity capital0 taffed ,y a poor untrained
eaonal +orkforce0 poorly regulated0 u,ject to ome degree of price competition0 and
lo+ profit margin that do not encourage freh invetment to improve efficiency and
reduce environmental impact.
Improvement in Brick Manufacturing 8echnology
8here are improved ,rick making technologie0 +hich have yet to penetrate the
Bangladeh market. 8he Hertical 5haft Brick Kiln 'H5BK( +a firt introduced in
*hina a,out )/ year ago0 ,ut in the late 11;@ it ue eApanded +idely a the economy
+a li,erali>ed and a ,oom in contruction took place.
8he H5BK i like the B8K kiln +ith the eAception that the com,ution proce ha
,een placed vertically0 taking advantage of the natural direction of the flue ga. 8he
kiln i a tall haft that +ork like a chimney. 8he inner kiln lining i uually made from
fire,rick0 +hile the pace ,et+een the inner haft and the outer +all upporting the
kiln tructure i filled +ith inulating material uch a coal lag or a miA of a+dut and
clay. #ire,oAe are ,uilt into the kiln o that they can ,e ued a o,ervation hole to
monitor the different firing >one. 8he ,rick are tacked in the haft0 +hich meaure
a,out 1m A 1m =uare and 2m in height. "reen ,rick are loaded from the top in
,atche of a,out !@@0 +ith four ,atche ,eing fired at one time. 8he firing time i
uually a,out 1./ hour. *om,ution take place in the middle of the vertical haft +ith
the air entering from the ,ottom and moving up the already fired ,rick o that +hen
the air reache the com,ution >one it i preheated to a,out 7/@
@
*. $ com,ution
occur0 the hot flue gae move up over the unfired ,rick efficiently. 8hi allo+ the
heat tored in the already fired ,rick to ,e ued to fire the neAt ,atch of green ,rick
creating ignificant aving in energy uage. 8he draught can ,e regulated0 if re=uired0
,y changing the etting denity of the green ,rick and altering their pattern. 8hi
make it imple and uncomplicated0 and hence le ucepti,le to error.
8he fired ,rick are unloaded at the ,ottom of the haft at a,out the ame rate that they
are put in at the top. 8he unloading device i a chain pulley that i attached to a ingle
iron ,eam et in the +all of the kiln. 8he chain pulley0 in turn0 are attached to outide
gallo+ made from heavy iron ,eam.
8he H5BK i an appropriate ytem for replication in Bangladeh given the i>e and
type of eAiting entitie. H5BK? are particularly popular among mall and medium
cale ,rick maker in India and *hina0 the t+o larget ,rick producer in the +orld. 8he
ytem i more efficient and le polluting than B8K?. *3! emiion rate are of the
order of a,out @.1) 6 @.!@ kg *3!4kg ,rick. $lthough the actual economic of a H5BK6
operated facility vi6I6vi one uing B8K +ill ,e eta,lihed during the project deign0
preliminary tudie done ,y B%E8 and the $ian Intitute of 8echnology '$I8( ho+
that H5BK are cot effective replacement for B8K unit. 3n an e=ual production
)
volume ,ai0 H5BK +ill conume le fuel than a B8K0 and are economically more
via,le. #or eAample0 on the ,ai of ! million ,rick4year production and / year
operation0 the NPH 'J 1@C dicount rate( of B8K operation i more than t+ice that of
H5BK operation. $lthough the initial capital invetment are higher0 thee are more
than offet ,y the lo+er operating cot of the H5BK. In fact0 the I.. on the
incremental invetment cot i a,out 1)@C0 and the pay,ack period on the incremental
invetment i le than a year. 8he advantage of the H5BK are ummari>ed ,elo+:

Highly energy efficient: H5BK technology reult in energy aving of a,out /@C
compared to clamp and !@6)@C compared to B8K
Compact Kiln: H5BK? need a,out !/ to )@C of the land re=uired for B8K
Operation: Eay to operate and do not re=uire electricity for functioning.
Construction cost: 8hough lightly higher than B8K0 i till reaona,ly lo+
Weather Proof: H5BK i not affected ,y variation in +eather. It can ,e operated
during the monoon ,ecaue0 unlike other traditional kiln0 H5BK ha a roof0
+hich afford protection from rain and allo+ year round operation. 8he B8K can
,e operated for only / to 2 month a year.
Suitable for internal fuel bricks: 8he kiln i highly uita,le for ue +here fuel i
added internally into the ,rick. In everal part of the country0 agriculture reidue
like rice huk or fuel like coal dut are miAed +ith clay ,efore molding. 8hi
allo+ the ue of lo+er6grade fuel and0 in general0 reduce production cot. H5BK0
,ecaue of it fat firing characteritic0 i particularly uited for firing ,rick uing
inferior fuel.
Modularity in construction and fleAi,ility in production are important attri,ute of
the technology. $dditional haft 'production capacity of !@@@ to /@@@ ,rick per
day( can ,e eaily added4operated.
Economic iability: $lthough the initial capital cot re=uired to contruct H5BK?
are a,out t+o and a half time that of the B8K0 the profita,ility of H5BK are
ignificantly greater due to increaed production rate and lo+er energy uage. $
1112 tudy ,y the 5+i &evelopment *orporation '5&*( indicated that the total
cot recovery period i le than 2 month.
Propoed 8echnology &iffuion and Market 8ranformation
8hi project enviion a market tranformation focued on ,rick kiln in general0 and in
the upply and +idepread application of an energy efficient ,rick kiln technology0 in
particular0 the H5BK. 8hi +ill involve the implementation of pecific activitie to
facilitate the deired market tranformationE thee o,jective6oriented activitie are to ,e
defined in a logical frame+ork analyi 'G#$( eAercie that +ill alo define the relevant
project outcome0 the achievement of +hich +ill ,ring a,out the removal of ,arrier to
the +idepread application of H5BK or other appropriate energy efficient ,rick kiln
in the Bangladeh ,rick making indutry. 8hi i vie+ed a an accepta,le olution to
reducing high level of "9" emitted ,y eAiting ,rick kiln 'B8K( in Bangladeh ,y
changing technologie and altering the +ay in +hich ,rick manufacturer do ,uine.
8he enviioned project +ill demontrate the utili>ation of the energy efficient H5BK
technology or other energy efficient 'EE( technologie a appropriate0 integrate
takeholder into the development and implementation of the project0 ,uild capacity0
train the la,or force0 and train takeholder in the implementation of ,et management
practice. 8he propoed H5BK technology +ill provide higher energy efficiencie0
-
,etter energy control capa,ilitie0 high rate of production and proceing0 +hich could
,ring a,out reduced production cot and improved product =uality. 8hee are among
the ,enefit that the project +ill ,ring a,out in promoting more energy efficient kiln
technologie.
8he main driver of the market tranformation to+ard energy efficient ,rick kiln
+ould ,e:
demand from ,rick manufacturer ,ecaue the technologie generate higher
efficiencie0 ,etter energy control capa,ilitie0 higher rate of production and
proceing0 reduced production and operating cot and improved product
=ualityE
pu,lic preure from civil ociety and the government on the :indutryD to
reduce pollution from ,rick making activitieE
conumer +ho +ill ,enefit from increaed availa,ility of ,etter =uality ,rick
on the Bangladeh market. 8echni=ue and eAperience from other countrie
uing H5BK for ,rick making +ill ,e utili>ed0 a appropriate0 in the
promotion of H5BK.
3ther driver of market tranformation +ill ,e:
an increaing demand for the product from cot reduction and =uality
improvement. 8hee +ill lead to increae in hort6run conumption of the
:ne+D ,rick0 and eApanion of long6run aggregate demand +ill occur from
increae in population and income. 8hi i eApected to lead to
commerciali>ation of the ne+ ,rick making technology and it long6term
utaina,ilityE
the government? recent deciion to re=uire ,rick maker to enhance the i>e of
kiln to 1!@ ft to reduce local pollution +ould increae capital cot +ithout any
aociated reduction in production cot. Brick maker can only recover thee
cot ,y increaing price or reducing profit0 neither of +hich are conducive to
long6run utaina,ility. 8hu0 ,rick maker +ill ,e driven to+ard a technology
that i more efficient0 i cleaner and reult in lo+er production cotE
a trengthened regulatory frame+ork and enforcement capacity that i producer
friendly and promote end ue demand.. 8hi +ill occur once an EE ,rick kiln
technology ha ,een accepted a a via,le alternative.
$ num,er of ,arrier0 ho+ever0 need to ,e overcome ,efore the acceptance of the ne+
technology . Preliminary dicuion +ith takeholder0 mainly the BBM3$0 a +ell a
ite viit to a num,er of ,rick making entitie and a urvey of the availa,le literature
indicated that almot all the entitie are operating in the ame traditional manner a they
have ,een doing for decade. 8herefore0 the entitie are typical of thoe een in mot
developing countrie0 and hence the major ,arrier to market tranformation are alo
typical:
EAceive reliance on traditional production methodE
/
Poor and informal organi>ational and management tructureE
5eaonal0 untrained la,or forceE
Gack of acce to capital and reliance on e=uityE
Poor kno+ledge of technological optionE
.eitance to change attri,uta,le to lack of information and rik perceptionE
$,ence of regulatory frame+ork and enforcementE and
Gack of incentive.
8he a,ove6lited ,arrier are neither complete nor dicrete in nature. 8heir
interdependence and cauality need to ,e thoroughly analy>ed and evaluated in an G#$
eAercie that i enviaged during a P&# B phae. 8he G#$ +ill evaluate iue0 ,arrier
and detail pro,lem facing the Bangladeh ,rick making indutry0 there,y enuring a
comprehenive analytical frame+ork. $n initial approach to overcoming ,arrier to the
diffuion program +ould comprie follo+ing:
Identification of target groupE
&emontration of the ne+ technology in a num,er of pilot plantE
8raining of kiln operator and fire6mater0 manager and upport taffE
Information diemination amongt propective target group of ,rick kiln
o+ner 'the eAiting B8K o+ner(0 ,anking intitution0 contruction indutry
partner and regulatory agencie.
5takeholder Participation
5takeholder interaction i a primary focu of the activitie planned to influence and
facilitate the market tranformation. It i the intent of the project to involve a num,er of
takeholder in the demontration of the techno6economic via,ility of the deign0 a
+ell a financing0 intallation0 operation and maintenance of the ne+ technology kiln.
Inamuch a the eApected tranformation +ill involve the coordinated and colla,orative
effort of each group of takeholder0 thi apect of the market tranformation proce
+ill alo ,e ho+caed in the demontration component of the project. Each type of
takeholder 'from ,rick kiln manufacturer0 engineer0 deigner0 conultant to the
entrepreneur and +orker in the ,rick making indutry0 a +ell a the financial4,anking
intitution providing financing for indutrie and the contruction indutry( +ill play
an important role in the demontration cheme. 5ince there are t+o main type of ,rick
making operation in the country0 t+o comparative demontration model +ill ,e
developed for the projectE i.e.0 the H5BK +ill ,e compared +ith the B8K and the
9offmann kiln. In addition0 it i propoed that demontration cheme +ill ,e featured
in t+o eparate etting:
1. $pplication of EE ,rick kiln technology in a private ,rick making companyE and
!. $pplication of EE ,rick kiln technology in a community6,aed entity
2
Idea need champion committed to achieving goal. 8hi propoal recogni>e the need
for :championD to promote the technology. 8o+ard thi end0 the project propoe to
aem,le a :championD group compriing of:
B%E80 the premier technology intitution of Bangladeh and vie+ed a the
mot repected ar,iter of ne+ technology evaluation ,y the "overnment of
BangladehE
the BBM3$0 +ho have ,een active to date in developing thi project0 and +ho
repreent the larget group of it kind in Bangladeh in the promotion0
improvement and a+arene of their indutryE and
the ,rick kiln o+ner.

5uch a tructure for takeholder participation and the development of :championD +ould
facilitate a meaningful dialogue ,et+een %N&P and the "overnment of Bangladeh?
concerned minitrie that include the Minitry of Environment and #oret0 Minitry of
Energy and Mineral .eource and the Minitry of Indutry. 8hi dialogue +ould ,e
,uttreed againt the technology evaluation of B%E80 the dieminator of the technology
and the BBM3$0 and the opinion of the technology o+ner0 and +ill facilitate policy
development and harmoni>ation ,et+een the variou concerned government minitrie.
#inancing Mechanim
8he lack of acce to capital and reliance on e=uity +ere identified a ,arrier to market
tranformation of the ,rick production market. 8he majority of Bangladeh? ,rick
maker are mall enterprie o+ned and operated eaonally ,y ingle o+ner relying
entirely on e=uity capital for finance. Mot of them0 eAceeding ;@C0 have ,een
operating outide the formal ,anking ector. 8hi ha had t+o ignificant reult. #irt0
capital invetment to moderni>e plant and e=uipment have not ,een availa,leE and
econd0 there ha ,een no :needD to operate in a formal0 organi>ed manner. *apital
invetment and varia,le eApenditure have ,oth ,een treated a a ingle cot item
creating a :mind6etD and inhi,iting tranformation of the ,rick making :indutryD from
the traditional to the modern ector. 8he market tranformation concept ,eing promoted
in thi project recogni>e thi and propoe the introduction of formal financing
mechanim a an important and neceary tep in the tranition proce. It i felt that
involvement of the ,anking ector +ill provide much needed capital for ne+ ,rick
making technologie uch a plant0 e=uipment and +orking eApenditure and lead to the
creation of more formal management tructure +ithin the entitie. 3ne immediate0
pervere effect may ,e an increae in overhead eApenditure and capital cotE ,ut
aving generated from adopting more efficient production and management techni=ue
hould offet thee additional cot. Producer +ould ,ecome more conciou of
production cot and make any neceary adjutment to ,ecome profita,le.
$ a firt tep in thi direction0 the Indutrial K Infratructure &evelopment #inance
*ompany 'II#&*( ha ,een pre6elected to provide a reource peron to guide the
tranformation proce along line that +ould make it more accepta,le to ,anking
need. 8hi involvement create the neceary :,uy6inD ,y the ,anking ector from the
tart and +ill ,uild ,ridge +ith the takeholder. 8he reaon for the pre6election are
t+o6fold: firt0 it i a financing company o+ned ,y eleven other commercial financing
intitution +hoe chief eAecutive are mem,er of the Board of II#&*E and econd0
II#&* ha agreed to partially cover the overhead for the reource peron. 8he firt
7
enure that there +ill ,e a Lpread6effectD of the effort ,eing made under thi project0
and the econd enure commitment on the part of the ,ank.
8he econd track for acce to capital and commerciali>ation are the dicuion that
the promoter have had +ith the %5$I&? Goan Portfolio "uarantee 'GP"( program. In
eence0 the GP" program under+rite up to /@C of the loan made to entrepreneur
+ho have little or no additional collateral to ena,le them to acce capital financing.
$ny ,ank that lend under thi program protect it invetment up to /@C againt
poi,le default ,y the ,orro+er. 8he GP" +ould ,e an eAcellent um,rella cheme for
,rick kiln o+ner.

8here have ,een precedent in Bangladeh of the ,anking ector ,ecoming involved
+ith non6formal indutrie and marginal income earner. 3ne recent eAample include
the II#&* agreement in March !@@1 +ith the *I&$6funded Bangladeh Environment
Management Project 'BEMP( to provide finance to auto6rickha+ operator for the
converion of their vehicle to dometically availa,le compreed natural ga. Bhile
loan to uch ,orro+er +ould entail a higher rik to the ,anking ector0 the II#&*
,ecame involved a a mean to improve ur,an air =uality in &haka *ity0 +hich till
remain at critically poor level. #urthermore0 rik to the ,anking ector on thi
cheme +ere to ,e further reduced through the involvement of the %5 $I& GP"
program that +ould under+rite loan of up to /@C. *learly0 the ,anking ector in
Bangladeh ha ho+n +illingne to ,ecome involved in the promotion and financing
of clean technologie that +ould improve dometic environmental condition. 8he
II#&* ha ho+n a keen interet in thi project. .
Pot68ranformation Impact
3n the upply ide0 adoption of the ne+ technology +ill reult in lo+er marginal cot
due to reduction in varia,le cot. 8hi i ,orne out ,y the 1112 5&* tudy of the
ceramic indutry in Bangladeh +hich analy>ed the potential economic ,enefit of the
H5BK ytem +hen compared to the traditional B8K and the more capital intenive
9offmann technologie. 8he potential increae in profit ranged ,et+een -@ to 22C.
8hee can ,e een from the follo+ing comparion.
1 %5MN8k 2@ 8hree Buine 3ption for Brick maker
*ot #igure in 8aka B8K 9offman H5BK 6 ) haft
Month4Oear -.; 1!.@ 1@.@
Kiln *ot 17!0/@@ 110@@@0@@@ -7/0@@@
8otal Invetment 107;10-!1 1)0/!70@// 10@;20/12
Haria,le *ot4%nit 1.@/ 1.1! @.7;
Net Profit 10-@101-1 -0-!10;1/ !0)1)021)
Profit per 1@@@ 2@; 222 12-
Breakeven C 1@ ;2 -1
Pay,ack time 1.! year !.; year @./ year
3+ner Paying 8otal Invetment
Net Profit 102)!0;@2 -02110;1/ !0-1101;2
Profit41@@@ 7@; 7@7 1@@;
Breakeven C !7 7; 11
Pay,ack time 1.1 year !.7 year @.- year
;
5ource: 9enrik Norker0 5&*0 $pril 111-
8he =uetion that arie i: +ill the lo+er marginal cot of the :ne+ technologyD
,rick tranlate into lo+er price in the marketP 8he likely cenario i that ince
producer +ill continue to face contant or even riing demand0 they +ill hold price
and increae profit. In the neAt tage0 thi action ,y the producer i not likely to
dampen demand a long a producer maintain the previou nominal price E from the
conumer perpective0 they +ill ,e facing contant or even declining real price.
Brick price in Bangladeh have ,een riing in nominal term over the lat 1@ year at
an average annual rate eAceeding 1@C. $ part of thi increae can ,e attri,uted to riing
input price and a part to riing demand and upply rigidity. In addition to thi overall
increaing demand0 the :diaggregatedD demand for ne+ technology ,rick +ould0 in
fact0 increae ,ecaue of improvement in =uality. 8he :ne+ technologyD ,rick +ould
,e more even0 darker red in color from the oAidi>ing atmophere of the H5BK and the
alt content +ould decline.
In the long6term0 demand for improved =uality ,rick +ill eApand ,ecaue of gro+th
in ur,an population and ur,an income. In mot developing nation0 ur,an population
gro+ at a rate fater than the overall gro+th rate. In Bangladeh0 the ur,an population
gro+th rate ha ,een phenomenal0 riing from !.2 million in 1121 to !!./ million in
1111. In the cae of &haka0 the rate +a ;C during thi period far eAceeding the 1./C
rural gro+th rate and the !./C national gro+th rate. $t thee gro+th rate0 &haka +ill
,ecome the eventh larget city ,y the year !@1/. Even though overall ur,an gro+th
rate may flatten ome+hat in the future0 the trend i not eApected to change much in
the intermediate term. 8he correlation ,et+een demand for houing and therefore0 for
,rick0 and per capita income i alo +ell kno+n. 8hi mean a per capita income
rie0 demand for contruction material eApand. $ joint %N4Borld Bank tudy in 1112
predicted that ;@C of the gro+th in the developing +orld +ould occur in acro it
citie and to+n. In Bangladeh0 per capita income have ,een riing at a,out !./C
annually ,ut it ha ,een gro+ing at a much fater rate in the ur,an area. 8hi i +hy
&haka city today contri,ute a,out )1C to the National "&P even though it hare of
the national population i only 7C. Be can therefore0 conclude that the demand for
,etter =uality ,rick produced at lo+er cot in energy efficient kiln +ill increae over
time.
Previou EAample of Market 8ranformation in Bangladeh
Previou effort to+ard market tranformation ,y the private ector include the
follo+ing project:
Iodi>ed 5alt Project 6 In the mid 111@0 %NI*E# funded a market tranformation
approach inducing local alt maker to produce iodi>ed alt only. 8he initiative0 in
,rief0 had a t+o6track trategy: legal change to impoe regulatory ,an on the
Lindutry? and in tandem0 introducing a uita,le technological olution and adoption
program that +ould have minimum diruption on the eAiting producer. 8he
indutry ha no+ ,een totally tranformed0 and only iodi>ed alt i ,eing produced.
*N" Project 6 In 11110 the *I&$6funded Bangladeh Environment Management
Project 'BEMP( in puruing clean technology option for the tranport ector0
1
developed the technology to convert the highly polluting !6troke auto6rickha+ to
ena,le them to ue natural ga. Even though the technology proved ucceful and
alternate fuel +a 7@C le eApenive0 the tak +a to apply the ne+ technology on
a commercial ,ai. 8hi +a a claic market acceptance challenge0 neceitating
employment of market diffuion techni=ue. 8he project i ongoing and ho+ ign
of developing into a full6,lo+n clean alternate fuel indutry. Preently0 fleet car
and government vehicle are ,eing converted to ue *N"0 +ith propect for a
*N"6fuelled ma tranit ytem looming on the near hori>on.
8here are other project eAperience and leon learned from imilar project in other
countrie including:
China: 8he annual production of ,rick in *hina +a a,out ;)@ ,illion during the
1@. In 11120 the ,rick indutry output value +a a,out %5M 17 ,illion. *hina?
8HE account for nearly 1/C of the total ,rick production0 and employ nearly /
million people. 8he type of ,rick kiln ued ,y *hinee 8HE are intermittent kiln0
annular kiln0 tunnel kiln and vertical haft kiln 'H5K(. 8he H5K are gaining
popularity among the mall and medium cale ,rick making entitie. 8hi i the
type of ,rick kiln that Bangladeh i intereted in0 and +ill ,e promoted in the
propoed project. 8he *hina 8HE Phae ! Project funded under %N&P4"E# +ill
oon tart operation and +ill ,e +atched cloely for eAperience gained and leon
to ,e tranferred.
India: Modern technologie generally manufacture +ire cut ,rick. 8he
technologie ued are B8K0 continuou kiln and intermittent type of rural
country clamp. $nnual production of ,rick in India i a,out 1@@ ,illion0 and the
indutry employ a,out 1./ million people. $,out 2@C of the ,rick produced in
India are from B8K. 8he "3I ha eApreed an interet to +ork to+ard improving
efficiency in fuel ue in thi indutry and0 if materiali>ed0 +ill contri,ute to the
cluter of %N&P4"E# project eAperience in the field.
Vietnam: Brick kiln ued are modern annular kiln0 tunnel kiln and traditional
vertical kiln. "E#4%N&P45"P ha had ome eAperience in thi ector and
follo+ing an upcoming evaluation of the projectE the eAperience can oon ,e
hared +ith Bangladeh.
1. EApected outcome:
$n important aumption in achieving the deired outcome i that the key ,arrier6
removing activitie propoed +ill ,e ufficient to ena,le the technology to ,e replicated
on an indutry6+ide ,ai. 5uch an outcome re=uire that all major ,arrier to
technology adoption +ill ,e removed o that the commerciali>ation proce can proceed
on it o+n upon project completion. $lthough the frame+ork0 mechanic and pecific
component of the ,arrier removing activitie are yet to ,e detailed in an G#$ eAercie0
the follo+ing are eApected outcome of the project:
.eduction in "9" emiion
*ollateral reduction in local pollution
&evelopment of ,rick6making entitie into a more formali>ed indutry
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$+arene amongt policy6maker for the need of a regulatory frame+ork that i
,oth producer and conumer friendly
Bide cale availa,ility and accei,ility of financing for energy efficient ,rick kiln
Improved local technical capacity in the deign0 manufacture0 operation and
maintenance of energy efficient ,rick kiln
Increaed indutry confidence to improve la,or +orking condition and tandard
Increaed a+arene amongt contruction indutry4,uilder regarding improved
=uality and efficiency cot to foter a market for the :ne+D ,rick.
1@. Planned activitie to achieve outcome:
It i aumed that demontration of a more energy6efficient ,rick kiln technology
com,ined +ith other market tranformation activitie uch a removal of ,arrier0
takeholder interaction0 a+arene generation0 capacity ,uilding0 retraining of the la,or
force and implementing ,et management practice0 +ill aure replication of the
technology and utaina,ility of the tranformed ,rick production market to enure a
:+in6+inD ituation. 8he activitie planned for the full project +ill ,e:
*omponent 1: .emoval of 8echnical Barrier to Production of improved BrickE
*omponent !: .emoval of $+arene BarrierE
*omponent ): .emoval of Intitutional and #inancial BarrierE and
*omponent -: 5ocial Impact $nalyi
*omponent /: Emiion Monitoring
*omponent 1: .emoval of 8echnical Barrier to Production of improved Brick
8hi component +ill involve the follo+ing activitie:
Evaluation of three technical option for kiln improvement0 i.e.0 an improved B8K
ytem0 a 9offmann kiln and a H5BK ytemE
$nalyi of the technical option that i mot uita,le for Bangladeh ,aed on
technical0 environmental and economic advantageE
&eign and et up t+o demontration plant ,aed on the elected technology at
trategically located ite. EAternal aitance from a elected intitute in India or
*hina +ill ,e re=uired for thi demontrationE
3perate the demontration plant for one :eaonD under the uperviion of
=ualified foreign peronnelE
Monitor and create a data,ae on all apect of kiln operation including land cotE
kiln intallation method and cotE kiln operational cotE human reource
re=uirement and trainingE production rateE =uality of ,rick producedE fuel
conumption and cotE and emiionE
#acilitate partnerhip that +ould encourage adoption of the cleaner technology for
the indutryE
5ho+cae the technology and dieminate relevant information to indutry
takeholder0 ,rick kiln o+ner0 cutomer0 regulator4government0 civil ociety and
the general pu,licE
3rgani>e and conduct training program to tranfer kill re=uired to implement ,et
management practice to operate and maintain the identified technologyE
11
8rain a core of elite technician +ho +ould ,e reponi,le for trou,le6hooting
+ithin the demontration program and maintain their ervice throughout the
project phae leading up to the market0 and thu creating demand for their ervice.
*omponent !: .emoval of $+arene Barrier
8echnology pread among takeholder from :early adopterD0 that i people +ho
al+ay like to try ne+ thing0 to :late adopterD0 that i people +ho are reitant to
change. 3pinion leader are a key element in communication a,out innovation.
8herefore0 motivating takeholder to adopt the ne+ technology and make the change i
the major ingredient. 8o do thi0 a utained information regime mut ,e developed and
dieminated among takeholder. 8hi regime mut emphai>e the follo+ing:
8he relative advantage of the technology.
Bhether the technology i compati,le +ith the current tate of ,elief or
,ehavior.
9o+ compleA i it.
9o+ +ell can it ,e adopted.
8he ,enefit that can ,e o,erved.
8he impact of the relevant information.
8herefore0 the activitie planned +ould include:
*ontinuance of an information diemination program highlighting the advantage
and ,enefit of ne+er EE kiln through the propoed demontration plant. 8hi
+ould reduce the u,jective and o,jective uncertaintie of the H5BK or other
appropriate kiln0 amongt potential adaptor to accelerate market tranformationE
*reation and operation of a :*enter of EAcellenceD to upport a+arene eminar0
pu,lication of manual and other a+arene material of the EE kiln. 8hi +ould
enhance the image of the indutry and trengthen indutry kno+ledge of optimal
operation and pollution reductionE
8raining program in the contruction0 operation and maintenance of the EE kiln to
,e delivered ,y a pool of =ualified indutry technology pecialit.
*omponent ): .emoval of Intitutional and #inancial Barrier
8hi project component +ill provide the neceary upport for +idepread adoption of
the ne+er EE kiln or replication of the technological change and to enure there i
intitutional and policy upport for the continued ue of clean technologie a "E# and
other eAternal aitance decline to minimal level. 8he activitie planned to contri,ute
to the removal of intitutional and financial ,arrier are:
&eign and develop a tranformation4tranition model to the ne+ technology o that
an ongoing ,rick manufacturing ,uine can ,e tranformed +ith minimum
diruption. 8hi eAercie i eentially recalling the leon of financing ne+
technology to operational particular that produce ,rick at a lo+er cot than thoe
produced +ith the le efficient B8KE
&eign and implement an innovative financing plan +ith everal different ,rick
field o+ner to etup more energy6efficient ,rick kiln throughout BangladehE
1!
&evelop financial model to ena,le the formal ,anking ytem to eAtend loan to
the indutry. 8hi +ould include aitance from ,anking ector peronnel from day
one to enure ,uy6in ,y the ,anking ectorE
*reate a pro6active relationhip ,et+een the BBM3$ and ,anking intitution that
+ould facilitate market tranformation to+ard EE ,rick kilnE
Bork +ith and involve international donor agencie0 particularly %5$I&0 that have
on6going program to upport the development of innovative financing cheme
,aed on commercial conideration to enure +idepread adoption of the ne+ EE
kilnE
5ecure agreement for and enure relia,le dometic coal upplie through
involvement of the Minitry of Energy and Mineral .eourceE
&eign a ,ackup ervice program after the technology changeover. 8hi +ould
ait diffuion of the ne+ EE kiln ,y reducing rikE
&evelop pu,lic6private interaction to trengthen regulatory intrument and
enforcement capacity o that there i accelerated market tranformation to+ard EE
kiln. 8he intention and purpoe of thi activity i not that government intervention
+ill enure technology adoption0 ,ut the recognition that government intervention i
one tool to enure it adoption. 8he author clearly recogni>e that it i only market
force that +ill ultimately enure adoption and utain itE
8ranfer kill that create a+arene and capacity to implement ,et management
practice to operate and maintain ne+ technologieE
In addition to regulatory preure0 involve civil ociety to aure adoption. *ivil
ociety group provide ocial preure0 incentive0 and moral peruaion to
encourage change. Ginkage +ill ,e eta,lihed and trengthened +ith group uch
a the Bangladeh Environmental Ga+yer $ociation0 the #ederation of
Environment Fournalit of Bangladeh and other imilar organi>ation.
*omponent -: 5ocial Impact $nalyi
#or any ne+ technology to +ork0 it mut ,e adapted to the ocial and cultural etting in
+hich the technology i ,eing promoted. In Nepal0 the H5BK ytem +orked +ell
initially ,ut the diemination program ha ,een ennared :in an intricate controvery
,et+een private entrepreneurhip and government department interetD '5&* 1122(. In
addition0 conflict may emanate from eAiting takeholder and civil ociety. 9ence0
there i a need for a ocial impact analyi to identify +hich takeholder are likely to
,e affected ,y the project and ho+ and +hich takeholder could influence the
tranformation through upport or oppoition and ho+.
8he market tranformation of the ,rick manufacturing QindutryQ +ill have a ignificant
impact on thoe +ho are directly and indirectly involved. 8hoe directly involved in
,rick making can ,e generally characteri>ed a the very poor0 young0 uneducated and
eaonally employed. 8here are a ignificant num,er of +omen and children employed
in ome ,rick kiln0 poi,ly in the range of ))C of the +orkforce 'a o,erved during
viit to variou ,rick manufacturing operation(. Poi,le ocial impact of thi
market tranformation +ould include:
afer +orking condition epecially for +omen la,orer
,etter trained +orker and managerE
proviion of teadier employment.
1)
$ctivitie of the 5I$ component +ould include:
,aeline ocio6economic urvey on kiln manager0 +orker0 and their familie
focuing on ocio6economic parameter that can ,e monitored for change during
and after project intervention0 and an in6depth analyi of all takeholder and
their potential vie+ to upporting thi projectE
characteri>e current +orking condition0 la,or la+ and regulatory
apect of ,rick manufacturing la,or codeE
incorporate ne+ la,or tandard +ith energy efficient ,rick making
technologie and eAtrapolate to ne+ ocio6economic analyiE
invetigate the feai,ility of conducting managerial training that
+ould promote afer +orking environment and maAimi>e +orker productivity.
*omponent /: Monitoring of 8echnology &iffuion0 Emiion and 5ocial Impact
8o enure project ,enefit are ,eing accrued and to provide reult6,aed management0
an eAtenive monitoring program hould ,e undertaken. Monitoring activitie +ould
include ,ut not ,e limited to:
!echnology diffusion" $doption of the technology can ,e monitored through
management tructure of the project. If a :technology clearing houeD +ere
eta,lihed in cloe colla,oration +ith the :*enter of EAcellenceD 'of
*omponent !(0 technology adoption can ,e cloely and accurately monitored.
Emissions" 8hi can ,e monitored in t+o +ay: energy conumption per unit of
,rick produced or through emiion monitoring through the moketack of the
EE ,rick kiln. Environment *anada have recently developed ne+ e=uipment
to monitor moketack emiion that can ,e eaily adopted on thi projectE
Social #mpact" Mot importantly for the monitoring of ocial change on thi
project +ould ,e monitoring of +orking condition of thoe directly involved
+ith the indutry. *hange in their ocio6economic indicator a +ell a their
technical capacity to adapt to the ne+ EE kiln ,uine +ould ,e of interet
particularly to thoe concerned at ocial impact reulting from adoption of
climate change technologie. $nother intereting ocial impact to monitor
may,e the reaction of conumer to ne+er higher =uality ,rick that are an
output of the ne+ EE technology. 8heir acceptance and +illingne to purchae
higher =uality ,rick +ould ,e a crucial indicator of the ucce of market
tranformation to+ard EE kiln.
Pre6Project $ctivitie
Prior to project implementation0 certain pre6project activitie +ill ,e carried out that
focu on preparing plan for project management and implementation arrangement.
8hee include:
Intenive takeholder interaction and conultation to formulate colla,orative
+orking relationhip
*onduct dek ,aeline analyi to ,ring a high degree of comprehenion of the
eAiting operation and cot tructure of the Bangladeh ,rick6making entitie
*onduct a dek tudy eAamining the energy efficient technical and economic
1-
option for the indutry0 revie+ing a num,er of ,rick kiln model and their
ucceful operation in other countrie uch a India and *hina
*onduct conultation +ith the BBM3$ and other indutry repreentative to
enure the feai,ility of adaptation ,y the indutry
#ormulation of plan in colla,oration +ith takeholder to conduct pilot and
demontration program uing ne+ EE technologie.
5ecure takeholder commitment for the project
#inali>e plan for co6financing of the implementation phae of the project. 8hi
include dicuion +ith %N&P on ,rick kiln +orker training and *I&$ *limate
*hange4Environment *anada on proviion of technical aitance in monitoring
moke tack emiion0 and private ector interet.
5takeholder involved in project:
&epartment of EnvironmentE Bangladeh Brick Manufacturer K 3+ner $ociation
'BBM3$(E Banking and #inancial IntitutionE Bangladeh %niverity of Engineering K
8echnologyE and the private ector.
11. Information on project Proponent:
8he project proponent i a conortium of private6pu,lic partnerhip including the
&epartment of Environment0 Minitry of Energy K Mineral .eource0 Minitry of
Indutrie0 Bangladeh %niverity of Engineering K 8echnology and *lean Energy
$lternative0 a private enterprie involved in promoting clean energy technologie.
1!. Information on propoed eAecuting agency 'if different from a,ove(:
Minitry of Environment K #oret
1). Etimated Budget 'in %5M or local currency(:
"E# P&# B Phae: M @.)!@ millionE 8ime: 1; month
%N&P 8.$*: M@.1@@ mill
EApected #ull project:
"E#: M ).@ million
*o6financing: M 11./ million '%5$I& GP" #inance0 direct commercial ,ank loan(0 *I&$
M@./@@ million0 8k /@@ million '"overnment of Bangladeh(
838$G: M !).1!@ million
EApected &ate for #ull Project: #O @/
Implementing $gency contact peron: &r.Nandita Mongia0 "E# .egional Manager0 5enior
8echnical $dvior *limate *hange 0 %N&P4"E#0 0 Ne+ Oork. ..
1/