Financial Cost-Benefit Analysis of 132 kV Power Transmission Projects in the Public Utility Sector of Bangladesh: An Unsubsidized LDC Post-Graduation Scenario

In this paper, we study the financial aspects of power transmission sector projects, specifically financial viability of constructing 132 kV transmission infrastructures to supply high quality reliable power to a region. In developing countries, state owned public utility enterprises implement development projects, that are prioritized by net economic benefits to the society, along with the projects identified by the politically motivated agendas of the government. In such a scenario, we compare the benefits earned by and costs incurred to the enterprise to determine a reasonable expected return in order for it to stay financially sustainable in an unsubsidized middle-income country environment. Our measures for positive return includes maximizing the transmission length given different technical configurations for power transmission infrastructure. We consider the turnkey and overhead costs of the project and use Discounted Cash Flow method to ensure the viability of the investment. Numeric results obtained from the model show that viable transmission length approaches cost of capital and reinvestment rate form different directions. Finally, the Monte Carlo simulation demonstrates the probability distribution of optimum line lengths using ACSR and ACCC conductors in response to the floating market rates.