Benefits

(based on the feasibility study and scheme of development submitted to the Government of Bangladesh in October 2005)

The Phulbari Coal Project is expected to generate more than US$ 21 billion in economic benefits to Bangladesh over its 30 year life and add 1% annually to Gross Domestic Product (GDP). In addition to providing the country with a new source of export earnings and of energy, it will develop the coal mining industry, spur industrial growth, create new jobs and bring about major improvements in both local and national infrastructure. Asia Energy's total planned capital investment will be in the region of US$ 3 billion. In addition, the following benefits will be realised from the project:

National Benefits (based on the feasibility study and scheme of development submitted to the Government of Bangladesh in October 2005)

• An alternative source of energy for power generation, reducing domestic dependence on natural gas and wood and imported diesel and coal
• US$ 5.3 billion* tax & royalty earnings for the Government of Bangladesh
• US$ 250 million* annual impact on balance of payments
• US$ 1.4 billion* net earnings for Bangladesh Railway
• Poverty alleviation and sustainable development
• Training programmes to provide workers with new skills
• An internationally traded commodity for export.
• A stimulus for foreign investment and private sector enterprise in Bangladesh

*Figures based on Economic Benefits Study commissioned by Asia Energy Corporation (Bangladesh) Pty Ltd

Benefits to Northwest Bangladesh (based on the feasibility study and scheme of development submitted to the Government of Bangladesh in October 2005)

• Development of new coal industry in Northwest region
• A proposed 500 - 1000 MW power plant run by Asia Energy Corporation
• Additional coal-fired power plants developed by others
• Up to 17,000 new jobs (direct and indirect) in region
• Training and development opportunities for local workers
• Sustainable businesses in spin off industries such as ceramics, construction, transport, bottled water and fish farming
• US$ 4 billion spent in Phulbari area over the project's life
• US$ 300 million invested on resettlement and new town
• Net increase in local agriculture production
• New planned township and villages with better amenities, such as schools, housing and new hospitals.
• Fresh clean water pumped from the mine for agricultural irrigation and domestic use.

Benefits to Southwest Bangladesh

• Creation of a Coal Terminal at Khulna
• Upgraded western rail export/import corridor
• Deep water cargo facility at Akram Point
• Reinvigoration of economic activity in Khulna and Mongla Port
• Up to 5,000 new jobs (direct and indirect) in region
• US$ 230 million invested in port development
• Potential for a regional coal-fired power plant
• Potential for co-product based industries