CG leaves gas-block bidding decision to elected govt

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The caretaker government (CG) now shifts to the next elected government the matter of taking decision on the 3rd-round international bidding for gas blocks although it had invited tender, with a vigorous move to award the contracts within its tenure, reports UNB.
According to official sources, some critical issues and a possibility of future litigation have finally prompted the interim government's policymakers to think of passing the buck.
The sources said despite high urgency, none of the top policymakers of the country's longest interim government wanted to take the responsibility of awarding contract of hydrocarbon exploration to foreign companies on the basis of a bidding process that appeared controversial.
The energy ministry invited the 3rd-round international gas-block bidding in February this year with a plan to award the contract by September or October. The main thrust of the plan was to utilise this year's dry season for exploration work under the contracts.
After the bidding, only two international oil companies (IOCs) - US-based Conoco Philip and Irish company Tullow - were selected responsive bidders for the country's nine offshore blocks.
Conoco was selected for eight separate blocks while Tullow for only one block. But, interestingly, it appeared that these two companies came out in the nine blocks as lone bidders, which meant there were no other competitors in the race.
After completion of a two month-evaluation process by the state-owned Petrobangla, the energy ministry put forward the proposals of Conoco and Tullow to the Cabinet purchase committee of the CG.
Instead of taking any responsibility of considering such single bid in the hydrocarbon business, the finance adviser-led purchase committee sent the things back to the energy ministry saying that the line ministry should be the final authority to take the decision.
But the energy ministry did not dare to take the decision on its own on the matter of billion-dollar business in Bangladesh's potential natural wealth.
Finally, the energy ministry sent the matters to the Chief Adviser's Office (CAO) for the final decision.
The CAO also followed suit. Instead of making any decision, CAO redirected the matter to the energy ministry for some clarifications.
Admitting to dillydallying on part of policymakers, a senior official of the energy ministry said actually the main theme was to delay the process and avoid the responsibility for a faulty tender process where the single bidders were selected to bag the billion-dollar business.
"Because, they thought if they took the decision, then the next elected government might raise question and put them behind bars for awarding contract to single bidders," said the official on condition of anonymity.
He said such a seesaw finally prompted the caretaker government's policymakers to leave the issue to the upcoming government.
The government had invited bids for the hydrocarbon exploration at a time when the country has been experiencing severe energy crisis, particularly in gas and power supply.
At present, gas shortages come to about 300 million cubic feet per day (MMCFD) with the supply amounting to 1800plus MMCFD against a demand for 2100 MCFD.
The electricity shortage is about 1500 MW, and the state-owned Power Development Board (PDB) laments that it could not produce 600-700 MW due to gas shortages.