EMRD seeks higher ADP outlay for energy sector

The Energy and Mineral Resources Division (EMRD) has proposed a significant increase in development spending for the next fiscal year (FY 2026-27), reflecting a renewed focus on boosting domestic gas exploration and supply.
The planned allocation, if approved, would mark a major shift towards energy-sector investment, with a strong emphasis on accelerating ongoing projects under Petrobangla.
The EMRD under the Ministry of Power, Energy and Mineral Resources has sought Tk 37.68 billion for implementing ongoing development projects under the next fiscal year's Annual Development Programme (ADP), according to Planning Commission officials.
It shows a 63.1 per cent increase from the revised allocation of Tk 23.11 billion in the current fiscal year.
Officials said EMRD sent a letter last week seeking the ADP allocation.
Of the total outlay, Tk 19.88 billion has been proposed from government funds, while Tk 10.23 billion is expected to come from the implementing agencies' own resources.

The remaining Tk 7.57 billion is likely to be mobilised from external sources in the form of foreign loans and grants.
The letter shows that Tk 30.04 billion, or about 80 per cent of the proposed allocation, has been sought for 14 ongoing projects of the Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), which is 151.2 per cent higher than the current fiscal allocation of Tk 18.9 billion.
Government funding for these projects is set to rise by 94.6 per cent, while foreign aid allocation is projected to increase sharply by around 16.6 times from Tk 363 million to Tk 6.04 billion.
Funding from the implementing agencies' own sources is also set to rise by more than 130 per cent.
A review shows that the outgoing interim government had approved eight projects focusing on domestic gas exploration, extraction, and procurement of exploration equipment.
Although allocations were modest in the first year, substantial funding is being proposed for the next fiscal year to accelerate implementation in line with targets.
However, the allocation for four projects fully funded by Petrobangla is set to be reduced by 25 per cent to Tk 5.09 billion in the next fiscal year, down from Tk 6.81 billion in the current revised allocation.
The allocation for Bangladesh Petroleum Corporation (BPC) is set to be cut by 66.8 per cent to Tk 1.32 billion in the next fiscal year, down from Tk 3.98 billion in the current allocation, with the entire amount to be financed from BPC's own funds.
A Tk 2.87 billion allocation has been proposed for drilling two appraisal-cum-development wells - Sundalpur-4 and Srikail-5 - and two exploration wells - Sundalpur South-1 and Jamalpur-1 - approved at the October 2024 Ecnec meeting, up from Tk 2.12 billion in the current fiscal year.
The process plant project for the Bhola gas field is set to receive Tk 1.48 billion in the next fiscal year, compared with Tk 860.7 million in the current fiscal year.
Meanwhile, the allocation for the project to drill four wells in the Titas and Kamta gas fields is set to nearly double to Tk 4.29 billion from Tk 2.69 billion.
A new allocation of Tk 1.87 billion has been proposed for drilling four appraisal and development wells in Shahbajpur and Bhola North, while a separate project for procuring a rig has been earmarked Tk 134.7 million.
Energy expert Dr Shamsul Alam, adviser at the Consumers Association of Bangladesh (CAB), said the sharp increase in allocation reflects a long-overdue shift towards strengthening domestic gas exploration, but cautioned that "higher spending alone will not yield results unless project implementation capacity is significantly improved and transparency ensured."
He noted that the heavy concentration of funds in Petrobangla projects is logical given the urgency of boosting gas supply, yet the steep rise in foreign financing requires careful management to avoid cost overruns and inefficiencies.
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