Gas transmission planning in Bangladesh
With great difficulty the syndicate coul | Wednesday, 21 December 2011
With great difficulty the syndicate coul
the gas industry that the syndication is alleged to have returned, writes Khondkar A Saleque Despite suggestions from professional experts, Bangladesh has not yet adopted appropriate strategy to diversify its fuel sources. Natural gas still remains the basic primary fuel for power generation and industrial as well as commercial use. The contingency measures Bangladesh adopted so far in setting up several imported liquid fuel-based rental plants has put serious strain on the economy for subsidence burden. The price hike of fuel and power to tackle the situation has already sparked public wrath and debate. Bangladesh has failed to initiate mining of its coal resources in a way that is technically apt and financially viable. Even if the mining starts now it will take 3-4 years to reap the harvest out of it. Import of LNG and coal is difficult for both technical and financial constraints. In the short and medium-term, Bangladesh has to keep relying on its own natural gas. While the government has taken some initiatives through BAPEX and IOCs to bump up production, it has failed to maintain its gas transmission networks professionally to operate these at design capacity. It also failed to implement projects for expansion of transmission infrastructure in time. Lack of required gas production from gas fields (demand much higher than production), absence of required gas evacuation facilities, and failure to operate facilities professionally have created massive gas draught all over gas franchise. This write up will discuss the gas transmission planning of Bangladesh. National gas grid and GTCL: Gas transmission is a specialised operation which traditionally falls under midstream in the gas value chain. GTCL was formed in Bangladesh in 1994 to unbundle and restructure the vertically integrated gas system operation in Bangladesh. It is mandated to own, operate, maintain, and expand national gas transmission grid as natural monopoly. As per its article of association and business plan, all gas transmission facilities forming part of national gas grid should have been handed over to GTCL by this time. But the pipelines that GTCL own and operate now are: l Beanibazar - Koillashtilla 18Km Long 20"OD Gas transmission Pipeline. l Koillashtilla - Ashuganj 178 Km Long 24"OD North -South Pipeline. l Rashidpoor -Ashuganj 82 Km Long 30"OD Gas Transmission Loop Line. l Ashugnaj - Bakhrabad [AB] 58 Km 30" OD Gas Transmission Pipeline. l Bakhrabad - Demra 75KM 20" OD Gas Transmission pipeline. l Bakhrabad - Chittagong 180 Km 24" OD Gas transmission pipeline. l Ashuganj - Elenga [BB] 120Km Long 24"OD Gas Transmission Pipeline. l Ashuganj- Monohradi- Elenga 120Km Long 30"OD Gas Transmission Loop line. l Elenga - Baghabari 90 Km Long 24"/ 30" /24 "/ 20" Gas supply to Western Region Pipeline. l Hatikamrul - Bogra Gas Trans-mission Pipeline. l Dhanua - Savar Pipeline. GTCL has almost completed implementation of following Projects. l Hatikamrul-Bonpara -Rajshahi Pipeline. l Bonpara-Ishwardi -Bheramara Pipeline. Some transmission pipelines operating at high pressure still belongs to local distribution companies . l Ashuganj -Habiganj 50Km long 12" OD Gas transmission pipeline [Existing parallel to N-S ,R-A Pipelines owned and operated by GTCL]. l Titas-Norshingdi -Demra 14" OD Transmission Pipeline. l Monoradi-Norshindi 20" OD Pipeline. l Titas- Norshingdi -Joydevpoor, 16"/14"OD Gas transmission pipeline. l Shahjibazar-Saistagonj Pipeline. SCADA facility: GTCL set up SCADA [Supervisory Control and Data Acquisition] system for centralised monitoring and control of gas transmission operation. The microwave-based system could monitor gas intake and off take into the gas grid from Master Control Centre [MCC] at Demra and Auxiliary Control Centre at Ashuganj. GTCL SCADA System had following features: PC based dual redundant master station servers located at two Independent sites; PC based, Windows NTTM client workstations to provide Human User Interface; On-line pipeline simulation model to provide leak detection, load balancing & scheduling; Duplicated Local Area Network (LAN); Integration of Barco 67" high-resolution video wall system: A dual redundant microwave backbone system carrying voice & data: 67 Proteus 2000 pipeline monitoring RTUs and 8 Proteus 2000 S21 communications network monitoring RTUs; Design & installation of metering and measurement instrumentation at 100+ sites. This system had provision for pig tracking software. When SCADA was put into operation it was very helpful in managing and controlling gas transmission operation. Pressures and gas demand at different strategic locations could be monitored live. The effective line pack [high pressure inventory of gas in the pipeline] could be effectively used. Unfortunately, GTCL has failed to maintain the system professionally and SCADA is not in operation now. Some Pipeline Compressor Stations will start operation soon in GTCL System. Policy makers must strongly advise GTCL to make SCADA Operational as soon as possible. On-stream Pigging: During operation of gas transmission lines, some natural gas liquids, water and sludge flow along with gas. GTCL is evacuating gas from Chevron, SGFL, BAPEX, BGFCL, Tullow and Santos operated gas fields. Everyday some liquid, some sludge find way into pipeline and gradually accumulate on the bottom sections [ River and Waterway crossings , low areas] of the pipelines. Normal gas transmission system operation requires on-stream pigging at regular interval to maintain operation of transmission system at design capacity. Unfortunately, the following pipelines have never been pigged since commissioning. l Beanibazar-Koillashtilla 18Km Long 20"OD Gas transmission Pipeline. l Koillashtilla - Ashuganj 178 Km Long 24"OD North -South Pipeline. l Rashidpoor -Ashuganj 82 Km Long 30"OD Gas Transmission Loop Line. l Ashugnaj - Bakhrabad [AB] 58 Km 30" OD Gas Transmission Pipeline. l Ashuganj-Elenga [BB] 120Km Long 24"OD Gas Transmission Pipeline. l Ashuganj-Monohradi- Elenga 120 Km Long 30"OD Gas Transmission Loop line. l Elenga-Baghabari 90 Km Long 24"/ 30" /24 "/ 20" Gas supply to Western Region Pipeline. l Hatikamrul-Bogra Gas Trans-mission Pipeline. l Dhanua-Savar Pipeline. If any informed professional carries out gas transmission system simulation using gas flow and pressure information [in absence of SCADA which had pipeline Modeling Software] it will appear that about 8-10 per cent of the pipeline capacity is already occupied with liquid. In efforts to evacuate higher volume of gas through congested transmission system pressure at different gas hub is depleting causing low pressure situation over entire gas system. For retrieving the design transmission capacity and improve pressure it has now become essential that on stream pigging is carried out in a planned manner. This will not only improve pressure over entire gas grid, it may also allow evacuating some additional gas through the existing transmission infrastructures. GAS transmission system expansion: It has come to our notice that Petrobangla/GTCL is proceeding with some gas transmission system expansion projects. These are: l A. Gas pipeline compressor station at Muchai [Chevron Hijacking it from GTCL], Ashuganj and Elenga. l B. Bakhrabad-Shiddhirganj Gas Transmission Loop Line l C. Jalalabad-Bibiyana-Dhanua Gas transmission Pipeline. l D. Ashuganj-Bakhrabad Gas Trans-mission Loop line. l E. Titas-AB Pipeline MLV 1 Pipeline. l F. Bheramara -Khulna Gas Trans-mission Pipeline. Petrobangla with the assistance of a foreign consultant developed a GAS system master plan. Some of the above pipelines were not in the list. We are not sure why Jalalabad-Bibiyana-Dhanua ppeline is being constructed? The ppeline route from Bibiyana-Dhanua will traverse through low-lying marshy areas, which are not recommended for any transmission pipeline construction. It will need Swap Buggies and other amphibious construction equipment. Even if it is built it will create nightmare for operation. It will mainly evacuate gas from Bibiyana gas field. Bibiyana is now producing about 750mmcf a day. In about 3 years about 200mmcfd gas will be required for Bibiyana power plants alone. Shahjalal Fertiliser factory will also require about 45-50mmcfd. A major portion of gas for the 1500mmcfd Ashuganj Compressor station has to come from Bibiyana. In this situation, what can guarantee design life time guarantee of at least 500mmcfd gas through Bibiyana-Dhanua Pipeline? We recommend that GTCL instead should extend Rashidpoor-Ashuganj pipeline to Koillashtilla and expedite implementation of gas pipeline compressor stations. Ashuganj-Bakhrabad pipeline and Ashuganj-Bakhrabad loop line will carry enough gas to Bakhrabad gas hub for diverting to Demra and Chittagong area. GTCL should rather take up construction of a bi- directional Bakhrabad-Chittagong gas transmission pipeline as the existing pipeline cannot transport additional gas to Chittagong. We also do not understand the logic of constructing 24?OD pipeline from Titas Gas Field to MLV1 of Ashuganj pipeline when Ashuganj-Bakhrabad gas transmission pipeline and gas compressor station at Ashuganj are under implementation. If there is any new pipeline to be built in the area, it can be Titas Gas Field-Ashuganj Manifold. MLV1 has only 12? OD off take. Unless a hot tapping on 30?OD A-B pipeline is in the plan construction of 24"OD pipeline will be of little use. Implementation schedule of gas transmission pipeline: It has also come to our notice that Petrobangla/ GTCL has planned to build some major pipelines and facilities by June 2013. Perhaps some people tried to befool policy makers with highly ambitious schedule. Acquiring ROW, procurement of materials, engagement of construction contractor cannot be completed by end 2012. Pipeline construction alone will take two dry seasons at least. This author was involved in major gas infrastructure development projects in Bangladesh. Even the recent track records of GTCL do not show that any of the newly-conceived transmission infrastructure development will see light at the end of the tunnel by June 2013. Construction tenders are again in mafia syndicates grip: An unholy group of smart manipulators of gas pipeline contractors used to manipulate gas pipeline construction tenders through syndication. With great difficulty the syndicate could be dismantled. But sympathisers and beneficiaries are so firmly anchored in the gas industry that the syndication is alleged to have returned. One group makes the project management manipulate eligibility criteria to keep genuine bidders at bay. Some stringent condition is included in qualification criteria. But when the privileged bidder gets the work, it does not mobilise the listed equipment [Side Boom Pipe layers, Graders, Backhoe excavator.etc]. Sections of large diameter pipeline are allegedly lowered in very unsafe manner by pushing it by dodgers. Pipeline inspectors hardly care for the quality and integrity of the pipelines. Petrobangla /GTCL must ensure that tendering process is transparent and pipeline quality inspection is accountable. Transmission planning must be done effectively: For confronting present gas crisis transmission planning must be done by experienced professionals effectively. GTCL with its present technical manpower will struggle to complete one major project. It is now burdened with several mega projects. Moreover, its major responsibility of operating the system professionally is being increasingly overlooked. To mitigate and manage crisis, policy makers must act for the following: l Rethink Bibiyana- Dhanua Pipeline and construct Koillashtiall- Rashidpoor Loop line and Ashuganj-Bakhrabad Loop Line instead. l Refurbish SCADA facilities of GTCL. l Cary out on-stream pigging of major transmission pipelines. l Carefully recheck conceptual Design of Gas Compressor station at Ashuganj and Elenga and expedite Implementation. l Ensure that GTCL has competent manpower to operate Compressor stations and Transmission Pipeline Facilities including SCADA Facility. The writer can be reached at: [email protected] 4 Cuba sweetens pot for new private farmers The country imports a budget-busting 60 per cent to 70 per cent of the food it consumes and the average age of farmers and labourers is now 50 years old, writes Marc Frank of Reuters from Havana Cuba, trying to lure people back to the land and lift food production, has modified a land lease programme so that private farmers can rent more land and keep it in their family as if they owned it, farmers said over the weekend. The measures, adopted at a recent Council of Ministers meeting and not yet announced, are the latest loosening of the doctrinaire communism that has ruled Cuban agriculture policy for decades and were hailed by farmers as a step forward. Farmers said in telephone interviews they were told in local meetings they will be able to lease up to 165 acres (67 hectares) from the state beginning in January, compared with the current maximum of 33 acres (13 hectares) mandated in a programme begun in 2008. They said the leases will extend for up to 25 years, compared with the current 10 years, and can be renewed and passed on to family members and in some cases labourers. Farmers also will be allowed for the first time to build homes on the leased land and make other improvements under a regulation that guarantees the state will reimburse them if they lose their lease. They had complained that the small size of the plots, short leases and other restrictions hampered production. "These measures deal with many of the problems we face and give us security in terms of our work," Anselmo Hernandez, one of 150,000 people who have leased 4.0 million acres (1.6 million hectares) of land, said from eastern Cuba. "Twenty-five years is a life-time of work and faced with whatever problem the family will be the benefactor of what we have done," he added. Cuba nationalized most property after the 1959 revolution and the state owns more than 70 per cent of the arable land on the Caribbean island. Private farmers, using only 24 per cent of the land, were responsible for 57 per cent of the food produced in Cuba in 2010, a local agricultural expert said. The expert, asking for anonymity, said the new changes "amount to the state granting land to the private sector indefinitely under the guise of leasing, and no doubt most farmers expect that well before their lease is up they will get title to it." Stagnating Economy: President Raul Castro has made agriculture the centrepiece of his efforts to reform the stagnating, Soviet-style economy in favour of more local and private initiative, but food production has increased only slightly since he replaced his brother, Fidel Castro, in 2008 and remains below 2005 levels. The country imports a budget-busting 60 per cent to 70 per cent of the food it consumes and the average age of farmers and labourers is now 50 years old. Castro has decentralized decision-making on agricultural policy, increased prices paid for produce and promised farmers more freedom to grow and sell their crops. In November new measures were announced making it easier for farmers to get bank credits and allowing them to sell produce directly to the tourism sector, bypassing the state. They are all part of more than 300 reforms adopted by the ruling Communist Party at an April congress to "update" the economy. Oscar Palacios, president of the "Antonio Briones Montoto" agricultural cooperative in the central town of Florida, said the new farming measures were "of enormous importance." "Now producers will feel much more motivated and secure that the fruit of their labour will be theirs," he said. "They bring farmers and their families closer to the land they work. They make them feel the land is really theirs."
the gas industry that the syndication is alleged to have returned, writes Khondkar A Saleque Despite suggestions from professional experts, Bangladesh has not yet adopted appropriate strategy to diversify its fuel sources. Natural gas still remains the basic primary fuel for power generation and industrial as well as commercial use. The contingency measures Bangladesh adopted so far in setting up several imported liquid fuel-based rental plants has put serious strain on the economy for subsidence burden. The price hike of fuel and power to tackle the situation has already sparked public wrath and debate. Bangladesh has failed to initiate mining of its coal resources in a way that is technically apt and financially viable. Even if the mining starts now it will take 3-4 years to reap the harvest out of it. Import of LNG and coal is difficult for both technical and financial constraints. In the short and medium-term, Bangladesh has to keep relying on its own natural gas. While the government has taken some initiatives through BAPEX and IOCs to bump up production, it has failed to maintain its gas transmission networks professionally to operate these at design capacity. It also failed to implement projects for expansion of transmission infrastructure in time. Lack of required gas production from gas fields (demand much higher than production), absence of required gas evacuation facilities, and failure to operate facilities professionally have created massive gas draught all over gas franchise. This write up will discuss the gas transmission planning of Bangladesh. National gas grid and GTCL: Gas transmission is a specialised operation which traditionally falls under midstream in the gas value chain. GTCL was formed in Bangladesh in 1994 to unbundle and restructure the vertically integrated gas system operation in Bangladesh. It is mandated to own, operate, maintain, and expand national gas transmission grid as natural monopoly. As per its article of association and business plan, all gas transmission facilities forming part of national gas grid should have been handed over to GTCL by this time. But the pipelines that GTCL own and operate now are: l Beanibazar - Koillashtilla 18Km Long 20"OD Gas transmission Pipeline. l Koillashtilla - Ashuganj 178 Km Long 24"OD North -South Pipeline. l Rashidpoor -Ashuganj 82 Km Long 30"OD Gas Transmission Loop Line. l Ashugnaj - Bakhrabad [AB] 58 Km 30" OD Gas Transmission Pipeline. l Bakhrabad - Demra 75KM 20" OD Gas Transmission pipeline. l Bakhrabad - Chittagong 180 Km 24" OD Gas transmission pipeline. l Ashuganj - Elenga [BB] 120Km Long 24"OD Gas Transmission Pipeline. l Ashuganj- Monohradi- Elenga 120Km Long 30"OD Gas Transmission Loop line. l Elenga - Baghabari 90 Km Long 24"/ 30" /24 "/ 20" Gas supply to Western Region Pipeline. l Hatikamrul - Bogra Gas Trans-mission Pipeline. l Dhanua - Savar Pipeline. GTCL has almost completed implementation of following Projects. l Hatikamrul-Bonpara -Rajshahi Pipeline. l Bonpara-Ishwardi -Bheramara Pipeline. Some transmission pipelines operating at high pressure still belongs to local distribution companies . l Ashuganj -Habiganj 50Km long 12" OD Gas transmission pipeline [Existing parallel to N-S ,R-A Pipelines owned and operated by GTCL]. l Titas-Norshingdi -Demra 14" OD Transmission Pipeline. l Monoradi-Norshindi 20" OD Pipeline. l Titas- Norshingdi -Joydevpoor, 16"/14"OD Gas transmission pipeline. l Shahjibazar-Saistagonj Pipeline. SCADA facility: GTCL set up SCADA [Supervisory Control and Data Acquisition] system for centralised monitoring and control of gas transmission operation. The microwave-based system could monitor gas intake and off take into the gas grid from Master Control Centre [MCC] at Demra and Auxiliary Control Centre at Ashuganj. GTCL SCADA System had following features: PC based dual redundant master station servers located at two Independent sites; PC based, Windows NTTM client workstations to provide Human User Interface; On-line pipeline simulation model to provide leak detection, load balancing & scheduling; Duplicated Local Area Network (LAN); Integration of Barco 67" high-resolution video wall system: A dual redundant microwave backbone system carrying voice & data: 67 Proteus 2000 pipeline monitoring RTUs and 8 Proteus 2000 S21 communications network monitoring RTUs; Design & installation of metering and measurement instrumentation at 100+ sites. This system had provision for pig tracking software. When SCADA was put into operation it was very helpful in managing and controlling gas transmission operation. Pressures and gas demand at different strategic locations could be monitored live. The effective line pack [high pressure inventory of gas in the pipeline] could be effectively used. Unfortunately, GTCL has failed to maintain the system professionally and SCADA is not in operation now. Some Pipeline Compressor Stations will start operation soon in GTCL System. Policy makers must strongly advise GTCL to make SCADA Operational as soon as possible. On-stream Pigging: During operation of gas transmission lines, some natural gas liquids, water and sludge flow along with gas. GTCL is evacuating gas from Chevron, SGFL, BAPEX, BGFCL, Tullow and Santos operated gas fields. Everyday some liquid, some sludge find way into pipeline and gradually accumulate on the bottom sections [ River and Waterway crossings , low areas] of the pipelines. Normal gas transmission system operation requires on-stream pigging at regular interval to maintain operation of transmission system at design capacity. Unfortunately, the following pipelines have never been pigged since commissioning. l Beanibazar-Koillashtilla 18Km Long 20"OD Gas transmission Pipeline. l Koillashtilla - Ashuganj 178 Km Long 24"OD North -South Pipeline. l Rashidpoor -Ashuganj 82 Km Long 30"OD Gas Transmission Loop Line. l Ashugnaj - Bakhrabad [AB] 58 Km 30" OD Gas Transmission Pipeline. l Ashuganj-Elenga [BB] 120Km Long 24"OD Gas Transmission Pipeline. l Ashuganj-Monohradi- Elenga 120 Km Long 30"OD Gas Transmission Loop line. l Elenga-Baghabari 90 Km Long 24"/ 30" /24 "/ 20" Gas supply to Western Region Pipeline. l Hatikamrul-Bogra Gas Trans-mission Pipeline. l Dhanua-Savar Pipeline. If any informed professional carries out gas transmission system simulation using gas flow and pressure information [in absence of SCADA which had pipeline Modeling Software] it will appear that about 8-10 per cent of the pipeline capacity is already occupied with liquid. In efforts to evacuate higher volume of gas through congested transmission system pressure at different gas hub is depleting causing low pressure situation over entire gas system. For retrieving the design transmission capacity and improve pressure it has now become essential that on stream pigging is carried out in a planned manner. This will not only improve pressure over entire gas grid, it may also allow evacuating some additional gas through the existing transmission infrastructures. GAS transmission system expansion: It has come to our notice that Petrobangla/GTCL is proceeding with some gas transmission system expansion projects. These are: l A. Gas pipeline compressor station at Muchai [Chevron Hijacking it from GTCL], Ashuganj and Elenga. l B. Bakhrabad-Shiddhirganj Gas Transmission Loop Line l C. Jalalabad-Bibiyana-Dhanua Gas transmission Pipeline. l D. Ashuganj-Bakhrabad Gas Trans-mission Loop line. l E. Titas-AB Pipeline MLV 1 Pipeline. l F. Bheramara -Khulna Gas Trans-mission Pipeline. Petrobangla with the assistance of a foreign consultant developed a GAS system master plan. Some of the above pipelines were not in the list. We are not sure why Jalalabad-Bibiyana-Dhanua ppeline is being constructed? The ppeline route from Bibiyana-Dhanua will traverse through low-lying marshy areas, which are not recommended for any transmission pipeline construction. It will need Swap Buggies and other amphibious construction equipment. Even if it is built it will create nightmare for operation. It will mainly evacuate gas from Bibiyana gas field. Bibiyana is now producing about 750mmcf a day. In about 3 years about 200mmcfd gas will be required for Bibiyana power plants alone. Shahjalal Fertiliser factory will also require about 45-50mmcfd. A major portion of gas for the 1500mmcfd Ashuganj Compressor station has to come from Bibiyana. In this situation, what can guarantee design life time guarantee of at least 500mmcfd gas through Bibiyana-Dhanua Pipeline? We recommend that GTCL instead should extend Rashidpoor-Ashuganj pipeline to Koillashtilla and expedite implementation of gas pipeline compressor stations. Ashuganj-Bakhrabad pipeline and Ashuganj-Bakhrabad loop line will carry enough gas to Bakhrabad gas hub for diverting to Demra and Chittagong area. GTCL should rather take up construction of a bi- directional Bakhrabad-Chittagong gas transmission pipeline as the existing pipeline cannot transport additional gas to Chittagong. We also do not understand the logic of constructing 24?OD pipeline from Titas Gas Field to MLV1 of Ashuganj pipeline when Ashuganj-Bakhrabad gas transmission pipeline and gas compressor station at Ashuganj are under implementation. If there is any new pipeline to be built in the area, it can be Titas Gas Field-Ashuganj Manifold. MLV1 has only 12? OD off take. Unless a hot tapping on 30?OD A-B pipeline is in the plan construction of 24"OD pipeline will be of little use. Implementation schedule of gas transmission pipeline: It has also come to our notice that Petrobangla/ GTCL has planned to build some major pipelines and facilities by June 2013. Perhaps some people tried to befool policy makers with highly ambitious schedule. Acquiring ROW, procurement of materials, engagement of construction contractor cannot be completed by end 2012. Pipeline construction alone will take two dry seasons at least. This author was involved in major gas infrastructure development projects in Bangladesh. Even the recent track records of GTCL do not show that any of the newly-conceived transmission infrastructure development will see light at the end of the tunnel by June 2013. Construction tenders are again in mafia syndicates grip: An unholy group of smart manipulators of gas pipeline contractors used to manipulate gas pipeline construction tenders through syndication. With great difficulty the syndicate could be dismantled. But sympathisers and beneficiaries are so firmly anchored in the gas industry that the syndication is alleged to have returned. One group makes the project management manipulate eligibility criteria to keep genuine bidders at bay. Some stringent condition is included in qualification criteria. But when the privileged bidder gets the work, it does not mobilise the listed equipment [Side Boom Pipe layers, Graders, Backhoe excavator.etc]. Sections of large diameter pipeline are allegedly lowered in very unsafe manner by pushing it by dodgers. Pipeline inspectors hardly care for the quality and integrity of the pipelines. Petrobangla /GTCL must ensure that tendering process is transparent and pipeline quality inspection is accountable. Transmission planning must be done effectively: For confronting present gas crisis transmission planning must be done by experienced professionals effectively. GTCL with its present technical manpower will struggle to complete one major project. It is now burdened with several mega projects. Moreover, its major responsibility of operating the system professionally is being increasingly overlooked. To mitigate and manage crisis, policy makers must act for the following: l Rethink Bibiyana- Dhanua Pipeline and construct Koillashtiall- Rashidpoor Loop line and Ashuganj-Bakhrabad Loop Line instead. l Refurbish SCADA facilities of GTCL. l Cary out on-stream pigging of major transmission pipelines. l Carefully recheck conceptual Design of Gas Compressor station at Ashuganj and Elenga and expedite Implementation. l Ensure that GTCL has competent manpower to operate Compressor stations and Transmission Pipeline Facilities including SCADA Facility. The writer can be reached at: [email protected] 4 Cuba sweetens pot for new private farmers The country imports a budget-busting 60 per cent to 70 per cent of the food it consumes and the average age of farmers and labourers is now 50 years old, writes Marc Frank of Reuters from Havana Cuba, trying to lure people back to the land and lift food production, has modified a land lease programme so that private farmers can rent more land and keep it in their family as if they owned it, farmers said over the weekend. The measures, adopted at a recent Council of Ministers meeting and not yet announced, are the latest loosening of the doctrinaire communism that has ruled Cuban agriculture policy for decades and were hailed by farmers as a step forward. Farmers said in telephone interviews they were told in local meetings they will be able to lease up to 165 acres (67 hectares) from the state beginning in January, compared with the current maximum of 33 acres (13 hectares) mandated in a programme begun in 2008. They said the leases will extend for up to 25 years, compared with the current 10 years, and can be renewed and passed on to family members and in some cases labourers. Farmers also will be allowed for the first time to build homes on the leased land and make other improvements under a regulation that guarantees the state will reimburse them if they lose their lease. They had complained that the small size of the plots, short leases and other restrictions hampered production. "These measures deal with many of the problems we face and give us security in terms of our work," Anselmo Hernandez, one of 150,000 people who have leased 4.0 million acres (1.6 million hectares) of land, said from eastern Cuba. "Twenty-five years is a life-time of work and faced with whatever problem the family will be the benefactor of what we have done," he added. Cuba nationalized most property after the 1959 revolution and the state owns more than 70 per cent of the arable land on the Caribbean island. Private farmers, using only 24 per cent of the land, were responsible for 57 per cent of the food produced in Cuba in 2010, a local agricultural expert said. The expert, asking for anonymity, said the new changes "amount to the state granting land to the private sector indefinitely under the guise of leasing, and no doubt most farmers expect that well before their lease is up they will get title to it." Stagnating Economy: President Raul Castro has made agriculture the centrepiece of his efforts to reform the stagnating, Soviet-style economy in favour of more local and private initiative, but food production has increased only slightly since he replaced his brother, Fidel Castro, in 2008 and remains below 2005 levels. The country imports a budget-busting 60 per cent to 70 per cent of the food it consumes and the average age of farmers and labourers is now 50 years old. Castro has decentralized decision-making on agricultural policy, increased prices paid for produce and promised farmers more freedom to grow and sell their crops. In November new measures were announced making it easier for farmers to get bank credits and allowing them to sell produce directly to the tourism sector, bypassing the state. They are all part of more than 300 reforms adopted by the ruling Communist Party at an April congress to "update" the economy. Oscar Palacios, president of the "Antonio Briones Montoto" agricultural cooperative in the central town of Florida, said the new farming measures were "of enormous importance." "Now producers will feel much more motivated and secure that the fruit of their labour will be theirs," he said. "They bring farmers and their families closer to the land they work. They make them feel the land is really theirs."