Jt venture policy to woo cos for energy sector dev in limbo
Wednesday, 17 March 2010
M Azizur Rahman
The government is yet to adopt a planned joint venture policy to engage competent foreign and local companies develop the country's ailing energy sector partnering with the state-owned entities due to lack of concentration of the energy ministry high-ups, officials said Monday.
The draft of the proposed policy was prepared in 2008, aiming to woo the global efficient and financially-sound companies to work with the less efficient and financially-handicapped state-run energy companies to jointly develop the much-needed energy projects.
The ministry officials said developing coalmines, building petroleum refinery, and exploring oil and gas were among the key fields that the government targeted to implement under the policy. Building of liquefied natural gas (LNG) terminal has also been planned in the policy.
However, absence of concentration of and lack of coordination among the energy ministry high-ups have led to 'shelving' the draft, said the ministry sources.
When contacted Petrobangla chairman Dr Hossain Monsur admitted the delay in adoption of the much-needed joint venture policy. "We are yet to decide on adoption of the joint venture policy. But the decision might come soon," he said.
"We had initiated the move to adopt the policy to implement some energy projects under joint venture with foreign firms where the state-owned companies have capacity constraints," Professor M Tamim told the FE.
Initially development of the Petrobangla-owned Dighipara coalmine in the northern region was in the focal point, said Mr Tamim, the then adviser of the caretaker government.
The draft of the policy was formulated during the caretaker government, keeping provisions of exempting important energy projects outside the purview of the private procurement regulations (PPR), said a senior energy ministry official.
It recommended empowerment of the energy ministry to approve relevant development projects worth up to $50 million, exempting the PPR provisions to speed up necessary activities.
The draft policy also recommended constitution of a 'joint venture cell' to expedite energy sector development works and avoid delays in forwarding energy ministry files by the relevant ministries, he said.
It also opted for strengthening the state-owned Petrobangla to deal with the new set of works to be implemented under the policy, and suggested formation of a separate entity - Petro Division - in this connection. Petrobangla drafted the policy styled, 'joint venture policy for private sector participation in energy sector of Bangladesh.'
The government initiated to formulate the policy immediately after surrendering of several hydrocarbon blocks by some foreign firms including UK's Cairn Energy, Australian Santos and French Total in 2008.
Petrobangla believed the blocks that the IOCs had left still have gas reserve, and could be brought into production if developed under joint venture with low-cost private companies.
The government is yet to adopt a planned joint venture policy to engage competent foreign and local companies develop the country's ailing energy sector partnering with the state-owned entities due to lack of concentration of the energy ministry high-ups, officials said Monday.
The draft of the proposed policy was prepared in 2008, aiming to woo the global efficient and financially-sound companies to work with the less efficient and financially-handicapped state-run energy companies to jointly develop the much-needed energy projects.
The ministry officials said developing coalmines, building petroleum refinery, and exploring oil and gas were among the key fields that the government targeted to implement under the policy. Building of liquefied natural gas (LNG) terminal has also been planned in the policy.
However, absence of concentration of and lack of coordination among the energy ministry high-ups have led to 'shelving' the draft, said the ministry sources.
When contacted Petrobangla chairman Dr Hossain Monsur admitted the delay in adoption of the much-needed joint venture policy. "We are yet to decide on adoption of the joint venture policy. But the decision might come soon," he said.
"We had initiated the move to adopt the policy to implement some energy projects under joint venture with foreign firms where the state-owned companies have capacity constraints," Professor M Tamim told the FE.
Initially development of the Petrobangla-owned Dighipara coalmine in the northern region was in the focal point, said Mr Tamim, the then adviser of the caretaker government.
The draft of the policy was formulated during the caretaker government, keeping provisions of exempting important energy projects outside the purview of the private procurement regulations (PPR), said a senior energy ministry official.
It recommended empowerment of the energy ministry to approve relevant development projects worth up to $50 million, exempting the PPR provisions to speed up necessary activities.
The draft policy also recommended constitution of a 'joint venture cell' to expedite energy sector development works and avoid delays in forwarding energy ministry files by the relevant ministries, he said.
It also opted for strengthening the state-owned Petrobangla to deal with the new set of works to be implemented under the policy, and suggested formation of a separate entity - Petro Division - in this connection. Petrobangla drafted the policy styled, 'joint venture policy for private sector participation in energy sector of Bangladesh.'
The government initiated to formulate the policy immediately after surrendering of several hydrocarbon blocks by some foreign firms including UK's Cairn Energy, Australian Santos and French Total in 2008.
Petrobangla believed the blocks that the IOCs had left still have gas reserve, and could be brought into production if developed under joint venture with low-cost private companies.