No decision on Tata investment before a clear picture of gas reserve: Aziz
Thursday, 4 October 2007
FE Report
Finance adviser AB Mirza Azizul Islam said the caretaker government will not be able to take any decision about the Indian business conglomerate Tata's US$3.0 billion investment proposal before getting a clear picture about the country's gas reserve position.
"It is not possible to take a decision about the Tata's investment proposal because we don't have any concrete data about the actual reserve of gas as the terms and conditions have a clause to provide gas supply to Tata's projects for several years," the finance adviser told reporters after a meting with Asian Development Bank's (ADB) South Asian Department director general Kunio Senga Wednesday.
"The government will have to assess the actual gas reserve. There are several findings about the gas reserve but we're not sure which one is correct," the finance adviser said.
Tata's investment proposals include a coal mining project, coal-fired power plant, a fertiliser factory and a steel plant.
During the meeting at the Planning Commission, Asia Energy's Phulbari coalmine project and post-flood rehabilitation issue also came up for discussion. ADB country director Hua Du was also present at the meeting.
Responding to a question about Phulbari coalmine, Mirza Aziz said Asia Energy's proposal will be discussed after formulation of a coal policy.
"The government is now formulating a coal policy and we can give a serious look at the contract (with Asia Energy) and revision," he added.
Mirza Aziz, however, admitted that delays in taking decision on investment proposals had been giving wrong signals to foreign investors.
The finance adviser said the government has formed a committee headed by the planning secretary to assess the losses caused by the flood.
"As per our primary estimate, the flood damage will be within US$ 200 to US$ 250 million," Mirza Aziz said. The government is hopeful of getting adequate support from donors for rehabilitation and the remaining part to be managed from domestic resources, he added.
ADB's South Asian Department director general Kunio Senga said the ADB is interested to provide assistance for the Phulbari coalmine project if the government needs.
"ADB will take a decision for providing assistance for the coalmine after discussing with a government-formed technical committee," he added.
He said the ADB is yet to start its needs assessment to help in its flood rehabilitation works.
"We formed a team for needs assessment because we realised that the flood in Bangladesh was severe after Bangladesh's finance adviser's visit to Manila," Senga said.
Finance adviser AB Mirza Azizul Islam said the caretaker government will not be able to take any decision about the Indian business conglomerate Tata's US$3.0 billion investment proposal before getting a clear picture about the country's gas reserve position.
"It is not possible to take a decision about the Tata's investment proposal because we don't have any concrete data about the actual reserve of gas as the terms and conditions have a clause to provide gas supply to Tata's projects for several years," the finance adviser told reporters after a meting with Asian Development Bank's (ADB) South Asian Department director general Kunio Senga Wednesday.
"The government will have to assess the actual gas reserve. There are several findings about the gas reserve but we're not sure which one is correct," the finance adviser said.
Tata's investment proposals include a coal mining project, coal-fired power plant, a fertiliser factory and a steel plant.
During the meeting at the Planning Commission, Asia Energy's Phulbari coalmine project and post-flood rehabilitation issue also came up for discussion. ADB country director Hua Du was also present at the meeting.
Responding to a question about Phulbari coalmine, Mirza Aziz said Asia Energy's proposal will be discussed after formulation of a coal policy.
"The government is now formulating a coal policy and we can give a serious look at the contract (with Asia Energy) and revision," he added.
Mirza Aziz, however, admitted that delays in taking decision on investment proposals had been giving wrong signals to foreign investors.
The finance adviser said the government has formed a committee headed by the planning secretary to assess the losses caused by the flood.
"As per our primary estimate, the flood damage will be within US$ 200 to US$ 250 million," Mirza Aziz said. The government is hopeful of getting adequate support from donors for rehabilitation and the remaining part to be managed from domestic resources, he added.
ADB's South Asian Department director general Kunio Senga said the ADB is interested to provide assistance for the Phulbari coalmine project if the government needs.
"ADB will take a decision for providing assistance for the coalmine after discussing with a government-formed technical committee," he added.
He said the ADB is yet to start its needs assessment to help in its flood rehabilitation works.
"We formed a team for needs assessment because we realised that the flood in Bangladesh was severe after Bangladesh's finance adviser's visit to Manila," Senga said.