Govt.’s indecision is the main problem for coal extractionextraction

Sanchita Seetu

The main problem for coal extraction is the indecision of the govt. The speakers took part in the debate over coal extraction and said there is no alternative of coal extraction and the govt. need to take decision immediately in this regard. But, few of them opined to approve the coal policy first. Dr. Badrul Imam, Prof of Geology at Dhaka University said all the issues like investment proposal, royalty, private-public partnership etc are incorporated in the coal policy, so the coal policy should be finalized first. The other issues, not included in the policy can be resolved through discussion. Mr. Kamrul Islam Siddique, former Chairman of PDB said there are three investment proposals for coal mine development have been awaited for govt.’s approval. These proposals should be approved reviewing the existing Environment Act and Minerals Rules without any delay. Dr. Izaz Hossain, Professor of Chemical Engineering at BUET said a small but economically viable pilot project which is acceptable to all can be started after govt.’s approval; and large scale mining will be commenced minimizing the difficulties arises in the pilot project. The country’s coal reserve can be used to generate electricity of 20,000-MW over a period of next 20 to 30 years. Therefore, coal needs to be extracted depending not on gas only.SM Mahfuzur Rahman, Prof. of Economics at Dhaka University said the crisis for gas is alarmingly increasing day by day, and it may happen that coal will to be extracted using candle light. Renewable energy is not sufficient to meet the energy crisis. Dr. M Tamim, Special Assistant to CA for Power, Energy and Mineral Resources said the coal policy has been sent to the Advisory Council, and the present investment proposals will be approved by open tendering process following approval of the Advisory Council.

Edited by: M A Hossain

Amadershomoy
Date: 27 July 2008, Bangladesh
Link: http://www.amadershomoy.com/online/content/2008/07/27/news0267.htm

Will There Be Any Reasonable Coal Policy?

Farid Hossain

In her farewell speech as the Bangladesh country representative of ADB Hua Du told a group of journalists that she had been impressed with the performance of Bangladesh’s economy. What had stricken her most is the resilience of the Bangladeshis in the face of natural disasters: floods and cyclones. Kudos to the dynamic and resilient people of Bangladesh, a smiling Hua Du said at a recent farewell reception. However, even a super optimist like Huq Du, a Chinese national, was not happy with the way Bangladesh has dealt with power and energy. This sector _ so vital to the economic development _ got no grade points from the outgoing official. What great potentials this sector has in taking the country’s economy to a new heights! But so little has been done! Huq Du could not hide check her. Neither did she mince any words in her criticism.
As the ADB chief in Bangladesh Hua Du did what her organization had wanted her to do: to sell ADB ideas and prescriptions to the government of Bangladesh. Her performance was flawless, near perfect. Power and Energy, however, is one of the few areas where she could not make any impact. On her farewell night she spoke about the country’s coal reserve and the potentials the natural resource has in producing electricity in power-hungry Bangladesh.
Bangladesh has been buffeted with electrify crisis not for lack of resources but for lack of initiatives. That we all know. First, there was the BNP-led coalition government that did nothing to add new electrify to the national grid. No new projects and no new plants. No additional electricity. The demand had kept rising, but there had been no effort to augment the supply. That was when Khaleda Zia was the prime minister during her second term. She kept telling the nation that her government had flooded it with development even though her government inexplicably failed in creating even a single kilowatt of electrify.
Having inherited the crisis from Khaleda’s failed regime the caretaker government of Fakhruddin Ahmed has been in trouble in coping with it. It has not dared to go for any big plan to set up new power plants to meet the growing demand. Instead, it first focused on austerity and better management of electricity consumption. As part of its austerity drive the caretaker government forced the shops in capital city and elsewhere to shut down by 8 p.m. every night. The measure, the government thinks, has helped save some power. Load shedding has remained the central feature in management of consumption. Every one is suffering - domestic, commercial and industrial users. Frequent outages have hurt the economy.
Then came the government initiative to make a coal policy that will be acceptable to all. Coal has grabbed the central stage of the government’s energy policy after some experts _ supported by donors _ concluded that coal _ not the gas _ should be used for producing electricity. According to them Bangladesh should turn its attention from gas to coal to make electricity. Natural gas, once thought to be available on plenty in Bangladesh, is now in short supply. There is also no sign yet when a full scale exploration of gas will be possible. On the other hand coal is available and the current reserve is good enough to attract foreign investment. Asian Energy is there. But there are at least three other companies eyeing on our coal reserve. The four companies, I’ve been recently told, are proposing to investment at least US$5 billion.
The Asian Development Bank and other donors support exploration of coal to produce electricity. The coal policy drafted by a national committee is awaiting government’s approval. Will the policy end the controversy centering the use of coal. Or will it ignite more debate?

Energy & Power
Date: 16 July 2008, Bangladesh
Link: http://www.ep-bd.com/

Open Pit Mining Method is Most Suitable Option for Bangladesh

Dr Raisuddin Ahmad

Senior geologist of LionOre Australia Pty Ltd, Dr Raisuddin Ahmad, has termed Bangladesh’s coal sector a very promising one to accelerate the country’s national economy. Dr. Rais has been working in ‘Black Swan Nickle,’ mine in Carlgorlley, Australia, one of the deepest nickel mine in the world. Born in Narsingdi, Bangladesh, Dr. Rais has obtained his higher degree in geology and mineral industry in Bangladesh, USA and Australia. He was involved in teaching profession for long in Australia. Dr Raisuddin is also a former fellow of Australia’s number one ranking National University said, “Coal can be a useful and effective alternative source of energy to ensure the country’s future energy security and help developing the national economy.”

“But to utilize the country’s coal reserve potentials a bold decision and its immediate implementation are necessary,” Dr Raisuddin Ahmed further stated to Energy & Power Editor Mollah Amzad Hossain during his recent visit to Bangladesh. Following are the excerpts.

EP: Bangladesh has huge coal reserves. But the country is yet to tap its potentials. According to you what are the bottlenecks the country faces and how it can be overcome?

RA: Bangladesh is now facing multifaceted problems like lack of necessary and realistic vision, policy-related complexities and weakness in taking appropriate and timely decisions. Overcoming these bottlenecks is intricate but not impossible. Firstly the government’s vision needs to be changed. The government should be open, free from political confrontation and come out of conservative approach. Appropriate decision should be taken without fear and adequate measures should be taken for its quick implementation. The government must have to maintain strong monitoring especially in the case of social and environmental issues associated with coalmine development and immediate rectification is a must if a wrong is committed. An independent monitoring system can be considered involving eminent scientists, academicians of the country.

EP: How you see the prospect of coal sector in Bangladesh and how it can be utilized?

RA: Coal sector in Bangladesh is very promising. The government must not do any further delay in taking decision on coal sector development. Bangladesh is already lagging behind in utilizing coal resources. The global practice is that around 70-80 per cent of coal is used in coal-fired power plant in the coal-rich countries like USA, China, Germany and Australia. Despite having huge potentials Bangladesh has only one 250 MW coal-fired power plant, which is also struggling for regular supply shortages of coal due to application of wrong mining method in Barapukuria coalmine. The gas reserve of the country is depleting quickly with growing demand and Bangladesh doesn’t have any alternative other than immediate extraction and uses of its coal resources. The preferred option for Bangladesh would be to use coal for base load power generation and save valuable gas resource for other productive uses.

EP: By the way you mentioned about Barapukuria coal mine, what should be the appropriate mining method in Barapukuria?

RA: Geologic reality and economic consideration should come first for selecting mining method. It is very much site specific. In Bangladesh, the main challenge for underground mining is to maintain the subsurface water bearing Dupi Tila layer overlying the coal seams. It is also a challenge for open pit mining. Thick coal seam and unconsolidated overburden materials are also factors in safe and economic mining of the coal resource. Considering the overall geological structure and soil condition of Barapukuria coalmine I must say open pit mining method is most suitable for its mining.

EP: There is a controversy regarding selecting mining method for Phulbari Coal Field. Which method you suggest appropriate for Phulbari?

RA: As the geological structure and soil condition of Phulbari is similar to that of Barapukuria, the open-pit mining method would be a suitable option for getting the maximum benefit out of it. But the authorities concerned must have to be careful about pollution, degradation of environment to maintain a natural equilibrium. Mine dewatering will have significant impacts on underground water regime in the area. But there are well-tested mitigation measures in the world to minimize the impacts of dewatering. RWE Mine, Germany is a great example of efficient subsurface water management. Bangladesh must have to implement those mitigation measures and experiences to ensure availability of water to the affected communities. The local people who will loss their land and other assets for open-pit mining must have to be properly compensated. After coal extraction, the affected lands must have to be reclaimed and rehabilitated for productive uses and should consider returning back to the owner or their successors. The mining should be done in phases to ensure that huge numbers of local people do not need to be rehabilitated at once. The local people must be given proper employment and other opportunities to maintain their livelihood with better status than before.

EP: Bangladesh has several coalfields. According to you how Bangladesh can go ahead to develop those.

RA: As currently Bangladesh has no expertise in coalmining, initially one or two coalmines should be developed with assistance from foreign companies. Foreign companies can develop Bangladesh coalmines under contracts. The remaining coalmines should be kept for local companies to develop. Manpower should be developed through necessary training. Provision should be kept in the contract with foreign companies to ensure employment of maximum number of Bangladeshi nationals. Arrangements should also be there so that local expertise develop seeing and experiencing the works of foreign companies.

Energy & Power
Date: 16 July 2008, Bangladesh
Link: http://www.ep-bd.com/

No more gas-fired power plant in country: Tamim

United News of Bangladesh . Dhaka

Chief adviser’s special assistant for power and energy ministry M Tamim on Saturday said no more gas-based power plant would be set up in the country as there was a shortage of the fossil fuel. He said this while addressing a seminar on Bangladesh’s main challenges to meet future electricity demand, organised by Energy and Power magazine at CIRDAP auditorium.

Referring to the country’s chronic gas crisis that hampers the electricity generation, Tamim said a team was now visiting the gas-fired power plants to identify their efficiency level. Terming the present gas crisis as a legacy of the past, Tamim, a former professor of Petroleum Engineering at BUET, said only one gas field was discovered in the country in the last 10 years. ‘So the present government has to think about gas import.’

He said the use of electricity was increasing day by day because of its low price. Describing the government’s steps to boost gas production, Tamim said state-owned BAPEX was recently allocated the highest fund to expedite its operation. ‘Even we’ve accepted the price that BAPEX offered for its new gas field.’ Calling upon the political parties to reach a consensus on the energy issue he said, ‘We should go for multiple approaches in resolving the country’s power and energy crises.’

’We’re going to hand over power to an elected political government. So, they should use experts to deal with the matters,’ he added. He said the existing coal and gas reserves were enough to ensure the country’s energy security for the next 10 years. ‘So it’s now imperative to take the right decision.’ Taking a swipe at critics, the special assistant said they should come up with their alternative solution to the crisis instead of indulging in criticism.

The seminar was addressed, among others, by Bangladesh Energy Regulatory Commission chairman Ghulam Rahman, former PDB chairman Quamrul Islam Siddique, Planning Commission member AMM Nasir Uddin, Power Cell director general Abdul Jalil and Petrobangla director Mokbul-e-Elahi.

New Age
Date: 20 July 2008, Bangladesh
Link : http://www.newagebd.com/2008/jul/20/front.html#14

Govt stresses coal as a fuel for electricity generation

R Akter

The government plans to stop using natural gas for electricity generation after 2011, as it faces shortages of fossil fuel..

At present 85 percent of electricity is produced by natural gas. Because of the gas shortage, Tamim suggested use of coal as a fuel for electricity generation.
Bangladesh has five coal fields with more than 2.55 billion tonnes of reserves, officials said. "To meet the 300 times more demand for electricity we will require to invest up to $10 billion over the next 20 years," Tamim said. He said entrepreneurs from Bangladesh will be allowed to invest 51 percent in state-run plants to modernise them, which will help to raise power generation by at least 2,000 MW.
The reserves of natural gas are depleting fast and the country is now facing up to 150 million cubic feet (mmcfd) of gas shortages every day," said Jalal Ahmed, chairman of Petrobangla, government oil and gas agency.
Only 30 percent of Bangladesh's more than 140 million people have access to electricity, he said.
"The present per capita electricity consumption is 117 KWH (kilo-watts hour), nearly 6 percent of the world average," he said. Because of old plants, Bangladesh on average can produce only 3,200 megawatts (MW) of electricity, against an installed capacity of 5,200 MW, officials said.
"Over the next 20 years as we plan to become a middle income country by raising our economic growth to at least 10 percent from 6 percent now, the country will have to produce about 13,000 MW," Tamim told a meeting attended by senior officials, business leaders, representatives of development partners and energy experts.
Natural gas is the prime feedstock for producing fertiliser, vital to raise grain production to ensure food security in the country. Also government plans to open its power sector to private investment to help it out of a long-running and deepening crisis, official said.
"A policy is being finalised to give private sector full support, which will enable them to invest even in the state-run power plants and make then more productive," said M. Tamim, special assistant to the chief of Bangladesh's caretaker government, responsible for power, energy and mineral resources.

Weekly Economic Times

13/07/08

Link:http://www.weeklyeconomictimes.com/news-details.php?recordID=1326

Energy Crisis of Bangladesh–Issues & options

Saleque Sufi

Bangladesh is passing through a very critical juncture of its history. A nation of about 150 million living in a country of 58,000 square kilometers is struggling against all possible odds that a nation has to encounter for survival. Very difficult global situation of worsening food security and very tight energy security has made its struggle all the more difficult. Bangladesh won independence in 1971 after 9 months of blood birth. The occupation Pakistan army ravaged its economy, sucked its resources and killed its intelligentsia. Unfortunately, democracy did not survive for more than four and half years after independence. While the country was in relentless struggle to set its roots firmly in the ruins the conspirators with the assistance of their plant agents killed the father of the nation and front line leaders of liberation war in 1975.

From 1975 till 1990 brute military in the cover of regulated democracy ruined all the democratic institutions, made corruption, nepotism and anarchy our household affairs. Only money and muscles dominated over plain thinking and honest living. A complete generation of fair and honest thinking Bangladeshis either migrated to foreign countries of became silent majority in Bangladesh. All the values of liberation war and spirits were tarnished. Anti-liberation forces and their agents established themselves very alarmingly. Terrorism set its roots in.

Fortunately dedicated political forces struggled to restore democracy and by early 1990s democracy was restored. Two ordinary housewives, widow of slain President Ziaur Rahman and daughter of martyred Father of the Nation Bangabandhu Sheikh Mujibur Rahman led the struggle for democracy. These two ladies in three terms of 5 years each led there democratic government. They try to lead the country at their level best within their serious limitations. But their success was mostly overshadowed by the organized internecine and self-destructive activities of ill motivated civil and military bureaucracy. Consequently, the basic fabric of democracy got infected. The country became a happy hunting ground for corrupt syndicates and terrorists. The country earned the evil reputation of the most corrupt country for several years in succession. This happened despite the fact that our very innovative framers created wonder in agriculture front.

Bumper crops kept the nation of 150 millions alive. Our poor garments girls’ helped earn huge foreign exchange, our hardworking labor force from abroad spiraled our remittance. The majority hard working poor Bangladeshis despite of their honest and sincere nation building efforts were disgraced by atrocities and corruptions of few white colored bureaucrats, technocrats and misguided politicians. Unfortunately several unsocial elements under patronage major political parties sucked the blood of innocent people and earned bad names.

Specially during the tenure of the last BNP-led four-party alliance rule a group of Hawa Bhaban sponsored mafias made the country happy hunting ground for grabbing and looting. Energy sector became the easy prey. While the demand for energy increased geometrically the generation and production remained almost static. By the time the government completed its tenure the energy sector almost became non functional. The immediate past government set all the machineries to manipulate election to continue their evil nation destructing operation. Fortunately, people’s movement led by positively thinking political elements put a halt to the conspiracy of the evil groups. The Care Taker Government took over primarily to create enabling environment for free fair and credible election. But again the evil design of a certain group created impediments at every step. Government appeared to have been driven off track on many issues in some occasions. It faltered time and again, wasted time in unnecessary issues. Consequently it failed to address major issues like food security and energy security.

Repeated natural calamities, global recession, fuel and food crisis also did not help their cause. But the situation has come to a stage where immediate election and handing over or power to elected government has become the necessity of the hour. The energy situation has reached such a terrible stage that even the elected government will have to struggle a lot to bring things back on track over the next elected term.

Recently the author tried to link with friends and senior Bangladeshi expatriate energy professionals sharing their views about present, immediate and long-term energy options for Bangladesh. If all the matters of discussions are to feature in details it cannot be accommodated. However, in the briefest of form these are being addressed here.

Present Energy Scenario of Bangladesh

· Bangladesh ranks low in terms of both Per Capita Energy Consumption and Energy Intensity.

· About 32% have access to Power & about 10% have access to Natural Gas.

· The average daily power demand is 5000 MW and gas demand is about 1900 MMCF.

· The Effective Power Generation Capacity is 4000 MW and Actual Daily Gas Supply is 1750 MMCF.

· Transmission Capacities of Power and Gas as well as System loss is not taken into account here.

· The huge deficit of power and gas supply have created severe energy crisis.

· The country’s power generation is basically mono fuel based with about 90% produced from Natural Gas.

· Other options are lone Hydro Electric Plant at Kaptai, The Lone Coal Based plant at Barapukuria and several small furnace oil and Diesel Plants in the northern and Southern Region.

Effects of Uncertain Energy Scenario

· Gas Supply constraint has restricted power generation specifically in Chittagong region.

· Power Crisis has impeded industrial operation and almost halted further industrial growth. It tends to stall economy, trade and commerce.

· This may put already depleting forest resources under severe stress with consequent adverse environmental impacts.

· The country may drift into chaos and uncertainty, poverty and anarchy may trigger terrorism and instability.

· Anti Bangladesh elements may try to brand Bangladesh as a failed country.

· The opportunity lost may prove catastrophic and may entice yet more bright and dynamic professionals to migrate to foreign countries for better living.

· In this technology driven energy world the consequent brain drain may bring more disasters.

· The potential FDI in energy and downstream sectors may change direction to Vietnam, Cambodia and other destinations.

· Even Bangladeshi industrial entrepreneurs may lose incentives to invest.

· These will create major unemployment crisis and frustrations.

Reasons For crisis

· Bangladesh failed to set up a functional energy Authority of competent, honest, dynamic energy professionals due to inappropriate policy, lack of good governance, inappropriate human resource development policy.

· Bangladesh even could not organize effective reservoir management team to asses the exact extent of its reserve and resources and allowed unnecessary debates of theoreticians and thereby policy makers got confused and refrained from taking appropriate decisions at right time.

· Bangladesh could not develop any energy institution capable to undertake operations independently. Government interfered too much.

· Bangladesh failed to Develop Bapex as flagship national company in upstream exploration and development.

· Bangladesh failed to set up a competent unit to monitor and mange operation of IOCs and as such failed to get technology transfer or control costs of IOCs.

· Bangladesh could not adjust price of fuel in domestic market to international level. As such the high differential in purchase of gas from IOCs and selling in domestic market cause tremendous financial hardship for gas companies. Similarly PDB is in serious trouble with power from IPPs and BPC is almost on the verge of collapse for buying Petroleum at sky scraping price and selling at poor domestic price.

· Energy companies never allowed working with any freedom and autonomy. Government and Corporation officials dominate company boards. These make the company autonomy mockery.

· Bangladesh failed to effectively explore and exploit it sizeable gas and Coal resources to extract maximum national benefit.

· Vast portion of onshore and almost entire off shore area have not been surveyed even for hydrocarbons and minerals.

· In absence of drilling and depletion strategy Bangladesh destroyed potential Bakhrabad and Sangu gas structures and also allowed minor companies like Occidental and Niko to destroy our resources at Magurchhara and Tengratilla.

· Petrobangla, PDB and Energy Companies are dominated by unworthy politically blessed civil and Military Bureaucrats and wrong professionals.

· Very intelligent energy sector mafias misguided even the Care Taker Energy Management. In almost a year and a half CTG failed miserably to bring meaningful changes. Contingency Power Plants are wrong decision. In future another group of people will be brought to dock for wrong decisions. The approach for 450 MW major plants at Nabiganj (Beside Bibiyana) and Sirajganj were OK. But the tendering and evaluation process followed same fussy route to favor blessed ones. Wonder whether similar syndicate is involved in Deep water drilling also.

The present situation requires complete overhauling of energy sector organizations, management and other related matters. We mostly agreed on the following short, mid and long term options.

Actions Required

· Political Commitment and National Consensus to effectively encounter the Energy Challenges.

· Properly articulated National Energy Vision and defined Time bound mission to achieve the national vision.

· Energy issues along with Food, Education, Shelter, Medicare, and Security must be considered basic fundamental rights of the citizen and must be kept clean of politics.

· Very specific, focussed, comprehensive Energy Sector Master Plan in pursuance with Country’s Energy Policy must be adopted. This must include Power sector development plan, gas sector development plan, Coal sector development plan, Renewable research and development plan, nuclear options, Regional Energy Trading issues.

· Government must stay out of Energy business and restrict role to policy formulation.

· Strong Energy Regulatory Commission through transparent policy and strong auditing create level play ground for private and public energy companies to mange and operate all segments of energy value chain in [proper competitive commercial environment.

· Energy Pricing must be market oriented and Regulatory commission must set proper toll and tariff mechanism.

· LPG and Coal may be used for domestic and commercial sectors

· Construct Gas Transmission loop line from Bakhrabd Gas Field to Chittagong City Gate Station.

· Cairn must complete further exploration of Mognama and Hatiya and keep its contingent actions ready to link probable gas wells to Sangu offshore platform if gas is found.

· If possible scrap the deepwater drilling tender and go for fresh tender. Arrange proper road shows to attract oil majors to participate in the bidding. In the meantime we must endeavour to complete demarcation of maritime boundary and Exclusive Economic Zone.

· BAPEX must proceed with Exploration and Development of assigned blocks. Chevron, Cairn, Tullow and Total must carry out exploration in assigned blocks or relinquish.

· Bangladesh must reopen discussion with neighbours for a probable gas and power regional Grid.

· Commence coal exploration at Phulbari without delay in the most economic and technically appropriate manner. Start Coal based pant implementation. All shallow coal mines must be put under development soon with the aim to explore and exploit maximum resources maintaining required environmental and safety priorities. The affected people must be properly compensated and rehabilitated.

· Start works for at least 1000MW capacity Nuke plant adopting the safest and proven technology.

· Aggressively approach Solar, Wind and Bio fuel options. All the prospects of solar power, wind energy must be exploited. Bangladesh must seek help of Expatriate Bangladeshi Scientists and Professionals for Bio Fuels (Oil from Algae). Bangladesh must interact with Australian Government for Clean Coal Technology and South African Government for Liquid from Coal.

The caretaker government must also discuss energy sector management issues with political parties and professional group. If we fail to appropriately address the present very uncertain and very critical energy situation properly the national economy may suffer serious stagnant situation for a long time. This is not desirable for any peace loving self respecting person.

We must remember continued crisis in Energy sector w3ill cause disastrous situation in our agriculture, commercial and Industrial sectors. Economy will become stagnant and even non functional. It is for our national survival in a very difficult situation we must immediately agree on basic minimum issues in the shape of National Energy Agenda.

Energy & Power

Date: 01/07/08

Link: http://www.ep-bd.com/

India eyes B’desh energy resources

ET Report

Indian Foreign Minister Pranab Mukherjee said, Indian policy towards Bangladesh is changing. In fact, right time and environment is required to improve relations between the two countries.He refrained from explaining the state of just time and environment while holding talks with a group of journalists last week at the Syed Nausher Ali Hall of Bidhan Shabha in Kolkata. It was, however, the first time that he did not raise old complaints again. While Bangladeshi journalists expressed the opinion that exploration of oil and gas in Bangladesh will face setback due to objections raised by India regarding demarcation of maritime boundary he simply said, we are trying to finish the maritime demarcation work promptly.He put emphasis on setting rail link over Bangladesh to other side of India and building energy cooperation between the two countries.West Bengal Chief Minister Buddhadeb Bhattacharjee , who is know for his claiming existence of terrorist camp in Bangladesh, was present in the same meeting. He kept complaints hidden and said, the two countries need to be saved from unnecessary doubts. India needs some resources from Bangladesh and Bangladesh also needs some resources from India. We should use the resources through joint programmes.Responding to a question by a senior journalist as to whether 'some resources' in Bangladesh include coal and gas he said West Bengal needs several thousands mw electricity, but it has no scope of coal production. We want to utilise the huge coal from Dinajpur in Bangladesh. It would be more comfortable to get coal from Bangladesh than that from China or Indonesia. The proposal of Tata remains pending. Besides, we want to use gas. It is, therefore, there is a link between the dispute over maritime line and the joint use of Bangladeshi resources.It may be mentioned that there is a similarity between the versions of the anti-oil, gas, coal exploration campaigners in Bangladesh and Indian objections. Many people know it but do not express. The persons involved in anti-mining campaign in Bangladesh have close relations with the CPI (M) government in West Bengal. Those who are active in anti-mining campaigns in Dinajpur maintain close contacts with a section of leftist leaders in West Bengal.

Weekly Economic Times,Bangladesh

Date:06/07/08

Link:http://www.weeklyeconomictimes.com/news-details.php?recordID=1300

India searching for new friends

Shaokat Mahmud

The special editorial in ‘Amad Desh’ on 05 July prepared focusing on the recent conference among the journalists of Bangladesh & West Bengal’ organized by South Asia Free Media Association (SAFMA) that held on 30th June to 2nd July 2008 at Shantiniketon, India. The writer referred to the speech of Indian foreign minister Mr. Pronab Mukhargee who said in the inaugural ceremony of the conference that appropriate time and environment is required to upgrade the relationship between India & Bangladesh. In reply to an opinion of Bangladeshi journalists that offshore oil-gas exploration of Bangladesh will be hindered due to objection by India regarding demarcation of maritime boundary, Mr. Mukhargee only told that they are trying to solve the dispute soon. He also put emphasis on to establish the rail-road transport and cooperation for energy between two countries. Mr. Budhadev Bhattacharia, Chief Minister of West Bengal said Bangladesh possess such resources that India requires for, and India also possess such things that Bangladesh needs on a vice-versa. He also clarified that India wants to use the huge coal resource of Bangladesh deposited in Dinajpur to generate several thousands Mega Watt electricity in the West Bengal. Mentioning the investment proposal by TATA which is under consideration of the govt. of Bangladesh (GoB) he told that they also need gas from Bangladesh. The writer wants to mention here that the Indian objection regarding demarcation of maritime boundary is analogous to the protesting by a certain quarters against exploration and extraction of oil-gas and coal in Bangladesh. There is intimate relationship between the CPI (M) Govt. and the Party of West Bengal and the protesting leftist political wing in Bangladesh. In addition, there is also a very close relationship between a part of the leftist wing of West Bengal and the extremist, former Nakshal followers who are involved in terrorism and anti-mining campaign against the western companies working in the Dinajpur coal mine area. However, the Bangladeshi journalists expressed in the conference that India possesses more responsibility as a big neighboring country to upgrade the relationship. But, unfortunately India is not playing such role. Whereas, open conspiracy is going on from the Indian side against Bangladesh. Mr. Zahiduzzaman Faruk, Secretary General of SAFMA Bangladesh; Abul Asad, Editor of Sangram; Columnist Amanullah Kabir; Shaokat Mahmud, President of National Press Club; Shyamol Datta, Editor of Bhorer Kagoj; Rezowanul Haque, News Editor of Ntv; Tushar Ahmed from UNB among others were present in that conference from Bangladesh side.

Amar Desh,Bangladesh
Date:05/07/08
Please see the original article in the following link http://amardeshbd.com/sub_section.php?issueID=842&sub_section_id=18&NewsID=183342&NewsType=bistarito&oldIssueID=2008/07/05

Draft nat’l coal policy awaits advisors’ nod

M Azizur Rahman

The energy ministry has finalised the national coal policy, which will be sent to the council of advisers soon for their final nod despite opposition from the law ministry against adoption of it, officials said. ‘We have finalised the coal policy and will place it to the council of advisers for approval very soon,’ Chief Adviser’s special assistant on energy issues Professor M Tamim has told the FE.
Refuting the law ministry’s plea to draft an act instead of a policy to facilitate the process of coal extraction, Professor Tamim said a policy is a broader jurisdiction and deals with a variety of issues like environment, land, mines and minerals. Professor Tamim, however, said the law ministry’s comments on the national coal policy would also be sent to the council of advisers along with the policy for their final nod.
Sources said the law ministry last week recommended adoption of an act instead of a policy pouring cold water on the energy ministry’s years of efforts to get a national coal policy in place. The energy ministry kept investment proposals worth several billion US dollars on hold in last several years on the plea that the proposals would be considered after adoption of the country’s first ever-national coal policy.
Regarding the draft of the national coal policy as finalised by the energy ministry, Professor M Tamim said the policy has no major deviations from the recommendations of the advisory committee headed by former BUET vice chancellor Abdul Matin Patwary. The advisory committee in its report recommended that foreign companies be allowed to develop the country’s coalmines under a joint venture with a local coalmining company.
No foreign companies would be permitted to develop a coalmine independently, the draft of the national coal policy pointed out categorically. As is elsewhere in the world, coalmines in Bangladesh can be developed by applying either the open-pit method or the underground method, the advisory committee suggested. But the mining method should be determined on the basis of the geological structure and the reserve potentials, the committee observed.
A Coal Sector Development Committee comprising professionals from all walks should be constituted for smooth operation of coalmines and other relevant activities. The committee would fix the royalty rate of different coalmines considering mine-specific geological structures instead of the existing mining rules, in which the royalty rate has been fixed at 6.0 per cent for the open-pit mining and 5 per cent for underground mining, it said. The committee also recommended awarding licences for coal exploration from any coalmine through open tenders, though the existing rules say that the licences will be awarded on the first-come-first-served basis.
The government will follow the country’s existing Land Acquisition Act to acquire required land and compensate the displaced people from the mining sites to ensure smooth development of coalmines and its subsequent utilisation, officials said. To address the environmental and social issues, the government might adopt globally-accepted guidelines of ‘equity principles,’ the draft of the national coal policy pointed out. Khani Bangla, an entity under the state-owned Petrobangla, would be given the responsibility to look into the developments relating to coal and other issues relevant to the country’s mines and minerals.
The advisory committee, however, had proposed formation of a separate company named ‘Coal Bangla’ empowering it to monitor the coalmine development activities. There will be no option of coal export other than ‘cocking coal’ in the coal policy. Cocking coal is a kind of coal, especially used in steel manufacturing plants. Setting up a coal-fired power plant at the mine mouth might be made mandatory for developing any coalmine under the national coal policy.

The Financial Express,Bangladesh

Date: 07/0708

Link:http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=38966

Energy sector development-A decision-making paralysis

Sadrul Hasan

It appears that for years the energy sector of the country is hamstrung by a kind of decision-making paralysis. Over the five-year tenure of the government of BNP-led four-party alliance, there was virtually no development in the energy sector. Thanks to the proverbial ineptitude and corruption characterizing the BNP-led government, no new power plant was put in place, not a single megawatt of electricity was put onto the national grid and no new exploration or production well was dug on the hydrocarbon sector. The result is the untold sufferings of the people emanating from the on-again off-again load shedding and power outages-not to speak of its ruinous impact on the economy. This persisting energy crisis was inherited by the present caretaker government from the previous regime of BNP-led alliance and industrial analysts believe it is likely to continue for the years ahead. Indecision, unnecessary delay in decision making process, bureaucratic tangles and fund constraints may be ascribed to the persisting energy crisis. Despite all the well-meaning intentions, it appears that neither the present caretaker government has been able to get things moving much over the last 18 months since it took over.

Over the last 18 months, the present caretaker government could not take any major decision that could bring any breakthrough in resolving the country’s energy and power crises. When it took over in January 2007, the country’s power production was about 3,600 MW against a demand of more than 5,000 MW. The gas production was about 1,800 million cubic feet (MMCF) against a demand for over 2000 MMCF, according to official statistics of the Power Development Board (PDB) and Petrobangla, the state energy and mineral resources corporation. Of course, the caretaker government took a fast-track move to buy captive power from the private sector to ease power shortage. But the move, according to observers, went in vain due to wrong policies. The government could only arrange 11 MW out of a huge 1,500 MW captive power across the country that are used by the private industry owners. The second move by the government was to install some costly rental power plants as a quick remedy to the problems. This move also failed to bring any positive result. Recent newspaper reports suggest that the selected private sponsors of rental power plants are yet to be able to start commercial production at their plants as per schedule.

The third move of the caretaker government was to set up some medium size power plants under the public sector. But that also appeared to have failed to move any length because of the delay and repeated changes in the tendering process. In the final stage of the tendering process, the government cancelled a bid of a Chinese company that was selected to set up a 100 MW plant in Chandpur district. Another bid by an Indian company for installing a 90 MW plant in Fenchuganj, Sylhet was also cancelled in the final stage, it was learnt. Similarly, the government also failed to increase the gas production in last one and a half year because of lack of a proper planning. Recently, at the fag end of its tenure, the caretaker government has invited international tender for leasing out the country’s oil and gas blocks-mostly off-shore and deep-sea blocks-to the international oil companies for exploration. But this move may be stuck up because of a case pending with the High Court, it was learnt. Besides, two neighbouring countries, India and Myanmar, have reportedly raised objection to the Bangladesh’s move for leasing out the off-shore blocks. All this, as analysts pointed out, may not augur well for Bangladesh in its bid to increase gas production, either from the current reserve or from new ones. It is believed that the country’s current proven reserve of gas may start depleting from 2011.

But there is a silver lining, as some observers pointed out. The country has a very prospective coal reserve which is about 3 billion tons. This is a promising sector that can be exploited quickly to tide over the nagging energy crisis. The government invalidated a draft coal policy of the previous BNP-led alliance regime. Meanwhile, a high-profile technical expert committee prepared the draft of a latest policy and submitted it to the government four months back. But still the draft policy is reportedly being scrutinised by the government. The Chief Advisor’s Special Assistant for Power and Energy Ministry recently said that the draft would soon be placed to the Council of Advisors for the final approval. But several weeks have already elapsed without any progress in this regard. Assuming there would be no new gas in the pipeline in the near future, the government reportedly took a decision that all future power plants would be coal-based ones. But despite this decision, the proposed coal policy still remained stuck up in the energy ministry.

During the formulation of the draft coal policy, it was learnt that the members of the expert committee were locked in a debate as to which kind of method should be allowed to extract the country’s coal resources. Based on expert opinion from across the world, only about 15 percent coal could be extracted through underground mining while through open pit mining it is possible to extract more than 90 percent of coal from a mine. But most importantly, there is a huge risk of accidents in case of underground mining while open pit mining is safe as there is no risk for explosion, landslides or leakage of dangerous gas. We can cite the example of China, which dominates in underground mining. In recent years, China experienced the tragedy of death of hundreds of miners in accidents deep down their underground mines. But in the open pit mining, record of death is almost zero, though it is true that it causes some problems to the environment as such mining needs dewatering of huge area. Nowadays, experts involved in the open pit mining claim that there has been a proven technology to minimise the environmental hazards and reconstruct the underground water level through re-injection of the lifted water. Germany has successfully applied this technology in its open pit coal mining in the Cologne region.

Informed sources said that after prolonged debate, the expert committee finally came to a conclusion that both the options of open pit and underground mining should be allowed, depending on the geo-technical conditions of the coal mine. The UK-based Asia Energy Corporation which obtained the Phulbari coal mine for its development, conducted a feasibility study in 2004 and submitted it to the government for approval for developing the mine through open pit mining. This company also plans to introduce the same water re-injection technology in the Phulbari mining. But so far there is no decision from the government on Asia Energy’s proposal. The government is saying that it would take a final decision about Asia Energy’s Phulbari project after the coal policy is finalised. As per original plan of Asia Energy, the Phulbari coal mine project was supposed to come into production from 2011. To materialise its plan, Asia Energy had initially discussed with different international financial institutions like Asian Development Bank and other banks as well. But due to the delay in decision making process the whole plan remained stalled, sources in Asia Energy said.

Worldwide coal has been playing a major role in power generation. As per statistics of the World Coal Institute, world’s 40 percent electricity was generated by coal in 2006 while 20 percent by gas, 7 percent by oil, 15 percent by nuclear, 16 percent by hydro and the rest 2 percent power generation was by other means. Many of the world’s top industrial countries are heavily dependent on coal for generating electricity. The countries’ percentage-wise dependence on coal include, Poland 93 percent, Israel 71 percent, Czech Republic 59 percent, S Africa 93 percent, Kazakhstan 70 percent, Greece 58 percent, Australia 80 percent, India 69 percent, USA 50 percent, China 78 percent, Morocco 69 percent and Germany 47 percent. Industry analysts believe that Bangladesh should follow suit without wasting time and go for extracting and utilizing the country’s untapped coal reserves to energize the engine of economic growth.

Dhaka Courier, Bangladesh
Date: 04-10 July 2008
Link: http://www.dhakacourier.net/current/

For ending the stalemate on passage of coal policy

Shahiduzzaman Khan

Footdragging on the passage of the draft national coal policy continues with the law ministry withholding yet its much-awaited vetting. As a result, some important investment decisions are now facing a great deal of uncertainty. The law ministry is now suggesting that the energy ministry should formulate an act instead of a policy. In support of its contention, the law ministry said the existing Mines and Mineral Rules 1968 is an age-old act and it has not been amended as yet to give a boost to efforts for development of the coal sector. Some sections of the draft coal policy, the law ministry pointed out, contradict the existing rules. Under the draft national coal policy licences for exploration or extraction from any coal-field will be awarded through open tenders, whereas the existing rules say that the licences would be awarded on first-come-first-served basis.
Besides, the draft policy says that a proposed coal sector development committee will fix the royalty rate whereas the mining rules say that the royalty on coal extraction would be 6.0 per cent for open-pit mines and 5.0 per cent for underground mines. The existing rules have certain number of flaws and deficiencies that need amendment. But the energy ministry said that an act is necessary for a specific issue but the energy ministry was working to help promote development of the coal sector as a whole by formulating the national coal policy first. The ministry for the last several years concentrated on preparing only the national coal policy leading to keeping several billion dollar investment proposals, in abeyance. It was anticipated that adoption of the policy would give a strong and pro-active signal to initiating efforts, in reality, for large-scale development of the country’s coal sector.
Now the questions arise: why was the government silent for all these years about preparing an act first instead of a policy? Why the law ministry did not instruct the energy ministry to prepare an act at the first instance? Does it look good that the two line ministries, as it appears, should be at loggerheads over this issue? Will the hard labour of the energy ministry officials to prepare a draft coal policy for all these years go in vain? These are the pertinent questions that need to be answered. This sudden but — and unpalatable — decision has caused further setback to the already pending foreign investment proposals worth around US$ 5.0 billion to develop the country’s coal sector. The companies eyeing on adoption of the coal policy for their investments include UK-based GCM Resources (formerly known as Asia Energy), Indian business conglomerate Tata group, South Korea’s Luxon Global and US-based Global Vulcan Energy.
Pending investment proposals with the Board of Investment (BoI) include a $2.5 billion project from GCM Resources, a $1.6 billion venture from Global Vulcan Energy, a $1.5 billion investment from Luxon Global and a portion of the $3.00 billion earmarked from Tata. Among the foreign companies, GCM Resources proposed in October 2005 the development of an open-pit coalmine at Phulbari with a 1,000-MW mine-mouth power plant. Before submission of the investment proposal, GCM Resources conducted a feasibility study on the Phulbari project at the cost of $18 million. Tata plans to spend a portion of its $3.0 billion investment proposal placed in April 2006 for developing the open-pit Barapukuria coalmine with a 300-MW mine-mouth power plant. Tata’s proposal also includes investment in steel and fertiliser plants. Global Vulcan Energy signed a memorandum of understanding with the BoI in 2005 to invest $1.6 billion to develop a coalmine at Jamalganj and set up a mine-mouth power plant. The US company also proposed to set up two organic fertiliser plants in Bangladesh.
Luxon Global placed its investment proposal and signed a MoU with the BoI in July 2005 intending to develop a coalmine, a mine-mouth power plant, a fertiliser factory and a liquefied natural gas plant. Since the first such proposal was placed to the BoI in May 2005, the successive governments have been holding up the same on the ground of adopting a relevant policy first. In fact, the draft coal policy does not restrict open pit mining, as was initially demanded by some pressure groups. Instead, the policy identifies mining methods as technical issues that should be decided on the basis of technical viability and individual cases. Though the committee believes that quick action is required to tap the coal resources as the country will face a big energy crisis from 2015, its go-slow approach to foreign and private investment proposals will compound the problem further.
The draft policy says that if Bangladesh’s GDP remains as low as 5.5 per cent until 2025, the country will need to generate 19000 megawatt of additional power. If the GDP growth rate rises to as high as 8.0 per cent, it would need 41000 MW of power. But at the same time, Petrobangla has said that production of gas — which has been the key source for power generation — will start to decline from 2011. This is where the country’s coal resources should play a role. The policy adds that to meet power demands in a GDP growth rate scenario of 5.5 per cent, Bangladesh will need 136 million tonnes of coal until 2025. If the GDP growth rate accelerates to 8.0 per cent a year, the country will need 450 million tonnes of coal. The country’s four existing coalfields of Barapukuria, Phulbari, Khalashpir and Dighipara can cater to this need until 2030 or so. Of these, only Dighipara is being mined at present.
The draft policy does not pay much attention to the scope and necessity for developing and harnessing alternative energy sources, including renewable ones. And it was not expected to do that. A national energy plan has to deal with all such issues. However, there is no denying that, coal can only be one ingredient in a country’s energy mix. Hence, the coal policy has to be an integral part of an overall comprehensive energy strategy covering all existing and potential renewable and non-renewable energy sources.

The Financial Express, Bangladesh
Date: 03/07/08
Link: http://www.thefinancialexpress-bd.info/search_index.php?page=detail_news&news_id=38530

Find short-term solutions to gas, power problems

CA asks authoritiesUnb, Dhaka

Chief Adviser (CA) Fakhruddin Ahmed yesterday directed the authorities concerned to immediately find a short-term solution to gas and electricity problems, as both are in short supply. He stressed the need for enhancing the volume of gas lifting from Bibiyana gas field as a quick-fix remedy for the crunch.
The head of the caretaker government gave the directive in the light of discussions and suggestions at an informal meeting of the Council of Advisers where a presentation was made to apprise the council of the latest gas and electricity situation. Special Assistant to the Chief Adviser for Power and Energy Ministry Prof M Tamim made the presentation that showed that there is 200-mmcfd shortage of gas while the total production of the fossil fuel is 1800-mmcfd against a total demand for 2000-mmcfd.
“This shortage is due to the limitation of gas production and transmission,” it was informed.
On the other side of the two-pronged problem, it was noted that there is the capability of generating 500 MW more electricity but it cannot be done due to the gas shortage. The meeting was told that the number of CNG filling stations has risen to 229 from only 18 in last four years, which helps in preventing rise in the price of fuel oils.
The CA asked for identifying the bottlenecks in solving the gas and electricity problems, round-the-clock monitoring by a team and strong coordination between power and energy divisions. He also emphasised immediate solution to power problem in Chittagong through installing rental power plants and non-gas-based power plants as well. As an austerity measure, the CA called for steps to limit energy consumption and “that should start first from government offices”.
Tapping alternative sources of energy, like coal and solar energy, for a long-term solution also came up for discussion at the meeting. CA’s Press Secretary Syed Fahim Munaim briefed newsmen about the meeting. Members of the Council of Advisers attended the meeting at the CA’s office. Cabinet secretary and secretaries concerned were also present.

The Daily Star

Date: 03/07/08, Bangladesh

Link: http://thedailystar.net/story.php?nid=43984

Northern region can develop blending mineral, manpower resources

ET Report

The northern region of the country will have to bring industrial development in the area utilizing huge manpower and mineral resources. It has mineral resources under the ground in its sixteen districts and the region possesses huge manpower. Blending the two important resources the region will be able to achieve expected development in shortest possible time if proper and effective plan could be taken. Mere words will not bring fruit, actions are needed.
Former adviser to the caretaker government and editor of the Independent, Mahbubul Alam said this Friday as chief guest at Mahasthangarh of Bogra in the gathering of journalists organised by Uttaranchal Federal Shanbadik Parisad. Journalists from all the districts of northern region attended the gathering presided by the Parishad President Touhidur Rahman Manik. The gathering was organised demanding development of the northern region and the right to information.
Mahbubul Alam said extracting mineral resources of the region and using manpower the closed industrial units in the area could be brought into operations created wide employment opportunities. He said this is an age of information technology. The reality is that Bangladesh is yet to achieve the high level of infoteck. In the back ground the importance of print media will remain in coming days also particularly in rural areas. Journalists working in rural areas are the life- blood of journalism.
Former President of BFUJ and The Observer Editor Iqbal Sobhan Choudhury, National Press Club President and Economic times Editor Shaukat Mahmood, Dainik Korotoa Editor Mozammel Haque Lalu, DUJ President Shah Alamgir, Secretary Omar Faruque, NTV Chief News Editor Khairul Anwar, National Press Club Member Kader Gani Khan addressed the event as special guests.
Jatiyo Shanbadik Shangstha Vice-President Ratan Roy, Bogra Union of Journalists President Akhtaruzzaman, General Secretary Syed fazle Rabbi dollar, representatives from sixteen northern districts, among others, also spoke on the occasion.
Iqbal Sobhan Choudhury said northern region can attain desired development in short time extracting mineral resources, as it is already self-sufficient in food production. Shaukat Mahmood said journalists must have right to information to perform their professional duties.

Source: http://weeklyeconomictimes.com/news-details.php?recordID=1035
Date: 15 June 2008, Bangladesh

Banglar Manush will surely use Banglar Koila

Ataus Samad

The present Caretaker Government is facing great many problems and it has to take appropriate decisions to resolve these. A question arises whether the present government had the jurisdiction to decisions on certain important issues. This is because of the fact that these matters relate to policy. The Constitution of the country has it that the Caretaker Administration will only perform day to day routine functions.
But to my mind, there are a lot of differences between the present Caretaker government and the one that has been spoken about in the country’s Constitution. The Constitution has it that elections to the Parliament will have to be held within 90 days of the dissolution of the last Parliament for any reason or the completion of its tenure. A Caretaker Administration would be in power to run the administration of the country in the meantime.
The Constitution has it that with the elected Prime Minister entering office, the Caretaker government will leave. As and when one reads these two articles of the constitution together one reaches the conclusion that the tenure of the Caretaker administration is just three months. Moreover, the two Caretaker governments of 1998 and 2001 completed their responsibilities of holding the elections within three months’ of taking change and left within that time. The country was well managed the day to day work of those administrations and they did not have to bother about policy matters. But things have become different for the present Caretaker Administration. The present government has established itself in power for at least two years. It is owing to this that the government has to take many important decisions relating to policy. For instance, there is the question of maintaining subsidies or not for tackling economic problems, asking for balance of power and the like. The matter I wish to raise relates to matter which some have suggested that the matter concerns a policy decision and as such it should be held up for the time being. The subject concerns the development of coal mines.
I have given this introduction because at the moment, Bangladesh has developed a coal mine at Barapukuria. But there have been many problems in the mine. It has been noticed that enough coals cannot be extracted from it. At many places the ground has been giving in. The thermal power station in the mine area has to make do with coal imported from neighboring India. And in order to keep the expenses down inferior quality coal is often imported. This has been harming both the power station and the environment.
Alongside this, the open mine policy in the neighboring Phulbari could not become effective owing to differences of opinion among the leassee, Messrs Asia Energy and the local people. At the root lies the question of relocating and resettling the inhabitants of the area when mining starts .The position is, therefore, that the country has to sit over the uncertainties of the Barapukuria and the deadlock over the proposed Phulbari mines. We see no sign of developing any new mine in the meantime.
Yet the fact remains that Bangladesh has coal and the country needs this resource for production of electricity. According to official data, there are five coal fields in the country. These are: Jamalganj in Joypurhat district, Barapukuria in Dinajpur district, Dighirpar and Phulbari in Dinajpur district and Khalashpir in Rangpur district. In view of the fact that the Jamalganj coal is in a depth of 900 meters , the possibilities of extraction and use of this coal is very thin. According to government estimates, the biggest quantum of coal is deposited here in the neighborhood of 1050 million tones. In the remaining mines some 1005 million tones of coal has been found in the remaining mines. The people now wish to know whether they can use this coal or not?
At the moment, I have before me a media release posted on a website of an organization called Aid Watch of Australia. It has been suggested there that the Australian government should prevent the Asian Development Bank from assisting the Phulbari coal mine project. The media release calls upon the Australian government not to support the Asian Development Bank in matters of Phulbari coal mine on the plea that the project would adversely affect the global ,climate as and when Bangladesh mines and uses its coal for itself. The media release says at one place, ‘Bangladesh will be one of the countries hardest hit by climate change and hundreds of thousands of people will be displaced by construction of this mine. It is also said in the media release ‘ Phulbari coal mine has been vigorously opposed by people’s groups within Bangladesh and NGO’s from around the world’. A committee was formed by the government to review the latest draft of coal policy. I was a member too. The Committee was headed by Mr. Abdul Matin Patwary, former Vice Chancellor of the Engineering University . We submitted a report to the government in January last. I feel that the government should do two things right now. The foremost is to announce that Bangladesh will mine its own coal and use it. The second is to publish in full the report of the review committee. I hope as and when this is done, all doubts and suspicions and the smokescreen created regarding coal will regarding coal will be removed and Bangladesh Government will be able to stand up to the propaganda by the foreign NGOs and use the country’s resources in the interest of the people of the country.

Source: http://weeklyeconomictimes.com/news-details.php?recordID=732
Date: 18 May 2008, Bangladesh

Northern region can develop blending mineral, manpower resources

ET Report

The northern region of the country will have to bring industrial development in the area utilizing huge manpower and mineral resources. It has mineral resources under the ground in its sixteen districts and the region possesses huge manpower. Blending the two important resources the region will be able to achieve expected development in shortest possible time if proper and effective plan could be taken. Mere words will not bring fruit, actions are needed.
Former adviser to the caretaker government and editor of the Independent, Mahbubul Alam said this Friday as chief guest at Mahasthangarh of Bogra in the gathering of journalists organised by Uttaranchal Federal Shanbadik Parisad. Journalists from all the districts of northern region attended the gathering presided by the Parishad President Touhidur Rahman Manik. The gathering was organised demanding development of the northern region and the right to information.
Mahbubul Alam said extracting mineral resources of the region and using manpower the closed industrial units in the area could be brought into operations created wide employment opportunities. He said this is an age of information technology. The reality is that Bangladesh is yet to achieve the high level of infoteck. In the back ground the importance of print media will remain in coming days also particularly in rural areas. Journalists working in rural areas are the life- blood of journalism.
Former President of BFUJ and The Observer Editor Iqbal Sobhan Choudhury, National Press Club President and Economic times Editor Shaukat Mahmood, Dainik Korotoa Editor Mozammel Haque Lalu, DUJ President Shah Alamgir, Secretary Omar Faruque, NTV Chief News Editor Khairul Anwar, National Press Club Member Kader Gani Khan addressed the event as special guests.
Jatiyo Shanbadik Shangstha Vice-President Ratan Roy, Bogra Union of Journalists President Akhtaruzzaman, General Secretary Syed fazle Rabbi dollar, representatives from sixteen northern districts, among others, also spoke on the occasion.
Iqbal Sobhan Choudhury said northern region can attain desired development in short time extracting mineral resources, as it is already self-sufficient in food production. Shaukat Mahmood said journalists must have right to information to perform their professional duties.

Source: http://weeklyeconomictimes.com/news-details.php?recordID=1035
Date: 15 June 2008, Bangladesh

Bangladesh coal projects may go ahead after national policy adopted

M Azizur Rahman, Bangladesh

A number of international companies eyeing investment into Bangladesh’s coal sector with foreign direct investment proposals worth around $5 billion may shortly get the go ahead after the government adopts the nation’s first national coal policy. At least four foreign companies are awaiting government approval for their respective coal-mine development proposals for several years after applying to the state-run Board of Investment.

The companies include UK-based GCM Resources (formerly known as Asia Energy), Indian business conglomerate Tata group, South Korea’s Luxon Global and US-based Global Vulcan Energy, said a senior BoI official. He said the foreign investment proposals pending with the BoI include a $2.5 billion project from GCM Resources, a $1.6 billion venture from Global Vulcan Energy, a $1.5 billion investment from Luxon Global and a portion of the $3 billion earmarked from Tata.

GCM Resources proposed in October 2005 the development of an open-pit coalmine at Phulbari with a 1,000-MW mine-mouth power plant. Before submission of the investment proposal, GCM Resources conducted a feasibility study on the Phulbari project at the cost of $18 million, company sources said. Tata plans to spend a portion of its $3 billion investment proposal placed in April 2006 developing the open-pit Barapukuria coalmine with a 300-MW mine-mouth power plant. Tata’s proposal also includes investment in steel and fertilizer plants.

Global Vulcan Energy signed a memorandum of understanding with the BoI in 2005 to invest $1.6 billion to develop a coalmine at Jamalganj and set up a mine-mouth power plant. The US company also proposed to set up two organic fertilizer plants in Bangladesh. Luxon Global placed its investment proposal and signed a MoU with the BoI in July 2005 intending to develop a coalmine, a mine-mouth power plant, a fertilizer factory and a liquefied natural gas plant.

Since the first such proposal was placed to the BoI in May 2005, the successive governments are holding up these proposals on the pretext of adopting a relevant policy first. Dr M Tamim, Special Assistant to the Chief Adviser on energy issues, said the companies will have to wait until the adoption of the country’s first-ever national coal policy before receiving a government decision.

“We are working on adoption of the coal policy. I am hopeful that it might be done in the next two months,” Dr Tamim said. The country’s future coal-sector developments would be based on the coal policy, he added.

Source: World wide english magazine “Platts” (www.platts.com)
Date: Issue 874/June 23, 2008