Phulbari-news

Decision on coal policy this month likely

2009-06-09T22:22:00.000-07:00

Shamim Jahangir

The Government is likely to take a major decision on ‘Coal Policy’ this month to ward off controversy on open pit and underground cave method of coal mining, sources in the Ministry of Power, Energy and Mineral Resources said.
Besides, the Energy Ministry will also arrive at a decision on ‘Third Round Offshore Bidding on Oil and Gas Search’ this month for offshore gas exploration, sources added.
Prime Minister Sheikh Hasina directed the Energy Ministry officials recently to take immediate steps about the ‘Coal Policy’ and Third Round Bidding on oil and gas search in offshore after series of sitting, informed sources in the Ministry said.
“The Energy Ministry has already taken preparations for coal and third round bidding on oil and gas exploration in the sea following the direction of the Prime Minister,” a senior official of the Ministry told the New Nation yesterday.
“As per direction, the ministry will arrange a meeting to seek opinion of the experts for finalising the coal policy this month,” an official said.
The Adviser to the Prime Minister on Power and Energy Dr Tawfiq-e-Elahi Bir Bikram will present the planned coal mining city map before the experts to seek their opinion in this regard, sources said.
Prof Patwari Commission had placed proposed Coal Policy before immediate past Caretaker Government. But the present Awami League government is yet to finalise the policy following the controversy over open pit and underground cave method of coal mining.
Bangladesh has now only one active Production Sharing Contract (PSC) on block 16 for oil and gas exploration in offshore. There were five blocks till February this year. Four oil companies have abandoned Bangladesh’s offshore blocks for poor gas reserves.
The government has not taken any decision to award nine offshore blocks to two international oil and gas exploration companies despite offshore bidding over a year ago, sources added.
The US oil and gas giant ConocoPhilips was selected for eight offshore blocks and Irish Tullow for one block under the country’s last offshore bidding round in February 2008.
Both the companies sought to know the government position about awarding of the gas blocks. US Ambassador to Dhaka James F Moriarty recently met with the state minister for power and energy Shamsul Haque Tuku in this regard.
Bangladesh has not signed any PSC for offshore hydrocarbon exploration over the past decade whereas its neighbours India and Myanmar awarded offshore blocks in the Bay of Bengal and discovered large natural gas reserves.
Gas production of the country is between 1870 million cubic feet per day (mmcfd) and 1900mmcfd at the present against the demand of over 1920mmcfd.
The country’s proven gas reserve is now 7.36 trillion cubic feet which would burnt out by 2011 at the present level of consumption, a recent report of Energy Ministry said.
The country’s lone offshore block (Sangu) out of 23 blocks is now contributing 3.0 per cent or 55 mmcfd of the total gas production while the rest of 97 per cent is being produced from the onshore blocks, sources said.

Source: The New Nation , Bangladesh

Link : http://nation.ittefaq.com/issues/2009/06/04/news0103.htm
Date: 04 June 2009

Take immediate decision on coal mining

2009-06-02T23:39:00.000-07:00

ET Report

Experts have urged the government to speed up coal mining policy, without which coal extraction is not possible. “We cannot afford to sit idle on huge coal reserves of our own due to only lack of a decision about the ways of extraction,” said Aminul Haque, a professor at the Bangladesh University of Engineering and Technology.
Bangladesh has five coal fields with around 2.55 billion tonnes of reserves but is unable to extract them until a national coal policy has been finalised. The government has already completed negotiation with the Japan International Cooperation Agency (JICA) for conducting a Master Plan Study on Coal Power Development, officials said.
Sources said, Bangladesh is to build five 500 megawatt (MW) coal-fired electricity plants at a total cost of nearly $3.5 billion to tackle electricity supply problems. The process for setting up of the plants has already been started and it will take four years to finish the job. The tender will be floated soon to build the plants, which when completed will greatly ease the nagging power crisis. Both local and global firms will be eligible to participate.
Coal for the new plants may be imported from India, Indonesia or Australia, the official said, adding the government had committed to raise power generation to 7,000 MW in 2014 from 5,000 MW now. About 80 percent of electricity in Bangladesh is produced by natural gas, but at present the country with 13.54 trillion cubic feet of proven and recoverable gas reserves faces up to 250 million cubic feet of gas shortages a day, officials say. At present the country faces a daily electricity shortage of up to 2,000 MW a day.

Source: Weekly Economic Times, Bangladesh

Link : http://www.weeklyeconomictimes.com/home-news-details.php?recordID=3915
Date: 01 June 2009

US companies to invest in coal sector

2009-06-02T23:37:00.000-07:00

R Akter

US companies are keen to invest in Bangladesh’s coal sector, another promising energy turf after natural gas where foreign firms, including US-based oil majors, are doing brisk business. State Minister for Power and Energy Shamsul Haque Tuku informed about the proposals following US Ambassador James F Moriarty’s meeting with him at his Energy Ministry Wednesday.
He said the US envoy apprised him that American energy companies are interested to help Bangladesh in developing energy sector. They particularly want to invest in coal mining after finalization of the coal policy by the government. Following the meeting, the envoy said that he discussed many issues regarding the development of energy sector in Bangladesh and also the assistance for the victims of very recent cyclonic storm AILA that hit the country’s southwest coastal belt.
He noted that the United States would provide necessary assistance for the victims if Bangladesh side sought any help. A number of US companies, including oil-major Chevron, have been operating in the country’s energy and power sector. But this is first time it was learned that US energy companies are also interested in the coal mines.
Bangladesh has about five coal mines in the country’s northern region, having a total coal deposit of 2.5 billion tons. A draft coal policy is now being reviewed by the government. But it has been a great debate-and some spot disturbances too-whether Bangladesh should pursue open-pit coal mining or underground mining to extract the coal for meeting its requirements in power generation.
However, it’s not clear what kind of method the US companies want to apply in coal mining in Bangladesh. A British company, Asia Energy, faced fiery protests from locals for planning open-pit mining. Tuku said a wide area of energy sector’s development was discussed with the US diplomat, which covers the 3rd-round international bidding for hydrocarbon exploration in the offshore and deep-sea areas.
“We’ve sought cooperation in renewable energy sector’s development, like hydropower, solar and wind. They can help us through providing renewable energy technology,” Tuku told. Replying to a question, the power and energy state minister said that the US envoy discussed latest position on the 3rd-round international hydrocarbon bidding which remained pending with government’s top policymaking body.
One US-based company, Conoco Philip, responded for 8 deep-sea blocks in the bidding. We informed him that the issue now in a decision-making process. Soon we’ll take the decision. He also said the Petrobangla-Chevron dispute over a pipeline wheeling charge also came up for discussion.
Replying to another question, he said the government is discussing the issue of readjustment of petroleum-fuel prices. Anytime, a decision may come on this issue although the government is yet to decide whether it will be upward or downward adjustment.

Source: Weekli Economic Times, Bangladesh

Link : http://www.weeklyeconomictimes.com/home-news-details.php?recordID=3912
Date: 01 June 2009

Use environment-friendly technology to extract coal: Hasina

2009-06-02T23:35:00.000-07:00

Unb, Dhaka

Prime Minister Sheikh Hasina yesterday underscored the need for using environment-friendly state-of-the-art technology in extracting coal from Barapukuria coalmine so that local villagers do not suffer any kind of loss from soil subsidence. She made the remark when an eight-member delegation of the consortium company of Barapukuria Coal Mine, Xuzhou Coal Mining Group Corporation, China, led by its Chairman Huang Xinhai called on the Prime Minister at her official residence Jamuna.

The Chinese delegation also assured the prime minister of using the best technology in extracting coal that will not harm the locals. Prime Minister’s Press Secretary Abul Kalam Azad briefed newsmen after the meeting.
The chairman of the Chinese company told the prime minister that they will make the best application of their company’s experience of ‘127 years’ to save the people from any big loss of their property.
The consortium will also share the compensation to be made to the villagers, the delegation told the prime minister. The delegation also informed the premier that they will visit the Barapukuria Coalmine site today. Huang Xinhai said the prospect of the Barapukuria Coalmine is “very bright”.
The prime minister informed the Chinese delegation that the present government has planned to set up several power plants to rid the country of power crisis. She also called for Chinese investment in larger volumes in Bangladesh’s power and electricity, gas and other infrastructure sectors.
In reply, the Chinese delegation members also expressed their keen interest in making more investment in Bangladesh. “China so far has made significant contribution to the socioeconomic development of Bangladesh, including to the road communications. We attach due importance to the existing friendly relations of Bangladesh with China. We also hope that the bilateral relations will be further strengthened in the days to come,” she said.
Power and Energy Adviser to the Prime Minister Taufiq-e-Elahi Chowdhury, Prime Minister’s Office Secretary Mollah Waheeduzzaman and Energy Secretary Mohammad Mohsin were present. The mine will produce 1 million tones of coal per annum when
commercial production will commence. Some 65 percent production will be used in 250 MW coal-fired power station and remaining 35 percent in brickfields and other domestic purposes.

Source: The Daily star, Bangladesh

Link : http://www.thedailystar.net/story.php?nid=90376
Date: 29 May 2009

Extract coal from Phulbari without wasting time

2009-06-02T23:33:00.000-07:00

R Akter

The government must not waste anymore time on the coal extraction issue. It should ask the foreign company concerned to start extracting coal from Phulbari and, in the meanwhile, start making arrangements for setting up coal-based power plants. Many private entrepreneurs will be interested in setting up the same, experts said.
The country at the moment has only one coal-fired power plant at Barapukuria. The plant has been set up by a company from the People’s Republic of China, the world’s largest producer of coal-based power. Meanwhile, energy adviser, Tawfiq-e-Elahi Chowdhury said that prime minister, Sheikh Hasina, has directed to finalize the coal policy, as the country needs alternative energy sources to produce electricity. The energy ministry will soon hold an open discussion on the draft coal policy with different stakeholders for finalizing the policy on a priority basis.
When asked why another meeting was needed with stakeholders when controversy was raging over the coal policy for the last three years, Tawfiq said, ‘Every government has its own policy and philosophy. Of course, we will consider the investment issues, local people’s concern and electricity generation while finalizing the coal policy.
The previous BNP-led government that first prepared a draft of the coal policy and then the caretaker government held half a dozen open meetings with stakeholders but could not finalize the draft because of controversy surrounding the mining method and fixation of royalty. The only feasible option left before the country is the setting up of coal-based power plants.
Bangladesh has substantial deposit of quality coal. It is now extracting coal from one coalmine at Barapukuria through the traditional method. The extraction of coal from a large coalmine at Phulbari has remained stalled due to controversy over the method of coal extraction. In the absence of an official coal policy, experts as well as politicians are now engaged in a heated debate over the methods of coal extraction-open-pit or traditional tunnel systems. The open-pit extraction ensures nearly full exploitation of the coal reserve but not without a cost. It displaces population settlements, destroys arable land and causes other environmental degradation.
It seems that for fear of political fallouts, the government has been dragging its feet on the issue of coal extraction from the Phulbari coalmine. Accoring to expetts, the time is running out fast. The government has to make a firm decision on the Phulbari coal and start extracting the same as early as possible. This is all the more necessary not to earn foreign currency by exporting coal but to start using the same for generating power.
Meanwhile, speakers at a roundtable at CIRDAP auditorium recently suggested the government to finalize the coal policy immediately through political consensus for setting up of coal-based power plants to address the power crisis. “The government should go for coal-fired power plant even if based on imported coal,” they said.

Chairman of Parliamentary Standing Committee on Power and Energy and Mineral Resources Ministry Maj Gen (retd) Shubid Ali Bhuiyan said that the government should go for coal-based power plant through a political understanding for finalizing coal policy. “If necessary the government should import coal for this purpose,” he added.
State Minister for Power, Energy and Mineral Resources Shamsul Haque Tuku called upon the Oil, Gas and Bandar Protection Committee to refrain from their movement in the interest of the country. The sate minister urged the committee not to obstruct the government’s activities with the support of outsiders.
Former State Minister for Power and Energy Iqbal Hasan Mahmood Tuku said that the present electricity crisis was created 20 years ago when the World Bank and the Asian Development Bank (ADB) withdrew their financial support in the name of promotion of the power sector through the private entrepreneurs. “The government must come out from the World Bank prescriptions to ensure sustainable development in the power sector,” he said.
He also observed that the lengthy bureaucratic process was the main hindrance to improve the power sector. Former State Minister for Energy AKM Mosharraf Hossain said the earlier the alliance government had made a move to go for offshore gas block bidding. “We could not get success because of non-cooperation of India and Myanmar at that time,” he claimed.
“We may have many options for power generation, but coal should be the best option in the present perspective as we are not in a position to go for offshore exploration of gas immediately,” Dr Ijaz Hossain of BUET told at his keynote paper. He said that the country with its 2.0 billion tons of coal reserve can generate 10,000 MW electricity for next 50 years. The Energy and Power magazine organised the roundtable, which was moderated by its editor Mollah Amzad.

Source: Weekly Economic Times, Bangladesh

Link : http://weeklyeconomictimes.com/news-details.php?recordID=3858
Date: 24 May 2009

House panel for immediate coal extraction from Phulbari

2009-06-02T23:31:00.000-07:00

ET Report

A parliamentary watchdog, Estimate Committee, has suggested immediate extraction of coal from the five mines including the much-talked about Phulbari coal field. But the committee, which makes estimates on public affairs, made no recommendations on the mining methods-open-pit or underground.
“The committee has recommended that coal from our five mines should immediately be extracted for producing energy,” H N Ashequr Rahman, the chairman, said following latest meeting at parliament building. He said the committee suggested the energy ministry find ways to extract coals at “minimum cost”, but made no mention of the environmental aspects of coal extraction.
The chairman said energy-hungry Bangladesh needed coal immediately for power generation, a precondition for development. “We have asked the ministry to submit a report on which method would be viable to extract coal from the fields,” said the chairman. Bangladesh has five coal mines-Barapukuria, Phulbari, Khalashpir, Dighipara and Jamalganj.
The government is in dilemma over coal extraction from Phulbari filed in Dinajpur. The Phulbari people resisted a move of the UK-based Asia Energy to collect coal through open-pit mining on the grounds that it would make them homeless and destroy environment. In Aug 2006, three people were killed as law enforcers fired on the protesters who demanded the government scrap its deal with Asia Energy.
In the face of strong protest, the government announced closure of Asia Energy’s activities in Phulbari. Some groups supported mainly by the left parties have been waging movements to stop extraction of coal by open-cut method by foreign companies.

Source: Weekly Economic Times, Bangladesh

Link : http://weeklyeconomictimes.com/news-details.php?recordID=3876
Date: 24 May 2009

Govt plans to build five coal-based power plants at $3.5b to end crisis

2009-06-02T23:29:00.000-07:00

FE Report

The government has started working on a plan to set up five coal-based power plants with combined capacity of 2,500 mega watt to solve the country’s crippling electricity crisis for the long term, officials said Friday. Power Development Board officials said the five power plants would cost around US $3.5 billion and would take at least four years to complete if the government commences tender processing work this year,
“We have already begun preliminary planning work of the five coal-based power plants with each having capacity of 500 mw. They all will use imported coals,” PDB chairman SM Alamgir Kabir told the FE. “One each could be set up at Mongla and Chittagong. We have done some work in this regard. Two plants could be set up at Meghnaghat and the rest at the location of soon-to-be built Padma Bridge,” he said.
The PDB would send a full proposal on the power plants to the ministries for further consultation, he said. The move comes after the gas crisis started taking toll on overall power generation in the country and the state-owned energy corporation Petrobangla projecting emptying of the present reserve by 2019.
With the gas crisis getting worse every month, the government has already decided to keep provision for dual fuels for all the future power plants in the country. Kabir said in the short-term gas can be used for a few more smaller power plants having combined capacity no more than 400 mw.
“The government could also build a few more smaller plants based on furnace oil or liquid fuel, but these in no way can solve the country’s power crisis in the medium to long term.” “Addition of this new gas-based power plants will ease the situation this year. But for a long term solution of the power crisis, coal is the only answer,” he said.
The plants are expected to be built by independent power producers, i.e by global or local companies, with PDB buying their entire generation, through Private Public Partnership (PPP), a financing mechanism popular in India, or by the PDB alone. “In case of PPP, the PDB will own a fraction of the share by offering land and infrastructure. There is a lot of interest among companies about coal-based power plants,” an official said.
Officials said each of the five power plants would cost around $700 million and they would generate power at a cost of Tk 4.0-4.5 per unit, up more than one taka than the electricity generated by the existing gas-based power plants. The estimate is based on the price of coal ranging between $60 and $80 per tonne in the international market. The price may come down if the country can successfully use the coals of its own mines in northern Bangladesh.
Officials said if the projects go ahead as per the PDB’s plan, the five plants would greatly reduce the power crisis to a great extent during the tenure of the Awami League government.

Source: The Financial Express, Bangladesh

Link: http://www.thefinancialexpress-bd.com/2009/05/23/67389.html
Date: 23 May 2009

Compensation for Barapukuria Subsidence-Miners, villagers strike deal

2009-06-02T23:26:00.000-07:00

Sharier Khan

Representatives of villagers affected by land subsidence caused by coal mining in Barapukuria have signed a memorandum of understanding (MoU) with Barapukuria Coal Mine Company Ltd (BCMCL) for compensation and cooperation.
The BCMCL will pay compensation for loss of land at a premium price to around 2,400 affected people of seven villages around the mine, according to the MoU signed earlier last week. The price of land may be fixed on the basis of that offered to affected people in Maowa for the Padma bridge project in the past years, and also taking into account inflation rate up to 2009. The price may be fixed also on the basis of the highest price of land in the affected Barapukuria area, or the higher price between these two options.
And the villagers will help the authorities ensure law and order in the mining area. The villagers however said if payment of compensation is delayed, it might not be possible for them to help maintain law and order. Meanwhile, law and order has become an issue of concern for the mine authorities as some outsiders are fuelling conflicts among mine workers, the mine’s Chinese operators and BCMCL officials and staffs.
“We have found that certain people of Phulbari have launched a negative campaign against Barapukuria mine. Their instigation caused anarchy in the mine earlier this month. They want the mine to be shut down, and they have other agenda in this region,” said an official. Bangladesh imports poor quality coal from India worth more than Tk 2,500 crore every year. Many officials suspect that the importers may contribute to the negative campaign against coal mining in the country.
After the ’successful’ movement in Phulbari four years back, this group of people is fuelling a negative campaign in Barapukuria for the last one year as land subsidence became quite visible in several areas, officials said. As the government’s mining project overlooked subsidence and compensation issues when it was approved in the early nineties, the negative campaign influenced the villagers and workers, they noted.
But the present Awami League government responded to this situation in late January. A committee was formed to look into the subsidence issue and recommend how to compensate the affected people. The MoU signed on May 14-15 by BCMCL officials and affected people is the first step to solve people’s negative impression about coal mining.
As per the MoU, both the sidess agreed on appointing a Property Valuation Advisory Team (PVAT) comprised of advisers and representatives of Dinajpur district administration. This team would specifically recommend compensation for crop land, commercial and domestic space and housing structures, livestock, school, college, religious structure, graveyard, forestry, road, canal, pond, Eidgah, bridges, electric poles, shallow or deep tubewells etc.
The BCMCL had proposed relocation of the families whose houses have developed serious cracks. But the villagers sought compensation and repair of their houses. The BCMCL will construct eight to 10 tin sheds in the high-risk area of Moupukur village. They agreed on developing a mining city.
The affected people would be helped to form a cooperative and allowed to run modern fisheries in the subsided area. As the land would subside further, this could be converted into an attractive tourist spot, which would contribute to local development in future, sources. The BCMCL would relax its rules to give priority to the affected people in offering jobs at the mine.

Source: The Daily Star, Bangladesh

Link: http://www.thedailystar.net/story.php?nid=89424
Date: 23 May 2009

Major decisions on coal likely within this year

2009-06-02T23:24:00.000-07:00

Sharier Khan

Govt working on approval of coal policy, open-pit mining at Barapukuria, resettlement of affected people.

Within this year, the government will take several major and thorny decisions on developing the coal sector, including approval of the coal policy, an open-pit mine in Barapukuria, resettlement of people affected by the existing mine and development of a mine city.
The government is already working on the mine city in Barapukuria by identifying areas to be acquired. This mine city will initially aim at providing livelihood and living facilities to 10,000 families and ultimately give room to one lakh families, says Towfiq-e-Elahi Chowdhury, adviser to the prime minister on energy.
Towfiq-e-Elahi pointed out that the government has signed a draft memorandum of understanding (MoU) with villagers who are affected by land subsidence around the Barapukuria coalmine area. “Their resettlement will be implemented in phases,” he noted.
“Our bigger concern is to ensure these affected people their livelihood. We aim at giving jobs to the second generation of these affected people,” he added.
A government committee has already recommended quick framing of a human resettlement action plan for the villagers affected by the Barapukuria coalmine in line with the one for the Jamuna Multipurpose Bridge project. Such a plan should be chalked out within a few months.
Till this plan of “international standard” is approved for action, the people should be immediately given a standard compensation package and alternative shelter, said a source quoting the committee’s report submitted to the energy ministry late last month.
Deep grievances are brewing among several villages around the mine for the last two years. The mining project was implemented without recognising that the mine would cause land subsidence leading to loss of agricultural land, water supply and cause environmental damage.
For now, the government is addressing the water issue in the area by installing 600 deep tube wells (Tara Tubewells). The subsoil water level in around 15 villages in Barapukuria rapidly dropped as the mine is pumping out huge quantity of water for coal production. Towfiq said the work order for these pumps would be issued this month.
Identifying coal as one of the vital natural resources that needs to be developed for future energy security of the country, Towfiq said in the past the government had undertaken mining project without informing the people its consequences on the environment and agricultural land. The government had not even kept any allocation to address the environmental issues.
“But in future all such projects should be done in a transparent manner by informing and involving the people,” he said. The draft coal policy that the government did not approve in the last four years will soon see the light of day. “We are working on it. We hope to approve it within a few months. The main focus would be to ensure the best usage of coal,” Towfiq said.
He noted the future of power would be dependent on coal as well as nuclear technology. “Seventy-five percent of power in France comes from nuclear power stations and one third of power in the USA also comes from nuclear power stations,” he quipped.
Meanwhile, the eight-member committee headed by a joint secretary of the energy ministry recommended that a mining city be developed as per the Resettlement Action Plan. This city would provide amenities, shelter and livelihood as an alternative to the affected people.
As part of this action plan, the government should appoint a third party organisation–possibly a non-government organisation–to conduct a baseline survey in the affected area to assess the size of the population, their assets, cropland and livestock, schools and other educational institutions etc. If there is a slum in the area, it should also be assessed.
Till the plan is implemented, the villagers living in vulnerable structures should be relocated to the East Camp of the Barapukuria mine. The East Camp is a structure built during the project construction period, said the committee that was formed in January to look into the land subsidence of Barapukuria.
All future mine projects should be implemented after conducting a feasibility study, undertaking a resettlement plan and by acquiring the land necessary for the projects, it said.
The committee pointed out that land outside the mine area, which has subsided and will subside in future, should be acquired by paying premium to the owners. The base line survey should identify the lands that could be acquired by paying the premium.
It recommended jobs for the locals as per their merit in the Barapukuria coalmine. A social awareness committee should be formed with these people to disseminate information about the long-term impact of the mine.
The 2,500-acre underground mine area includes 650 acres of agricultural land on the surface. The mine is directly affecting the lives of about 2,500 people in seven to eight villages. “Rehabilitation of these people should not be very costly for the government,” said a source.
Other members of the committee include director general of the Hydrocarbon Cell of the ministry, Dhaka University geology department Professor Badrul Imam, chiefs of the Bureau of Mineral Development, Barapukuria Coal Mine Company, Titas Gas Transmission and Distribution Company and Geological Survey of Bangladesh.

Source: The Daily Star, Bangladesh

Link: http://www.thedailystar.net/newDesign/news-details.php?nid=89132
Date: 21 May 2009

JS panel stresses coal extraction to reduce dependence on gas

2009-06-02T23:22:00.000-07:00

Staff Correspondent

A parliamentary panel on Monday asked the ministry of power, energy and mineral resources to come up with a report on a ‘suitable’ mining method for coal extraction in Bangladesh. It also asked the government to expedite the process for facilitating use of coal for power generation as the country has been suffering electricity shortage, said the chairman of the committee on estimate, H N Ashequr Rahman, after a meeting of the watchdog body at the Jatiya Sangsad.
The suggestions came at a time when the experts were divided over methods of coal mining as many experts said that the open pit mining would bring environmental disaster and relocation of tens of thousands of people from their homesteads despite high rate of extraction. The other group said the extraction of coal by underground method was minimum and there would be huge subsidence of land if the method was followed.
Protest against proposed open pit method in Phulbari coal mine caused riots in northern Dinajpur district in 2006 killing at least three persons. The Awami League, now in the government, had extended supports to the locals who opposed the open-pit mining and stood against the move to allow the UK-based Asia Energy to extract coal using the method. The then Bangladesh Nationalist Party-led alliance government suspended the move to go for extraction of coal in Phulbari mine with a proven reserve of 576 million tonnes.
Three successive governments have failed so far to formulate a coal policy for the development of the sector over the debate on which method Bangladesh should follow. A draft coal policy is now shelved by the ministry of energy. Ashequr said that the power-hungry country needed more coal now to produce electricity and reduce the pressure on gas, the reserve of which was getting depleted very fast in Bangladesh. The committee suggested extraction of coal from the existing mines to meet the future energy demands.
‘We have asked the ministry of power, energy and mineral resources to go for immediate extraction of coal,’ the chairman told reporters after the meeting. He added that Bangladesh should go for ‘cost-effective’ mining. Bangladesh has estimated 3 billion tonnes of coal reserve in five mines – Barapukuria, Phulbari, Khalaspir, Dhighipara and Jamalganj. Of the existing reserve, 1 billion tonnes coal of Jamalganj are not recoverable with the existing technology.

Source: New Age, Bangladesh

Link : http://www.newagebd.com/2009/may/19/nat.html
Date: 19 May 2009

Gas Exploration-JS body slams Petrobangla for ‘inefficiency’

2009-06-02T23:20:00.000-07:00

Rashidul Hasan

A parliamentary body yesterday strongly criticised officials of Petrobangla for not working “efficiently” in producing gas at different gas fields. The parliamentary standing committee on estimate at a meeting asked Petrobangla to work in a “warlike situation” and increase volume of gas production.
The committee also asked officials of the power and energy ministry to submit in two weeks a report on how to overcome energy crisis. Petrobangla on the other hand sought relaxation of present rules and regulations in exploring gas in a bid to materialise its specialised fast-track project under which it projected to produce as much as 118 to 128 million cubic feet per day (mmcfd).
Petrobangla made the appeal to the government considering urgency of additional gas exploration and digging of gas fields to ensure energy safety by meeting ongoing demand. The Bangladesh oil, gas and mineral corporation informed this yesterday at the meeting of the estimate committee held at the parliament building.
Talking to The Daily Star, HN Ashequr Rahman, chairman of the committee, gave a comparison of gas production between Petrobangla and foreign companies. He said Petrobangla produces 885.17 mmcfd against the reserve of 5.38 trillion cubic feet (TCF) in different gas fields, while foreign companies produce 970 mmcfd against the reserve of 1.5 TCF.
“So we asked Petrobangla to produce gas at its maximum ability,” Rahman told The Daily Star after the meeting. If foreign companies can produce more gas in spite of having less reserve, why Petrobangla cannot produce more, he asked. “The committee has asked Petrobangla to work in a short decision and work in a warlike situation,” he added.
“We are in a serious gas and power crisis and if we cannot meet demands of the people, our pledges for bringing changes and electricity for all will not be materialised,” the committee chief commented. “Investment and studies — nothing will happen in the country unless power is available,” he observed.
Petrobangla officials told the meeting they don’t produce much gas considering profit, say meeting sources. The committee members rejected this view saying nothing is superior to the interest of the country and production of more gas is at present very important considering power crisis, the sources add.
The committee also asked the officials concerned to evaluate which method will be profitable for coalmining in Bangladesh and work accordingly. The committee also instructed the officials to go for building strong opinion among the people in favour of open mine method if it is found profitable. ”You cannot sit idle on your resources,” commented Rahman.
Asked to comment on Petrobangla’s appeal for relaxation of present rules and regulations in exploring gas, Rahman said, “We have assured them of all kinds of cooperation.” Petrobangla requested the government to take necessary steps so that the High Court withdraws the bar on onshore bidding.
It also appealed to the government for not giving gas connection to any sector until production reaches 2,200 mmcfd.

Source: The Daily Star, Bangladesh

Link : http://www.thedailystar.net/story.php?nid=88859
Date: 19 May 2009

Open pit mining can solve power crisis, check desertification-Says Khandker Mosharraf

2009-06-02T23:00:00.000-07:00

Staff Correspondent

Labour and Expatriates’ Welfare Minister Khandker Mosharraf Hossain yesterday said open pit mining in the North Bengal’s coal mines would help solve not only power problems, but also check desertification in that region.

“In underground mining method, you can get only 10 to 12 percent coal, but in open mining you get 70 to 80 percent,” he said, expressing annoyance over too much debates among the intellectuals over the methods of mining when the country goes power hungry for years. The minister was addressing a discussion on local industries and employments organised by Bangladesh Chamber of Industries at its office in the city. He, however, said it was his personal opinion, not of the government.

Intellectuals are concerned over environment and agriculture in the case of open pit method, but it has good aspects too, because the open space created after coal extraction can retain a lot of water that can help recharge underground water in the northern areas which run the risk of desertification now, he noted. Besides, tourists can go there, he said, adding that fish production there could also help solve nutrition problem in the country. “If we leave the coal unused and yell, saying shortage and shortage, it will not do. If we cannot generate power, no development of industry nor of agriculture is possible,” the minister said. “Our future energy is coal. It has no alternatives,” he added.

Source: The Daily Star, Bangladesh
Link : http://www.thedailystar.net/story.php?nid=83447
Date: 09 April 2009

Govt’s 3-yr power target may not be achieved-Muhith tells editors

2009-06-02T22:58:00.000-07:00

Staff Correspondent

Finance Minister AMA Muhith yesterday said it is unlikely that Awami League would be able to fulfill its election pledge to raise electricty generation by 1,000 megawatts (MW) in the country by the next three years.
“The target of raising the generation of power in three years may or may not be achieved,” Muhith said in response to questions raised by the editors of leading dailies and news agencies about the nagging power crisis at a pre-budget meeting at finance ministry. He expressed doubt that power generation could be increased to 5,000 MW within the next three years as promised by Awami League before the election.
AL, in its election manifesto, pledged to increase the power generation from the present 4000 MW to 7,000 MW during the government’s five-year tenure. Muhith said power is very important for all development activities. He said Siddhirganj Power Plant would be commissioned soon and a substantial supply of power would be available from it.
Regarding Phulbari coal mine, he said a decision in this regard would taken soon after consultations with the people of the area to improve its energy situation. Muhith also praised some good initiatives taken by the caretaker government to increase power generation. Some electricity has been added to the national grid from rental power plants.
The finance minister also said, “The next budget would be big as we will have to give incentives to different sectors to tackle the world economic recession.” Budgetary allocation in social safety nets, power and the agriculture sector would increase, he said. During the discussion on the budget, editors urged the finance minister to lay emphasis on the power sector and employment generation sectors. Stressing on proper implementation of the budget, the editors said care is taken in collecting revenue but not on it’s spending.
Editor of the Financial Express Moazzem Hossain, The Independent editor Mahbubul Alam, News Today editor Reazuddin Ahmed, The Daily Star editor Mahfuz Anam, Channel i Managing editor Faridur Reza Sagar, bdnews24.com editor Toufique Imrose Khalidi, Sangbad editor Altamash Kabir and Manabjamin editor Motiur Rahman Chowdhury took part in the discussion.
Prime Minister’s finance and planning advisor Dr Mashiur Rahman, Prothom Alo editor Matiur Rahman, Jugantor editor Salma Islam, The Bangladesh Today editor Mahmudur Rahman Chowdhury, Finance Secretary Mohammad Tareque, NBR chairman Nasiruddin Ahmed and Economic Relations Division Secretary Mosharraf Hossain were also present.

Source: The Daily Star, Bangladesh

Link : http://www.thedailystar.net/story.php?nid=83561
Date: 10 April 2009

No more waiting for policy-Govt to set-up coal-fired power plant: Muhith

2009-06-02T22:56:00.000-07:00

ET Report

The government is determined to set up coal-fired power plants to meet power demands and will wait no more for formulation of a national coal policy.
Finance Minister AMA Muhith said power generated from on-stream together with projects in the pipeline would not be enough to meet demand.
“So, we are mulling over new coal-fired power projects whether coal policy is formulated or not.” Industries minister Dilip Barua said investors were not coming forward due to many obstacles-power and gas and water scarcity, weak infrastructure, high interest rates, and complex tax and investment regulations, among others.
There was no alternative to removing these hindrances for domestic industries to flourish, he said. The ministers were delivering speeches at a seminar.

Source: Weekly Economic Times , Bangladesh

Link : http://www.weeklyeconomictimes.com/home-news-details.php?recordID=3721
Date: 30 April 2009

Local people should welcome such project : Dr Tawfiq-e-Elahi

2009-06-02T22:49:00.000-07:00

ET Report

Local people were involved in violent protest against Phulbari coal mining initiative. It appears contradictory since local people should welcome such a project provided it is designed appropriately taking into consideration of their concerns and expectations. Local people should be convinced that their life and livelihood would be significantly improved while contributing to national development.
Dr Tawfiq-e-Elahi Chowhury, Bir Bikram, Advisor on Energy to the Prime Minister in an recent interview with Energy and Power magazine editor Mollah Amzad Hossain. expressed the views. He further said a stalemate situation has been created in the formulation of coal policy and exploration of coal due to lack of faith and confidence of the people. The government has definite programs to address the energy sector issues in the greater interest of the people. Some rental plants and small power plants which were initiated during alliance government and caretaker government are at various stage of installation.

Dr Elahi focused on various issues related to energy sector in the interview. Excerpts below:

EP: Power generation and supply is well below demand. People are in great sufferings. Even gas supply for power generation is well below demand. Why alternate fuel could not be made available? What led to this situation you think?

TEC: Indecision of previous governments especially of the 4-party government created this situation. No initiative was taken for about 7 years to explore new gas resource. No new major gas field was discovered after the large Bibiyana Gas field during previous term of Awami League Government. Neither IOCs nor could BAPEX has been steered to explore new gas resource. There is no other alternative to expand or increase gas reserve without new discovery. Alliance government also failed to proceed with the PSCs signed in second round bidding during Awami League government.
If we think of coal – major alternative of gas, underground coal mining on supplier’s credit was taken during the BNP rule. It had two flaws of which one impacted on the other. Local population was not consulted for taking them into confidence for a project like coal mining. Consequently, people were not made aware of the inevitable mine subsidence and the impacts although the operators of the mine were well aware of it. Another development you must have observed in Phulbari coal mining initiative. Local people were involved in violent protests against the mining initiative leading to loss of lives. It appears contradictory since local people should welcome such a project provided it is designed appropriately taking into consideration their concerns and expectations For such projects to be successful, local people should be convinced that their life and livelihood would be significantly improved while contributing to national development. No major project can be implemented anywhere ignoring the local people.

This is a major failure of the government. The 4-party government as well as the Care Taker Government played hide and seek with local population regarding Barapukuria and Phulbari projects. We must remember taking local people into confidence is the responsibility of the government. In fact, a stalemate situation has been created in the formulation of coal policy and exploration of coal due to lack of faith and confidence of the people in the past governments.

EP: Energy Sector of Bangladesh is now in serious crisis. What are your plans to confront it? How long you it will take to get out of it?

TEC: It is only three months this government has come to power. Prime Minister has kept this portfolio given the fact that this sector requires the attention of the highest level. We have to start with what we inherited from previous regime. On stock taking, what we observed that over the last 7 years nothing of note has been done for the development of energy sector. The present situation is the consequence of the inaction over the years. Our government has definite programs to address the energy sector issues in the greater interest of the people.
The first priority is what we can achieve by 2011.Then comes what we have in our vision 2021. We are endeavoring to plan actions for short, medium and long term to achieve these goalsPlanning and implementation of short-term actions will proceed simultaneously. We have initiated a two-pronged strategy. We have to bring the under-implementation small plants into operation as soon as possible and simultaneously, do everything to ensure steady and uninterrupted operation of existing plants. We are also acting for ensuring smooth fuel supply – gas, for these plants. In our current assessment gas supply constraints have been identified as the single most important impediment. There are limitations in gas production and also restrictions in gas transmission.

On a priority basis, we have already arranged to evacuate about 50-60MMCFD stranded gas from Jalalabad Gas field through constructing a spur line. This can facilitate generation of additional 200 MW of electricity. GTCL has been advised to simulate its Gas Transmission Grid to devise ways of optimizing gas supply. This may facilitate to improve gas supply to Shambhuganj Plant at Mymensingh and Siddhirganj. But everyone should realize there is no instant cure for such long ailment.
The 4-party government in 5 years did only plan and implement the lone 80MW Tongi plant. Other power plants which commenced generation during that time were initiated during previous term of Awami League Government. Some other rental plants and small power plants which were initiated during alliance government and caretaker government are at various stage of installation. These are not enough to confront the crisis. If the alliance government had taken appropriate and timely decisions to set up some large power plants the present crisis could have been averted.
Moreover, the 4-party government cancelled the initiative to set up a 450 MW power plant at Sirajganj at the final stage. WB agreed to finance the project. The promised fund was withdrawn following government’s decision to scrap the project. Responsible persons of the 4-party government should be made accountable for such detrimental action.
We have initiated power factor improvement to improve quality of power supply. This will make 10% improvement of supply using the same amount of power and ensure savings of around 300 MW power everyday. You are aware that many of our power plants have already outlived their effective economic life. These have turned into fuel inefficient plants. Actions have been taken to upgrade such old plants. We need to either rehabilitate or replace these with efficient plants. With these remedial measures we will get more power from existing plants. But it will take quite time. We are planning to do these in phases during winter when the demand for power is relatively low.

EP: We are lagging way behind PSMP. According to it power demand for 2009 was projected as 7200 MW and generation capacity should be 10% more than that. But during this period power generation never goes beyond 4200 MW. Will it be at all possible to come out of it?

TEC: I have indicated earlier that power generation can be increased to some extent if gas for power can be enhanced. But there is no magic solution which will overcome the present crisis. But demand side management, energy efficiency and conservation can help ameliorate the adverse impacts of power scarcity. We are taking some urgent actions in these regard.
The Prime Minister instructed us to do the needful so that the farmers have the first right to electricity during the Boro season. Under her guidance, we managed the load in such a way as to ensure uninterrupted power supply for agriculture for irrigation. This might have resulted in some extra burden on the urban population, but together we have managed the challenge. Promoting energy efficiency is another measure. For example, a recent survey has evidenced that about 300 MW power can be saved if traditional bulbs can be replaced with power efficient CFL bulbs in 10 major towns of Bangladesh. That’s as good as setting up power plants of 300 MW!
CFL is use in many countries now. 4.5 million traditional bulbs were replaced with CFL bulbs in one day in Britain. We have taken up a project with the assistance of World Bank and GTZ which will culminate in replacement of 15million (I crore and 50 lakhs) traditional bulbs with CFL throughout selected urban centers and rural areas in Bangladesh early next year. Besides planning logistics and standardization of CFL, we shall seek public support for the initiative including the local government organizations. I am sure media would not be in wanting to lend its mite.

Emphasizing energy efficiency is another strategy to deal with such power crisis. You may be aware that many of our industries have small gas fired boilers. We have gas shortage and these inefficient boilers are wasting our valuable resources. We are considering converting these to liquid fuel and reviewing the possibility of formulating a policy to covert these within a time frame. Energy audit is also under consideration. This will ensure efficient use of energy at all stages. All boilers, chillers and all appliances will be standardized under legal framework with a view to ensuring energy efficiency Capacity of BSTI will be enhanced to deal effectively with these emerging issues.

EP: Awami League Election manifesto includes addition of generation of 1500 MW power by 2011 and 3500 MW by 2013. But existing power plants are not getting the required gas supply now. Considering this situation how the 5000 MW capacity power plants in the pipeline will get fuel supply? Do you have plans to import coal or LNG?

TEC: You are aware that the Prime minister herself is in charge of this Ministry. Awami League election manifesto has some specific milestones. PM came to ministry immediately after the assumption of office and gave specific guidelines for implementing the election manfesto. Among others, the exploration and development of gas resources came up for discussion. A two-pronged strategy will be implemented: accelerating the programs undertaken by BAPEX and involving IOCs through a competitive process that serves the best interest of Bangladesh. You are aware that ECNEC under the chairmanship of the Prime Minister has approved over TK 100 crore for BAPEX to purchase a modern drilling rig and other drilling equipments. Alongside, specific actions would be put in pace the enhance and strengthen the capacity of BAPEX. Another exploration program at Mobarakpur has been recently approved. BAPEX will focus in areas which have lesser risks but higher prospects while IOCs will be encouraged to invest in areas which have greater exploration risks.
You yourself commented that single-fuel dependent energy generation is not sensible. In the same vein we have stressed upon fuel diversification. From that perspective coal is our second most important energy source. We are trying to design an appropriate model taking into consideration the experiences, the mistakes or lack of attention on important mining issues in case of Barapukuria. This will ensure coal exploration that meshes the aspiration of local community and in particular, those that are adversely affected, with the national goal of energy production and security. The Prime Minister has instructed all concerned to mitigate the problems of the affected community of Barapukuria coal mine while ensuring its uninterrupted operation.

While the previous governments had put the problems of local community under the carpet, particularly the land subsidence, the Prime Minister not only instructed her Ministry and its implementing agencies to address the emerging issues but also took out time from her busy schedule to listen to the representatives of Barapukria and gave instant directives. We are acting accordingly. EMRD has formed a committee to investigate all relevant issues and suggest recommendations. We are endeavoring to reach a consensus with the local communities and carry forward the mining that best serves all competing interests.The mining model evolving from lessons learnt from Barapukuria will be the basis for further customization, fitting specific conditions of different coal mines. In this process we shall consult mining, environmental and energy experts including the non-resident Bangladeshis. We expect that in the next 5-7 years, coal would emerge as one of the major primary fuels for power generation in Bangladesh.
We are planning to go for dual fuel option for the power plants now under planning. If gas is not available these will run with liquid fuel. Please bear in mind the government will not limit its power generation vision on gas & coal only. We are actively considering nuclear power generation although it is unlikely to come on stream within the 5 year-term of the present government. The PM is very keen on exploiting opportunities for renewable energy. Alongside other measures, we are actively considering the applications from renewable source of energy. We are exploring the possibility of solar power generation in commercial way apart from limited use as solar home system. Especially, the possibility of running irrigation pumps with solar power is being actively explored. If we succeed, this will drastically lower power requirement for irrigation.
It was a common belief that Bangladesh is not ideal for wind power generation. Now technology has significantly advanced. Modern wind turbines do not need strong wind flow. We will work to explore the possibility of introducing this technology. Beyond this we are thinking about supporting bio gas plants and also exploring possibility of energy from waste. The challenges for harnessing these diverse sources of energy on a large scale are daunting but we shall keep pursuing and I am hopeful of some success at the end.Few large IPPs are on the drawing board and donor agencies are prepared to stand by us in the competitive bidding process. But the recent international financial melt down has made their prospects for financing uncertain. While we shall go for the bidding, alternative modalities for implementation would also be developed, should we face limited response.

EP: Our Gas production capacity is 1850 MMCFD against present demand of 2100 MMCFD. Another 60 MMCFD additional production is expected from the end of March. Apart from this is there any possibility of increasing gas production by 2011 and if so from where? What will be the gas scenario in 2013? If we fail to discover new gas reserve we will have no alternative but to rely on coal. Otherwise we will have to import liquid fuel or LNG. How do you view this situation?

TEC: Petrobangla is working on a gas production augmentation program. The goal is to maximize production from existing fields without jeopardizing the structures. This appraisal-cum-development program should yield some positive results. The exploration programs of BAPEX would also put on a fast track. We shall also nudge the IOCs to bring forward some of their exploration programs. All these would lead to increase in gas supply although it is difficult to speculate the number. You are right in suggesting that coal would also have to be developed simultaneously which I have elaborated before. As a contingency measure, we should not exclude the possibility of LNG import in the intervening period.

EP: Cairn will not further explore at Magnama and Hatiya if Petrobangla do not agree for higher price than agreed in PSC or allow them to sell to third parties directly in local market. In this scenario it has been recommended to approve it. There are complaints that it is a major departure of PSC provision. What is your opinion?

TEC: We are examining the proposal both in the context of the terms of the PSC, incentives for the contractor and the greater interests of Bangladesh. While exploration for new resources are critical now given the shortage we are in, we have to be equally aware of the longer term energy supply and security of the country. A balance has to be struck.

EP: French Company Total has relinquished block 16 & 17. It is told that their decision is influenced by the gas structures they found are not economically viable to explore. Cairn has also relinquished block 5 &10. Only Chevron has expressed intention to carry on exploration efforts in block 7. So in the next 5 years we can not expect major discovery by IOCs. Do you think it will be possible for BAPEX alone to meet our demand?

TEC: There is no last word in exploration. So do not make conclusive judgment if blocks are relinquished by contractors. We are looking into different options in this regard. BAPEX would be put into fast forward mode to which I have already referred to already. Alongside, we shall examine joint venture with BAPEX and also involvement of IOCs in the future. New policy guidelines would be put in place if conditions so require.

EP: Are you going to approve the Petrobangla proposals to award some PSC s to IOCs to start exploration in offshore? Or you will go for fresh bidding?

TEC: The last Caretaker government took the initiative for awarding exploration contracts to some IOCs for offshore blocks. We are examining the papers and after due diligence, firm up our position. Our government is only 3-month old and you should allow some time for arriving at decisions on such important national issues.

EP: Demarcation of Maritime Boundary in offshore exploration is a sensitive issue. This can create dispute with neighbors. How you are approaching this?

TEC: An expert committee is working on it. We will finalize maritime boundary in the shortest possible time. Ministry of Foreign Affairs is actually handling this matter.

EP: Other than Barapukuria another proposal for coal mining at Phulbari is waiting government approval. Asia Energy is waiting for 3 years after submitting proposal. It has been told since last Alliance Government that decision will be taken in accordance with coal policy. Care Taker Govern echoed the same. But coal policy is not yet approved. Which route you are following on this? Will you also work on coal policy or will start coal mining?

TEC: You should have asked the past governments why even after years they could not finalize a coal policy. Ours is a democratically elected government and we have mentioned our overall stance in the election manifesto. The government has already started evaluating the legacy of past regimes. We shall finalize the policy framework in consultation of all stakeholders. There are of course detractors. But a people’s government as ours is, we shall decide in the best interest of the country. While earlier governments dealt with the Barapukuria mine without taking the local communities into confidence, the Prime Minister took time out to talk directly with them. This amply demonstrates the overall strategy of the government.

EP: Will you to take fresh initiative to implement Tri -Nation Gas Pipeline from Myanmar? Is there any plan to import power from Nepal and Bhutan? If so, when?

TEC: The Prime Minster has on occasions emphasized the benefits of regional cooperation, particularly in the energy sector. Such initiatives can be bilateral or multilateral. We shall initiate discussions with our neighbors soon. Again, in the election manifesto this has been stated clearly.

EP: Some estimates evidence that about 20billion dollar investment is required in the next 5 years for Bangladesh Energy sector. Where from this will come? What are Government plans? How much of this will come from donors, how much from FDI and how much Government will invest?

TEC: Large investments are required, I agree. But I cannot put an exact number yet. One cannot deny that a significant part would have to come as FDI and from multilateral sources. World Bank and ADB have not only agreed to take part in financing these investment programs but also help raise funds from domestic and international sources. Although the current melt down in the international financial markets had cast some doubt about such prospects, the resolve in the recent G20 meeting and in particular, the decision to fund trade and investment, would soon release export financing from the developed countries to facilitate FDI flows in Bangladesh.
You may recall that during the last term of Prime Minster Sheikh Hasina, Bangladesh was able to attract large FDI in the energy sector along with some IPPs with one of the lowest power tariffs. Under her leadership, this time around, we shall do even better.

Source: Weekly Economic Times , Bangladesh

Link : http://www.weeklyeconomictimes.com/home-news-details.php?recordID=3719
Date: 30 April 2009

Generating power without government

2009-04-28T20:39:00.000-07:00

Nizam Ahmad

The government of Bangladesh has failed to ensure supplies in order to meet the energy demand of the populace. The country needs a radical energy policy. The best would be for the government to stand back and allow the market's competitive forces to generate power.
While the government would probably take until 2021 to consider that option, they should begin importing gas from the surplus world market to operate the state-owned power plants starved of fuel. Many people as exporters or shopkeepers would be too willing to pay more but many may not. Nonetheless, a sweeping shift in power generation from an undependable 'public-private partnership' to a wholly private can overcome the present energy crisis both in the short- and the long-run.
The leaking gas fields of Bangladesh and constant disruptions to supply prove that contractors chosen by the government were either incapable, or had cheated it, or politics and nepotism decided all energy businesses. Bangladesh gas fields are not only ill-managed but also do not benefit from advanced technologies.
Mainstream economists, environmentalists, policy experts, and politicians always insist that government should play the leading role in energy, and in all matters. Such policy practices have created a vested ruling class and a mass dependent on government. Government, as they perceive, is almost a deity that fulfils all demands of the people, when qualified technocrats advise it and dedicated elected officials run it. Destined are people to submit to this authority for collective deliverance.
The planners advise mobilisation of resources to develop energy. This means high taxes, which is a severe burden on the people. They also instruct the government to borrow capital from foreign governments and non-market institutions. This method has not only failed to develop our energy, or the economy, but also brought in an ugly culture of corruption and inefficiency. It is only rational that a cut in government's economic authority will minimise corruption but elite experts and elected leaders of the people oppose it.
Our coalfields could be a good source for power but remains bogged down with faulty contracts, and blockades from environmentalists who prefer darkness and poverty to foreign investors utilising our natural resources. Our 'eco warriors' and those wary of big neighbours can afford to dwell in Utopias, as they do not live in darkness or in poverty as the people around the coal fields do. Environmental concerns and a likely repeat of an East India Company syndrome run wild in their minds. They hold no faith in laws of the country, if reformed, to punish corporate frauds or in modern technology to clean industrial pollution.
Politicians, in fear of this eco and nationalist lobby, have revealed a magic number of 50 years of reserve gas, or coal, before any export considerations. The Bangladesh economy, if steered by private entrepreneurships, will naturally seek, as the world does, alternate sources of energy including nuclear but if export of gas, or oil, at all takes place, prices will climb to an abnormal peak whenever reserves hit low. The high prices would deter exports, therefore, keeping reserves intact and untouched. Such is pure economic logic if unaltered by government bureaucrats and by the vested ruling class. Contrarily, the government enters into long-term fixed price contracts that do not reflect true gas reserves. The government built few power and fertiliser plants that does not work full time due to gas supply issues. No private enterprise, if operating without the burden of government control, would build a plant without ensuring uninterrupted gas supply.
It is time to test the private sector, foreign or local, under an environment of firm law and order, to invest in Bangladesh's energy sector to fulfil market demand for power. Undeniably, private enterprise would be more competent with their expertise and resources to supply non-stop gas, or coal, for our power. The government has failed and should no longer be in it. Gas reserves could be higher and its utilisation more efficient if private producers were discovering, conserving, or even importing gas for our kitchen, factories, fertiliser, and power plants.
Under a setting of a free market in energy, prospective private investors in Bangladesh would be free to negotiate with people on whose land they would choose to drill or excavate. For a successful outcome, as in any businesses in free environments, there will be negotiations with people for corporate shares, jobs, or a premium price for the use or purchase of their lands. Presently, government owned or authorised private operators simply evict people and often coercively. The ruling class benefits itself at the expense of the vast poor who stay dependent on the government to meet their humble needs. The inhabitants in the area do not benefit from wealth underneath their lands, which is unjust, exploitative, and a denial of their natural economic rights.
A government plan should only formulate rules that relate to health, safety, forgery, and, indeed, the environment. It will provide the conditions of economic development as property rights, personal security, minimum taxes, and freedom to trade or invest. Governments should meddle least in the affairs of private enterprise. There will be hordes of energy watchdogs as the media, green activists, local people, lawyers, courts, politicians, and non-government organisations (NGOs) to keep an eye on private enterprise in Bangladesh's energy.
The opposition to energy in the free sector from green environmentalist on grounds of pollution, or any other, is in reality to prevent the advance of capitalism in Bangladesh. Green environmentalists in the West, in connivance with governments bent on market control and interventions, promote 'sustainable growth' by ditching today's use of resources for the distant future. However, by this doctrine, resources will remain unutilised forever, as our future will reserve it for their future. Many, however, reason that a coterie in the industrial West do not want world's natural resources depleted but kept reserved for their industries only.
To meet energy needs of 150 million people, the private entrepreneurs, who are the unfailing engine of development, must wrestle for their right to produce power without government.

The writer, based in London, is Director, Liberal Bangla, UK

Source : The Financial Express, Bangladesh

Link : http://www.thefinancialexpress-bd.com/2009/04/28/65002.html

Date : 28 April 2009

It cant be done in three years’

2009-04-27T23:50:00.000-07:00

Mullah Amzad Hossain, editor, Energy & Power, a Dhaka-based fortnightly magazine explains to Robab Rosan why we wont get much relief from load shedding in the next few years

We have been virtually living under a state of power shortage for almost decades now, especially during summer season. While subsequent governments have promised to deal with the issue and blame each other, the situation seems to deteriorate by the day. What has really happened through these years?
I think people are aware of the present situation in the power sector. I have monitored the flow of electricity from twelve hours from 10:00am to 10:00pm on April 15 and I have seen that electricity is not coming back after one hour, as per the schedule of load shedding. It is taking more time to return but staying on for less time. The situation is gradually getting worse.
I think the demand for electricity in the country in peak hours is no less than 7000 MW and the government is saying that electricity is being produced from three thousand to thirty seven hundred MW. And there is also a fifteen percent system loss as well. If we take into account uninterrupted supply of electricity for privileged people and areas, we see that the share of electricity amongst the common people is minimal.
Corruption has become the most popular victim in the country. For me, inefficiency is more dangerous than corruption.
We saw infrastructural development during the rule of HM Ershad, however, many irregularities and corruption were reported during that time. Later the BNP government continued the projects and took only a single project of establishing an electricity production centre in Siddirganj.
Next, the Awami League government finalised the Independent Power Producer policy (IPP), drafted by the previous BNP government.
The AL government successfully increased production of electricity from seventeen hundred to eighteen hundred MW to nearly four thousand MG according to the policy. We got 1300 hundred MW of electricity from the IPP.
Unfortunately, the next BNP government did not continue the projects taken by their predecessor. The government said that IPP was a curse for the nation and the then finance minister Saifur Rahman said they would not take even suppliers’ credit in the power sector. They later realised that they should start the IPP facility and suppliers’ credit again. But this time they wasted two years.
The BNP government started a centre of one hundred MW capacity at Tongi during their last tenure. They also began the process for a 240 MW production centre in Siddirganj and a centre in Sylhet, that started production during the last caretaker government.
Right now, we have five and a half thousand MW installed capacity. But many of the machineries are old and some of them remain closed for repair. On the other hand, the centres do not get uninterrupted gas supply. For these reasons, the production centres cannot produce according to their capacity.
The governments blame each other. I say that there was virtually no development not only in the power sector but also in the energy sector in the last seven years.
During the tenure of the previous government we saw violent crises regarding the shortage of power in Kansat and Demra. And yet, we now hear that not a single megawatt of power was increased in the last five years. Is this true and how is it possible?
The crisis of electricity will never be solved because in our country, gas is the main source of producing electricity. Eighty seven percent of electricity in our country is being produced by gas. We do not have enough reserve of gas. The government has yet to decide on whether to extract coal. They are delaying more and more. If we extracted coal, it could be used in generating electricity. There is no plan, I think, to generate electricity by purchased oil.
The government has planned to produce five thousand MW of electricity by five years. I agree with the government that it might be possible in five years but not in three years. The government has to involve local and foreign companies to explore gas immediately and urgently and they should also extract coal. Otherwise it might not be possible.
The finance minister has said that we cannot do anything about load shedding in the next three years. Is there really no way out?
Yes, the finance minister has said it correctly - we cannot do anything about load shedding in the next three years because it is a lengthy process. I have said earlier that the government can increase production in five years if they take effective initiatives right now. If they do not take initiatives they will not be able to produce even in five years.
The government can provide social tariffs for at least sixty percent of people, who are in the marginal line of poverty. They can give twenty percent subsidy to the lower middle class people. But those who are capable of paying must pay the original price. The government can also establish a special grid for uninterrupted electricity at the higher price.
In a recent report, we have heard that the government is thinking of purchasing electricity from India. What are your views on that?
I think, this region (SAARC) is the only region where we have no real cooperation in the energy sector. Due to lack of faith among the two countries, Bangladesh and India, and a lack of far sight in our politicians, we could not establish a multinational cooperation in this region. We can import electricity from India in the short run or mid run. We can also import electricity from Nepal but the decision should be taken immediately.
We currently, apparently have the capacity to produce 600MW of extra power and yet we don’t have the gas to do it. Meanwhile, our gas resources lay as it was because we have not been able to resolve our issues regarding the extraction of gas. How can we increase our gas supply?
If the question of gas supply comes we will see many irregularities in this sector. We are unfortunate because our governments do not solve the problem. They allow the problem to grow into a crisis and then they go for the remedy. But by this time we waste a lot of time and money. We are gradually losing our reserve but not exploring new gas fields. We are neither allowing foreign companies nor the local ones to work in this sector.
We have to extract coal for generating electricity because about fifty percent of electricity is produced across the world from coal. Denmark, which has a contribution of 42 percent in renewable energy, produces 48 percent of its electricity from coal. Our neighbouring country India produces about sixty percent of its electricity from coal and China produces around seventy percent of its electricity from the same resource. The government must ensure better rehabilitation of people and minimise environmental hazard for extraction of coal.
Using the policy of Production Sharing Contract (PCS), the government should immediately take initiatives to explore gas in the Bay of Bengal, otherwise we will not be able to increase our production.
There is inefficiency in the government sector. At the other end we have increasing demand, sometimes artificially created by MP’s and their electoral promises. How do we get out of all this?
Forty percent of total budget in the power sector should be kept for generation, forty percent for transmission and the rest twenty percent for distribution. This was not done properly.
To earn cheap popularity, the government says that they will set up production houses at their own cost. We virtually need nearly five million USD to set up a 450 MW power plant. This is not possible for the Bangladesh government to do single-handedly. Our share market is also not booming that the government will collect money from the market.
If the question about the extension of electricity in rural areas comes I will ask the government whether they want to keep our rural people in darkness. The rural people have the right to get electricity. The government knows that ten percent demand will increase every year.
To extend electricity is not a fault. It is a fault not to produce electricity. People can demand electricity from their representatives. The government is developing roads but not giving electricity. You cannot expect development without electricity.
What are your views on alternate sources of power for households and how can we effectively increase awareness among people to stop wasting power?
The government is going to take an appreciating initiative to replace all the incandescent bulbs with Compact Florescent Bulbs (CFBs) by two years. The World Bank will provide the bulbs free and the German organisation GTZ will provide technical support. The government has planned to replace one and half crore bulbs by February next and one crore more by the end of the year. It will save eighty percent of bills and save eight hundred MW electricity.
The government should also ensure that the generators, refrigerators and ACs and other appliances are energy efficient. The government can also encourage the factories, particularly the steel mills, to run at night. On the other hand, the government can close markets by five o’clock five days in a week and can keep them open till 11:00 at night on the remaining two days. Shoppers will get habituated to this system in time.

Source : New Age (X tra) , Bangladesh
Link: http://www.newagebd.com/2009/apr/24/apr24/xtra_inner6.html
Date : 24- 30 April, 2009

Coal policy, now a necessity-Minister says

2009-04-27T23:43:00.000-07:00

Star Business Report

The government will finalise the much-awaited coal policy, to mitigate the acute power crisis, said the state minister for energy and mineral resources yesterday.
“There is no alternative to finalising the coal policy, as to prove to be a lower cost option for power generation,” said Shamsul Haque Tuku at a meeting with the Forum for Energy Reporters Bangladesh.
He however did not reveal the present status of the policy, which has been under deliberation within the government for the last few years. But the policy, which is required to develop the coal sector, is still in red tape.
The last caretaker government finalised the draft coal policy. But that government did not impose it, as it thought a political government should take such a decision.
The state minister said new gas and coalmines must be excavated.
He urged all stakeholders of the mineral resources sector to suggest the government how national resources should be used.
The state minister claimed the present government increased day-to-day electricity generation from 3200 MW in January to 3850 MW till yesterday. However, the last caretaker government increased electricity generation to 3900 MW in December 2008.
In response to a query, the minister said the present government is trying to add more than 741 MW electricity by July this year, based on the last caretaker government’s load management policy.
He said the present government is not responsible for the current power crisis. But the current government will not consider what happened in the past, he added.
“We will have to develop the power sector. Otherwise, the government will be blamed for the power shortage. That is what the past government faced,” Tuku said.

Source: The Daily Star, Bangladesh
Link: http://www.thedailystar.net/newDesign/news-details.php?nid=82375
Date: 02 April 2009

Coal policy must to ease energy crisis

2009-04-27T23:42:00.001-07:00

Staff Reporter

State Minister for Power and Energy Shamsul Hoq Tuku yesterday said that there is no other alternative but to approve the coal policy for electricity production. “We are working to present a concrete coal policy to nation for extracting coal uninterruptedly,” he said in a press conference, organised by Forum for Energy Reporters of Bangladesh (FERB) at the National Press Club. The FERB Chairman Mollah Amzad addressed the press conference, among others.
“If we are able to extract coal from Barapukuria, then we will extract coal from five other coal fields,” Tuku said, adding, ” The Government will use the coal for producing additional electricity.” He expressed his frustration on controversy over coal extraction and said that the coal and gas protection committee don’t want to extract coal. For additional electricity production, it is also urgent by needed to explore gas, the Minister said.
About offshore bidding, the State Minister said, “We are trying to come into a solution with the neighbouring country for offshore bidding.” The Government is also trying to strengthen BAPEX for gas exploration, he further said. He informed that the power ministry works for adding 714mw electricity in the national grid as a part of short-term strategy of the government within July next. But he cannot explain how it will be possible.
About installation of mega power plant, the Minister said that the government was negotiating with the Russia and some other countries to set up 1000mw nuclear power plant. “The process to set up 450mw Sirajgonj power plant will also continue,” he again said.

Source: The New Nation, Bangladesh
Link: http://nation.ittefaq.com/issues/2009/04/02/news0663.htm
Date: 02 April 2009

PM for decision on coal policy on priority basis

2009-04-27T23:41:00.000-07:00

Staff Correspondent

The Awami League-led alliance government has decided to hold an open discussion on the draft coal policy with different stakeholders for finalising the policy on a priority basis. ‘The prime minister, Sheikh Hasina, has directed us to finalise the coal policy as we need alternative energy sources to produce electricity. We will soon hold an open discussion with different stakeholders to finalise it on an urgent basis,’ the prime minister’s adviser Tawfiq-e-Elahi Chowdhury told reporters after Hasina held a meeting with power and energy officials on Thursday.
The previous BNP-led government that first prepared a draft of the coal policy and then the interim government held half a dozen open meetings with stakeholders but could not finalise the draft because of controversy surrounding the mining method and fixation of royalty. When asked why another meeting was needed with stakeholders when controversy was raging over the coal policy for the last three years, Tawfiq said, ‘Every government has its own policy and philosophy. Of course, we will consider the investment issues, local people’s concern and electricity generation while finalising the coal policy.’
Hasina, who is also in charge of the power and energy ministry, held her second meeting, which lasted three hours and a half, at the ministry to discuss about the current power situation and what steps could be taken to improve it. The prime minister stressed the need for increasing gas and coal production for overcoming the power crisis. Sources present at the meeting said that Hasina had asked power officials why there were power outages 10-12 times a day. Power officials said that power outages more frequent in some areas because of technical faults. She dismissed power officials’ claims that there was only 15 per cent system loss in the power sector. Power officials said that the electricity supply situation in the capital would worsen after May because of rise in the demand and sought the prime minister’s directive in shutting down steel and re-rolling mills which consumed huge amount of electricity during evening peak hours.
Hasina asked the authorities to go ahead with the plan. She also asked them to launch a campaign for reducing use of air-coolers during peak hours. She asked officials to take steps so that the power projects that were in the pipeline – under construction, under tender process or planning – could be implemented as soon as possible. Tawfiq said that the capacity of the power plants in the pipeline would be around 3,000MW. ‘The prime minister has directed the authorities to go for dual-fuel option in installing the new power plants like the 450MW Sirajganj independent power plant,’ he said. Hasina also asked the authorities to start negotiations with the countries that had installed power plants like Ghorashal, Ashuganj and Khulna, to replace these old and inefficient plants with new plants. She asked the power officials to explore whether smaller hydropower plants could be installed in rivers and haors across the country and in water streams in Sylhet and Chittagong.
The prime minister also directed the authorities to expand solar energy projects in urban areas and to explore whether irrigation pumps could be run by electricity generated from solar panels. She also directed officials to explore whether electricity could be imported from India, Nepal, Bhutan and Myanmar under regional cooperation. For exploring new gas, Hasina asked the gas authorities to engage a contractor to conduct 2D and 3D survey at the onshore gas fields of Bangladesh Petroleum Exploration and Production Company as Bapex would remain busy in the next three years with gas exploration.
Hasina also directed energy officials to discuss with the attorney general the issue of taking legal steps to have a High Court injunction on signing production sharing contract for onshore gas fields withdrawn. Tawfiq said that they would take to the cabinet meeting a proposal for introduction of daylight saving system by advancing the clock by one hour to save power and gas during evening hours.

Source: New Age, Bangladesh
Link: http://www.newagebd.com/2009/apr/03/front.html#10
Date: 03 April 2009

Gas Crisis to Worsen Further From 2011-Fast decision a must to produce coal, N-power

2009-04-27T23:36:00.000-07:00

Sharier Khan

The country is walking the path of a perennial gas crisis where even the best possible situation of striking gas in the off-shore blocks will not give it a respite till 2020. This means unless the government takes major policy decisions like emphasising coal or nuclear power production within a short time, the already unbearable power load shedding that is hitting the economy and lifestyle very hard will go beyond any solution. Most of the country’s power plants run on gas.
The gas situation is so bleak that Petrobangla has been declining confirmation of gas supply to a number of upcoming large power projects. In a paper submitted to the prime minister, Petrobangla even recommended discouraging use of gas for power generation as it can be generated using alternative resources like coal. Power Development Board (PDB) sources say while Petrobangla okayed gas supply to Bibiyana 450 megawatt power project, it cannot confirm gas supply to the much older 450 MW Sirajganj power project till 2012.
For now it can only confirm gas supply to 150 MW Sylhet, 150 MW Bhola and two 150 MW Siddhirganj power projects. Petrobangla flatly refused to supply gas to Phase- 3 Meghnaghat 450 MW project, 150 MW Sikalbaha, 240 MW Dhaka North and 150 MW Khulna power projects. And it can conditionally supply gas to the dual-fuel 450 MW Bheramara project, 360 MW Haripur, dual-fuel 210 MW Khulna, 150 MW Chandpur and 150 MW Sirajganj projets. The condition is that gas may be available tor these schemes after 2012.
Lack of gas supply to the power plants is already forcing the PDB to refrain from generation of around 600-700 MW power. This is adding to power load shedding because of inadequate power plants in the country. Planning of power project has been revolving round availability of gas since the sixties. Till now the focus remains confined to gas-based power projects which generate around 90 percent of the country’s power.
PETROBANGLA’S PROJECTIONSAs per Petrobangla’s projection number-1, with the current activities involving gas exploration and production, gas shortfall will hit 142 million cubic feet a day (mmcfd) in 2011, 341 mmcfd in 2014, 838 mmcfd in 2016 and 1,714 mmcfd in 2019-20.
The demand for gas is 2,018 mmcfd at present and it will rise to 4,567 mmcfd in 2019-20 at the present trend of consumption growth, Petrobangla sources said. But the country is already experiencing more than 200 mmcfd gas supply shortfall, and the Petrobangla projection did not include this. It means the actual situation would be even worse.
Gas production in 2008-09 has been shown to be 2,042 mmcfd against the demand for 2,014 mmcfd. But in reality, the country is producing around 1,800 mmcfd gas from 17 gas fields–half of it by the international oil companies. Of this gas, power sector–including industrial captive power generators– is consuming 900 mmcfd, fertiliser factories 290 mmcfd and 580 to 600 mmcfd are being consumed by industrial, commercial and domestic and CNG users, and tea estates. In addition, the gas fields are producing 6,700 barrels of condensate.
In scenario-2, where international oil companies would discover new gas fields under production sharing contracts (PSCs) signed through the 1998 second round block bidding, the situation would be slightly better in 2011 as it offers 58 mmcfd gas supply surplus. But by 2014-15, this surplus turns into a deficit of 112 mmcfd gas. The deficit rises to 666 mmcfd in 2017 and 1,314 mmcfd in 2019-20. In scenario-3, where oil companies having off-shore block bidding contracts may strike gas, the situation is even better. But even then, the supply crunch starts in 2017 with 166 mmcfd deficit, rapidly rising to 814 mmcfd in 2019-20.
PETROBANGLA’S RECOMMENDATIONSIn a brief to Prime Minister Sheikh Hasina, Petrobangla pinpointed various issues of the country’s oil and gas sector, and said as per the Gas Sector Master Plan 2006, gas demand may be met till 2019 using the existing gas reserves and probable and possible reserves.
“But if we fail to find the probable and possible gas reserves, the crisis would emerge much before that time limit. In such a situation, it has become very urgent to expedite onshore and offshore oil and gas exploration,” said the brief. Petrobangla emphasised fixing the maritime boundary. Priority should be given to supplying gas to fertiliser factories, cottage industries and foreign currency-earning industries than supplying to consumers who can use alternative energy resources, it said. As this sector is capital dependent, Petrobangla urged the prime minister fix gas prices commercially. Coal exploration and development activities should be geared up for growth of power sector, it stressed.
RESISTANCE & INSTITUTIONAL SHORTCOMINGS While fund crisis and institutional shortcomings coupled with inaction of the past four-party alliance government had almost halted development of the energy sector, different groups had been resisting new energy exploration and development activities by foreign companies.
Following the Magurchhara blowout of 1997, Jamaat-e-Islami-leaning retired secretary Shah Abdul Hannan turned to the court in late nineties and during the four-party rule, the High Court imposed a stay order on bidding in on-shore blocks. Till now the government did not contest the court order while the stay order contributed to the existing problem, Petrobangla sources said.
Towards the fag end of the alliance rule, when Petrobangla tried to float an on-shore and off-shore block bidding by challenging the court order, the then legal adviser to Petrobangla, belonging to pro-Jamaat camp of lawyers, suggested limiting the bid to off-shore blocks. Accordingly, Petrobangla prepared for the off-shore bid that was floated in early 2008.
Again, following the Tengratila blowout in 2005, environment group Bangladesh Environment Lawyers Association (Bela) filed a lawsuit against the gas field’s operator Canadian company Niko, which led to suspension of payment to Niko and its Bangladeshi partner Bapex. The case is now in its final stage of disposal.
On the other hand, the national committee for protecting oil, gas and coal resources launched a campaign against the proposed open-pit mining in Phulbari by British company Asia Energy, which led to death of several protesters in police firing in 2006. The campaign gained ground as the-then government left the matter of resettlement and compensation to Asia Energy which is perceived as an “inexperienced” and “insensitive” company. Following the “success” in Phulbari, the committee has continued campaigning against any open-pit coal mining.
The campaign has also gained popularity among people around Barapukuria underground mine, who recently attempted to get the lone coal mine’s new production suspended. Due to the “nationalistic” peer pressure caused by such campaigns, the government has been unable to take any decision in the last two years concerning vital issues including the country’s first coal policy.
Meanwhile, the lone Barapukuria coal mine is producing nearly 9,00,000 tonnes of coal a year, and a few other coal zones now await government decision. The country is officially and unofficially importing more than 3 million tonnes of low quality and environmentally hazardous coal from India worth around Tk 2,500 crore a year.

Source:The Daily Star, Bangladesh
Link: http://www.thedailystar.net/story.php?nid=82652
Date: 04 April 2009

Govt moves for JV policy on gas, coal fields

2009-04-27T23:34:00.000-07:00

ET Report

The power and energy ministry has taken a move to formulate a policy for the public-private joint venture to develop gas and coal fields on a ‘fast track’ basis. ‘The main aim of the policy will be to allow Petrobangla to form joint ventures with local private sector or foreign companies to develop gas and coal fields. The gas and coal fields cannot be developed quickly at present because of the existing procurement rules,’ sources said. Petrobangla prepared and placed a draft joint venture policy on Thursday as per the ministry’s directive at an inter-ministerial meeting, headed by the adviser to the prime minister Tawfiq-e-Elahi Chowdhury.

Source: Weekly Economic Times, Bangladesh
Link: http://weeklyeconomictimes.com/news-details.php?recordID=3581
Date: 05 April 2009

Coal mining city to comprise 4 thanas of Dinajpur

2009-04-27T23:31:00.000-07:00

Shamim Jahangir

The process for establishing a coal-mining city comprising four thanas in Dinajpur will start this month. Initially the government will establish the coal-mining city with 10,000 people of Birampur, Fulbari, Parbatipur and Nababganj thanas on an experimental basis, Prime Minister Adviser for Power, Energy and Mineral Resources Dr Tawfiq-e-Elahi Chowdhury Birbikram told the New Nation yesterday. Afterward, we will extend the area of the city in phases, he added.
He said they will sit with the planners and experts from LGED, BUET and BRAC soon and seek their opinion on the establishment of the mining city. He said that the ministry has already prepared a draft map to establish the city. “The government will ensure all the modern facilities in the coal mining city. For this, coal mining university, college, school, community hospital and different industrial units will be established at the city,” according to him. State Minister for Environment and Forests Advocate Mostafizur Rahman, who was elected MP from Dinajpur coalmine area, told the New Nation that Prime Minister Sheikh Hasina dreamt of establishing a coal mining city when she visited Dinajpur in 1998.

After formation new government in 2009, she again directed us to find out the possibility of establishing it in Dinajpur. It was also the demand of the people of Fulbari and Parbatipur thanas, he informed. He held out the assurance that the government will give due compensation to the families to be affected for building the coalmining city. Meanwhile, the government constituted a 8-memeber committee to determine compensation for the resettlement of 406 affected families of Barapukuria in Dinajpur coalmine project.
The committee has already identified five worst affected families of Kalupara and Moupukur villages and called for removing them to safer places as they are living in the coal mining area with great risk to their lives and properties. But the members of these five families have vehemently opposed their rehabilitation at other places unless they were given due compensation. “We have already visited the coal mining areas several times and prepared our report on the basis of our talks with the affected families,” a member of the committee said on the condition of anonymity. He further said that they would recommend rehabilitation of more than 200 families of Kalupara and Moupukur villages first and then rest of the families of five other villages in coal mining area in phases.
In reply to a question, he said that the committee is yet to assess the size of compensation for the affected families. The committee will recommend acquiring around 33.5 square kilometres of land at seven affected villages falling in coal mining area by resettling the affected people, he added. An inter-ministerial meeting on March 3 constituted the eight-member committee to prepare a complete package programme for compensating people affected by land subsidence at the coal mine area and for future course of action including acquiring of land. The meeting also asked the committee to review the land acquiring procedures like Jamuna Bridge. The committee is headed by joint-secretary Ahmed Ullah of the Energy and Mineral Resources Ministry.
The government will acquire the land as early as possible for starting open pit mining in future, sources said. ffected people at Barapukuria have become restive in recent times as huge land subsidence affected 300 acres of land and subsequently many houses at seven villages have developed cracks. Following the agitation of Jhigagari villagers the coal production of Barapukuria remained suspended from February 25 to March 2. More land subsidence might occur because of the underground mining. If people continue to live in the mining areas they might be at great risk because of subsidence, sources said. The committee is likely to recommend a guideline for the government to appoint experts or surveyors to determine what amount of compensation of the people in the area need,
‘Before assessing the compensation package, finding the actual number of people living in the area, determination of agricultural and residential land, number of houses, trees and the cost of crops are crucial. Besides, peoples’ views should be taken on where they want to go and what they want to do after relocation,’ sources noted. The government has already constructed and renovated several building to resettle the affected families at West Camp in Dinajpur. The Barapukuria coal field has a reserve of around 389 million tonnes and the authorities will extract 10 to 20 per cent coal from the underground mine in 30 years.

Source: The New Nation, Bangladesh
Link: http://nation.ittefaq.com/issues/2009/04/07/news0119.htm
Date: 07 April 2009

No alternative to open pit mining: Mosharraf

2009-04-27T23:28:00.000-07:00

ET Report

Labour and Employment Minister Khandaker Mosharraf Hossain Wednesday said there is no alternative to open pit mining to face the growing energy crisis in the country.
“We will not be able to extract more than 10 to 12 per cent coal through underground mining. On the other hand, the open pit mining can provide us up to 80 per cent yield,” he said while addressing a reception at Bangladesh Chamber of Industries (BCI) at its board room in the city. BCI organised the reception in honour of the minister and two other members of the present parliament - Zahid Maleque, MP, and Golam Dastagir Gazi (Bir Bikram), MP.
Mr Mosharraf is the former president of BCI, while Mr Maleque and Mr Dastagir are present and former directors respectively. Speaking as chief guest, Mosharraf said, as the energy crisis was alarming, the government was trying hard to solve it. He said the governments in the last seven years had failed to increase power production. Instead, the power generation had decreased substantially. “We have to change the current power scenario through coal-based or gas-based systems.” “Without improving power situation, the development of agriculture sector cannot be ensured, let alone the industrial sector.”
The employment minister said the government was also mulling to set up small power plants which could produce as little as 2 megawatt of electricity. “The government is pondering to set up power plants in the coastal belts, which will be run by wind power.” The licence fee for setting up of captive power plant would be reduced, the minister added.

Source: The Financial Express, Bangladesh
Link: http://www.thefinancialexpress-bd.com/print_view.php?news_id=63530
Date: 08 April 2009

Open pit mining can solve power crisis, check desertification-Says Khandker Mosharraf

2009-04-27T23:26:00.000-07:00

Staff Correspondent

Labour and Expatriates’ Welfare Minister Khandker Mosharraf Hossain yesterday said open pit mining in the North Bengal’s coal mines would help solve not only power problems, but also check desertification in that region.

“In underground mining method, you can get only 10 to 12 percent coal, but in open mining you get 70 to 80 percent,” he said, expressing annoyance over too much debates among the intellectuals over the methods of mining when the country goes power hungry for years. The minister was addressing a discussion on local industries and employments organised by Bangladesh Chamber of Industries at its office in the city. He, however, said it was his personal opinion, not of the government.

Intellectuals are concerned over environment and agriculture in the case of open pit method, but it has good aspects too, because the open space created after coal extraction can retain a lot of water that can help recharge underground water in the northern areas which run the risk of desertification now, he noted. Besides, tourists can go there, he said, adding that fish production there could also help solve nutrition problem in the country. “If we leave the coal unused and yell, saying shortage and shortage, it will not do. If we cannot generate power, no development of industry nor of agriculture is possible,” the minister said. “Our future energy is coal. It has no alternatives,” he added.

Source: The Daily Star, Bangladesh
Link: http://www.thedailystar.net/story.php?nid=83447
Date: 09 April 2009

Govt’s 3-yr power target may not be achieved-Muhith tells editors

2009-04-27T20:51:00.000-07:00

Staff Correspondent

Finance Minister AMA Muhith yesterday said it is unlikely that Awami League would be able to fulfill its election pledge to raise electricty generation by 1,000 megawatts (MW) in the country by the next three years.
“The target of raising the generation of power in three years may or may not be achieved,” Muhith said in response to questions raised by the editors of leading dailies and news agencies about the nagging power crisis at a pre-budget meeting at finance ministry. He expressed doubt that power generation could be increased to 5,000 MW within the next three years as promised by Awami League before the election.
AL, in its election manifesto, pledged to increase the power generation from the present 4000 MW to 7,000 MW during the government’s five-year tenure. Muhith said power is very important for all development activities. He said Siddhirganj Power Plant would be commissioned soon and a substantial supply of power would be available from it.
Regarding Phulbari coal mine, he said a decision in this regard would taken soon after consultations with the people of the area to improve its energy situation. Muhith also praised some good initiatives taken by the caretaker government to increase power generation. Some electricity has been added to the national grid from rental power plants.
The finance minister also said, “The next budget would be big as we will have to give incentives to different sectors to tackle the world economic recession.” Budgetary allocation in social safety nets, power and the agriculture sector would increase, he said. During the discussion on the budget, editors urged the finance minister to lay emphasis on the power sector and employment generation sectors. Stressing on proper implementation of the budget, the editors said care is taken in collecting revenue but not on it’s spending.
Editor of the Financial Express Moazzem Hossain, The Independent editor Mahbubul Alam, News Today editor Reazuddin Ahmed, The Daily Star editor Mahfuz Anam, Channel i Managing editor Faridur Reza Sagar, bdnews24.com editor Toufique Imrose Khalidi, Sangbad editor Altamash Kabir and Manabjamin editor Motiur Rahman Chowdhury took part in the discussion.
Prime Minister’s finance and planning advisor Dr Mashiur Rahman, Prothom Alo editor Matiur Rahman, Jugantor editor Salma Islam, The Bangladesh Today editor Mahmudur Rahman Chowdhury, Finance Secretary Mohammad Tareque, NBR chairman Nasiruddin Ahmed and Economic Relations Division Secretary Mosharraf Hossain were also present.

Source: The Daily Star, Bangladesh
Link : http://www.thedailystar.net/story.php?nid=83561
Date: 10 April 2009

Energy Crisis A Legacy of Inaction & Corruption of Alliance Govt.

2009-04-27T20:48:00.000-07:00

Mollah Amzad Hossain

While Awami League with its alliance got a thumping majority in the last national election and the electorates, young and old, endorsed the manifesto: “The Charter for Change”, conspirators are stalking in the shadows to undo the beginning of a new era for Bangladesh. Yet the new government, in the face of the worst energy crisis–a legacy of the inaction and corruption of the four-party alliance, left no time to get down to business. With Vision 2021, it started work on short, medium and long-term planning and implementation programs for energy security and supply. If past can be taken as a guide, AL in its 1996-2001 term did overcome such a crisis and its not going to fail this time. Together, We Shall Overcome.
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Editor Energy & Power Mollah Amzad Hossain recently interviewed Dr Tawfiq-e-Elahi Chowhury, BB, Advisor on Energy to the Prime Minister of Bangladesh. The full text of his extensive interview follows:

EP: Energy Sector of Bangladesh is now in serious crisis. What are your plans to confront it? How long you it will take to get out of it?

TEC: It is only three months this government has come to power. Hon’ble Prime Minister has kept this portfolio given the fact that this sector requires the attention of the highest level. We have to start with what we inherited from previous regime. On stock taking, what we observed that over the last 7 years nothing of note has been done for the development of energy sector. The present situation is the consequence of the inaction over the years. Our government has definite programs to address the energy sector issues in the greater interest of the people. The first priority is what we can achieve by 2011.Then comes what we have in our vision 2021. We are endeavoring to plan actions for short, medium and long term to achieve these goals

Planning and implementation of short-term actions will proceed simultaneously. We have initiated a two-pronged strategy. We have to bring the under-implementation small plants into operation as soon as possible and simultaneously, do everything to ensure steady and uninterrupted operation of existing plants. We are also acting for ensuring smooth fuel supply – gas, for these plants. In our current assessment gas supply constraints have been identified as the single most important impediment. There are limitations in gas production and also restrictions in gas transmission. On a priority basis, we have already arranged to evacuate about 50-60MMCFD stranded gas from Jalalabad Gas field through constructing a spur line. This can facilitate generation of additional 200 MW of electricity.

GTCL has been advised to simulate its Gas Transmission Grid to devise ways of optimizing gas supply. This may facilitate to improve gas supply to Shambhuganj Plant at Mymensingh and Siddhirganj. But everyone should realize there is no instant cure for such long ailment.

The 4-party government in 5 years did only plan and implement the lone 80MW Tongi plant. Other power plants which commenced generation during that time were initiated during previous term of Awami League Government. Some other rental plants and small power plants which were initiated during alliance government and caretaker government are at various stage of installation. These are not enough to confront the crisis. If the alliance government had taken appropriate and timely decisions to set up some large power plants the present crisis could have been averted.

Moreover, the 4-party government cancelled the initiative to set up a 450 MW power plant at Sirajganj at the final stage. WB agreed to finance the project. The promised fund was withdrawn following government’s decision to scrap the project. Responsible persons of the 4-party government should be made accountable for such detrimental action.

We have initiated power factor improvement to improve quality of power supply. This will make 10% improvement of supply using the same amount of power and ensure savings of around 300 MW power everyday. You are aware that many of our power plants have already outlived their effective economic life. These have turned into fuel inefficient plants. Actions have been taken to upgrade such old plants. We need to either rehabilitate or replace these with efficient plants. With these remedial measures we will get more power from existing plants. But it will take quite time. We are planning to do these in phases during winter when the demand for power is relatively low.

EP: Power generation and supply is well below demand. People are in great sufferings. Even gas supply for power generation is well below demand. Why alternate fuel could not be made available? What led to this situation you think?

TEC: Indecision of previous governments especially of the 4-party government created this situation. No initiative was taken for about 7 years to explore new gas resource. No new major gas field was discovered after the large Bibiyana Gas field during previous term of Awami League Government. Neither IOCs nor could BAPEX has been steered to explore new gas resource. There is no other alternative to expand or increase gas reserve without new discovery. Alliance government also failed to proceed with the PSCs signed in second round bidding during Awami League government.

If we think of coal - major alternative of gas, underground coal mining on supplier’s credit was taken during the BNP rule. It had two flaws of which one impacted on the other. Local population was not consulted for taking them into confidence for a project like coal mining. Consequently, people were not made aware of the inevitable mine subsidence and the impacts although the operators of the mine were well aware of it.

Another development you must have observed in Phulbari coal mining initiative. Local people were involved in violent protests against the mining initiative leading to loss of lives. It appears contradictory since local people should welcome such a project provided it is designed appropriately taking into consideration their concerns and expectations For such projects to be successful, local people should be convinced that their life and livelihood would be significantly improved while contributing to national development. No major project can be implemented anywhere ignoring the local people.

This is a major failure of the government. The 4-party government as well as the Care Taker Government played hide and seek with local population regarding Barapukuria and Phulbari projects. We must remember taking local people into confidence is the responsibility of the government. In fact, a stalemate situation has been created in the formulation of coal policy and exploration of coal due to lack of faith and confidence of the people in the past governments.

EP: We are lagging way behind PSMP. According to it power demand for 2009 was projected as 7200 MW and generation capacity should be 10% more than that. But during this period power generation never goes beyond 4200 MW. Will it be at all possible to come out of it?

TEC: I have indicated earlier that power generation can be increased to some extent if gas for power can be enhanced. But there is no magic solution which will overcome the present crisis. But demand side management, energy efficiency and conservation can help ameliorate the adverse impacts of power scarcity. We are taking some urgent actions in these regard.

The Prime Minister instructed us to do the needful so that the farmers have the first right to electricity during the Boro season. Under her guidance, we managed the load in such a way as to ensure uninterrupted power supply for agriculture for irrigation. This might have resulted in some extra burden on the urban population, but together we have managed the challenge.

Promoting energy efficiency is another measure. For example, a recent survey has evidenced that about 300 MW power can be saved if traditional bulbs can be replaced with power efficient CFL bulbs in 10 major towns of Bangladesh. That’s as good as setting up power plants of 300 MW!

CFL is use in many countries now. 4.5 million traditional bulbs were replaced with CFL bulbs in one day in Britain. We have taken up a project with the assistance of World Bank and GTZ which will culminate in replacement of 15million (I crore and 50 lakhs) traditional bulbs with CFL throughout selected urban centers and rural areas in Bangladesh early next year. Besides planning logistics and standardization of CFL, we shall seek public support for the initiative including the local government organizations. I am sure media would not be in wanting to lend its mite.

Emphasizing energy efficiency is another strategy to deal with such power crisis. You may be aware that many of our industries have small gas fired boilers. We have gas shortage and these inefficient boilers are wasting our valuable resources. We are considering converting these to liquid fuel and reviewing the possibility of formulating a policy to covert these within a time frame. Energy audit is also under consideration. This will ensure efficient use of energy at all stages. All boilers, chillers and all appliances will be standardized under legal framework with a view to ensuring energy efficiency Capacity of BSTI will be enhanced to deal effectively with these emerging issues.

EP: Awami League Election manifesto includes addition of generation of 1500 MW power by 2011 and 3500 MW by 2013. But existing power plants are not getting the required gas supply now. Considering this situation how the 5000 MW capacity power plants in the pipeline will get fuel supply? Do you have plans to import coal or LNG?

TEC: You are aware that the Prime minister herself is in charge of this Ministry. Awami League election manifesto has some specific milestones. PM came to ministry immediately after the assumption of office and gave specific guidelines for implementing the election manfesto. Among others, the exploration and development of gas resources came up for discussion. A two-pronged strategy will be implemented: accelerating the programs undertaken by BAPEX and involving IOCs through a competitive process that serves the best interest of Bangladesh. You are aware that ECNEC under the chairmanship of the Prime Minister has approved over TK 100 crore for BAPEX to purchase a modern drilling rig and other drilling equipments. Alongside, specific actions would be put in pace the enhance and strengthen the capacity of BAPEX. Another exploration program at Mobarakpur has been recently approved. BAPEX will focus in areas which have lesser risks but higher prospects while IOCs will be encouraged to invest in areas which have greater exploration risks

You yourself commented that single-fuel dependent energy generation is not sensible. In the same vein we have stressed upon fuel diversification. From that perspective coal is our second most important energy source. We are trying to design an appropriate model taking into consideration the experiences, the mistakes or lack of attention on important mining issues in case of Barapukuria. This will ensure coal exploration that meshes the aspiration of local community and in particular, those that are adversely affected, with the national goal of energy production and security. The Prime Minister has instructed all concerned to mitigate the problems of the affected community of Barapukuria coal mine while ensuring its uninterrupted operation. While the previous governments had put the problems of local community under the carpet, particularly the land subsidence, the Prime Minister not only instructed her Ministry and its implementing agencies to address the emerging issues but also took out time from her busy schedule to listen to the representatives of Barapukria and gave instant directives. We are acting accordingly. EMRD has formed a committee to investigate all relevant issues and suggest recommendations. We are endeavoring to reach a consensus with the local communities and carry forward the mining that best serves all competing interests.
The mining model evolving from lessons learnt from Barapukuria will be the basis for further customization, fitting specific conditions of different coal mines. In this process we shall consult mining, environmental and energy experts including the non-resident Bangladeshis. We expect that in the next 5-7 years, coal would emerge as one of the major primary fuels for power generation in Bangladesh.

We are planning to go for dual fuel option for the power plants now under planning. If gas is not available these will run with liquid fuel. Please bear in mind the government will not limit its power generation vision on gas & coal only. We are actively considering nuclear power generation although it is unlikely to come on stream within the 5 year-term of the present government.

The PM is very keen on exploiting opportunities for renewable energy, Alongside other measures, we are actively considering the applications from renewable source of energy. We are exploring the possibility of solar power generation in commercial way apart from limited use as solar home system. Especially, the possibility of running irrigation pumps with solar power is being actively explored. If we succeed this will drastically lower power requirement for irrigation.

It was a common belief that Bangladesh is not ideal for wind power generation. Now technology has significantly advanced. Modern wind turbines do not need strong wind flow. We will work to explore the possibility of introducing this technology. Beyond this we are thinking about supporting bio gas plants and also exploring possibility of energy from waste. The challenges for harnessing these diverse sources of energy on a large scale are daunting but we shall keep pursuing and I am hopeful of some success at the end.

Few large IPPs are on the drawing board and donor agencies are prepared to stand by us in the competitive bidding process. But the recent international financial melt down has made their prospects for financing uncertain. While we shall go for the bidding, alternative modalities for implementation would also be developed, should we face limited response.

EP: Our Gas production capacity is 1850 MMCFD against present demand of 2100 MMCFD. Another 60 MMCFD additional production is expected from the end of March. Apart from this is there any possibility of increasing gas production by 2011 and if so from where? What will be the gas scenario in 2013? If we fail to discover new gas reserve we will have no alternative but to rely on coal. Otherwise we will have to import liquid fuel or LNG. How do you view this situation?

TEC: Petrobangla is working on a gas production augmentation program. The goal is to maximize production from existing fields without jeopardizing the structures. This appraisal-cum-development program should yield some positive results. The exploration programs of BAPEX would also put on a fast track. We shall also nudge the IOCs to bring forward some of their exploration programs. All these would lead to increase in gas supply although it is difficult to speculate the number. You are right in suggesting that coal would also have to be developed simultaneously which I have elaborated before. As a contingency measure, we should not exclude the possibility of LNG import in the intervening period.

EP: Cairn will not further explore at Magnama and Hatiya if Petrobangla do not agree for higher price than agreed in PSC or allow them to sell to third parties directly in local market. In this scenario it has been recommended to approve it. There are complaints that it is a major departure of PSC provision. What is your opinion?

TEC: We are examining the proposal both in the context of the terms of the PSC, incentives for the contractor and the greater interests of Bangladesh. While exploration for new resources are critical now given the shortage we are in, we have to be equally aware of the longer term energy supply and security of the country. A balance has to be struck.

EP: French Company Total has relinquished block 16 & 17. It is told that their decision is influenced by the gas structures they found are not economically viable to explore. Cairn has also relinquished block 5 &10. Only Chevron has expressed intention to carry on exploration efforts in block 7. So in the next 5 years we can not expect major discovery by IOCs. Do you think it will be possible for BAPEX alone to meet our demand?

TEC: There is no last word in exploration. So do not make conclusive judgment if blocks are relinquished by contractors. We are looking into different options in this regard. BAPEX would be put into fast forward mode to which I have already referred to already. Alongside, we shall examine joint venture with BAPEX and also involvement of IOCs in the future. New policy guidelines would be put in place if conditions so require.

EP: Are you going to approve the Petrobangla proposals to award some PSC s to IOCs to start exploration in offshore? Or you will go for fresh bidding?

TEC: The last Caretaker government took the initiative for awarding exploration contracts to some IOCs for offshore blocks. We are examining the papers and after due diligence, firm up our position. Our government is only 3-month old and you should allow some time for arriving at decisions on such important national issues.

EP: Demarcation of Maritime Boundary in offshore exploration is a sensitive issue. This can create dispute with neighbors. How you are approaching this?

TEC: An expert committee is working on it. We will finalize maritime boundary in the shortest possible time. Ministry of Foreign Affairs is actually handling this matter.

EP: Other than Barapukuria another proposal for coal mining at Phulbari is waiting government approval. Asia Energy is waiting for 3 years after submitting proposal. It has been told since last Alliance Government that decision will be taken in accordance with coal policy. Care Taker Govern echoed the same. But coal policy is not yet approved. Which route you are following on this? Will you also work on coal policy or will start coal mining?

TEC: You should have asked the past governments why even after years they could not finalize a coal policy. Ours is a democratically elected government and we have mentioned our overall stance in the election manifesto. The government has already started evaluating the legacy of past regimes. We shall finalize the policy framework in consultation of all stakeholders. There are of course detractors. But a people’s government as ours is, we shall decide in the best interest of the country. While earlier governments dealt with the Barapukuria mine without taking the local communities into confidence, the Prime Minister took time out to talk directly with them. This amply demonstrates the overall strategy of the government.

EP: Will you to take fresh initiative to implement Tri –Nation Gas Pipeline from Myanmar? Is there any plan to import power from Nepal and Bhutan? If so, when?

TEC: The Prime Minster has on occasions emphasized the benefits of regional cooperation, particularly in the energy sector. Such initiatives can be bilateral or multilateral. We shall initiate discussions with our neighbors soon. Again, in the election manifesto this has been stated clearly.

EP: Some estimates evidence that about 20billion dollar investment is required in the next 5 years for Bangladesh Energy sector. Where from this will come? What are Government plans? How much of this will come from donors, how much from FDI and how much Government will invest?

TEC: Large investments are required, I agree. But I cannot put an exact number yet. One cannot deny that a significant part would have to come as FDI and from multilateral sources. World Bank and ADB have not only agreed to take part in financing these investment programs but also help raise funds from domestic and international sources. Although the current melt down in the international financial markets had cast some doubt about such prospects, the resolve in the recent G20 meeting and in particular, the decision to fund trade and investment, would soon release export financing from the developed countries to facilitate FDI flows in Bangladesh.

You may recall that during the last term of Prime Minster Sheikh Hasina, Bangladesh was able to attract large FDI in the energy sector along with some IPPs with one of the lowest power tariffs. Under her leadership, this time around, we shall do even better.

Source: Energy & Power, Bangladesh
Link : http://www.ep-bd.com/news.php?cat_id=5&archive=24&namee=INTERVIEW
Date: 16 April 2009

Minister, FBCCI chief say: Pledge for change meaningless without electricity

2009-03-30T21:28:00.000-07:00

Staff Reporter

State Minister for Power and Energy Shamsul Hoq Tuku yesterday said that the government is unable to fulfil its election manifesto pledge without adequate electricity production.
"Without electricity, our pledge for change will not be implemented," he said a conference at Bangladesh China Friendship Conference Centre. The Centre For Policy and Dialogue (CPD) organised the conference.
For additional electricity production, it is urgent need to extract coal and exploration of gas, the Minister said.
"We are extracting coal, but we have no policy on how to use this coal," he said. "We must finalise the policy first with consultation of the experts and public, and then decide on mining."
FBCCI President Annisul Huq said Power failure rate up 10 percent of factory production. "We do not have electricity 20 to 25 per cent of working hour."
He called upon the government to withdraw the licence tax for captive power and immediate decision on rental power plant for reducing energy crisis. He said that the businessmen are ready to provide financial support to strengthen BAPEX for gas exploration.
BUET Prof Nurul Islam said that the draft of a coal policy was submitted to the ministry at least eight times, but the ministry refused to work on it and finalise it. About the corruption in energy sector, he said, "Asia energy is so powerful that corruption of Asia energy was not investigated by the Anti-Corruption Commission. This was apparently done to protect the interests of Asia energy," he said.
In his keynote paper, former Power Division Secretary M Fouzul Kabir Khan said we should stop blame game and national consensus is must for energy security in the country.
He recommended finalising the coal policy and passing energy conservation act as a policy and institutional reform in energy sector. The former secretary informed that the government supply only 1,830mmcfd of gas against the demand of 2,095mmcfd.
CUET Prof M Shamsul Islam said some private entrepreneurs in power sector earned huge money in the name of power generation. Eng Sheikh Mohammed Sahidullah said that it is no need to produce coal by open pit method.
"It will be able to meet our demand for coal by extracting under ground mining," he said.
Imran Ahmed MP, BIDS research director Dr. Assaduzzman, former PDB Chairman Shamsul Islam, Dhaka University Prof Dr. Hussain Monsur, former Power Cell Director General BD Rahmatullah, former atomic energy commission Chairman Shafiqul Islam also addressed at the conference, titled 'Energy Sector: Challenges of Adding New Capacity'. Syed Manzur Elahi, a trustee member of CPD chaired the session.

Source : The New Nation, Bangladesh

Link: http://nation.ittefaq.com/issues/2009/03/30/news0376.htm

Date :30.03.2009

Open Pit Mining must start in Phulbari

2009-03-16T23:38:00.000-07:00

ET Report

Prof. Hossain Mansur of Geology Department of Dhaka University said that appropriate initiative must be taken without delay to explore and exploit coal as alternative fuel to ensure the required power generation in accordance with the election pledge of Awami League. For this, he said, the decision for open pit mining to extract coal from Phulbari is required to be taken on priority basis."But to work out the modality, the government must set up a high powered committee now comprising of representatives of Asia Energy, civil society who are opposed to mining at Phulbari and line professionals," he told the Energy & Power

The EP Editor Mollah Amzad Hossain took the interview of Prof. Hossain Mansur, who is also an ex chairman of Petrobnagla. Following are the excerpts:

EP: What's your observation about the energy infrastructure development plans or guidelines of Awami League-- having proven track record of successfully managing energy sector from 1996-2001-- which has returned to state power?

HM: Let us have an objective view of election agenda before making subjective analysis. Possibly this is for the first time since liberation of Bangladesh any political party formally declared well defined short, medium and long term planning for developing energy infrastructure to confront prevailing and emerging energy crisis.It has been planned to generate additional 5000 MW power in the next 5 years. Generation from different viable alternatives-- natural gas, coal, nuclear and renewable source have been envisioned in the plan. Party energy vision till 2021 has also been included there. Government has spent only about 50 days in state power. There cannot be any doubt about the competence of the persons entrusted to implement the plan. Moreover, Prime Minister herself is monitoring it. But for this the implementing agencies have not been restructured yet. I hope this will be done soon.Everyone is aware about prevailing crisis of competent professionals in the energy sector. Resolving this crisis is also a major challenge for the new government. Engaging an energy expert as advisor of energy sector during caretaker government was also a right decision.

EP: Do you think the government's plan to engage an expert committee for this sector will create positive impact?

HM: I think it to be a good initiative of the Prime Minister. Committee formed with real energy experts of the country will definitely bring positive impact.

EP: There are court cases against PM Sheikh Hasina and ex PM Khaleda Zia regarding NIKO-BAPEX joint venture for marginal gas field development. What are your views about it?

HM: Head of the government has prerogative to approve any decision in the greater interest of the country. PMs considered this agreement as beneficial for the country. These cases are purely political. If there has to be any genuine case of corruption in energy sector that has to be for leasing out Jalalabad gas field. BNP government handed over a discovered gas field to Occidental for a mere 22 million US dollars. But the government now has already purchased 24,000 US$ worth of gas from this field.

EP: Oil Gas & Port Protection Committee claims that there had been major irregularities in Niko agreement. You are associated with their movement. Now you are telling there was no irregularity. Then why you are still with their movement?

HM: Look the committee has several unreasonable demands like opposing offshore exploration; open pit coal mining. Niko is also one such. I don't agree with the committee on these. It is not possible as an expert to agree with them on these issues. But I worked with them to resist export of natural gas. I am with them on this. I am trying to make them understand their mistakes.The left politicians who are staging agitation on oil, gas and port protection know it very well that they will never come to state power. That is why they have taken negative stand on reasonable issues.

EP: Let us again discuss on election pledges of Awami League. Do you think it is possible for the government to realize the pledge?

HM: Look in 1996 when Awami League came to power the government also inherited similar crisis situation in energy sector. Concurrently with expediting ongoing projects government encouraged massive gas exploration initiatives. Moulvibazar gas field was discovered. World Class Bibiyana gas field was also discovered. Sangu offshore gas field was brought into production. BAPEX developed Salda Nadi Gas Field.On the other hand new power plants were set up after finalizing IPP policy within very short time. Side by side private sector power plants were also set up. For these actions generation increased from effective capacity of 1,500 to 3,000 MW. Consequently first three years of BNP government did not witness any crisis although they failed to set up a new plant during that time.Now when Awami League led government is again in power the installed capacity of power is 5,450 MW. Some of the aging plants are derated so the real installed capacity is now reduced to 4,950 MW. For ongoing maintenance 680 MW can not be generated. Gas supply crisis also impedes generation of about 500-700 MW. So the available effective generation capacity is now 3,600-3,800 MW. This is not much different to what Awami League government left behind in 2001.During the last term of Awami League government there was no crisis of gas supply. There was demand supply balance… I mean security of supply in the national gas grid. But now when public and private sectors have plans to set up power plants having capacity of 3,000 MW Petrobangla can not guarantee gas supply to more than 1,000 MW generation. So power generation as per its declared vision is a great challenge for the government. So not only actions for increasing power generation but also actions to source fuel for power are also major challenge. Even a single day must not be wasted in hesitating and sitting on decisions.In my opinion if the government sincerely intends to realize its election pledge in energy sector it must take decision for offshore exploration in the Bay of Bengal as soon as possible.On the other hand, appropriate planning needs to be made reviewing the situation whether gas supply will be possible to all planned gas based power plants. If there is uncertainty these must be dual fuel plants.As a geologist I am optimistic that more gas fields will be discovered in Bangladesh. But natural gas alone can not meet the requirement of power generation. We must diversify fuel option. We need coal. This is our only major viable option. Import of hydro electricity is another option. There is scope for nuclear power generation also. We have to work on renewable power generation. But renewable energy cannot be a substitute for fossil fuel based power generation.Government alone do not have resources or capacity for required power generation. We have to rely on private sector investment from both local and foreign sources. So we must identify areas of energy value chain for foreign direct investment keeping our national interest above everything.

EP: Will you elaborate your opinion on feasibility of alternative fuels other than coal that you have mentioned.

HM: There is very little scope to expand our own hydroelectricity generation. But hydroelectricity import is only possible through regional initiatives. It has to come from Nepal and Bhutan. Both the countries have enormous hydroelectricity generation potential. India is currently importing power from them.Bangladesh has to take political decision and try to catalyze four-nation joint initiative to import hydroelectricity. It is a long-term option.The government has taken some initiative for nuclear power generation. But environmentalists are divided in opinion on nuclear power generation. Government must keep this into consideration also.

EP: You have said that coal is the only feasible option. But we are locked in various debates regarding coal exploration. How exploration can start resolving the current impasse?

HM: Please remember Bangladesh has 2.5 billion tonnes of proven coal reserves. It is possible with available technology to extract at least 1 billion tonne. Exploration from the largest reserve Jamalganj is not commercially viable in traditional method. We are mining coal from Barapukuria by underground method. But due to wrong decision we can only extract about 5 million tonne by 2011. This underground mine will create massive depression and subsidence in the mine area. It can never be restored and rehabilitated. The subsidence process has already commenced. Due to wrong decision it will not be possible to even extract 20-25% coal in place. It will be unwise to set up any new coal fired power plant based on Barapukuria coal.

EP: So you are saying exploration of coal in Barapukuria by underground method is a wrong decision?

HM: Look I am a geologist. Bangladesh geology in the mine area does not support underground mining. If we like to mine commercially it has to be open cut method only for shallow coalmines. Water management is major challenge here. Open pit mining can support recovery of 90% coal in place. In 5-10 years most of the mine area can be restored to original state. Only the final pit about 20% can be converted to a sweet water lake. This will be a massive asset for Bangladesh, a major source of power generation and other use.It should be mentioned here that 1,400 crore taka has already been spent to develop Barapukuria mine and 1,600 crore taka has been spent to set up mine mouth power plant. But due to inappropriate mining method the investment is under great risk. The property and assets of the people of the region are endangered.

EP: You are telling Bangladesh should follow open pit mining method to explore coal. But, the Oil, Coal and Port Protection Committee is opposed to it.

HM: Look the movement was not against open pit mining. The committee movement was basically due to lack of trust on the then government. Actually it was not mining method rather it was lack of trust on the 4 party alliance government which crystallized the movement.

EP: But it is being told resettlement is a huge problem in case of open pit mining. How do you think about it?

HM: There is international law. Bangladesh also has land acquisition rule. Our neighbour India has extensive experience of open pit mining. In Bangladesh about 3-3.5 lakh people may need to be rehabilitated from mining region for open pit mining for development of all the mines. For a democratic government it may not be a major challenge considering the overall national benefits that availability of huge coal resource and its manifold use would bring about good impacts.

EP: You are suggesting steps to start coal mining must be taken without wasting a day even. How it is possible? Where exploration should start at first?

HM: I believe action to set up coal based power plant installation must start if possible from today. To make coal based power available mining must start at Phulbari first. The reason behind this is that only Phulbari mine is now ready after discovery and other extensive studies.I also believe that exploration of natural resource will invariably have environmental and social impacts. There will not be any exception here also. But all actions must be taken to mine coal making minimum impact on environment and protecting the rights of affected population.

EP: In that case which company will implement Phulbari Mining? The government has an agreement with Asia Energy.

HM: After signing an agreement there is no scope to disoblige it. It could be more appropriate if an agreement like PSC with provision for cost recovery and exploration-exploitation could be concluded. That would have better protected Bangladesh interest. On the other hand it has to be decided upon discussion whether Asia Energy or government will carry out open pit mining at Phulabri. But we must keep in mind that extensive government support is a must for mining by Asia Energy or any other company at Phulbari.

EP: Then what you suggest to make the start?

HM: Decision should be taken by the government constituted high powered committee comprising of Asia Energy, agitating civil society representative right now on Phulbari mine development. If necessary the government may seek assistance from Australia, Germany and of India who have vast mining experience. These countries have extensive expertise and experience of coal mining.Simultaneously the government must finalize the coal policy eliminating provision of coal export. There is no scope to waste time waiting for coal policy anymore.

EP: So are you talking about mining at Khalaspeer and Dighipara also?

HM: Not at all. I have talked about Phulbari only. The alliance government awarded the lease permission to a Bangladeshi-Chinese JV for Khalaspeer without inviting tender. This must be investigated. No initiative should be taken for mining before proper investigation. Petrobnangla has also signed MOU with a Korean Company for mining at Dighipara. It should also be investigated. Without tender no mining lease should be given to anyone anymore.

EP: What are your views on proposed tri-nation gas pipeline and other regional energy cooperation initiatives?

HM: It was a wrong decision for Bangladesh not to proceeding with the tri-nation gas pipeline initiative. Besides, Bangladesh must actively participate in other SAARC, BIMSTEC, Central Asian and Middle Eastern energy ring and grid projects. This must be done in view of our long-term energy security.

Courtesy: Energy & Power

Source: Weekly Economic Times, Bangladesh
Link:http://www.weeklyeconomictimes.com/news-details.php?recordID=3455
Date:15.03.09

“Social and Environmental Impacts of Mining-Australian Lessons on Mitigation”

2008-10-26T00:22:00.000-07:00

Khondkar Abdus Saleque

Recently the author had opportunity to read a report on Phulbari Open pit Coal Mining of Bangladesh, “Open Pit Mining for Coal: Horror Feeling Shrouds Northern Bangladesh.” It will not be prudent to challenge the contents of the report. But there are ways to mitigate the social and environmental impacts associated with coal mining, any mining. Exploration and exploitation of any natural resource has some form of impacts. These need to be managed and mitigated. A country like Bangladesh with finite natural resources cannot have the luxury to keep its resources buried for ages and continue to suffer from energy crisis. Some sacrifices need to be made unfortunately for greater gains of community. Some decisions need to be taken from head keeping the heart open.

Bangladesh as we all know is on the grip of the worst ever energy crisis. For various reasons its predominantly monofuel energy generation, supply is on the verge of collapse. Industrial growth has almost become stand still; authorities are struggling to meet the demand of existing consumers. Crisis still persists even after making various load management and adjustments. Government does not have many options. It is extremely difficult for a developing economy like Bangladesh to import all its energy needs from very expensive and competitive world energy market. Extensive exploration and development for Petroleum may discover a few more gas reserves or expand the existing reserves. But these may not be enough to ensure the long term energy security of a country which can achieve a double digit growth for several years if only smooth supply of energy could be ensured. Bangladesh is believed to have about 65-70 tcf equivalent very high quality (High heat content, low ash content) bituminous coal reserve in the northern part of the country. Some of the discovered mines are at relatively shallow depth.

The prevailing geology (water saturated Dupitilla Overburden above coal layer) makes these ideal for surface — open pit mining. The other traditional option underground mining may be risky, uneconomic and not viable. We all know that surface mining can produce 85-90% coal in place while underground mining can produce only 20-25%. Both options have extensive environmental and social impacts. Surface mining will obviously impact the people of the region. They will need to the relocated, adequately compensated, properly rehabilitated. Other environmental concerns and impacts are to be appropriately mitigated.
Bangladesh, a resource constraint country has very limited capacity of its own to take up mining with its own technical and financial resource. What can Bangladesh do? Can it wait and let its economy suffer irreparable damage or should it start mining in the most appropriate and economic method to explore most of its coal addressing all environmental and social issues as far as practicable? Bangladesh is not the one and only country of the world where these kinds of issues exist which complicate decision-making. But the countries have taken initiative to mine and mine economically taking the most appropriate economic mining options addressing all social and environmental impacts. Environmental groups are stronger in other countries. But government is also pro active and very alert to the people’s well fare. Mining proceeds without much fuss and national economy benefits from appropriate mining methods. But in Bangladesh government remains perplexed, hesitates to take decision, national energy security continues to go from bad to worse. Why the government is not trying to learn?

Many non-resident Bangladeshis are engaged in appropriate research in reputed universities on environmental and social impacts of mining; few Bangladeshi professionals are also working in similar active mines. Instead of hearing from horses mouth why Bangladesh Government is getting confused from various myths and propagandas of a motivated section of society when business community and local entrepreneurs are urging government to take immediate decision on coal mining? The author has talked with few line professionals and some researchers in Australia and is presenting the lessons learned about the impacts of mining and mitigation measures.

A unique readiness to develop and deploy new technologies has enabled Australian minerals industry to endure the tough times, reap the benefits of the current resources expansion, and confront the industry’s pressing environmental responsibilities. The Australian mineral industry does more than use of technology to mine smarter. It is a world leader in the actual development of new mining technologies aimed at improving the industry’s performance. Beyond the discovery of the more effective and efficient ways of finding and extracting minerals, this innovation results in better ways of reducing environmental impacts, more effective ways of rehabilitating areas disturbed by mining, safer an healthier ways of working in the mines and more efficient ways of marketing and exporting products and services.

Mining & Sustainability
Some people say that the concept of “sustainability is increasingly emptied by unsustainable activities such as mining. Mining provides number of goods but it is base on the extraction of non-renewable resources and is unsustainable. Despite opposition from anti-mining campaigners, mining has been officially declared as “sustainable” in the world summit on Sustainable development. Humanity definitely needs certain amount of minerals to satisfy basic needs and it is also equally true that over consumption in one part of humanity may cause adverse impact on the livelihoods and environments of the other humanity, at the receiving en of mining. What is required is a perfect balance. Mining is an activity that needs to very properly planned with all probable and possible impacts identified, evaluated and mitigation planned. Mining is an activity that needs strict monitoring and control at every stage. People living in mining areas should have the capacity to take fully –informed decisions on the permissions to mine in the territories or decide on how to carry out activity and ensure environmental conservation and social justice.

What is Mining?
Mining refers to the discovery and extraction of n minerals, metal or non metal , lying under the surface of the earth .Metals are mixed with many other elements , but occasionally large quantities of certain metals concentrate in a relatively small area are as deposit. The impacts of mining are related to mining itself, which frequently involves or produces hazardous substances.
Mines vary in size according to extraction/ production per day. The method of mining specific mineral depends on the type, size and depth of the deposits and economic and financial aspects of the undertaking. Underground mining used to be the most commonly use method to extract large deposit until the middle of the 20th century. Technological progress and development of larger and more powerful machinery after the Second World War promoted opencast mining. The underground mines generally have less visible impacts on the environment than opencast mines. There is less disturbance of the grounds surface but it can affect the water by contaminating with acids and metals and by intercepting aquifers. The workers are exposed to more hazardous situations than those working in opencast mines. Progressively underground mining is being abandoned due to problems of profitability. Presently 60% of the materials mine in the world is extracted by opencast method causing devastation of ecosystem.
Opencast mines look like a series of terraces arrange in great deep wide pits in the mile of a desolated and stark landscape, lacking any living resources. Quarries are surface mines, very similar to open cast mines, resulting in a desolated landscape with deep trenches between wide steps. Chemicals are used in leach mining to dissolve the metals from the mineral containing it, obtaining a very high rate of recovery. The chemical contaminates the surface and ground water.

Environment and social Impacts of Mining
Mining is short-term activities with long-term effects. It is carried out in various stages, deposit prospecting and exploration stage, mine development and preparation stage, mine exploration stage and treatment of mineral stage-each involving specific environmental impacts. Preparation of access routes, topographic and geological mapping, geophysical work, hydro-geological research, deforestation of the land and elimination of vegetation affecting the habitats of hundreds of endemic species, consequent erosion and silting of the land, reduction of water table, contamination of the air, water and the land by chemicals such as cyanides, concentrated acids and alkaline compounds and air pollution caused by dust, gases and toxic vapour can have diverse affect on the environment and health and social life of the local communities.
Sulphur dioxide released from the mine causes acid rain, carbon dioxide and methane released by burning fossil fuels are the two greenhouse effect gases causing climate change. The sound of the machinery and the blasting in mining conditions that may become unbearable for local people and the forest wildlife.

The Impacts of Mining on Women:
Mining also has distinct impacts an added burden on women. The women are deprived of the access to the benefits of mining developments, especially money and employment. Women become marginalised as the traditional roles of food gatherer, water providers, care – givers and nurturer are very much affected. Many women are pushed to enter into informal economy to find additional sources of income as the adverse impact to the environment caused by large –scale mining decrease the productivity of the fields and poisoned wild foods, marine life and animals. Alcohol abuse, drug addiction, prostitution, gambling, incest and infidelity increase in many mining communities which worsen cases of family violence against women, active and often brutal discrimination of the women in the workplace that is sanctioned or ignored by judicial and political institution.

Lessons To Be Learnt From Australia:
Mining of coal and other mineral resources are one of the major backbones of Australian economy. Australians are no less environmental conscious nation than any. This is a country where freedom of speech, independent press, very transparent policies, and equal rights are prevalent. So it should not be considered irrelevant if one prescribes to follow Australian way of addressing and mitigating the social and environmental impacts of mining. Bangladesh can be immensely benefitted if it learns from Australian experience and trains its mining professionals in Australian mining industry.

Let us have an insight into the sustainable planning for managing the impacts of mining at Moranbah and Bowen basin in Queensland, Australia.

Coal Reserve in the Bowen Basin

• The Bowen Basin coalfield is one of Australia’s primary coal mining areas.
• Sufficient known reserves exist in the Bowen Basin for over 200 years at current extraction rates.
• The coalfield has some 20 operational mines, with a further 10-15 under consideration or in the early development stage.
• Future development activity over the next 5-10 years is likely to be concentrated in the Moranbah and Nebo areas.

Issues to be Managed

• Expansion of mining operations
• Increase in workforce to support expansion
• Rapid increase in Moranbah’s population — permanent and transient
• Accommodating the workforce/population growth
• Constraints on town expansion — coal reserves
• Balancing local and State interests – valuable coal resources versus town expansion
• Immediate, short, medium and long term management issues.
• Mine expansion issues:

– Environmental Impacts
• Air quality
• Noise
• Water
• Land disturbance
• Mine rehabilitation
• Mine subsidence
• Methane gas emissions

Managing the Issues

Ÿ The Minister for Environment, Local Government, Planning and Women decided that the State will assist the Belyando Shire Council in resolving the issues associated with growth at Moranbah by:

– establishing a Moranbah Growth Management Group (MGMG); and
– preparing a Mining Town Sustainable Management Framework.
The main task of the Moranbah Growth Management Group is to assist the Belyando Shire Council to prepare and achieve broad agreement to a Master Plan for short, medium and long-term options for sustainable management at Moranbah.

• Membership of the Group is to comprise

– Jim Pearce, MP (Chair);
– Belyando Shire Council;
– Department of Local Government, Planning, Sport and Recreation;
– BMA;
– Anglo Coal;
– Department of Natural Resources, Mines and Water;
– The Office of the Coordinator-General; and
– Others as required.

• The Moranbah Growth Management Group will identify issues, policies and options, which may be taken to the Coal Industry Taskforce for consideration. The Coal Industry Taskforce regularly reports to Cabinet Budget Review Committee on the progress of the Coal Infrastructure Program of Actions and will incorporate reporting on the Moranbah Growth Management Group into these reports.

Issues identified by MGMG

– The need to identify options to manage immediate and short term growth
– The timing and sequencing of development options to manage growth, which may also influence a correction in the housing market
– The need to consider medium and long term issues to ensure sustainable management of Moranbah
– Water supply
– Management of the cumulative impacts of the current expansion of mining operations and any future plans to establish open cut mining operations in close proximity to Moranbah

Sustainable Management in Mining Towns

Planning for Sustainable Communities

– Managing the cumulative social, economic and environmental impacts
– Managing cultural impacts
– Managing the urban lifecycle - stages of growth (urbanization), decline (suburbanization), and rejuvenation (reverse urbanization)
– Managing risks
– Collaborative approach
– Corporate Social Responsibility
– Balancing a productive mining industry and sustainable and vibrant communities
– Capacity for economic diversification

Sustainable Management Outcome Statement

Protecting social, economic, cultural and environmental values and economic growth for the State for future generations in meeting community and mining industry interests. Through the State and local governments, the mining industry and communities are working collaboratively to support sustainable and vibrant communities and a productive mining industry.
Sustainable Management in Mining Towns
Planning for Sustainable Communities

In the past, Australian mining industry has had to overcome problems associated with harsh physical conditions and remote locations. Advanced technologies have been employed to reduce the high cost of operating in such adverse circumstances. A powerful motivating factor encouraging the use of new technologies has been the need to minimise the environmental impact of minerals industry activities. Such adoption and adaption of innovation has enabled the mining industry to survive decades of tough times, when it barely recovered the cost of investment capital. The industry has been able to employ technology to increase supplies even when prices were down, environmental and social stewardship responsibilities increased.

Advanced Technology in Exploration

Air borne geophysical techniques are important in modern exploration. Remotely sensed data obtained from platforms in space and in air provide high-resolution images of the earth’s crust. When these are combined with other data in sophisticated imaging and modelling softwares, they enable the identification of targets for detailed ground investigation.

Innovative Technology for Extraction and Processing

In mining and mineral processing, Australia is leading the world in harnessing new technologies such as biotechnology, ICT and e-commerce.
Examples includeThe continual refinement of mine shapes and designs using advanced computer-modelling software. Use of intelligent robotic ore loaders in mining processes. Australia is also a world leader in the development of a comprehensive industry wide policy to improve heath and safety, both mineral operation and surrounding communities. Projects have aimed to improve the safety of drilling equipment, examine wear and tear of plant and equipment, develop risk analysis methods for the running of mine side operation and employ behavioural studies to examine issues such as fatigue management and impact of shiftwork on sleep management.
Environment Impact Mitigation Measures
The Australian mining industry is committed to achieving continual improvement in its environment management performance. This is demonstrated through strategic leadership initiatives such as “Enduring value- the Australian Minerals Industry Framework for Sustainable Development”
Some of the key technologies assisting the industry to minimise resource use and mitigate contamination risks are:Dust suppression and soil stabilising products, which save up to 80% of the water normally used while also reducing labour and equipment costs.Oxygen probes develop by CSIRO, capable of assessing levels of gaseous or dissolve oxygen concentrations in soil, ground water, bioreactors and tailing storage facilities in order to monitor potentially toxic waste.Bio -fixation treatment system, which remove most contaminants and pollutants from waste water, effluent or soil, minimising environmental impact and providing a low n-cost treatment for the removal of suspended solids, ammonia and nitrogen.Gas, ground water, aquifer and subsidence management in minesNew technology for the revegetation and rehabilitation of mined environments, such as Ecosystem Function Analysis technique developed by CSIRO.
Bangladesh sooner or later will have to start coal exploration. Given the geological, geophysical reality of the mine belt underground mining at least in Barapukuria and Phulbari will never become economically viable. Pursing this will be waste of time, energy and money. The population directly impacted can be relocated, compensated and rehabilitated. There are proven technologies to address all the perceived environmental impacts. Bangaldesh must realise the domestic coal industry will take 20 years to develop skills and capacity to even plan, manage mining and operate. We have to engage major mining companies, which have greater skills, appropriate technologies and greater all-round capacities to address and mange all challenges of mining in Bangladesh. Our policy must have adequate incentives to encourage major mining companies. Small companies with inadequate resources and technology will take us for rides like the Chinese company in Barapukuria .It will benefit a particular section of society to squeeze benefit. Delay in coal mining will frustrate our efforts to attain energy security. It will benefit the coal importers and smugglers and their beneficiaries who want our coal to remain buried. Will facilitate neighbouring country to continue dumping poor quality coal to pollute our environment. Will Bangladeshi patriotic politicians judge the situation in its truest perspective?

Source:Energy & Power, Bangladesh

Date : 20/10/08

Link : http://www.ep-bd.com/news.php?cat_id=9&archive=11&namee=ARTICLE
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Demand for Removal of Special Assistant Dr Tamim

2008-10-19T23:22:00.000-07:00

Saleque Sufi

National (?) Oil, Gas, Power, Mineral Resource and Port Protection Committee have demanded immediate termination the assignment of DR. M. Tamim Special Assistant of Chief Advisor for Energy. According to them, Dr Tamim is acting as agent of imperialist and multinational companies engaged in looting natural and national resources. The allegation is really serious. If there is any merit of what they are saying this will be essential to do something soon. Some one acting as agent of imperialist can not remain in privileged position he really so?
Let us look into the whole affair. Who is this committee? What they are up to? What else other than creating the present indifferent situation in our energy situation, massive decline of FDI they have achieved so far? Are they all very committed and successful professionals in their respective areas of work? Are they aware that for their hue and cry successive governments failed to take appropriate decisions to explore and exploit country’s energy resources in time to meet the present demand and emerging crisis? Are they aware that their action is directly or indirectly benefiting energy sector mafias, coal merchants and smugglers? Are they aware that their actions are benefiting neighbouring countries in accessing our resources in the Bay of Bengal unchallenged? Can they raise fund for BAPEX to explore for gas and oil in all areas? Are they aware that it will take at least 10 years for BAPEX to acquire all technology and expertise to even explore in deeper structures onshore, not to speak about offshore? Are they aware that the country does not have any expertise to explore and develop coal resource at this moment?
Definitely they know all answers but they are still agitating. Dr Tamim is an experienced Petroleum Engineer, a very keen learner and as far as I know he is no lesser patriot than most of us. The author differs with him on several issues but can not accept the blame that he is an agent of imperialist and multinational companies. If our self styled patriots can produce any authentic document then USA or UK where from the IOCs originate will take actions. Companies of these countries are bound by very stringent anti corruption rules of business. These countries have very strong policies to handle such issues. The rival companies will also pounce on any such incident.
Since Tamim took charge he has tried desperately to roll things moving. One of the successes is definitely the progress made in deep water drilling. The PSC document has lot of value additions in favour of Bangladesh government obviously from our now very significant exposure to production sharing contracts. When CTG is about to complete approval process the idenfied group has started agitation.
CTG is doing so many things for steadying our rocking boat then why they can not make ward of blocks to IOCs for deep water drilling as the selection process was very transparent. Who does not know that India and Myanmar want us to delay such exploration efforts? Has ever any government in the past gone for public opinion for any such cases? When the draft PSC was on website why our so called experts did not give their expert opinion? Energy experts are not raising any questions about how those persons raising alarm are handling the affairs in their own places or who are funding them to rally here and carrying out propaganda missions abroad.
We should have engaged IOCs for deep water drilling long time back and we all know Bangladesh do not have any technical expertise or resources for this work and will require decade to achieve it. The way this patriots are agitating it can create doubts in people’s mind whether this group is acting as agents of imperialist neighbors? So DR Tamim can be given benefit of doubt for deep water drilling and should rather give credit for it. If the selected IOCs are engaged now they may be in a position to commence exploration works in 2009 and we may get some good news by 2011. Further delay will not only make our situation terrible but also will leave India and Myanmar unchallenged in adjacent and some say in our own water.
Petrobangla, EMRD and other public companies engaged in energy business have definite mandate to carry out assigned responsibilities. There are laid down procedures for taking up projects and getting these approved. For carrying out their assigned works it is not required to seek people’s mandate. Well some very lopsided and anti people contracts like Scimitar deal, Niko Scandal, award of Petrobangla owned field to Occidental in the past must have reasons to be agitated .But this government is the first which has taken positive initiative to probe the irregularities. Definitely these are not happening without the knowledge of DR. Tamim. Then can we take some clue that the present action of the so called patriots has been fanned up by the beneficiaries of those scams?
Petrobangla companies have failed to accomplish their assigned responsibilities. Why Petrobangla did not arrange required fund to strengthen BPAX with men and materials? Why Bapex is lying idle with several vital exploration blocks 8 & 11? Why Petrobangla companies failed to carry out 3D seismic survey of major fields and expand its capacity in several years? So if the protection committee is to agitate at all it should agitate against these failures. What the protection committee is doing about leaking Titas gas field? Is not the protection of dangerously leaking Titas gas field urgent? Slowly and surely the situation is emerging in a way that the actions of the committee is serving purpose of hostile neighbours who do not want Bangladesh to become self reliant in energy , self sufficient in anything . Why the so called patriots do not agitate when India unethically trying to deprive Bangladesh from its right on South Talpatty island?
This protection committee is solely responsible for the uneasy situation in the coal belt. They have agitated people and should bear the responsibility for the loss of life of innocent misguided people. What other options Bangladesh have than to aggressively go for coal mining? What methods other than surface mining can economically recover sufficient coal safely to meet the countries energy demand? These people if they are truly patriot must agitate to ensure that the affected people are adequately compensated, properly rehabilitated and the environmental impacts are effectively mitigated. But their actions have confused the policy makers. The consequence is massive shortage of energy in National Energy Grid. Investors local and foreign are getting increasingly frustrated. Can Bangladesh ever come out of the vicious circle of poverty if there are not massive investments in down stream manufacturing sector to boost our export, to create employment for our unemployed masses?
Our journalists should also be extremely careful about these issues. In this time of IT boom all news of print media are floated right across the globe. Any news which apparently creates doubts and confusions about investment climate of the country creates bad image, discourages investors. Even the local investors, Business group are anxious
We should try to realise in the last two years despite of relative over all discipline, much better law and order situation the flow of FDI recorded massive decline in Bangladesh while it recorded significant increase elsewhere. Is this a happy situation for Bangladesh? In the name of protection what our committee is protecting?. Will Bangladesh get swept away into Bay of Bengal with all its resources buried underground? Or we will explore and exploit this to c endeavour for achieving long term energy security? These people are hypocrites it seems.
Dr Tamim has several failures but his action for initiating deep water drilling can not be the reason to seek his removal.

Source:Energy Bangla, Bangladesh

Date : 07/10/08

Link : http://energybangla.com/index.php?mod=article&cat=SomethingtoSay&article=1041

The new duet in climate change theatre

2008-10-19T23:19:00.000-07:00

Shaukat Mahmood

If the rise of one eleven empowers former British ambassador in Bangladesh Anowar Choudhury to play foul diplomacy inspiring by the theory of, so called ‘liberal imperialism’ of Tony Blaire, then how much the September 9’s ‘Britain-Bangladesh Climate Change Conference’ can significantly prove their changed mind set? The conference was waved by the music like of that ‘Sabash Bangladesh’ instead of the last two years’ classic music, that of corrupt Bangladesh. The struggle, courage and patience of Bangladeshi people to challenge and to survive the natural disaster are not a new story at all. But the British ratification regarding this and the international efforts to prepare Bangladesh as a model of climate change issue is really very significant.
In that conference of controlling the changing climate, the talk of controlling politics was not even pronounced for once in Royal Geographical Society Hall. That, Anowar Chaudhury was also absent but he was present in the dialogue of ‘Democracy in Bangladesh’ organized by the British Government on June 23. Surprisingly on the very same day last Bengal Ruler was lost to British in Palashey battle field in 1757. The local people who were loud against corruption remained surprisingly tight-lipped about corruption in September 9 conference. So one can thank them for their latest realization on corruption issue but the issue of political commitment to fulfill their action plan of $500 crore to control climate change was unrealized yet. Provably initiators have enough confidence in British Government’s capability to motivate the future political government in Bangladesh, to continue their project. Again political parties too need the votes of the natural disaster prone areas of 5 crore people where there are 1.5 crore solid votes. The world is warmer than any time today because of the omni and continuous industrialization of the rich nations.
As a result, the countries of low lining like Bangladesh have been suffering from regular flood, cyclone etc. Sidr and serial floods of 2007 in Bangladesh is a big example. As a result of sidr and flood the agricultural activities were stopped and the infrastructures were destroyed. The struggles of Bangladeshis to overcome these challenges were well noticed by the global people. The total ability of individuals crossed the ability of government. Because of the global warming three cores of people in Bangladesh will lose their land and profession in near future. Considering this, government and specialists have been working hard to highlight Bangladesh at international level. Though no nation in the world could do, Bangladesh has prepared an action plan. Before presenting the action plan in that September 9 conference, British government had donated $150 millions to Multidonar Trust Fund. As an amount though it is tiny but the British initiative is really unthinkable. Someone hissed into ear ‘Bengal was first British love’. I asked someone how is Anowar Choudhury? ‘He is fine, working in foreign department but in a low profile’ he answered. So far understood, probably his illicit diplomacy in Bangladesh was also disliked by British government. The present British ambassador in Bangladesh was also active in the September 9 conference but silently. He did not search TV cameras or journalists and even did not show extra interest to promote himself.
What Bangladesh will do?The cruel tragedy is that, Bangladesh produces only .02% carbon, but she has been suffering for producing carbon by the other countries. China and India will build 700 coal driven electric plants within 2012. But being the owner of huge coal, Bangladesh could not utilize those to ensure progress and development of her. In the above mentioned action plan, the talk of open pit mining is inscribed. China, India and western countries have been following this method. But unfortunately Bangladesh has to obey the obligation that is not producing poisoned carbon. According to the data of government, the rate of using electricity per person is 140 KW/h in Bangladesh. Where as it is 325 KW/h in Sri Lanka, 408 KW/h in Pakistan, 663 KW/h in India, around 8000 KW/h in Europe and 10 000 KW/h in USA! 70% of Bangladeshis are not getting electricity. According to Power Sector Master Plan, Bangladesh will produce 43 thousand Megawatt of electricity within 2025 to meet the demand, among which 33 thousand Megawatts of electricity will be produced from coal only. But if we agree with rich countries to reduce carbon gas, how will we meet the demand of power and energy and how will we ensure our development?
The big question, what will happen, if according to Kiyoto protocol and Bali Framework Convention, after 2012 the mining of dirty coal be stopped? To avoid that declaration, Bangladesh has to produce coal at large scale before 2012. Data shows that Bangladesh has 1 thousand and 542 million tons of usable clean coal in five different fields. Among this, 1374 million tons coal can be produced through open pit mining and 463 million tons by close method. If we follow underground method, then we have to incur lose of one thousand billion dollar. In London conference finance adviser and specialists told that Bangladesh has to utilize oil-gas-coal to ensure her development. Where rich countries are not obeying Kyoto protocol and China-India-Brazil go for massive use of coal, why Bangladesh will keep coal underneath the soil and tolerate the sufferings of climate change? The agents of developed countries inspire country like Bangladesh not to use their coal. They bought shares of poor countries to add those points to their share to continue to produce carbon gas. The practice is known as carbon trade or carbon colonialism. It is heard that some environmentalists and economists are given huge bribe to build mass movement against coal mining. This fascist environmentalism is a new problem for Bangladesh.
Aren’t we backtracking?Where is Bangladesh, in international politics of environment? Officials of Environment Ministry can make their vision gloomy. With the G 77 nations, Bangladesh is a supporter of reducing carbon by the rich nations by 50% within 2050. Through signing agreement with Britain, Bangladesh is backtracking and she will join Copenhagen World Environment Conference in 2009 holding the hand of Britain, where there will be huge disputation on carbon trading and carbon issue. Bangladesh may face hate of poor nations. Bangladesh was kept out in Uruguay Round Dialogue by the poor countries once. Foreign and Environment Ministry, civil societies are in one side and ERD is in opposite side. Foreign Ministry was against of signing that day and they protested welcoming the declaration of G 8. They were also against of making World Bank as an administrator of Multidonar Trust Fund.
World Bank always prefers debt not donation. Poor countries always demand to get donation, as they sufferer for the activities of rich countries. But why our finance adviser signed the treaty with Britain and made World Bank an administrator was not understood. Replying to the question of the journalists finance adviser told that they had to understand the reality. The private members of Bangladesh contingents did not ask any question though they were loud in another meeting with British NGOs. Now the million-dollar question is why Britain was proactive to sign the treaty? Why they completed the work with caretaker government whereas election is going to be held within few months? The reasons can be well explained in many ways.
Interest of BritainThe apathy of Republican led white House inspires Britain to lead the international environment politics. Why Britain will not grab the easy credits by giving some donations to Bangladesh though Bangladeshis faced disasters by their chest, which was the first capital of British colony? British Environment Minister Fil Ullas said that the development of Britain and Bangladesh is designed on same formula. Prime Minister Gordon Brown called the world to look at the courageous people of Bangladesh in a Video message. International Development Minister crosses all, saying, “We thought we will provide 30 million pound after sidr but now we have decided to give 75 million pound.”
Britain is an especial friend of Bangladesh since one eleven. British ministers and officials have been stepping their feet regularly in ZIA. British foreign minister David Milliband visited Bangladesh on 8-9 February after one era of any British foreign minister’s visit. His speech in Dhaka was echoed by Gordon Brown. Miliband said,” Britain and Bangladesh have entered the phase of ‘a new special partnership’. The out of date relationship that centered on aid and Britain’s colonial past has ended to make way for a shared agenda based on co-operation in trade and facing climate change and terrorism.” Besides, Britain wants Bangladesh against the so called war against terrorism. Britain strengthens the monitoring of fundamentalism activities in Bangladesh. But Britain has to understand communist fundamentalism is an old problem for Bangladesh. And the problem of climate change is always with us.
Liberal ImperialismWe need to rethink and understand the speech of Milliband especially ‘colonial past’, according to him, at the end of that new possibilities rise. With that we want to mention the preface of ‘Freedom Next Time’ by the leftist writer John Philgar. He said that poor nations believe that if Democrat in USA and Labor party in UK stay in power, then the world would be war free, but this is wrong. During the regime of Clinton and Blaire, they went to more countries to take part in war. He said west is not regretful about their colonist role; rather they are proud of that. Britain was back from the mentality of ruling other countries after 2nd world war. But after the fall of Soviet Union in 90 decade, the rise of price hike, capital and money crisis, fall of share markets in developing countries paved the way for colonials to come back through the tool of World Bank and IMF. On January 15, 2005 the then finance minister, now the ruling prime minister, Gordon Brown, said to Daily Mail, “The days of Britain having to apologies for the British Empire is over.
We should celebrate.” Before that, Nial Farguson, an Oxford professor of political science wrote appreciating the new imperialism of Tony Blaire, “Imperialism may be a dirty word, but when Tony Blaire is essentially calling for imposition of western values, democracy and so on- it is really the language of liberal imperialism imposing your views and practices on others”. [Guardian, October 31, 2001] Western theorists started to say that new imperialism would solve the problems. They started to advocate operating human intervention in poor countries to remove corruption and to implement rule of law. Japan sent armies to Manchuria saying that. However, it started the politics of condition. Pilgar informed,” Michacl Ignatief, former professor of human rights at Harvard and an enthusiastic backer of the West’s invasions, prefers liberal intervention. From the same lexicon of modern imperial euphemisms have come ‘good international citizen’ (a western vessel) and ‘good governance’ (a neo liberal economy run by the world Banks/IMF). Once noble concepts have been appropriated: democracy (pro Washington regime) and reform (dismantling genuine social reforms) and ‘peacekeeping’ (war) … imperialism of the liberal may be more dangerous because of its open-ended nature- its conviction that it represents a superior form of life.
A group of civil society and its various activities like movement for good governance and honest politician have been flourishing in our country since 90s by the financial and psychological favor of USAID, DFID and others. Their role proves their relationship with liberal imperialism. If there is any commitment of one eleven to clean the politics, that was engulfed by the civil society. They used one eleven to fulfill their own agenda. They leveled politicians as enemy. They had been promoting own people in all big positions of the government. Some of them declared that the one eleven is empowered by the United Nations and liberal imperialism. But the failure of realizing this by the politicians and the limitless corruption opens the door for liberal imperialist and civil societies. The foul diplomacy of Butenis and Anowar Chaudhury and the dependence of politicians on them make many to be worried.
What is Bangladesh’s route?Britain may help Bangladesh to pocket Bangladeshis vote in favor of troubled labor party in upcoming election or Britain may be regretful for foul diplomacy of Anowar Chaudhury, but we want to concentrate on a theory of eminent editor and journalist Fareed Zakaria. He said in his book ‘Post American World’ that though the rise of China-India-Brazil by the side of USA-UK power centres is clear but the influence of USA-UK will not end soon. Bangladesh is desperate to stand on her feet and to raise her GDP, but still weak comparing with India. Present government is full of the people of free market economy, past people were not different, in future they may be same. But we have to understand why Bangladeshis like to go Washington through Dubai-Qatar route avoiding Kolkata-Delhi. Bangladesh has to walk through this way with caution and balance. British people did not get big projects during present regime, rather Indian and American companies are being benefited.
What are the big challenges for Bangladesh in 21st century of liberal imperialism? To uphold own identity, developing power and energy sector, to walk with west to improve business and to control terrorism with caution, to deepen the relationship with China and to work to change the mindset of India are the most important challenges for Bangladesh. Own dignity, religiousness, liberalism, democracy and the combination of China’s economic democracy and west’s political democracy be the new features of Nationalism. Big political parties like BNP, AL, JP and JI definitely will try to get the support of disaster prone 1.5 crore votes. Besides this we have to ensure the safety of environment and to produce massive power to fulfill future electricity demand. Let us demand to lift disaster prone people of Bangladesh to west. We can demand on UK to facilitate huge employment opportunity for Bangladeshis. No treaty can be made against the interest of Bangladeshis. China and India have been progressing by utilizing the opportunity of foreign investment.
Couldn’t finance adviser tell that next elected government will decide on giving the responsibility to World Bank? Couldn’t he ask Britain to declare the declaration of the conference without signing?
Let us go to Rabindranath to rescue ourselves BangladeshRemove the dust; stop weeping and no begging sighRevamp the face, hold the vigor and keep the head highThe flat world invites you to join its marchAwake, run on the track, and overlook the call of slavery, catch the torch

Source: Weekly Economic Times, Bangladesh

Date : 28/09/0/

Link: http://www.weeklyeconomictimes.com/home-news-details.php?recordID=2076

Energy Now Number One Problem

2008-09-24T01:10:00.000-07:00

Mollah M Amzad Hossain

INTERVIEW

Direct cancellation of an agreement signed by a sovereign government creates an environment of mistrust about the country. “It’s not comfortable at al for a country for its image abroad,” said Annisul Huq, the President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex body of the countries cham Direct cancellation of an agreement signed by a sovereign government creates an environment of mistrust about the country.
“It’s not comfortable at al for a country for its image abroad,” said Annisul Huq, the President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex body of the countries chambers and trade bodies.
“I think the government should sit with the people who are demanding to scrap the agreements. At the same time the government should also sit with the parties with whom it signed the agreements,” he said adding “it will pave the way for an amicable solution for all. If there is any clause, which is against the interest of the country, he said, it will be detected in the discussion table. “And I think we’ll be able to resolve it with consensus,” said Annisul Huq. “People in the government responsible for this shouldn’t linger the process and reach consensus through discussions,” said the FBCCI President in an interview with the Energy & Power. The EP Editor Mollah Amzad Hossain took the interview. Following are the excerpts:
EP: How do you evaluate the infrastructure of the country, specially the energy infrastructure?
AH: If we talk about infrastructure, supply of energy is now the biggest problem in Bangladesh. In meetings of the Better Business Forum we categorically said that industrial and business development will come to a standstill if we fail to ensure energy supply. You know the Better Business Forum has five working groups. They made 260 recommendations as urgent tasks. Of these, the infrastructure development group made 90 suggestions. The key aspect of the recommendations is that the main obstacle towards economic development is lack in energy supply. How do you expect industrial development if you can’t give electricity. The number one problem is now energy. Here the question comes up… where the electricity will come from if there is lack in gas supply. We know the present generation capacity is 5,300 megawatt, but our demand is higher. On the other hand, the actual generation is 3,500-3,750 megawatt. One of the reason is gas crisis. Also, there are some units which are 40 years old and some were not maintained properly. As a result, now the main problem now emerged as not getting electricity for industries. There is no alternative to ensure power supply. We categorically told the government that neither domestic nor foreign investment will take place if electricity supply is not ensured.
EP: Board of Investment is a very important body for investment in the country. Don’t you think energy sector investment is also involved with the BOI?
AH: You must know we proposed the government to restructure the BOI for making it an effective organization. Before that we visited Australia, New Zealand, Hong Kong, Thailand and Malaysia and witnessed their works. At present 14-15 first class officers work in the BOI. We proposed to take the number to 135. At the same time, we approached to go for a competitive higher salary structure for them instead of government structure. If our proposal is implemented, the BOI will really work as a one-stop service. There will be a cell named Invest Bangladesh which will bring investment. But, you know there will be no use of bringing investment if there is no energy. Here I want to mention that the BEPZA now has all kinds of infrastructure. They have plots, have power supply facilities. But the BEPZA will not be able to supply electricity if the present state of gas supply continued. Now the number one priority should be ensuring energy supply.
EP: What’s your suggestion for increasing electricity generation in shortest possible time?
AH: We already gave some recommendations as urgent tasks for the government. One suggestion is rehabilitating the public sector old and unskilled power plants through private investment. The government started works on that. A policy is being drafted by the Power Division. I’m mentioning this as there is gas supply for those plants. If the units are rehabilitated we can get more electricity from the plants. Also, we approached that the small units in the private sector can be expanded as there is also assurance of gas supply to those areas.
EP: We saw in newspapers that you in the meeting of the Better Business Forum recommended to go for coal production to overcome the electricity crisis.
AH: Yes. We told the government that there is gas crisis in the country. But there is scope to go for coal-based power plants. So, we don’t have apprehension of primary energy. But, we have to produce coal at first. Many countries in the world are utilizing coal resources by managing the environmental and social problems. You know coal plays the leading role in power generation in India, China, USA, South Africa and many other countries. If they can manage the environmental problems and utilize coal for power generation why not we? It’s true there are challenges relating to environment and local people if we go for coal exploration. But, this is not a unique problem for Bangladesh. There are similar problems for all the countries who have coal resources. I think the problems should be resolved through discussion, timely decision and their implementation. And this is the main challenge now. What will happen if we sit idle and don’t take decision? It will ensure more and more power crisis for lack in primary energy and finally stop the investment and industrialization. In that case there will be no scope of economic development. I think we shouldn�t waste a single day. The government has to take pragmatic decision with discussions in the top level. Our back is on the walls.
EP: We have coal that can meet the country’s primary energy demand. But, reality is that we are debating years after years. A coal policy couldn’t be finalized in last couple of years.
AH: It’s really a concerning matter. The government shouldn’t sitting idle without resolving the questions raised about the foreign investment. But, you know producing coal is not the only answer. The coal-based electricity will be costlier, can be double than that of present tariff. But, also we can’t waste time and resources only because that the price will be higher. Whatever the price is we need electricity. The price of coal-based can be seven taka per unit, but it’ll be 10 taka if we generate power from imported oils. The coal policy has become a sensitive issue. If we can’t make it transparently there will be new bureaucratic complex. I doubt that the government which will come to power after the election will be able to do this overcoming all kinds of vested interests. Also, the present government is also in the last stage. I don’t think they will be able to finalize the coal policy at this stage. On the other hand, the intellectuals and experts are not in consensus. Also, we can say their opinion is influenced in different ways. So, it’s really a tough job, specially taking a right decision. Still we have to produce coal and we have to take decision right now.
EP: Chittagong is now at the most vulnerable stage in terms of energy crisis. However, the problem prevails across the country. Are you satisfied with the government assurance?
AH: The government is concerned about the energy crisis. They are also working on it. But, it will be a very tough for the next government if the decision is taken by the present government. So, now we are in dilemma.
EP: Some groups in the country have been demanding cancellation of agreements with international oil companies and ouster of the IOCs. How do you consider the demand?
AH: Direct cancellation of an agreement signed by a sovereign government creates an environment of mistrust about the country. It’s not comfortable at al for a country for its image abroad. I think the government should sit with the people who are demanding to scrap the agreements. At the same time the government should also sit with the parties with whom it signed the agreements. It will pave the way for an amicable solution for all. If there is any clause which is against the interest of the country, it will be detected in the discussion table. And I think we’ll be able to resolve it with consensus. People in the government responsible for this shouldn’t linger the process and reach consensus through discussions.
EP: Better Business Forum discussed about another aspect… If you want uninterrupted energy supply, the price must be marked-based. What’s your opinion?
AH: As a consumer I’ll never want that the price of gas and power is increased. But as a businessman and a conscious citizen I must consider the amount of subsidy being given by the government and how long the government can continue it. The previous governments had talks about price hike and the present government has also been discussing about it. If we want energy supply for overall development of the country we have to pay the actual price that it should be. A time will come when we’ll have no alternative but to fix the market-oriented price.
EP: How do you look into the regional cooperation in the energy sector as well as proposed tri-nation gas pipeline?
AH: The days of keeping ourselves isolation are over. There is no alternative to regional cooperation. If we are benefited from a tri-nation gas pipeline, if our energy demand is fulfilled why not we’ll go for it. Any project in the energy sector if it’s beneficial for the nation must be welcomed. You know economic development is not possible without cooperating each other.
EP: What’s your opinion about the present debate on offshore exploration?
AH: I think we don’t have time to waste for offshore oil and gas exploration. We need new gas discoveries. For this we need new exploration. I believe we�ll find new gas reserves if we go for exploration in the Bay of Bengal. if there is any opposition from our neighbors we can resolve it through diplomatic channel. Also, we have to work to determine our maritime area. But, for this excuse we can’t suspend our exploration. Not only in the sea, we also need onshore exploration. The BAPEX has been strengthened. Alongside BAPEX, we have to bring foreign investment in a transparent manner. It has no alternative. This will also help to build our own resources and develop human resources. Time has come to take decision. If we don’t decide and waste time our economic development will come to a halt. Everyone has to understand it. You know the result in the energy sector is belated, it takes time.
EP: It’s said that the private sector of the engine of development. That’s why the conception of public-private partnership has emerged. How can we go for result oriented such partnership?
AH: Look, the energy is an investment-intensive sector. Also, skills technical capacity is very important. The government has to create opportunities to develop the capability. Specially the government has to initiate special steps so that local companies can come forward. There can be one option that a foreign company will get incentive if it has local companies as partners. Also, there should be options so that domestic companies can work with government companies on the basis of partnership. This will help development of local private sector in the energy sector. I think, there are opportunities to build public-private partnership keeping the BAPEX in the center of the projects.
Finally, I think the government has to formulate policy for flourishing the local private sector by increasing their skills and capacity and creating an environment for flourishment of their capital. It will ensure participation of local private sector in the energy field of the country.

Source: Energy & Power, Bangladesh
Date: 16/09/08
Link : http://www.ep-bd.com/news.php?cat_id=5&archive=9&namee=INTERVIEW

The Carbon Conspiracy

2008-09-24T01:00:00.000-07:00

In the name of carbon trading, developed countries are offering developing countries paltry handouts to keep development in check while they go ahead in leaps and bounds

A PROBE report

Climate change is on us. Ardent environmentalists and hardened skeptics alike are ready to admit this. It is a reality that has caught global attention and which is causing concern among developed and developing countries alike. We are, after all, under one sky. Given the magnitude of the issue, climate change is now one of the most important social, economic and political issues of all time. Atmospheric gases responsible for causing global warming and climate change have increased by 25% since large scale industrialisation began a century and a half ago. World carbon dioxide (CO2) was expected to increase by 1.8% annually between 2004 and 2030. Other greenhouse gases (GHGs) are methane, nitrous oxide and some which are less significant.
Global bodies have taken up the climate change issue in all earnest. There is the Inter-Governmental Panel of Climate Change (IPCC), the Asian Development Bank, the World Bank, UN bodies, the European Union bodies and others all making a loud clamour about climate change. It is commonly acknowledged that it is the industrialised nations which are the main cause of global warming, what with their excessive carbon emissions and other forms of industry-related pollution. And the developed world is bearing the brunt. However, as has been the propensity, it is the wealthy developed nations which are now drawing up rules and regulations, imposing restrictions, and the developing countries, with exceptions, that are acquiescing with characteristic complacency, bordering on fatalism.
A study reveals that where annual carbon emissions are concerned, USA and Canada take the lead. This region, in 2000, was spewing out nearly 1800 million metric tonnes of carbon annually. This has increased manifold since. This region is followed by Western Europe. Bangladesh, given its insignificant industrialisation, is nowhere on the carbon emission map. Yet Bangladesh is having to pay the price. If the Asian Development Bank is to be believed, this region is particularly vulnerable to climate change, threatened with freshwater shortages by 2020. Crop yields could drop by half within 2050. And Bangladesh in particular will be vulnerable to flooding. Even if all this is taken with a pinch of salt, the fact remains that the spectre of climate change looms large in our horizon.

Kyoto Protocol

As one of the mechanisms to address this problem, the Kyoto Protocol was drawn up in 1997. This is linked to the UN Framework Convention on Climate Change (UNFCCC) and sets binding targets for 37 industrialised countries for reduction of 5.2% GHG emissions against the 1990 level over its commitment period until 2012. For EU the target is 8%. In short, countries are to cut down on carbon emissions. The industrial and other sectors of these countries must take measures to this end, to curtail their contribution to global warming. Ironically, USA is not a signatory to this protocol despite being the highest on the carbon emission charts.
The big industrial players invariably find a way of wriggling out of paying the price for their “sins”. Since 2005, about 12,000 energy intensive plants of EU have been able to buy and sell permits to allow them emit carbon dioxide. There are three flexible mechanisms to enable countries with quantified emission limitation and reduction commitments to acquire GHG reduction credits: International Emission Trading (IET), Clean Development Mechanism (CDM) and Joint Implementation (JI). There is even consideration for a Stock Exchange for carbon credits!

The second category, CDM, applies to Bangladesh. Under this, a developed country can tie up GHG reduction project activity in a developing country. The developed country would be given credits for meeting its emission reduction targets, while the developing country would receive the capital and clean technology to implement the project. This is, in plain language, carbon trading. The developed country continues at its own pace of carbon emissions, while paying a country like Bangladesh to cut down on their’s, thus earning carbon credits. Outside the Kyoto Protocol compliance regime, an alternative carbon trading market is emerging. This is the Voluntary Emission Reduction (VER) framework. It has no internationally recognised central body.

What has Bangladesh done so far?

So far Bangladesh has set up a National CDM Board and CDM committees for approval of CDM projects. The Board has approved two CDM projects so far with a few in the pipeline. In comparison, India has approved 360 projects and Sri Lanka 105. There are plenty of CDM opportunities in Bangladesh: Afforestation and conservation of forests as tree tissue stores significant amounts of CO2; methane tapping and better use of methane waste; use of electrical vehicles; advanced rice production technology; electricity cogeneration from sugarcane; solar home systems; wind turbine; energy saving cooking stoves, CFL lamps, etc.

There is a garbage disposal project in Matwail where biodegradable waste is being converted into compost fertiliser and so the methane emissions are being reduced. The project could earn points but is still tied up with the local CDM committee. It will have to go to the CDM executive board under UNFCC for approval. The irony of it all is that while Bangladesh is still not a carbon producing country in any sense of the term, the government has already made carbon commitments on par with the countries which produce high amounts of carbon annually. The bottom line is, while the industrialised countries continue in their industrialisation and development, countries like Bangladesh will adopt a carbon neutral development strategy, keeping tangible industrialisation at bay. In other words, Bangladesh cannot get wealthy. It will accept a few token handouts to keep its carbon output in check and hand the carbon credits to the wealthy world so it can get wealthier.

“Bangladesh must not settle for any aid funds or loan packages in this connection. Bangladesh must demand hard compensation in no uncertain terms,” says an analyst of global politics. “It’s like telling a rich guy in Europe that he can drive his SUV while we ride on cows, as long as he hands us a few euros — then too he’ll tell us to change our cow’s diet so it doesn’t belch out methane gas into the air!” says an irate industrialist in Bangladesh. It’s like the developed world is buying permits to pollute. “Poor countries smell money in the climate-change negotiations,” reads an article in The Economist.

Such carbon trading can be suicidal for the developing countries in the long run. Myopic policies can stunt a poor country’s growth and keep it in the poverty rut forever. “Such international negotiations have the distinct stench of conspiracy” says an observer of the energy scene in Bangladesh, “It’s a conspiracy to ensure the poor countries remain poor while the rich get richer.” “It’s like the myths being propagated that Bangladesh will soon be completely submerged under the sea, when in actuality, a satellite map will show you how the country is growing by 20 sq km a year,” he continues. “Such negative reports fed into the media serve to weaken the national psyche.”

And it is because of such weakened national psyche that Bangladesh jumps into non-conclusive agreements. Rather than getting entwined in such one-sided negotiations, Bangladesh needs to build a robust economy. It must exploit its existing resources to this end, whether gas, coal or whatever.

CONSPIRACY AGAINST COAL

One must always be on the watch out for the furtive do-gooders who do more harm than good in the name of the environment, public interest, etc. They change colours quicker than a chameleon. For example, years ago when talk was on about a nuclear power plant at Rooppur, there was a hue and cry about the health hazards and dangers of such a plant. Now in this critical hour of need where power is concerned, coal has been discovered at Phulbari. This coal mine is being equated with a gold mine in the sense it can fire a much needed power plant, providing electricity to the electricity-starved country. It can provide fuel to the innumerable brick fields leading to the infrasructural development of the country. It can contribute more than substantially to the country’s economy. Environmental and social concerns about the project are also being taken care of in the way of tree-planting, water management, rehabilitation and other projects. The tree-huggers now decide to welcome the nuclear power plant deal with China and turn their vitriolic attention towards the Phulbari coal mine.

Certain vested quarters are loud and vocal against the mining of coal at Phulbari and the establishment a coal-fired power plant. They see carbon spewing into the air, covering the world in a cloud of black smoke, all in contravention to those conventions and protocols being touted around the globe. Yet this very same righteous bunch remains mysteriously and absolutely silent about the coal coming in from India across the border. This substandard coal is so high in sulphur content that it is not even being used in India itself. The Bangladesh government is sanctioning import of this hazardous coal even though it exceeds permissible levels of sulphur. Yet it is dragging its feet on approving the Phulbari coal mine where the coal is of such low sulphur content and of such a high standard that it is almost on par which the coal of Newcastle. When the chimneys of the brick fields churn out the sulphur-infested pollution into the air,

where are GHG concerns then?

Delay in starting up the Phulbari coal mine is extremely harmful in more ways than one. Not only are we delaying in the production of electricity and wasting money on inferior quality imported coal, we are missing out on the deadline for carbon emissions. The carbon trading policy has a dateline until the year 2012. The year 2012 is vital because after that, rather than carbon trading, there will be carbon capture and storage. Carbon offsetting will no longer be in the scheme of things. Bangladesh is simply not prepared for this.
While polluters tend to make millions from the European carbon permit scheme, Bangladesh sits back twiddling its thumbs. That is nothing short of a travesty. Bangladesh must make hay while the sun shines. If the development of the coal sector is slowed down, Bangladesh will lose its CO2 emission rights. At these crossroads, Bangladesh faces a dilemma. In the name of internationalism, quarters urge it to reduce global warming by sacrificing industrialisation in Bangladesh; to move towards low-carbon economy; and to depend on international carbon funds and aid. However, nationalism dictates that Bangladesh maximise carbon emission rights. It must maximise economic growth and industrialisation.

The bottom line is, if Bangladesh wants to survive in this dog-eat-dog system of global economy, the coal sector should be developed as fast as possible to justify higher emission rights. And Bangladesh should not bear the burden of global warming by suppressing coal sector development. It is ironical that coal and other industries in the developed world are flourishing and injecting more carbon into the air and growth into their economies, while we are expected to sit back and put a cap on our coal so a balance can be struck. They are emitting excess carbon into the air and we are helping out by emitting less. Oh, and in the process we’ll earn a few Brownie points.

Source: http://www.probenewsmagazine.com/index.php?index=2&contentId=4376
Date: 19-25 September 2008, Bangladesh

Energy security & coal development

2008-09-24T00:57:00.000-07:00

Badiul Alam

The power cut or load shedding has become the order of the day. All the national fertilizer factories have been shut down because of energy crisis. The power development Board (PDB) has been facing extreme difficulties to maintain its generation schedule due to gas shortage. The gas based industries specially the textile sector has been experiencing production shortage owing to acute energy crisis. The government has decided to cut power to the industries to maintain stable power supply to mosques and houses during the holy month of Ramadan. The Petrobangla has notified the PDB that it would not be able to make any commitment of new connections to any new power plant hence. These are a few tips about the country’s energy situation.
These tips are enough to raise concern about the country’s future energy security. Some 5-7 years back we debated about the export of energy from Bangladesh to our neighbour India. Now we are actively considering importing energy to provide minimum level of energy security. A dialogue has been opened with the Mayanmar government to ink a deal regarding the Import of gas from that country. Special Assistant to Chief Adviser Prof. Mohammed Tamim has spoken very strongly about linking Bangladesh with the Iran-Pakistan-India gas pipeline to ensure future energy security.

Not only Bangladesh, the entire South Asian Region has become energy hungry although there exists a huge potential of energy resources in this region. If the water resources of the Himalayan valley could be utilized, the South Asian region would have minimum 43000 additional power generation capacities. But this potential could not be harnessed because of the lack of understanding among the South Asian nations, which put the entire region in the category as energy hungry.

The lack of national understanding about harnessing energy sources in Bangladesh has been the major threat for our energy security. The country’s energy security has become vulnerable because of dependence on the single source of energy i.e. gas. Almost all the industrial energy are being met from gas and our gas resource has been depleting very fast, which is the major cause of the current energy crisis.

We have discovered gas reserve of around 21 trillion cubic feet (TCF) of which 15.40 TCF is proven. Till June 2007, around 7.08 TCF gas had been used and only 8.3 TCF gas could be utilized. Every year the gas demand has been increasing more than 6-7 per cent and with the present proven reserve Bangladesh could meet its energy demand from gas up to 2011. If no new gas field is found Bangladesh would have to1ook for other options to meet its energy demand after 2011.

Coal is one of the major alternative source to meet the energy demand. Bangladesh has so far discovered five-coal fields which are Barapukuria, Phulbari, Khalashpir, Jamalganj and Dighirpara. Among these coalfields, the Phulbari is the largest having a reserve of 572 million tonnes of coal. The estimated coal reserve in the Khalashpir is around 600mllllon tonnes, Jamalganj 1053 million tonnes, Barapukuria 300 million tonnesand Dighirpar200 milliontonnes. All these coal reserve would be equivalent to 50 TCF gas, which could ensure minimum 50 years of energy security.

Despite laving potential alternative energy source, the country is heading towards severe energy crisis within the next three to five years. One may ask why we are heading towards a energy crisis despite having the potential alternative source. The answer is very simple. Like other national issues, we are lacking national consensus on extracting coal, which limited the national endeavor of extracting coal only in the Barapukuria coal field. Till the day only half a million tonnes of coal could be extracted from Barapukuria.
There was no debate about extracting coal, but the debate has been going on the mode of extraction. Throughout the world two acceptable methods are followed to extract coal, one is the under ground mining and another is open cut mining. The selection of methods of extracting coal is total1y dependent on the geological condition and the economic viability of the mining.

If the depth of the coal reserve is more than three meters then underground mining option is considered, but from the economic point of view the underground mining is not very much lucrative. According to the mining experts, out of the total reserve around 15 per cent plus or minus coal could be extracted through the under ground mining. For example, Bangladesh could hardly extract less than 1oo million tonnes of coal from Barapukuria despite having a reserve of 300 million tonnes of coal because of the adoption of under ground mining system. On the other hand, the open Cut mining system would provide opportunity to extract all the available reserve.

We are debating what method should Bangladesh follow to extract its black diamond? This debate has developed over the extraction of coal from Phulbari coalfield. The government earlier signed agreement with the Asia Energy to develop coal from Phulbari. The Asia Energy opted for open cut mining as the coal reserve available at the depth of 50 to 200 meters. The coal experts have agreed that the open cut mining is the only viable option to develop Phulbari coal- field.
But there will be certain social and environmental problems if the open cut mining option is given go-ahead signal. The entire Phulbari region is arable area and land is suitable for the production rice. Around 600 hectares of land will come under the open cut mining system over a period of 30 years. The land will lose its original character after the open cut mining and it will take 10 to 15 years to restore the original character of land. The large-scale extraction of under ground water would be required to implement the under ground mining, which will create a danger of desertification. Several thousands of people will have to be rehabilitated in new places over a period of 35 years, as their homestead will come under the open cut mining system.
Every development project bears social and. environmental hazards but by applying proper mitigation approach the environmental concerns could be addressed. The Environment Impact Assessment (EIA) study has been made compulsory for all the development projects irrespective of its size. In respect of Phulbari coal field the EIA had been completed, which got the nod of the Directorate of Environment (DoE) although question was raised whether the DoE has enough technical manpower to examine the EIA study on Phulbari coalfield.

The major social concern in respect of Phulbari would be rehabilitation of several thousand people in the new places. According to the Asia Energy study over 40 thousand people will come under the relocation programme over a period of 3 years. But other sources claimed that one lakh people will have to be re-located. If the later’s version is accepted, every year less than 3000 thousand people or less than 600 families (5-member in each family) will have to be resettled. Is it a very big challenge? Of course not? It was argued that enough land will not be available for resettlement. It might be true to some extent because Bangladesh is a land of hunger. But this problem cannot be addressed through the development flats at the rural areas. In view of the shrinking arable land due to population pressure demand has been raised to adopt flat option in rural areas.

Another major concern is the desertification and shortage of water in the northern region because of the extraction of under ground water from Phulbari region. Yes, this is a big concern, but it has the solution. A portion of extracted under ground water could be used for drinking by applying proper treatment process. Another portion of extracted water would be injected to maintain the under ground water table after refilling the land hole. Such practice has been followed throughout the world in case of adoption of open cut mining method.

Another portion of extracted under ground water could be used to maintain the water channels and water bodies, which ultimately will benefit the agriculture and the industrial sector. Those who are opposing the open cut mining system very much know how to address the social and environmental concerns but still they are opposing the system. Question may be asked what will be the determining factors to adopt a particular method of extraction of coal? The answer is very simple. The economics of coalmine and geological condition will be the major determining factors for deciding the method of mining.

It has been stated that coal at Phulbari is available at a depth of 150 to 250 meters, which is covered by alluvium rocks. The coal mine expert opinion is that the coal at a depth of 150 to 250 meters covered by alluvium rock is suitable for open cut mining. From the point of economics open cut mining system is much beneficial, as it will give almost cent per cent recovery of coal. Badrul Imam, prof. Geological Department of Dhaka University and also member of the Natural Resources Protection Committee agreed that the open cut mining is suitable for extraction of coal if the same is situated at a depth of 150 to 200 meter. Another point of debate is the involvement of the Asia Energy for the development of the Phulbari coalfield. The national energy policy and other policies related to the foreign investment justify the Asia Energy involvement. It could be better if we could extract the coal by investing our own resources, which could give us opportunity to enjoy the total dividend, but now we have to share the dividend with a foreign company.

But facts remain that our national exchequer is not so healthy to afford millions of dollar investment. Besides, we have not enough technical manpower to develop a coalmine. Opponents of the open cut mining, however, put forward an absurd proposal in this regard. They suggested abandoning the mining until the development of national technical staff, according to them, which would take minimum 10 years. But they have to suggest how to address the energy problem at least for 10 years.
They have suggested developing an independent body to handle coal sector, which is a good proposal. The coal policy suggested developing a body, which would be called ‘Coal Bangla’. But the present regime is not in a position to finalise the coal policy. The matter is likely to be left for the next elected government. According to the agreement signed with the Asia Energy, the Phulbari coalfield development works can be started in 2006. If the process were allowed to go on by this time coal from Phulbari would be a reality. Not only coal, a coal fired power plant having 500-mw generation capacity could also start generation.

Source: The News Today, Bangladesh
Date: 04/09/2008

Draft coal policy likely to get final seal in Oct

2008-09-09T21:14:00.000-07:00

Abir Mahmud

The much talked about national coal policy is set to be approved in early October as the energy ministry has planned to place the draft of the policy to the council of advisers again. “We are now working on incorporating observations over royalty rate, land reclamation and environmental issues, which were the much discussed about during a discussion of the council of advisers over the draft coal policy and,” energy secretary Mohammad Mohsin said.
He said the draft of the policy would be sent to the council of advisers by early October next for approval. The council of advisers last month sent back the draft coal policy to the energy ministry for further scrutiny of the issues related to royalty rate, mined land reclamation and environmental issues. During the meeting, headed by the chief adviser, Fakhruddin Ahmed, at the Chittagong circuit house, the advisors discussed the policy draft for hours and of the opinion for some changes to the draft policy. They were, however, unanimous over that a coal policy was needed to immediately develop the country’s coal reserves and mitigate the mounting energy crisis.
Sources said, investments worth several billion US dollars have long been hanging over the draft national coal policy that got its current shape following several changes carried by the previous successive governments, energy ministry officials said. UK-based Asia Energy, South Korean Luxon Global and US-based Global Vulcan Energy are among the foreign companies now eyeing closely over the national coal policy to initiate their project works of coalmine development and setting up coal-fired power plants, they said.
Indian business conglomerate Tata group, that had investment proposals worth US$ 3.0 billion including development of a coalmine and setting up a coal-fired power plant, recently pulled back after waiting for over two years due to indecisiveness of the government, it was alleged. The foreign investment proposals still pending with the Board of Investment (BoI) include include $2.5 billion from the Asia Energy, $ 1.6 billion from the Vulcan Energy, $1.5 billion from Luxon Global, a senior BoI official said.
In the draft national coal policy it was recommended that no foreign companies would be permitted to develop coalmine independently. Foreign companies would be allowed to develop country’s coalmines under a joint venture with local coalmining company, it noted. Like elsewhere in the world coalmines in Bangladesh can be developed by either open pit or underground method. But the mining method should be determined on the basis of geological structure and reserve potentials, draft policy suggested. A Coal Sector Development Committee comprising professionals from all walks would be constituted for smooth operation of coalmines and relevant activities.
The committee would fix the royalty rate of different coalmines considering mine-specific geological structures instead of the existing mining rules where the royalty rate has been fixed at 6.0 per cent for open-pit mines and 5 per cent for underground mines. Awarding of licences for coal explorations from any coalmines through open tenders, whereas the existing rules say that the licences would be awarded on first-come-first-served basis, the draft policy recommended.
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, it noted. The globally accepted guidelines of ‘equator principles,’ should be adopted to ensure adequate management of environmental and social issues relating to coalmines, the draft policy said. The draft policy said there would be no option of coal export other than ‘cocking coal’ in the coal policy. Setting up coal-fired power plant at the mine mouth would be made mandatory for developing any coalmine it recommended further.
During the meeting of the council of advisers some felt that there should have some guideline before the proposed committee for fixing royalty rate.Some also opined that mined land should be returned to owners while others felt returning the land to the owners would be a complex and huge task. They were also of the opinion to ensure environmental safeguard out of coalmining.

Source: Weekly Economic Times, Bangladesh

Date: 07/09/08

Link:http://www.weeklyeconomictimes.com/news-details.php?recordID=1953

Develop Phulbari Coal Mine to Resolve Power Crisis

2008-09-09T21:06:00.000-07:00

Business leaders of different chamber bodies of northern districts at a discussion in the capital urged the government to move to develop the Phulbari coal mine without any further delay. They saw the huge coal reserve at the Phulbari coal mine as the only option now to deal with future energy crisis, particularly in power generation. “We can easily produce 3,500MW of electricity from the coal to be extracted from the Phulbari mine,” said Rangpur Chamber President Mostafa Azad Chowdhury, adding that as the country’s gas reserve is depleting fast, coal is becoming the only option for power generation.
Greater Rangpur-Dinajpur Industry-Business Development Forum organized the discussion on ‘Industrialization in Rangpur-Dinajpur: Energy Availability’ with President of the forum Nazrul Islam in the chair. Former PDB member Fazlul Haque presented a keynote paper on the topic. Former lawmakers Mizanur Rahman Manu and Asaduzzaman Noor, leaders of eight chambers of the northern districts — Rajshahi, Dinajpur, Rangpur, Lalmonirhat, Nilphamari, Gaibandha, Panchaghar and Joypurhat — also spoke at the function.
The speakers, supporting the open pit mining at Phulbari coal mine as it provides more than 80 percent extraction of resources, urged the government to ensure proper compensation to those who would be affected by the development of the mine. “The authorities concerned have to ensure that the affected people would be properly compensated and rehabilitated,” said former LGED chief engineer Monwar Hossain Chowdhury.
If the government fails to take the decision in proper time to extract coal from Phulbari mine, Bangladesh might lose the opportunity to use its coal, as there might be a bar on coal extraction worldwide in future, he added. Former BGMEA president Tipu Munshi expressed his frustration over the poor attention of the government to the development of mineral resources of the northern region. He further said the people of the northern region should not be deprived of coal resources due to the antipathy by a section of people.
Forum leader MA Majid termed the opposition to coal extraction in Phulbari an international conspiracy. Editor of the Bangladesh Observer Iqbal Sobhan Chowdhury suggested that those who oppose open pit mining and those support open pit should sit together to reach a consensus through a logical debate.

Source: Energy & Power, Bangladesh

Date : 01.09.08

Link: http://www.ep-bd.com/news.php?cat_id=8&archive=7&namee=REPORT

Develop Phulbari coal mine to resolve power crisis

2008-08-27T01:14:00.000-07:00

Chamber leaders urge govtUnb, Dhaka

Business leaders of different chamber bodies of northern districts at a discussion at a city hotel yesterday urged the government to move to develop the Phulbari coal mine without any further delay. They saw the huge coal reserve at the Phulbari coal mine as the only option now to deal with future energy crisis, particularly in power generation.
“We can easily produce 3,500MW of electricity from the coal to be extracted from the Phulbari mine,” said Rangpur Chamber President Mostafa Azad Chowdhury, adding that as the country’s gas reserve is depleting fast, coal is becoming the only option for power generation. Greater Rangpur-Dinajpur Industry-Business Development Forum organised the discussion on ‘Industrialisation in Rangpur-Dinajpur: Energy availability’ at Sheraton Hotel with President of the forum Nazrul Islam in the chair.
Former PDB member Fazlul Haque presented a keynote paper on the topic. Former lawmakers Mizanur Rahman Manu and Asaduzzaman Noor, leaders of eight chambers of the northern districts — Rajshahi, Dinajpur, Rangpur, Lalmonirhat, Nilphamari, Gaibandha, Panchaghar and Joypurhat — also spoke at the function.
The speakers, supporting the open pit mining at Phulbari coal mine as it provides more than 80 percent extraction of resources, urged the government to ensure proper compensation to those who would be affected by the development of the mine. “The authorities concerned have to ensure that the affected people would be properly compensated and rehabilitated,” said former LGED chief engineer Monwar Hossain Chowdhury. If the government fails to take the decision in proper time to extract coal from Phulbari mine, Bangladesh might lose the opportunity to use its coal, as there might be a bar on coal extraction worldwide in future, he added.
Former BGMEA president Tipu Munshi expressed his frustration over the poor attention of the government to the development of mineral resources of the northern region. He further said the people of the northern region should not be deprived of coal resources due to the antipathy by a section of people. Forum leader MA Majid termed the opposition to coal extraction in Phulbari an international conspiracy.
Editor of the Bangladesh Observer Iqbal Sobhan Chowdhury suggested that those who oppose open pit mining and those support open pit should sit together to reach a consensus through a logical debate.

The Daily Star, Bangladesh
Date: 27/08/08
Link: http://thedailystar.net/story.php?nid=52084

Chamber leaders see coal as only option to resolve power crisis

2008-08-27T01:11:00.000-07:00

Business leaders of different chamber bodies of northern districts at a discussion in the city urged the government Monday to move to develop the Phulbari coal mine without any further delay, reports UNB.

They saw the huge coal reserve at the Phulbari coal mine as the only option now to deal with future energy crisis, particularly in power generation. “We can easily produce 3,500MW of electricity from the coal to be extracted from the Phulbari mine,” said Rangpur Chamber president Mostafa Azad Chowdhury. He said that as the country’s gas reserve was depleting fast, coal was becoming the only option for power generation.
Greater Rangpur-Dinajpur Industry-Business Development Forum organised the discussion on “Industrialisation in Rangpur-Dinajpur: Energy Availability” at a city hotel. Forum president and former Board of Investment (BoI) executive chairman Nazrul Islam presided over the meeting, where former PDB member Fazlul Haque presented the keynote paper. Former lawmakers Mizanur Rahman Manu and Asaduzzaman Noor, leaders of eight chambers of the northern districts - Rajshahi, Dinajpur, Rangpur, Lalmonirhat, Nilphamari, Gaibandha, Panchagarh and Jaipurhat - also spoke at the function.
The speakers, supporting the open pit mining at Phulbari coal mine as it provides more than 80 per cent extraction of resources, urged the government to ensure proper compensation to those who would be affected by development of the mine. “The authorities concerned have to ensure that the affected people would be properly compensated and rehabilitated,” said former LGED chief engineer Monwar Hossain Chowdhury.

The Financial Express, Bangladesh
Date : 27/08/08
Link: http://www.thefinancialexpress-bd.info/search_index.php?

Ctg to get emergency gas, rental power plant

2008-08-20T00:14:00.000-07:00

Advisers’ council sends back coal policy to ministry
Staff Correspondent, Ctg

The Council of Advisers at its meeting here yesterday decided to provide 20 mcf (million cubic feet) additional gas and set up a 50-MW rental power plant for immediate and short-term solutions to the acute gas and power crises prevailing in Chittagong. Chaired by Chief Adviser Fakhruddin Ahmed, the meeting also discussed the draft National Coal Policy and asked the energy ministry to place the draft policy again after scrutiny.
Held at Chittagong Circuit House, the meeting decided to set up a separate gas distribution centre titled “Karnaphuli Gas Systems Limited (KGSL)” to ensure smooth distribution of gas in Chittagong. To resolve seat crisis in the educational institutions, the meeting decided to increase additional 19,000 seats through infrastructure development of six private schools and setting up of two new model school and colleges here at a cost of Tk 71 crore.
“Different local issues like acute gas and power crises and waterlogging prevailing in the port city featured in the meeting where we have tried to give some immediate and short-term solutions to the problems,” said Chief Adviser Fakhruddin Ahmed at a press briefing after the meeting. “Additional gas will be supplied to the industrial units that could not go into operation for want of gas,“ he said. “As a short-term solution to power crisis, we have decided to set up a furnace oil-run rental power plant,” he said, adding, “Though we know it will be a bit expensive, we have to look for an alternative way of producing power as an instant solution.”
Regarding the proposal for setting up coastal township in Chittagong by the world leading steel manufacturer, Mittal Group, the chief adviser said the government is actively considering the proposal. “Talks with Board of Investment (BoI) and others concerned are going on,” he said, adding, “Since it’s a huge project all the details need to be discussed thoroughly.”
Briefing the reporters, Commerce and Education adviser Hossain Zillur Rahman said 20 mcf additional gas will be provided for Chittagong through two separate supply lines from Bangura and Bakharabad gas fields. Of the 20 mcf gas, 10 mcf will be supplied to the already installed industrial units that could not go into operation while the rest will be required for producing 40MW electricity at the existing plants.
Besides setting up of the 50MW rental power plant under short-term solution, initiative was there to ensure smooth and equitable distribution of power through demand management, said the commerce adviser. He said a Tk 95 crore project for infrastructure and drainage system and a Tk 22 crore project on garbage management are awaiting Ecnec approval. The meeting decided to provide all out cooperation for implementation of the Tk 10,000 crore JBIC (Japan Bank for International Cooperation) project for construction of outer ring road in Chittagong.
“Besides, we will hold talks with the Italian ambassador for reviving and immediate implementation of Madunaghat Water Treatment Plant to resolve the water crisis in the port city,” said the commerce adviser. The meeting thoroughly discussed and laid emphasis on implementing projects for construction and repair of six inter-district highway and roads in this region, he said. Moreover, the meeting underscored the need for taking decision on priority basis on construction of Chittagong-Dohazari-Cox’s Bazar (upto Ghundhum bordering Myanmar) railway track involving Tk 1300 crore.
The meeting also decided to take up project for setting up the CDA proposed IT tower. To overcome the godown crisis in the port city, the meeting decided to set up seven warehouses in the city’s Dewanhat area. Besides, the meeting also decided to approve two projects (Gymnasium and Prof Yunus Social Science Building) of Chittagong University and construction of an annex building of Chittagong Circuit House, said the commerce adviser.
UNB adds: while visiting the construction site of the 3rd Karnaphuli Bridge in the morning, the chief adviser directed the authorities concerned to complete the bridge and its approach road at the same time. He mentioned that some big bridges in the country had been opened to traffic without completion of its approach road. As a result, full benefits of the bridges could not be derived soon after those were opened to traffic.
The CA was informed that the construction of 950- metre long and 24.47-metre wide bridge over the Karnaphuli is expected to be completed by July 2009, two months ahead of schedule. The bridge is under construction at a site between Bakulia and Shikalbaha on the Chittagong-Cox’s Bazar highway. The total cost of the bridge along with 1.5 kilomtre approach road and 2.6 kilometre service road is Tk 590 crore of which Kuwait Fund for Arab Economic Development (KFAED) provided Tk 372 crore, while the rest Tk 218 crore was financed by the Bangladesh government.
The chief adviser expressed satisfaction with the progress of the construction work and hoped that the bridge would be opened to traffic well ahead of the schedule.

The Daily Star

Date: 14/08/08

Link: http://thedailystar.net/story.php?nid=50388

Phulbari Coal Project:Ready and revving to go

2008-08-20T00:07:00.000-07:00

The coal at the Phulbari mine remains untapped. And the debate continues as to mine or not to mine; but given the energy crisis already upon us, can
we afford to dawdle?

A PROBE Report

It is not long ago when controversy raged over the Phulbari Coal Mine. While pragmatism held that Bangladesh needed the coal, and needed it fast, there was also the emotional side of the debate which highlighted environmental aspects and other factors. It was a politically volatile time too and decisions in this regard remained “safely” in limbo. However, time has passed and now it is possible to view the matter with objectivity. With the energy crisis not just looming large, but actually upon us, it is high time that the pros and cons be weighed in realistic terms.

The four-letter word which currently features in every other discussion, dialogue and seminar in the country, is ‘fuel’. Fuel is a matter of growing concern, a concern growing out of all proportions. There is, of course, gas. At one time it was said that Bangladesh was virtually floating on gas. But now it is time to take a realistic look at the situation. With an exponential increase in the dependency on gas for industry, motorised vehicles, et al, it is clear that this total dependence cannot continue for long. The upward spiral of international prices of petroleum rules out the continued traditional use of this fuel for vehicles, putting further pressure on gas reserves. CNG has become not the alternative fuel, but the fuel where cars are concerned. In fact, with diminishing gas reserves and general uncertainty about the reserves to be tapped in future, there is need to free up Bangladesh’s natural gas to be used for vehicles and such purposes.

Experts in unison will agree that there is no more time to waste in conjecture. And there are certainly not enough funds to waste on an increase in exported fuel. The country must pursue alternative energy sources; there is no two ways about it. Given the existing natural resources of Bangladesh, coal is the obvious solution to the energy crisis. And Bangladesh has coal. It has high quality coal with less than 1% sulphur content, almost on par with coal from Newcastle. Already mining has been undertaken at Barapukuria, though for certain reasons there have been glitches in the system.

It is Asia Energy which now is all set and ready to begin mining at the Phulbari Coal mine which has deposits enough to produce 15 million tonnes of coal annually over the 35-year span of the project’s life. In fact, Asia Energy is the only foreign investor that has carried out exhaustive exploration of the mine area along with environment and social impact studies. So if coal is a solution to the energy crisis, it is imperative that the mining begin with immediate effect at Phulbari. Asia Energy is all revved up and ready to go. With the draft coal policy on he brink of being approved, there really now is no need for further delay to give a go-ahead for the mining to begin. Time is of essence. In fact, one official of Asia Energy points out, “had the project started up on schedule, then the first power station would be operating on coal by next year.”

The delay in the start-up of the project was caused, to the most part, by a section of protesters who demonstrated against the open-pit method of mining. However, taking into consideration all the pros and cons, Asia Energy clearly sees that this is the best way to go about it. Given the geological conditions at Phulbari, the coal seam thickness and depth of coal from the surface, open pit mining is deemed as the safest and most economical way of extracting coal from the mine. As opposed to the open pit method, underground mining has high safety risks which include mine flooding, spontaneous combustion, high humidity, high temperature and extensive ground subsidence with permanent land loss.

On the other hand, open pit mining ensures that 90 per cent or more of the resources can be extracted. Underground mining where the coal seam is thick may allow only 20% of the coal resources to be extracted. Protestors argue that open pit mining will displace a large section of the population, rendering them homeless. It will pose as a threat to the flora and fauna and also cause desertification of the area. Asia Energy experts point out that nowhere in the world where open pit mining has taken place have there been instances of desertification. Additionally, the company has a long-term plan to address all these various impacts of the project, including displacement, ecological imbalance, etc.

“In the first place,” an official of the company points out, “if you look carefully at the map of the Phulbari coal mine project area, you will see that it is certainly not as densely populated as most areas of Bangladesh. Secondly, neither is it a forest area thick in foliage and animal life.” However, since there will certainly be displacement of the local populace and felling of forestry, to whatever extent, Asia Energy has plans for sustainable environmental management as well as responsible management for social impacts.

Environmental management

Asia Energy has extensive plans in place to manage environmental impacts such as water, soil, air, noise, waste and biodiversity. By extracting underground water, Asia Energy will ensure the supply of water for domestic, agricultural and industrial use and meet the demand of drinking water in and around the project area, including the Phulbari township. Allaying any fears of desertification, some of the extracted water will be injected back to maintain ground water levels. Extracted and treated water will also be pumped back into rivers and other water bodies of the area, further removing the threat of aridity. The company also is committed to rehabilitate the land used in the project to its proper state for agriculture and other uses.

Social management

Displacement of local populace was a matter of great concern to the local people where the project was concerned, but Asia Energy is committed to resettle around 40,000 people, including 2300 indigenous people. They will be provided with ample rehabilitation support. The people will be relocated only after the rehabilitation arrangements are complete. Fair and full market price compensation will be provided for land, trees, crops, houses and other assets. Financial assistance will also be given for a period of time to support affected people while they attain their previous income levels. All this will be done in a very participatory manner, in consultation with the local communities, public representatives and other stakeholders. This engagement will continue throughout the project.

Benefits

The benefits of the Phulbari coal mining project are multifarious and long-term. They far outweigh any other concerns which may have risen regarding the project. As Asia Energy is committed to addressing these concerns in tangible terms, it is time to concentrate of the benefits of the project, on exploiting the opportunity to use the coal for the development the nation so sorely needs. Bluntly speaking, it is time for the tree-huggers to take a reality check.

The project will generate sizeable revenue for the government, both directly and indirectly. Over the life of the mine and based on an average coal price of US$50 per tonne, the government will earn an estimated US$ 4.43 billion in corporate taxes, royalty payments, custom duties and income tax on employees’ wages. Bangladesh Railway and the Mongla Port Authority will earn about US$ 2.64 billion. Unlike gas, coal mining in Bangladesh is not covered by any Production Sharing Contract (PSC). The companies are expected to pay corporate tax, income tax for its personnel, VAT, duties, royalties and other government service charges. Asia Energy’s contract has no provision for full cost recovery. The full financial risk is taken by the investor.

The Phulbari Coal Project has a planned life of 35 years. This may be extended. Studies determine that 15 million tonnes of coal per year must be mined and sold to ensure the project remains economically viable and is able to meet the huge production costs as well as meet its environmental and social commitments. In addition to providing a new source of energy for the country’s domestic demands for several decades, Phulbari will also generate foreign exchange earnings and drastically cut down on coal import. It will also spawn the growth of support industries. As a benchmark coal mining project, Phulbari will also activate the acceleration of the overall coal mining industry of the country. With the desired upgrading to the railway and deep-water port facilities, further economic benefits are inevitable.

Importantly, about 50 % of the projects net earnings will go to the government’s coffers. And as the coal policy is on the brink of approval, the government can be secure in ensuring optimum benefit for the project.

The Bangladesh Vision

The Phulbari Coal Project, in fact, has such potential that it can make significant contribution to Bangladesh’s efforts in achieving the Millennium Development Goals. Poverty alleviation is one of the most significant features of MDG and this project is a milestone in economic development. And with a coal-fired power station in place, electrical power for all by 2020 will not seem so unrealistic as it does now, with only 38% of the population currently coming under the power supply net.

Coal, now

The bottom line is we need coal and we need it now. It is a new and reliable source of energy which will provide Bangladesh with energy security, new power stations, reliable power supply and economic development. Phulbari mine will lead to regional infrastructure development. It will save on natural gas, increase revenue and generate employment. In a nutshell, this pioneering project will pave the way for the next generation. It will be a landmark in encouraging foreign investors to look at Bangladesh.

Vigilance

While Asia Energy’s Phulbari Project is certainly promising, it is up to Bangladesh to ensure that the nation can reap the most from the project. It is up to Bangladesh to remain vigilant that commitments are kept and targets are met. Vigilance is also needed against vested quarters out to resist the project. It is the people who matter and their interests must be safeguarded. Any misgivings in the mind of the people will soon diminish as benefits of the project accrue.

PROBE REPORT

Date: 15-21 August 2008, Bangladesh

Source: http://www.probenewsmagazine.com/index.php?index=2&contentId=4198

Revisiting the Energy-Power Scenario in Bangladesh

2008-08-20T00:01:00.000-07:00

Farhad Tuhin

The development of any country depends mostly on its power without which the national economy must fail to proceed. Everybody knows about the meager situation of power in Bangladesh. But the policymakers and experts are still not taking initiatives to improve this sector showing unknown reasons, which is unfortunate. However 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 for years the energy sector of the country is hamstrung by a kind of decision-making paralysis. In Bangladesh, the power is generated from natural gas (82%), oil (9%), Hydro (4%) and coal (5%).Demand and Supply of Power. BPDB is responsible for distribution of electricity in most of the areas in Bangladesh. Dhaka Metropolitan City and its adjoining areas are under DPDC and DESCO, Khulna and surrounding Districts are under West Zone Power Distribution Company Limited (WZPDCL) and some of the rural areas of Bangladesh are under Rural Electrification Board ( REB).

The total installed capacity of power generation is 5245MW of which the achievable average generation capacity is around 3400 MW whereas the average peak demand of power is around 4200 MW. Therefore the present shortage of power is around 800MW. In the last 2 years, there was no additional power generation from any new plant. And in the last 7 years, only 80MW (Tongi power plant which is now closed due to gas unavailability) power has been added to the national grid. At present only 42.09% of the population is served with electricity and per capita electricity consumption is only 169.92 Kwh (FY -2006) where there is a goal in Power Sector Master Plan to reach the electricity for all by 2020 which is absolutely impossible considering the present condition.

Present Gas Reserve and Projected DemandAccording to the estimation, the recoverable gas reserve (proven and probable) of the 23 discovered gas fields of the country is 20.63 TCF of which 7.42 TCF has been used so far leaving a recoverable gas reserve of 13.21 TCF (as of December 2007). Energy demand projection for a developing country like Bangladesh is difficult to perform. Several scenarios were used to get an understanding of the energy requirement for a level of economic performance. The natural gas requirement from 2000 to 2050 has been summarized as follows. (a) If the economic performance is on the low side (3% GDP growth rate), the total gas requirement will be between 40 and 44 Tcf. (b) If economic performance continues according to the historical trend (Business-as-usual; 4.55% GDP growth rate), gas requirement will be between 64 and 69 Tcf. (c) If performance is on the moderately high side (6% GDP growth rate), gas requirement will be between 101 and 110 Tcf. (d) If performance is on the high side (7% GDP growth rate), gas requirement will be between 141 and 152 Tcf. However, depending on low GDP rate the natural gas demand up to 2020 will be 9.9 Tcf to 17.4 Tcf. Now it is evident that the present natural gas reserve is not sufficient to meet our upcoming demand. The gas shortage has already been started all over the country. Government has already started rationing in distribution. Several power plants are not able to generate their maximum capacity because of gas shortage. Numerous industries are struggling for the production because of gas shortage.
Power GenerationAt present around 82% of power generation is dependent on natural gas of which 85% (cumulative production) gas is supplied from governmental organization (Petrobangla) and 15% (cumulative production) gas is supplied from International Oil Companies (IOCs). Khulna power plant (226MW), Bhola power plant (6MW), and Khulna Power Company Ltd (KPCL) (110MW) are producing electricity (9% of total) using oil/furnace oil as fuel.

Karnafuli Hydro Power Station, the only hydropower plant in the country is located at Kaptai, Chittagong. After being commissioned in 1962, the plant could feed the national grid with 80 MW of electricity. In later years, the generation capacity was increased in two phases to a total of 230 MW (4% of total). The plant not only plays an important role in meeting the power demand of the country but is also vital as a flood management installation for the areas downstream. Around 3 billion tones of Gondwana coal has been discovered in 5 coal fields of Northwest Bangladesh. Among the 5 discovered coal fields, only Barapukuria and Phulbari have been intensively studied with significant number of drilled boreholes and estimated the resource confidently to internationally recognized standards. Resource estimation in other coal fields is inferred only with a limited number of boreholes and significant exploration activities will be required to define the resource confidently. Among these coal fields, only Barapukuria Underground Coal Mine is now extracting coal with the target of one million tones per year. A mine mouth 250MW coal-fired power plant (5% of total) has been established based on the coal. But the mine is struggling to feed the power plant with required amount of coal for various technical and geological difficulties. Huge amount (approximately 3 billion tones) of imported low quality coal (from India) is used in brick fields all over the country. A few quantity (as coal briquette) of coal is consumed both for domestic and commercial purposes (e.g., tea stall, blacksmith’s traders etc).

However, the policy makers and the experts must analyze and discuss the present scenarios. The national economy will suffer unexpected stagnant situation for long periods, if the country does not take initiatives immediately to address this present uncertain and meager energy situation properly. We shall have to be realized that the continued crisis and trouble in power-energy sectors may cause disastrous situation in our industry, agriculture and other commercial sectors. The national economy will obviously become stagnant or even nonfunctional. Dr. M. Tamim, special assistant to chief advisor for the Ministry of Power, Energy and Mineral Resources said (Source: Daily New Nation 20 July 200 ‘No more Power Plant on Gas’. Therefore coal would be the only available alternative resource to overcome this power crisis. A long debate has been continuing on coal policy and coal sector development amongst the experts/policymakers. Now it is time for taking decision on proper coal exploration and utilization.

Weekly Economic Times

Date : 03/08/08

Link : http://www.weeklyeconomictimes.com/news-details.php?recordID=1553

Energy supply stalls

2008-08-19T23:56:00.000-07:00

FORREST COOKSON

The energy crisis in Bangladesh continues to worsen. As he has learned more and more of the real situation the Special Adviser, a courageous man of ability and integrity, is bringing order to a confused and difficult situation. But time is short and we must pray for his success in the face of long odds. But for most the full depth of the crisis is not being faced. Policy actions have been much better in past few months. After floundering for a year there began to emerge a coherent approach to energy.
For too long those concerned with the energy sector have lived in a fool’s paradise, unwilling to face up to the technical and economic issues that the nation faces and believing in dreams rather than in a reality dictated not by ideology or nationalism, but by science and economics. Donors have focused on the wrong issues and have maximised the returns to their employees careers rather than Bangladesh’s real problems. Two gaps have emerged: One scientific and real, the other one managerial.
Gap 1: Technology, economics and energyThere is an unwillingness in the public sector to master the science and management skills needed to operate a modern energy economy. There is a commitment to ideological or opportunistic approaches, ignoring pragmatic issues of what works. It is not a lack of skilled personnel; there are plenty of highly competent Bangladeshi engineers. Talk to them — you find that they are disgusted with the lack of scientific integrity that characterises the government’s policies. The authorities have a history of wanting to hear only good news; they do not want to face difficult facts. Everyone loves to proclaim the merits of BAPEX as an organisation that is able to handle the exploration and development of gas without outside help. But ask a Bangladeshi engineer about this and one is greeted with laughter. The organisation and financing needed for recovery of the energy sector cannot be achieved within a government organisation.
There are three points:What are the gas reserves? This first point is an engineering question.The estimated reserves claimed for the gas fields need regular revision and testing, analysis of data from the wells. etcetera. Reserve levels are not constants of nature but dynamic, determined by technology, increased knowledge and prices. Improved technology may increase reserves; higher prices increase reserves; knowledge of the gas field gained by experience allows adjustment in reserve levels. This type of review is not being done on a regular basis so that the actual reserve position in the gas fields is, at best, vague. Now as the need for more gas is so urgent truth is emerging. We do not really know the condition of the gas fields owned by the government. The Ministry has not been willing to do the work, recruit the staff, and fund their activities that would provide the needed information. At a technical level this has long been understood, but no one was willing to let this secret out of the bag. Ultimately when the gas field will not produce the reserves that are alleged to be there, reality bursts out. Objectively there are two points: (1) the reserves are more likely to be larger than claimed but the work to establish this is yet to be done. US experience is a gas field provides six times the original estimate of the reserves! (2) The field can be exploited to maximise the total gas from the field or to maximise the current flow. Too often the second is followed resulting in loss of gas.
Swallowing the optimistic claims of the gas reserves, the left wing elements that try to dominate government policy were able to argue against the need to develop the gas fields using private foreign knowledge and capital. Repeating the fairy tale of the gas situation and continuing to project a nationalistic fervour in the place of scientific assessment, the nation was led step by step into the present quagmire. Never without arguments the leftists now claim that the present problems with the gas supply are a conspiracy to move towards private and foreign participation in the energy sector! Wow! What illustrated better their capacity to spin fairy tales? All the myths and misrepresentations do not actually produce the volume of natural gas the nation desperately needs. All the hot air does not generate electricity. Bangladesh’s energy sector is not being properly developed.
Preference for public ownershipThe second factor is the commitment of the bureaucracy to government ownership and rejection of involvement of the private sector. The commitment to government ownership despite thirty years of proof that it does not work exposes the deep cancer inside the energy sector. The increase in gas availability in the past decade has come almost entirely from the private production sharing contracts (PSCs); the increase in electrical energy has come almost completely from the private independent power projects (IPPs). The obvious conclusion that the government must stop trying to construct and operate gas fields and power stations has been rejected over and over. Now the nation is paying the consequences.
To my amazement, in the face of this history of what works and what does not work, the left intellectuals and the bureaucrats continue to argue for government ownership and operations and against the private sector. The bureaucracy and the politicians have favoured government ownership and operational role as this opens the opportunities for rewarding friends and obtaining illegal pay offs. But the intellectuals, as all over the world, cannot bring themselves to face reality — their belief that government resource allocation can improve over that based on the greed of capitalism is wrong, it does not work. The Caretaker government understands the folly of public sector domination of energy production. Their efforts to shift to private participation should win the day.
Achieving Realistic Pricing: Pricing of energy has been unrealistic and results in poor resource allocation and waste. The government feels that prices should be kept low to help the “common man.” This results in waste; often does not provide the alleged support to the farmers and the poor which are instead captured by influence and monopoly; and causes widespread misallocation of resources. The taxes levied on energy are very high but rarely reviewed for appropriate economic consequence. Low prices for electricity benefit largely middle and upper class households; low prices raises demand allowing households to live beyond their means. Gas prices are also low. The government is considering needed increases in gas; the Petrobangla proposed increases will bring revenue much closer to costs. The decisions on price levels to be made by BERC in September are critical to moving towards realistic gas prices.
The first gap comprises the failure to develop and support proper technical management of the gas fields; the second is failure to shift the ownership, investment and operation of the energy sector to the private sector; and third to establish realistic prices. These are not points of ideology but points of science and logic. The consequences of this gap are now clear: No one knows how much gas the nation has in existing fields and the reserve figures are uncertain. Until the Caretaker government, the energy ministers proved over and over that these are not able to plan, finance, build power stations or operate gas facilities at a reasonable cost with an acceptable quality. Finally energy prices remain below cost. The Caretaker government has made great progress in all three areas but there is a long way to go.
Gap 2: Implementation failuresThe second gap is slow implementation of three actions that would accelerate the long term development of the energy sector: The development of manpower for the energy sector, building a strong regulatory organisation, and expanding foreign investment in the energy sector. Manpower Development: One essential action in improving the energy sector is to increase the trained manpower. Some one should ask the government what has been done with all of the money that the IOCs, operating under Production Sharing Contracts, have given the Ministry for manpower development. It would very interesting to see how much money has been given and how this has been used. Who has been trained? Where are these persons now? What benefits has the nation gained from the expenditure of these funds? How much has been spent on officials taking trips around the world? What other sources of training funds have been used to improve the skills of persons in the energy sector? Who has been trained and where are they now? How much money has been spent on shopping expeditions in the guise of attending training seminars? Everyone knows this is going on but nothing is done to stop it. There is continuous discussion of the need for training manpower in the energy sector. The government has not told its citizens what they have done in the past with their own funds or with donor funds. The use of training funds by government organisations is one of those scandals that everyone knows about but no ones wants to face. Bangladeshi citizens should be angry at the wastage of funds available for training that are not used to benefit the nation. The performance of the energy sector will be based on the quality of the technical staff available.
Building the Regulatory Commission: The build up of the energy regulatory commission (BERC) has been very slow. It is obvious that the government had opposed the establishment of this commission and stalled in the face of the donors’ insistence. It is ridiculous that the donors are involved in this; surely it is obvious that the government needs to have a strong regulatory organisation that will objectively guide and regulate the activities of the players in the gas, coal, and power sectors. Of course as a regulatory commission develops, the role of government owned energy facilities would decline. The Ministries and the Corporations do not want their power diminished by a strong regulatory commission! That is the point; the private sector brings its superior management skills, its greater technical knowledge, and its ability to mobilise finance. The regulatory commission insures that the public’s interests are protected in pricing, safety, and environment. BERC should regulate the PSCs and IPPs and establish prices for energy products.
Foreign Investment in the Energy Sector: Bangladesh is very unfriendly to foreign investment in the energy sector. The press reports continually a flood of negative seminars, groups, etcetera denouncing foreign investment. There is almost no one explaining the necessity and benefits. It is no surprise that interest in the energy sector in Bangladesh by foreign investors has shrink to almost nothing. There are various aspects of this. The failure to develop the coal resources in a timely fashion is now seen as a disaster. Not starting large scale coal mining along with gas shortage means that there will be little increase in the availability of electricity over the next few years and it may go on as long as a decade if the present dithering and indecisiveness continues. The delay is largely the consequence of group preaching anti foreign investment propaganda.
The poor response to the third bid round in the gas sector signalled the difficulties in attracting IOCs for gas development. The ban on exports of gas reinforces the lack of interest. Petrobangla made no serious effort to examine the factors related to investor attitude. The lack of bids for the Bibiyana power project reflects the scepticism of foreign investors in participating. Once again the Power Cell was not willing to listen, believing terms can be dictated. Finally, foreign investors in gas fields claim price adjustments are needed to meet changing costs. No one listens; foreign investors go away. The nation is caught up in a deep, devastating energy crisis. Unfortunately this crisis will get worse and worse. The availability of electricity will at best increase slowly and may well decline as old plants fall apart and function with less and less reliability. Projects will bog down in court cases that may take as long as a decade to resolve. The legal system was used to block further development of the gas sector, and to prevent private sector projects from going ahead by frivolous challenges to decision after decision. Frankly I do not see any way out. It is like a national suicide. Training resources have been wasted on shopping expeditions; those who have received real training are often no long employed in the sector. The political system is unable to act to develop either the gas or the coal resources. The bureaucracy continues to believe the nostrum that public ownership is the right path. If business as usual continues in the energy sector then the Bangladesh economy will find its growth rate declining and there is only poverty and darkness for the ordinary men and women of this nation.
The CG has made considerable progress. But based on history an elected government is unlikely to continue these effective actions. Democracy will bring a black out, not electricity.

The independent, Bangladesh

Date : 18/08/08

Link: http://www.theindependent-bd.com/archive.details.php?nd=2008-08-18&nid=94100

Draft coal policy for Mine BanglaProposal goes to cabinet today

2008-08-13T03:45:00.000-07:00

Sharier Khan

The eighth draft coal policy that emphasises immediate government-led action in coal sector to meet the country's surging energy demand is likely to be placed before the caretaker government's cabinet today.The draft proposes to set up a "mine Bangla" in line with Petrobangla by 2010 to spearhead different mining schemes. This government body will take strategic partners from private sector through open tenders for quick development of the schemes.Other proposals include compulsory release of 20 percent shares of a mining venture to the local market as per the laws of the Securities Exchange Commission. When selling back, shareowners will be only able to sell those to the government at market price."Because of excessive revisions and inputs from a wide number of people, the draft policy now sounds more like a law than a policy," says a source. "And this was exactly the observation of the law ministry about the policy when the energy ministry sent the draft to the law ministry a few months back."The draft policy tries to touch almost all aspects of coal development. "That is why the law ministry observed that instead of such a policy, the government should work on several laws instead of just one," the source adds.The coal policy was first drafted in December 2005. The seventh draft was prepared by a committee to review the draft policy. Headed by former VC of Buet Prof Abdul Matin Patwari, the 10-member committee submitted its report to the energy ministry in December last year.The ministry itself has also modified some of the contents. Only recently, the ministry has forwarded the draft to the Cabinet Division for approval by the cabinet.Under this policy, private companies will not have sole ownership over any coal mining deal and must come as partners with a national coalmining company.The draft restricts export of coal to be used as fuel, allowing exports of higher grade coking coal. It lays out a detailed plan on how the government should handle rehabilitation and resettlement of communities that will be displaced by a mining project. The Patwari committee had suggested that the land acquired by a project be returned to the original owner upon completion of the project.The land and the law ministries however deleted this part as it conflicts with the laws of the land. "Once the government acquires a piece of land, it can't be returned to the original owner. The government can however restore the land and allow its agricultural use," says a source.The policy does not restrict open pit mining, as was initially demanded by some pressure groups. Instead, it identifies mining method as a technical issue, which should be decided on the basis of individual cases and technical viability.The policy prioritises private partnership that puts highest emphasis on coal-fired power projects.A 29-member committee led by the energy ministry will review coal sector master plan, royalty, the sector's development issues from time to time and give decisions.By 2010, the government must frame a coal sector master plan, identify coal zones, review coal industry infrastructures and initiate restructuring measures. It will also restructure the Bureau of Minerals Development and Geological Survey of Bangladesh and chalk measures to protect the environment and develop the legal frameworks for it.The government will also have to chalk out a security measure for mines and a plan to reclaim land.The draft recommends that the government decide on implementing an open pit mine as a "test case" in the northern part of the Barapukuria underground mine. If such a venture is "commercially successful", the government will review all technical aspects and take follow-up measures"There has been no study by any group about such an open pit mine in Barapukuria. How can this committee suggest this? Besides, who would invest for a test case if there is no guarantee of any profit?" asks another source. "Again, technically you also need bigger land for an open pit mine. The Barapukuria mine area has a power plant and other structures. Then is this a feasible idea or just an undue idea?" the source quips.The draft policy says till 2025 if Bangladesh's GDP remains as low as 5.5 percent, the country will need to add 19,000 megawatt additional power. On the other hand, if the GDP is as high as 8 percent, additional 41,000 MW power will be needed. But at the same time, Petrobangla says 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 should play a role.It adds that to meet its power demands in a GDP growth rate scenario of 5.5 percent, Bangladesh will need 136 million tonnes of coal till 2025. If the GDP rate is 8 percent, then Bangladesh will need 450 million tonnes coal.The draft says the country's existing four discovered coal fields of Barapukuria, Phulbari, Khalashpir and Dighipara can cater this need till 2030 or so.

The Daily Star, Bangladesh

Date : 13/08/08

Link: http://thedailystar.net/story.php?nid=50253

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

2008-07-28T03:16:00.000-07:00

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?

2008-07-28T03:11:00.000-07:00

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

2008-07-28T00:18:00.000-07:00

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

2008-07-28T00:15:00.000-07:00

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

2008-07-14T02:04:00.000-07:00

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

2008-07-09T02:13:00.000-07:00

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

2008-07-07T23:04:00.000-07:00

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

2008-07-07T22:59:00.000-07:00

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

2008-07-07T22:56:00.000-07:00

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

2008-07-07T22:49:00.000-07:00

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

2008-07-07T22:44:00.000-07:00

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

2008-07-07T22:37:00.000-07:00

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

2008-07-02T03:33:00.000-07:00

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

2008-07-02T03:30:00.000-07:00

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

2008-07-02T03:26:00.000-07:00

ET Report

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

Bangladesh coal projects may go ahead after national policy adopted

2008-07-02T03:23:00.000-07:00

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

Law ministry suggests change in mineral rules

2008-06-29T22:23:00.000-07:00

R Akter

The law ministry has pointed out that some sections of the draft coal policy would contradict the existing Mines and Mineral Rules 1968 and suggested amendment of the rules before approving the policy.A representative of the law ministry made the observation at an inter-ministry meeting on the draft coal policy, chaired by energy secretary Mohammad Mohsin at the Energy Division on Thursday, said sources present at the meeting.Earlier energy division sent the draft coal policy to eight relevant ministries for opinions on the finalisation of the draft. The division, which completed finalising the draft policy on its part, sent the draft to eight ministries, including finance, environment and forest, agriculture, land, law and the National Board of Revenue on Sunday, sources in the division said.The ministries have been asked to submit their opinions on June 24 before the division convenes an inter-ministerial meeting on June 26 to discuss the comments given by the ministries, they said. Sources in the division claimed the division had not made any 'major changes' in the draft policy, submitted earlier by the advisory committee, headed by former BUET vice-chancellor Abdul Matin Patwari.The division dropped a provision off the draft, finalised by the Patwari committee, which said the reclaimed land would need to be handed over to the owner in the original form after completing coal mining.Sources in the division claimed the existing laws did not support the provision of giving back the land to the owner after the government acquired the land. 'Besides, it will create complexities and scope of corruption as after 10 to 20 years of mining, many "so-called" owners will claim the land,' observed a source.One of the members on the Patwari committee, however, told the land could be handed over to the owner if the government had the sincerity. 'Thousands of poor land owners will need to be relocated for mining. The people should have the right to get back the land. If the government owns the land, it will create scope for corruption,' he said.Citing the example of land acquisition for the Jamuna Bridge, he said the land was handed over by the government to an influential businessman. 'The people have not got back their land in the Jamuna Bridge area. Now what we see there is a resort for rich people,' he said.The division changed the name of the proposed company, Coal Bangla, to Khani Bangla so that other mines such as rock mine could be brought under the authority of the company.The details of the mining method could not be immediately known. Sources in the division could not confirm whether any change was made in the recommendations submitted by the Patwari committee regarding open-pit mining.The Patwari committee recommended operating an open-pit mine first to observe the viability of the method in Bangladesh before adopting the method for other mines. The division, however, did not make any change regarding the bar on coal export, royalty rate and coal sector development committee.

Weekly Economic Times

Date: 29/06/08

Link: http://www.weeklyeconomictimes.com/news-details.php?recordID=1263

Civil Society Must Discuss about Optimum Utilization of Coal

2008-06-25T01:24:00.000-07:00

Nandita Mongia

Development planner Nandita Mongia says job facilities must be expanded in rural areas by ensuring energy access for all. “Attaining Millennium Development Goals (MDGs) would not be possible if steps are not taken to ensure job facilities or create income generation scope for rural people, which in turn will need some form of energy,” she said.

“I think universal energy access is still a big challenge for Bangladesh. As a result of limited supply, it has not been possible to create job opportunities permanently in rural areas,” said the Head of Energy for Poverty Reduction Project of UNDP regional center in Bangkok.

Nandita Mongia recently visited Bangladesh to undertake a joint exercise with the Ministry of Planning on needs assessment for energy to meet the MDG targets. She shared her experiences with Energy & Power Editor Mollah Amzad Hossain. Following are the excerpts.

EP: You are working for UNDP’s energy & poverty reduction program. How do you relate between energy and poverty reduction with Asia and Bangladesh perspective?

Nandita: Securing energy supply is a critical concern currently. However, it is not always remembered that secured energy supply doesn’t necessarily mean increased energy access. There are two aspects... first, given the energy supply possibilities, how does it match with the demand and second relates to proper distribution of energy that is already at hand.

So for many of the developing countries, especially for Bangladesh and Nepal... the problem that I have seen is a question of distribution. Often the power sector policies or energy policies are mainly targeted for large-scale supply options and demands by organized endues sectors. And distribution policies do not take energy supply to the remote areas and the rural areas easily. These linkages have additional costs. The additional costs involve transmission and distribution expenses, over and above the production cost This doesn’t come through easily in planned policies.

So, on the whole, in an analysis of energy-poverty and MDG attainment, this is an issue I have highlighted most often. For Bangladesh, we undertook a study of energy and poverty linkages given Bangladesh’s current conditions. The challenges that we mentioned in the end of this report are about distribution, policy reforms which are linked to regulatory distribution of energy-power and support decentralized energy access, institutional and cross sectoral coordination mechanisms in place which could contribute to poverty reduction. Decentralized rural energy access help attainment of MDG targets easily.

We are recommending repeatedly that while we focus on big picture energy security of a country, we have to also consciously distribute energy in a more equitable way.

EP: You know that in Bangladesh the generation of electricity is at a very low level due to the indecision of policymakers as well as now it is a big challenge for supplying primary energy for power generation. What is your suggestion how Bangladesh can manage these things?

Nandita: Supply shortage often is not as a stand alone issue. It is closely linked with how demand is being managed or demand is being projected. One thing Bangladesh can do on the demand side, which will reduce the demand-supply gap is to undertake demand side management. While growth requires energy, it doesn’t require per unit of energy consumption to be so high for industry or transport. More over there is energy transmission, and distribution losses, which need to be cut down. It is not in a country’s best interest to have limited primary energy resources like coal oil & gas using which we produce electricity but finally distribute it inefficiently.

In many of the big conferences, I look to the ceiling to see whether they are using energy efficient bulbs and most often than not, they are not using CFLs or the air conditioning is too cold & the doors are repeatedly opened to make the room temperature comfortable. This is a waste. It’s high time that part of energy supply gap is addressed through the demand side management. That of course will at least particularly solve the problem.

So, coming to your original question... supply side management. Yes, Bangladesh is facing particularly a tough situation on the energy supply side. And that’s why we all are discussing about coal as an alternative.

Coal resources are really abundant for Bangladesh but the coal development is in a nascent stage in Bangladesh. Of course, it has to be encouraged to supplement domestic primary energy resource base. But, two issues are attached to that utilization of more coal for supply side management. One, coal mining has local and global socio economic & environmental impacts. Globally, it is not a preferred fuel in the world of climate change especially due to its environmental impacts. Though Bangladesh does not have a particular commitment to bring down its green house emission under any international commitment, it needs to be mentioned that currently its emissions are low. To meet the growing demand for energy the country has to go for coal, but we should try to move towards clean coal. And if clean coal production requires more cost upfront there are mechanisms to finance that. In the context of using clean coal, the opportunities of the clean development mechanism and the MDG carbon facilities need to be explored. A country can use some of the funding sources for financing clean coal technology utilization as well as meeting expenses on socio economic rehabilitation.

EP: You are also saying Bangladesh needs to develop coal sector but civil society is opposing it although some of them do not have clear idea about it.

Nandita: To resolve it, among other things the civil society has to play a role of informed mediator .You have to increase awareness among the people through advocacy programs on the real situation on the ground, objective alternatives and costs there of. The civil society must get informed about the real situation so that they can appreciate the pros and cons of these steps. As a greater good if indeed a policy action is be striving for it. If uninformed and low awareness when the power supply is hampered due shortage of energy, the same civil society will draw attention towards government’s failure.

There is no scope to think that coal mine development will entirely be a negative one. The civil society’s opinions about the anticipated problems need to be heard for the development of coal mines and the government should fully engage in analyzing civil society’s opinions whether their reservation are based on solid ground and informed judgments. If yes, they absolutely need to be addressed before proceeding.

Typically the issues are about resettlement. Is there adequate land for it? Is there any scope for income generation? You have to see whether people are ready to leave their old villages. How are they being compensated? Moreover, you have to see whether their life standard is improving or not.

In many countries, promises are being made to the people but not much is being done for them as a final follow up. I have witnessed many such incidents in south Asian countries and in such cases, the government is not being able to monitor it. NGOs can come forward to properly monitor it and NGOs must be impartial in undertaking such jobs.

It must be kept in mind, the people who are being evicted have limited or no strength to protest. So, the main responsibility of the civil society would be to aware the government whether the evicted people are given the promised facilities as mentioned during the project’s clearance phase. In China, civil society has limited role but they have been active in India and the Philippines. The civil society can do the same here in Bangladesh.

EP: It has been mentioned in the strategic paper that equal opportunities must be ensured for people of all regions to achieve MDGs but it is not happening. Employment opportunities are not being created in the country’s northwestern region due to non-availability of energy. Some experts say coal mine development can be a solution to this problem. But controversy has created over it. You are working on coal mine, economy and community development. What are your suggestions?

Nandita: I am coming to the point in a different way. There is huge scope to generate employment through developing coal mining as an industry. However, for the local people to find employment, they must be trained up. But would they get such training? What are the immediate employment scopes for them? Would the people who have lost their land for mining get priority in social and economic activities? NGOs and civil society must work with these important issues. These issues and their implementations must be discussed besides discussing whether the coal mines will be developed or not.

Such facilities were given to people in central mining areas of India. It is my personal experience that resolving energy crisis is a must for development of energy-starved region. It is the prime condition to create employment opportunities for improving the standard of life of the poor.

EP: Your were talking about decentralized energy supply system for Bangladesh. Would you explain it?

Nandita: Let me try using an example. You said that northern region is agriculture-based. Agricultural waste can be used for electricity generation and its technology is not costly and certainly it could be a good business opportunity for private sector. Think about rice husk. With this, it is possible to produce electricity through co-generation in many locations. It can be helpful to supply electricity to a small area. Besides biomass, there is scope to generate power by using bio-gas. Bangladesh can do it easily through encouraging the private sector enterprises, SMEs etc. Although it would be an alternative to grid-power, it could play a vital role in providing energy in smaller communities and rural areas, creating employment opportunities

EP: Solar home system has witnessed a massive expansion in Bangladesh as decentralized energy but people are getting it at a high cost.

Nandita: You know, solar home system is rather costly as an upfront cost when not subsidized. It lights some bulbs, runs televisions, charges batteries. But, it will not directly contribute to motive power. On the other hand, cogeneration-based power generation has two benefits: its low-cost and economic return is very quick. It makes income-generation easier, creates payback scopes of people.

Further I think, Bangladesh should go for micro hydro, mino hydro and piko hydro projects, in feasible terrains.

EP: Do you think that the government should enact a law for implementation of energy saving appliances?

Nandita: Absolutely. This will support demand side management I was referring to earlier. You can do these voluntarily or as mandatory measures in selected sectors. If former, the expected results will be slower to achieve and for this reason, I think a law is needed to make the mandatory use of some obvious gadgets: energy saving bulbs and other equipment, especially white goods. Our study shows that energy demand can be reduced by 25 percent though energy saving measures. It will be successful when the government takes steps about establishing minimum standard, labeling, regulatory activities and compliance in place. For this the government does not need to invest large funds. Once the regulatory environment is in place the business sectors will invest in making CFL and tools for efficient use of energy. What you need is proper regulatory system. Right now there is no incentive or motivation to get out of producing and consuming products that are inefficient but cheap in the short-run, but longer term they cost more. But it does not mean that Bangladesh will have to be efficient like Europe in one stroke. You have to start because you have no time to waste. You have to take the country to a level ultimately comparable to global standards.

You have to ensure quality of energy efficient equipment because people will lose their interest if they are given sub-standard equipment. For example, people in Vietnam a few years back lost their interest in using such equipment when sub-standard Chinese equipment were supplied to them. In India and several other countries in South Asia, there is Bureau of Energy Efficiency (BEE), which ensures the standards of such products and manufacturers are given necessary training to identify, and achieve them through energy audits.

EP: Experts across the world say that energy availability must be ensured to achieve MDGs. You are working on it directly but nothing is being done in Bangladesh on this issue. What type of cooperation can Bangladesh get from other Asian countries?

Nandita: We should keep it in mind that it would not be possible to achieve MDGs if energy supply is not ensured. A driving force is needed for income generation. Cooperation from Asian countries can be both at large and small scale. At the larger political level cross-border energy trade is being discussed within SAARC & ASEAN countries. I will not get into the larger political discussion except mention that regional cooperation on energy can only enhance our collective security. At a smaller scale there can be project level collaborations and cooperation on lessons learnt and best practices that have enhanced energy access for communities and decentralized groups of consumers. We recently completed review of energy access projects helping in poverty reduction. Some 28 projects were reviewed in different countries under these issues. And from these, some12 projects are reflected in a compendium of bets practice across Asia & Pacific countries. It serves well as a reference document.

Every government needs an advocacy tool on what should be done to highlight a good work or successful handling of challenging issues. Of the mentioned projects, three are in Bangladesh but how many entrepreneurs know about it? If you have such a tool, you can inform the people about it. NGOs can also play an effective role.

What is important is that entrepreneurs should be developed from lower level. Results of a work must reach at the national level from lower level. What I mentioned earlier, the government or the company must talk to the NGOs that are working in mining areas of the northern region. The NGOs must be briefed about the measures the government or the company is going to take for rehabilitation of the people and protection of environment of the mining area. NGOs can give their suggestions about it. If acceptable, steps must be taken to motivate the community with he help of the NGOs.

EP: Please tell us something about your visit to Bangladesh?

Nandina: I have come here to carry out a need-assessment on MDGs along with the Planning Commission. It is one type of review. Our main work is to see where we are and what we have to do in achieving the targets. What type of training and how much money are needed, what types of resources we have and what things we need beyond these. How the private sector will participate, what will be the role of community and how much assistance and loans will be required. I am hopeful of getting a clear picture by July-August next about what we have achieved and what we have to do.

EP: What can we do to ensure supply of energy?

Nandita: Government must construct infrastructure for energy supply. For example, if coal mine is needed to develop for extraction of coal, government must decide it. If government does not have capacity to invest fully, local and foreign private companies can be partners. Government can involve civil society in deciding what type of contact is being done, what would be the rate of royalty and what the country would get. But the civil society must be responsible. And if it cannot be done efficiently and properly, resources will go out of the country, people will not be benefited.

The government has sought support from UNDP for it and UNDP has given its support. The government can seek expertise from outside if such experts are not available in the country. Government must formulate the necessary law and rules and then the private sector will come forward. On the other hand, different government agencies like LGED can work on renewable energy. NGOs can be involved in it. You have to work collectively to use all energy resources to ensure energy security. If necessary, steps to be taken for sub-regional cooperation.

EP: You are saying about sub-regional cooperation. How can it be initiated?

Nandita: It is actually cross-border energy trade. Thailand and Cambodia are trading energy. Steps must be taken to successfully explore whether Bangladesh can import energy from neighbors.

EP: In comparison to many other countries it is said that Bangladesh is in better position on resources and demand. It has become a big challenge for Bangladesh to take a decision about its use. How can we face it?

Nandita: I want see it from a different direction. The responsibility of experts and civil society is to identify issues and they can also say which project the government can do and how. Which one needs local private sector’s assistance and which one needs foreign investment.

EP: Energy sector needs US$20 billion investment in the next 12 years that is not possible for government alone to mobilize. But some people are opposing foreign investment.

Nandita: It is not possible for any developing country to go alone in this effort. Besides physical investment, availability of skill set is very important. Efficient and highly skilled manpower is available in the region and investment too is also there but the government must be efficient to make investor friendly atmosphere and yet not strike deals contrary to long-term national interests. Along with investment comes the question of efficient revenue management from the investment streams.

EP: You mentioned about informed civil society. How can we take it ahead?

Nandita: The government cannot go alone for. Academia, journalists, intellectuals and experts have to share with open mind, disseminate debate and accept the ground level reality. It is possible to build informed civil society through outreach and advocacy. Share information with all and reach consensus through dialogue.

EP: Developing manpower for future. What can be done to educate children about energy conservation and efficient use at school level? Is there any initiative in other countries?

Nandita: It can be explained in different ways. Some subjects can be incorporated in school level curriculum and many countries are doing it. Radio-TV program can be developed. A quiz contest was organized to educate children of Pacific Island about environment. Such programs can be taken up in Bangladesh. Media can take an initiative with the help of local authorities, schools, donor agencies and other interested parties. Certainly, it will yield good results.

Energy & Power
16/06/08
Link: http://www.ep-bd.com/