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Country's leading entrepreneur, former President of Metropolitan Chamber of Commerce and Industry (MCCI) and Managing Director of Square Group, Tapan Chowdhury was sworn in as Advisor for Energy and Power Ministry in the interim caretaker government led by Dr Fakhruddin Ahmed. He had spoken to Energy & Power magazine as a key business leader on various aspects of the sector in July 16, 2003 issue. We are reproducing the interview to remind him his own thought at a time when he is on the hot chair of the Energy Ministry. Energy & Power magazine Editor Mollah Amzad Hossain had taken the interview.
EP: What do you think -- why so much confusions? Why the experts are divided? Why the politicians can't take a decision? What do you think as a business personality?
Chowdhury: Appropriate studies are needed for determining gas reserves. But in our country, such studies are politically motivated. It's a big question why there is so much difference of opinions among the people who claimed themselves as experts in the sector.
One group is saying that we have enough gas, we can be benefited from its export. They are justifying their opinion showing a lot of logic. On the other hand, another group is saying we don't have enough gas reserves to export. Therefore, their opinions are very confusing and it's difficult to decide what should we do. As an entrepreneur, I think we should take a decision -- no matter who favor or disfavor it -- on the basis of rational logics. But unfortunate chapter is that no political government can take a strong decision. Every government thinks if we export gas to our next-door neighbor, public opinion may go against them. It's a very sensitive matter, so the government thinks it's wise to bypass the issue and keep it hanging. But ultimately their indecision deprives the country.
EP: How do you look at the positions of the political parties?
Chowdhury: It seems that a political party when in power in principle agrees to export gas. But the same party when goes to the opposition says export is possible only after meeting up domestic demand. I'm not an expert. As a citizen and as an entrepreneur, my opinion is that the first priority should be meeting up domestic demand, specially the demand in the industrial sector.
Even now the demand in the industrial sector can be met up. When we talk about it in various forums, we are told that there is a problem regarding pressure of gas. Again we are told that export is possible after meeting up the domestic demand. If there is no crisis, why the problem in gas supply? There should be a concrete study on it. An entrepreneur has to spend 20 percent of his investment for gas. So the government has to answer it why they have to face the problem. The government will also have to clear if the export bid is to generate resources for investment in the sector to meet the domestic demand in future.
EP: Here comes the big question from where the money will come? One group is saying that more FDI in the sector will come if the IOCs are allowed to export gas. Another group is saying investment should be made from the domestic resources.
Chowdhury: I think foreign investment is required for overall development of the energy sector. Internal resources are not enough for infrastructural development of the vast sector. Our experts are saying the present reserves and resource base are not enough to meet the demand for 50 years. To ensure the future energy security, we need more and more investment. Market will not come without investment. Again, export or enough market can ensure return of the investment. I think we should follow the path. Why the foreign companies will come here to invest if you don't give them some concessions. Those who came here lost their interests. Since we don't have enough skills, capacity and
financial capability for exploration, we had to invite the IOCs. Why they invested here? They international companies invest only if return of their investment and profit is guaranteed. They did not come to Bangladesh for charity. Now the question is that how much we can ensure in our favor through negotiations. One can't think that the international companies will not make profits from their investment here. All should keep it in mind that our government is not able to invest thousands of crores of taka. We can't
even meet the priorities in the annual development program (ADP).
EP: As a leading industrialist of the country what do you think about continuation of government policy in the energy sector and other areas?
Chowdhury: It's a big problem in our country that there is no continuation in implementing policies. After taking over, every new government identifies all the policies of its predecessor as wrong. It hinders the real development of the country. No rational citizen can appreciate this trend. We'll have to come out of this narrowness. At the same time, if a government had mistakes and made agreements damaging national interest, the successors should rectify it. Say, we are critical of the PSCs, but no government identified the 'anti-people' and 'anti-state' clauses of the PSCs and take initiative to scrap those.
EP: There is a controversy over engaging IOCs in the gas sector as the government is counting losses to make their payment. On other hand, some people say the development achieved so far was not possible without participation of the IOCs. Do you think it was a wrong decision to invite the IOCs?
Chowdhury: I don't know what was the alternative to not inviting the IOCs. I don't understand how we could go for the gigantic task of gas production without the help of IOCs. So inviting the IOCs was a right decision. Had the decision not been taken, we would lag behind from the position now we are. However, obviously we can talk about whether the negotiations were perfect or not. I don't think that inviting IOCs was a wrong decision. Because, only domestic resources were not enough to meet the demand of investment in the gas sector.
EP: How do you look at the slogan of reaching gas to every household?
Chowdhury: In principle, it sounds nice that we will reach gas to every household through pipeline. But, the question is whether it's acceptable considering the cost and investment required for it. It's unfortunate that I heard that some people talk about it, reaching gas to every household through pipeline. I'm against pipeline gas connection. For the cooking purpose, we can go for LPG or any other cost effective and viable option. The main thing is reaching fuel or alternative to maximum number of people at the minimum cost. We should first think of national benefits.
EP: Leftists are saying that investment in the sector is possible by recovering the default loans. They think if we can do it, we don't need to run after profit monger greedy foreign
companies.
Chowdhury: Undoubtedly I'm against the bank loan default. But the biggest defaulter is the government itself. The corporations run under the government are the biggest defaulters. Thousands of crores of taka as bills for gas, power and telephone remained unrealized. But there is no system of accountability for it. If those are privatized, government default would decrease. So, the demand of the leftists is a good one. But for it, we need to bring changes in entire social structure. No government without skilled and pro-people administration and political vision can bring the changes.
EP: What do you think -- how the country can get rid of the current row over contentious gas export issue?
Chowdhury: Here I want to say one thing, the media created an obscure picture over the gas sector. The media could have played a vital role in giving guideline for the government to take a decision. But they didn't do it. I think the media should play a strong role to develop people enabling them to make their opinions with proper understandings.
EP: If the government finally goes for pipeline gas export, what do you think -- how should the money be spent?
Chowdhury: The earnings should be utilized for infrastructural development of the sector under a long-term planning. The government will have to be kept away from spending money from the earning, if necessary through enacting a law in the Parliament. The money should be spent for creating new employment. |