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Energy Adviser Tapan Chowdhury says that they don’t want to keep away from any responsibility. “We’ll do whatever will bring welfare for the country and the nation. We’ll not remain silent in the name of lame excuse of transparency,” he said in an exclusive interview with Energy & Power.
The advisor said that the severe power crisis that now persists in the country can’t be overcome overnight, “but we’ll try our level best to increase the generation.” “If we sit idle considering that the new elected government will work, we’ll push the country towards more energy crisis,” he said.
Energy & Power Editor Mollah Amzad Hossain interviewed Tapan Chowdhury, who is also in charge of several other ministries. Following are the excerpts of his interview:
EP: You must be aware that the next summer will experience the worst electricity crisis. Many think that the shortage will be 2,000-2,500 MW. What’s your plan to minimize the crisis?
Tapan: Yes, like all others I know the level of power crisis. We also know that the crisis can’t be overcome overnight. But, for that we can’t sit idle. Works started so that the extent of crisis can be brought down at least to an acceptable level.
Under this effort, a bid has been initiated for “double check” of repair and maintenance works of all the power stations. PDB is working for that. My effort will be ensuring highest generation from the existing units. Secondly, you know a lion part of power units installed for industrial uses remains unutilized. We’ll try so that we can sign agreements with the captive power units before the coming summer and ensure transmit through the national grid. We’ll do it within the shortest possible time.
Also, load management is a must in our country. But, it couldn’t be properly implemented. This time we planned for its full implementation. The first step will be keeping the shopping malls closed after 6pm. For this, I’ll personally talk to the shop owners and business leaders. I’ll try to make them understand that if they don’t agree to keep their shutters down in the evening the entire nation will have to live under the dark. At the same time, I believe, I’ll be able to convince my colleagues in business to follow the load management. Load staggering will be followed in the industries. Apart from the peak hours, we are trying to ensure uninterrupted power supply during other time of the day. Besides, we’ll seek apology to the nation before the summer that we’ll not be able to electricity according to the original demand of people.
We’ve also initiated steps so that we can raise generation by implementing the current projects. Already we signed agreement for implementing two 120 MW units at Siddhirganj with the ADB financing. The past alliance government had finalized some rental power projects. They had signed agreements for two such projects. Letters of intent were issued for the rest ones. But, gas supply agreement (GSA) couldn’t be signed due to problem in gas supply. We had finalized their implementation. The plants will have to be pressed into operation in 120 days of signing of the GSAs.
EP: It’s been proved that taking the power generation to the expected level isn’t possible through lengthy tender process. You know Malaysia was able to increase generation on emergency basis selecting the entrepreneurs sitting across the table. Do you have any such plan?
Tapan: Look, we came for a brief period. On the other hand, we don’t have a leader like Dr Mahathir. However, personally I believe that there is no alternative to giving work order from negotiation table to raise generation on emergency basis. I believe we’ll be able to go for such bid under a comprehensive energy planning aimed at permanent solution to power crisis. I’m sure we can’t overcome the crisis through traditional thought.
We can resolve the power crisis quickly if power plants are set up in private sector. Here the government will not have any liability. We’ll only determine the tariff of power through negotiations. The investment, process and other concerned matters will be headache of the investors. We’ll watch whether they can start generation with the stipulated timeframe. Here the government doesn’t need for any investment. And if the private sector is allowed, there will be no question about transparency. If the tariff is not acceptable we’ll not purchase electricity. Here the investors will not have to think about market…. They know that there is the market of electricity.
EP: But, there are controversies about purchasing electricity from power plants installed in private sector that we call IPPs. The Awami League government had first gone for IPPs. Here the government makes payment in dollars. The past alliance government from the very beginning had been complaining that the PDB became bankrupt for purchasing electricity in dollar and selling in taka. What’s your observation?
Tapan: That was first of its kind, the IPPs. At that time the government had to sign agreement for purchasing electricity in dollar. It’s not that now we’ll have to do the same. I think we can now purchase electricity in taka instead of dollars. Now only the foreign companies, but also the domestic entrepreneurs can invest for the IPPs. We can’t sit idle. I think the private investors can come up as partners. But the main problem is bureaucratic mentality. For this we couldn’t proceed although China, India, Malaysia and Indonesia achieved significant success.
EP: Are you going to purchase electricity from India?
Tapan: I don’t see any wrong if the electricity is available at a cheap rate. It can play a significant role in minimizing the present power crisis. However, it’s not like that importing electricity is possible overnight. Before finalizing the pros and cons, we can’t tell you the final words.
EP: PDB has signed an agreement with BON Consortium for 495 MW Meghnaghat 2nd phase. What’s your plan about it?
Tapan: It will be cancelled as per rules. Already their cheque of six crore taka has been dishonored. Also, the foreign partner of the project has backtracked. So, it’ll be cancelled under usual rule.
EP: There are many suggestions for overcoming the energy crises. Many people are opposed to foreign investment in the energy sector. How do you look at it?
Tapan: We are very clear…. We’ll welcome any good suggestion for resolving energy crisis and its development. So, those who are talking in radio and television channels or writing in newspapers, I’ll request them to come to us, sit with us. If your suggestions can be implemented, we’ll work on that.
I say if you have any formula to overcome the crisis, please let the government know and help us. However, in Bangladesh there is a trend to all the projects. The concerned people should give up this mentality for welfare of the nation.
EP: At present several investment proposals await government approval. Those included tri-nation gas pipeline, Tata’s steel, fertilizer, power and coal projects and development of Phulbari coalfield. After the tragic incident in Phulbari the coal extraction project remained stagnant. What do you think about the foreign investment proposals in the energy sector?
Tapan: Look, the indecision on investment put a negative impact on the foreign investors willing to come to Bangladesh. I’ll answer your questions one after another. In private sector, it’s a privilege that it can be implemented quickly. But, in public sector there is a trend to bypass the responsibility. That’s the reason the investment proposals await approval for a long time. This is not good for image of the country.
Let’s talk about the tri-nation gas pipeline at first. You’ve to remember that the present government is busy with crisis management in the energy sector. But I’ll say certainly we’ll look into the matter if the time comes, the time is yet to come.
Now the Asia Energy issue. We didn’t seek opinion from the Law Ministry to scrap the agreement. It was sent by the previous government. The representatives of the company met with me. I told them that they’ll have to work along with local people. I think that the Asia Energy had some mistakes in approaches. I don’t think this kind of project can be implemented with the help of a political party or law enforcers.
I think that the Asia Energy at first should convince the local opinion leaders and imams of the mosques. I don’t think that people are so unwise that they will not understand a welfare project for them. They should have done these works through community mobilizations. But, in work they had a sort of hierarchy attitude. I think they didn’t do right thing by going for massive arrangement through Dhaka-based people and organizations.
But, a hurried decision of the government after an incident gave a wrong signal for the investors. The government should have gone through the matter properly and only then it should take the decision. Now the entire matter should be reviewed. I think the agreement with the Asia Energy should be reviewed to determine whether there is anything that goes against the interest of the nation. If there is anything such it should be resolved through discussions. You’ve to remember that even if we want we can’t scrap the agreement and engage a new company for coal extraction. So, I think for the sake of energy security of the country the government along with the company should go over there and try to reach an understanding. If we can work and give combined effort we can resolve the problem. My experience says that if local people are involved through proper motivation this kind of project can be implemented. We’ve to remember that the country is going through serious energy crisis. There is no scope of luxury of keeping coal beneath the soil. But, we’ve to ensure international standard while exploring the coal resource.
On Tata, I’d say that their representatives also met with me. I categorically told them there is no scope of concessional rate in energy price. However, I don’t see any wrong to accept the Tata proposal if it’s in favor of the country’s interest. The Tata has repute across the world. I’m not in favor of opposing the company only because that it’s an Indian company. Again, I’m not in favor of giving them any concession.
I’d like to make it clear that the government will not sit idle. On completion of the crisis management if time permits we’ll start work on the projects awaiting government’s decision.
EP: There is an allegation that huge amount of money was siphoned off in implementing the Barapukuria coalmine project. On the other hand, license has been given for Khalaspir without any tender. Will this government investigate into the matters?
Tapan: I’m not a coalmine expert. But, I’ve doubt about the feasibility of the project. I think that the Barapukuria coalmine and power plant projects are for the sake of projects. I think that the country’s interest was not protected into it. We came here with people’s confidence, so we’ll have to work transparently. If we get scope we must see it. I think there must be investigation on the controversial projects. But, before everything we’ve to have sigh of relief of overcoming the present energy crisis.
EP: Are you going for bidding for oil and gas exploration in the Bay of Bengal? Or before that you’ll go for bidding for non-speculative seismic survey?
Tapan: I don’t know what’s the difficulty in conducting the seismic survey? We’ll not need money for it. Rather, the government will be beneficiary by selling the information during the bidding. At the same time, our negotiation capacity will strengthen as we have the required data and information. We believe that we shouldn’t go for third round bidding before the seismic survey. We discussed about the matter in the Council of Advisors. Hopefully a decision on the matter will be taken shortly. |