Bangladesh Parliament is now in budget session in which Finance Minister AMA Muhith placed the 2010-11 financial year's budget proposals. A few days before budget placing Leader of the Opposition Khaleda Zia proposed an alternate budget outside parliament. Opposition has abstained from parliament and is not participating in the discussion of the budget proposal. In parliamentary democracy it is expected that opposition participates in debates on all national issues in the parliament. Observers believe that there are no strong reasons for opposition to boycott parliament session. Conspicuously the official budget proposals and the alternate budget proposed by the leader of the opposition have several common elements.
The most striking similarity is identifying energy crisis mitigation as high priority national issue. The opposition leader laid stress on expediting exploration of petroleum resources and coal. She underlined the importance of exploration and economic utilization of coal. This meeting of minds can be utilized positively by the media and policymakers to develop a national strategy to explore and exploit primary fuel resource to confront the energy crisis.
In absence of opposition in the parliament, MPs of the treasury bench are discussing various aspects of budget. Over the last few days two important leaders Sheikh Selim MP and Rashed Khan Menon MP participated in the budget discussion. These two gentlemen for various reasons are important persons in Bangladesh politics. Their budget discussions particularly their views on energy sector issues may be carefully reviewed.
Awami League lawmaker Sheikh Fazlul Karim Selim while deliberating on budget mentioned that tackling the crisis of energy and power was as important as environmental issues.
He suggested that the government should go for open-pit mining of coal from Phulbari reserves in Dinajpur district to generate more power. He castigated environmental groups which were campaigning against open-pit mining fearing it could threaten the environment.
He said, "A section of green activists are persistently opposing coal mining in the name of protection of environment. If coal is extracted from the mine, there may some be environmental problems in one or two places in the country, not all over the country."
The government is working on the coal policy cautiously after violent protests broke out in Phulbari leading to killing of three villagers in 2006 when a British company proposed open-pit mining of coal. The Awami League, which was in opposition at that time, supported the popular movement by the locals. But most of the senior AL leaders now seem to favor open-pit mining that would displace a large number of villagers.
Sheikh Selim, also a presidium member of the ruling AL, said the whole country should not suffer for one or two places. The government should think about the greater interest of the people, he added.
"What is the point in keeping coal beneath the ground? The government should go for extraction of coal for power generation," he said urging the policymakers to finalize the coal policy immediately to go for coal extraction.
The 4-party alliance government, the caretaker government and present grand alliance government have done brainstorming about the coal policy over the years. Bangladesh appears to be groping in the dark to find the required primary fuel for power generation despite having about 65 TCF equivalent high heating value low sulphur coal resources at minable depth. Crores of taka has gone down the drain to implement inappropriate unsafe and crisis prone underground coal mine at Barapukuria. Mine at Phulbarui discovered by the leading mining company BHP Billiton in 1996 is lying unexplored. Asia Energy Corporation, a UK company, which took over from BHP in 1998 carried out extensive feasibility survey of the mine and submitted scheme of development end 2005 proposing open pit mining. A vested group instigated the local community leading to unfortunate incidents.
A section of ill-motivated agitators fuelled by coal mafia syndicate created confusion. Our own coal, which is the only feasible option for power generation, remains unexplored. Another group of opportunists is misguiding policy makers to adopt expensive option of importing coal from abroad for setting up coal-based power plants. Very dirty polluting coal from across the border is also finding way inside Bangladesh by fair means or foul to pollute environment. The so-called green group-OGPC remains conspicuously silent on import of dirty coal.
Rashed Khan Menon, chief of a left-leaning party that is a component of the ruling coalition, harshly criticized the proposed national budget for 2010-2011, and asked the finance minister to revise some measures that may increase the burdens of the beleaguered middle-class, lower middle-class and working class.
"Let us weed out the weaknesses of the proposed budget for the sake of the middle-class and poor people who may be harmed by some measures,’ said Menon, chief of Workers Party of Bangladesh, in Parliament.
Menon castigated the government for ignoring its election pledges in the last 16 months, mainly taking no initiative for the formation of a land commission, strengthening the Trading Corporation of Bangladesh and increasing its role in the market, introducing the rationing system, announcing minimum wages for the workers, generating sufficient electricity, and also considering approval of the environmentally disastrous open-pit mining of coal.
Menon criticized the decision of setting up of peaking and rental power plants are not a solution to the present power crisis. It will cause the price of power to shoot up, thus enhancing production cost in industrial sector that will ultimately raise the prices of essential commodities. It may even help to instigate public unrest in the society.
The existing gas crisis has caused the closure of many industrial units, said Menon, adding that that the finance minister had proposed exploration and extraction of gas, but had not said whether or not there would be provision for export in the contracts with multinational companies.
"We could not finalize our coal policy as yet. A section of people is now suggesting open-pit mining in Phulbari," he said, and pointed out that the prime minister, when she was in the opposition, had promised not to go for open-pit mining at Phulbari.
The discussions on energy in the budget speech by Selim and Menon deserve analysis and discussion. Selim is a senior Awami League leader and minister of Hasina cabinet in her earlier term. If he realizes that open pit mining at Phulabri can bring much needed relief for arranging fuel for power then what is the barrier? Who are opposing that in the government? The mining method is dictated by technical and commercial reality. Surface mining is a well-proven technology all over the world. If geology, geophysics, rock mechanics, soil, hydrology support surface mining to recover maximum coal there must not be any hesitation to adopt that method. Definitely there will be impacts of such mining. Some people will lose land. They can be adequately compensated. They can be rehabilitated. Their income can be regenerated. 90% of the mining area can be restored to original and better state after mining. There are several living examples in different countries. Our policymakers have seen this. Professionals know about it.
Impacts of environment on water can also be mitigated. Environmental impact assessment must be done properly to identify, assess and optimize impacts mitigation during feasibility study. These have been done in case of Phulbari mine. Modern mining technique addresses all the concerns.
Why the governments did not investigate into reasons for trouble at Phulabri? There are enough evidence that the trouble at Phulbari was created by a vested group serving the interest of coal mafia syndicate and alternate powerhouse in 2005. Some so-called self-styled patriots defending oil, gas and ports of Bangladesh responsible for the trouble confused policymakers dragging them into unnecessary coal policy formulation. How many coal countries have coal policy? Do we need iron policy, tin policy, gold policy when we will discover these or we should stick to comprehensive Mines and Minerals acts and policies for effective guidance and control?
It is a criminal offence to keep our own resources buried underground and adopt much more expensive import options. Neither Selim nor Menon talked about import of dirty coal that is polluting our environment. They are silent of import of coal and LNG as well. Government is unnecessarily wasting time. Some policymakers and bureaucrats are wasting PSC fund for training of Petrobangla professionals making foreign tours.
Menon has criticized government actions for rental and peaking plants. There is no doubt that government in 17 months failed to take appropriate actions for exploring own petroleum and coal resource or even conclude any contract to set up base load power plants. But to mitigate the crisis to comfortable level government was forced to opt for expensive rental and peaking plants. Increasing power supply at this stage by any means is much more important than doing nothing and keeping fingers crossed. Menon should ask who are the men behind each power plant -- which section of policymakers are getting benefitted from such actions. As a responsible politician he must also suggest what needs to be done to confront crisis.
Menon is concerned that power from rental plants and peaking plants will increase power tariff. Menon also knows power tariff in Bangladesh is among the lowest in the world. Very cheap power and energy is among reasons of energy crisis. Major users use power in a very irresponsible manner. Increase of power tariff is essential for power conservation and ensuring efficiency. Government must continue to provide subsidy to agriculture and rural people. If power situation is significantly improved by rental plants and peaking plants there will be no agitation.
Menon has termed open pit mining at Phulbari as environment destroying. What he means by that? How many open pit mines he has seen? The lone example he and his political friends always bring is the Pennsylvania mine disaster. This was a one off episode of 1970s. The mining regulation was not so stringent there. If Menon visits surface mines in India, Germany, Australia and USA he will realize how modern mining technique addresses all environmental and social impacts. If he recommends not to mine in strip mining method will he suggest valuable coal resource should underground for ever? Or he wants disaster prone underground mining? Underground mining at Phulbari will create similar subsidence that is bothering local community in Barapukuria? The expensive mining method will recover hardly 10% of the coal in place. Underground coal seam gas or coal bed methane (CBM) will not be feasible at Phulbari. Menon is opposing surface mining at Phulbari but he is not opposing polluting coal import from India or import thoughts for setting up coal-based plants in Mongla. The coal-fired plant at Mongla will adversely impact Sundarbans. Will World Heritage allow coal burning at close proximity of the great mangrove forest? Menon and his party always talk against International Energy and Power companies. But can he find any other way out? Is there any Bangladesh national company or private company which has technology to mine or explore petroleum in a cost effective and efficient manner? Can our government invest money in risky explorations?
We are not aware whether PM Hasina during Phulabri agitation vowed not to go for open pit mining, which Menon has stated. Perhaps she was committed to rehabilitate and relocate the mining community at proper place, regenerate their income alongside the surface mining. That is still her concern. People have voted grand alliance to power to explore and exploit country’s resources. Let government explore coal in the most appropriate method ensuing the proper environment and social impacts management. Our own coal is the only feasible option now to secure our energy over mid term. Nuclear, renewable and other options will not make any major contribution. These can only supplement fossil fuel power. We are dealing with only 6 TCF leftover proven gas reserve but we are neglecting 65TCF equivalent explorable coal reserve. Awami League led grand alliance is committed to explore and exploit coal resources, BNP chairperson has also suggested proper use of own coal. So there is a meeting of mind here. Government must not care about satellite politicians and other peripheral groups.
