Open Pit Mining must start in Phulbari

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 & PowerThe 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

Date: March 15, 2009

"ENERGY NOW NUMBER ONE PROBLEM"

Posted by phulbarinews on September 22, 2008

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: http://www.ep-bd.com/news.php?cat_id=5&archive=9&namee=INTERVIEW
Date: 16 September 2008, Bangladesh

Denial of Everything

EP Report

Expectations from the military-backed caretaker government of Dr. Fakhruddin Ahmed knew no limit simply because of their high sounding dreams they showed the nation since the 1/11 changeover. Intentional or unintentional, the so-called politics of the non-party government made things so complicated that now the windows of opportunities for the branded “political thieves” are opening up that they will come out tomorrow, if not today, as “political heroes”. Political analysts think “political game” of putting the two key leaders of the two main political parties behind the bars marred the opportunities to streamline the politics.
“Since 90 percent of people of Bangladesh are supporters of the two parties, the two ex Premiers should have been given the benefit of doubt to allow them to bring their parties on the right tracks,” an analyst said adding “the belated call from the Chief Advisor of national consensus would have witnessed a success had he sat with the two leaders within first couple of months and convinced them about the consensus, alongside carrying out the anti-corruption drive.”
“Now the opportunities are missed if we don’t want to fall into another deep crisis again,” said the analyst.
Like super structure, the country missed opportunities in the basic structure too. If the caretaker government did not mishandle the two key political players of the country, it one side could ensure commitment from them of peaceful politics in future without hurting the economy; and on other could concentrate more on economic affairs -- not only the day to day matters, but also by preparing a roadmap for economic upliftment in next 10 years with participation from all concerned quarters and again realizing the commitment from the politicians that they will work together to materialize the plan.
Anyway, Bangladesh lacks in visionary leadership and the caretaker government was no exception. Bangladesh missed the opportunity after the independence, then after overthrowing autocrat Ershad in 1990 and now following the 1/11 in 2007.
If the political roadmap progresses properly, the national election will be held in the third week of December. The country is expected to embark with an elected government in 2009. Now it’s clear that the qualitative change in politics is a far cry not for anyone else but due to the previously high ambitious “minus 2” plan of the caretaker government itself. Now it appears that the government will not able to bring minimum change in politics as now they had to “manage 2” formula as the “minus 2” boomeranged. “Had the government didn’t go for the minus 2 certainly certain changes could have been possible through the two leaders themselves,” another analyst said, adding “end of the day we’re going to have a big zero after all these high sounding changes following the 1/11 changeover.”
So, when the government of Fakhruddin Ahmed will hand over power to the elected government almost everything will be similar it was earlier. Even the changes expected in other sectors like economy are not being possible. Energy sector is no exception.
According to latest official statistics, per capita power consumption in Bangladesh is 140 kilowatt hour (kwh). The per capita power consumption in Sri Lanka is 325 Kwh, Pakistan 408 Kwh, India 663 Kwh, European countries 7,500-8,000 Kwh, Australia around 8,000 Kwh and in USA it is 10,000 Kwh.
Bangladesh not only remains at the bottom of the list of power consumption, it keeps electricity out of reach of 70 percent people of the country.
The power sector master plan suggests that the country requires 43,000 megawatt (MW) electricity to ensure power for all by 2025. According to the plan, 76 percent of the requirement or 33,000 MW will come from coal although now the percentage is only 5. In USA coal contributes to over 50 percent of total power generation, in India it is 70 percent and the figure for fast growing China is similar.
On the other hand, 87 percent of Bangladesh’s power generation depends on natural gas. But, the future of gas for Bangladesh is bleak and the existing fields are depleting.
According to United States Geological Survey (USGS), the prospect of gas resources with 50 percent probability is 32 TCF while it is 42 percent as per study carried out by the Norwegian Petroleum Directorate (NPD). But, in terms of 90 percent probability it is not over 8 TCF.
Whatever the prospect is, nothing has been done in public sector to explore the prospect after 1990. After the major discovery of Bibiyana in 1998, a good discovery by an IOC was Moulvibazar in 1999 and then a small discovery in Bangura. Many might be surprised witnessing the silent role of the IOCs in last one decade while it is considered that 93 percent of gas discovery in the country was by the IOCs.
Analysts found the indecision of the government for such a situation. The IOCs didn’t find any clear indication from the government that what it will do with the discovered gas if an IOC makes the discovery investing millions of dollars. In fact, that was the reason that the IOC had wanted that gas is exported from Bangladesh. But, the government neither could decide in favor of gas export not could assure the IOCs that its discovered gas will have market inside the country.
In fact, that’s the reason the IOCs backtracked from the exploration activities and the country did not any discovery by them. Experts said had the government dared to export a portion of the gas from the Bibiyana, not only Chevron but also other IOCs would get encouraged to go for new exploration. If export was not possible due to political reasons, the government could go for major power projects creating market for the gas discovered by the IOCs. Still, the government sat idle and the result is that the country is now experiencing serious power crisis in one hand and on the other gas shortage, too.
Lately, the government went for third round bidding for offshore blocks. Still, the response is not overwhelming. Also, the High Court has issued show cause notice upon the government.
If one asks why the dismal situation of the country’s gas sector, the answer is simple: Denial of everything. A civil society group that could be an effective pressure group emerged as sycophantic elements that opposed everything. Without realizing own capacity in terms of both technology and investment these people are opposed to any kind of foreign investment in the energy sector.
Although the cell phone companies are sucking billions of dollars of common people in the name `days talks’ and `night talks’ and the country’s state-run BTTB had the capacity to go for such mobile phone networks, these “patriots” would not utter a single word. But, they are ready to sacrifice their lives if a foreign company invests in Bangladesh, obviously they are not charity organizations... profit is their main objective, and by the investment the company otherwise helps the country to ensure energy security these formerly leftists will threaten to collapse the country no matter whether they have the ability or not.
Similarly, they opposed the gas export idea showing only one side the coin. The intellectuals would never say what the objective when a national committee had suggested to export of portion of IOCs gas, that was to encourage the foreign companies to invest more for more discoveries and more energy security. The idea to oppose the gas export bid was popular, but in reality now the government and people of the country are feeling the heat of power crisis due to gas shortage.
The same people who once burnt jute godowns after the independence in the name of Maoist revolution are now shedding tears for jute industry of the country. Their present bid to “protect oil and gas” is also that kind of patriotism. These intellectuals are “so far sighted” that only a few years back they couldn’t understand the value of coal and thus forgot to incorporate the word coal in their organizational banner. Suddenly they woke up and now their main concentration is coal although they had launched the “crusade to protect oil and gas”.
The group had incorporated their bid to protect the port and after the caretaker government brought revolutionary changes in Chittagong Port, now it is clear that what kind of port the formerly leftists had wanted and what should be it in reality that is now we are watching.
Bangladesh’s present gas crisis could be overcome had there be the much-talked-about Myanmar-Bangladesh-India tri-nation gas pipeline. It would help Bangladesh to import gas in case of necessity. But, this was also not welcomed by the “sole protectors” of the country and the result is in hands.
But, the dangerous thing is that the past government almost bowed down to the irrational demands and finally could not take any courageous decision. In fact, it is also true that a government that was sunken by the corruption does not have the courage to take apparent unpopular decisions and show the people the fruit after a few years.
As the country fell behind in terms of gas exploration, now the golden opportunity for the country is coal prospect. The recoverable coal reserve in the country is 2.0 billion tonnes which is equivalent to about 65 TCF of gas. The Phulbari coal field, having a recoverable reserve of 572 million tonnes is ready for development.
But, again the problem is a Dhaka-based group supported by some international NGOs who by misleading information could convince the people around the coal field. The group at first campaigned that they would lay down their lives, but would not allow any mine. Later they said that the mine has to be underground. Once they campaigned that the entire area around Phulbari would be deserted if there is any coal mine over there. Now their campaign is that the agreement with the foreign company is anti-state, so the mine has to be developed by a local company.
The debate over method of the mining has been continuing for past few years. Unfortunately, the debate is not concentrated within the experts. Rather, it became an issue of a few people who hardly could manage a few hundred people in their support, but maintain regular presence in local and foreign media.
The Barapukuria itself proved that the geology of Bangladesh is not suitable for underground mining even if we consider that underground mine can give at best 20 percent of total reserve while an open pit mine will ensure at least 95 percent. Just consider that production from second slice of the Barapukuria might not be possible, which is scheduled from 2011. Also, consider the frequent accidents that take place in underground mines in China and the accidents witnessed by Barapukuria, too.
Interestingly, the group coupled with some environmentalists are opposed to development of coal production in Bangladesh although the share of coal in power generation in the most developed USA is above 50 percent. It is 80-82 percent for China and 75 percent in India. And for Bangladesh it is not over 5 percent.
Surprisingly, the statement of the “protectors” is similar to that of the developed countries who are interested to buy Bangladesh’s carbon credit.
Bangladesh is passing through a critical juncture in the political arena. Also, energy is the biggest challenge for the country specially when the oil price reached US$ 139 per barrel and projected to be $ 200 by the year end. For survival of the country, country’s people and the economy there is no alternative to ensure energy security. And if the country sits idle keeping coal reserve equivalent to 65 TCF of gas beneath the soil it’ll be simply living in the fool’s paradise.
So, the question is whether the country will be continuing to live in the fool’s paradise or come out paradox of denial of everything for better future of the people of the country? It’s the best time to launch a true campaign for energy for people, not depriving them in the name of their protection.
The role of politicians in this regard is very vital. They have to understand the ground reality and come of the years old practice of denial of everything only because they are in the opposition.

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

If not coal, what?

FORREST COOKSON

The widespread attack by foreign NGOs against use of coal and the Phulbari Coal Project in particular is highly irresponsible. The basis of the attacks are five assertions repeated over and over:1. Open cast coal mines are bad.2. Coal mines cause a lot of dislocation of people.3. Mines will destroy valuable farm land that should be kept in agriculture.4. Private foreign investors exploit Bangladesh so should not be allowed.5. ADB should not participate in coal projects.These websites call for people to tell the ADB not to support the Project. Note that the Bangladesh government has not yet made a decision on the use of coal but these NGOs are trying to pressure ADB to reject participation, before the government’s views are known! This attack partially worked as ADB has now put aside its monitoring of the Phulbari Coal Project until the government decides what it wants! The ADB has not dropped its potential participation but is, properly waiting the government’s decision. In the meantime the NGOs are trying to build up international groups to oppose support by ADB for coal development in Bangladesh. The Bangladesh government should certainly listen to interested parties, but as a sovereign nation the leaders must decide what is best for Bangladesh. Neither the donors nor the NGOs have a right to try to force the government to act as they wish.The difficulty with these attacks by the NGOs is that they completely ignore the most important question: “How will Bangladesh fuel its electricity needs?” The answers to this question floating around are:1. Use natural gas instead of coal – but, of course, there is an acute shortage of gas that will take at least ten years to solve. The pressures by NGOs to stop mining of coal have already caused a two year delay in achieving any significant step towards developing Bangladesh’s coal sector. While there is potential for more gas in Bangladesh it has not yet been discovered. Until a hole is drilled and commercial gas quantity proven, it is prudent to diversify the sources of fuel for power plants. Furthermore, the best way to run the power system is to put the base load on to coal fired plants and handle the peaking demands using gas.2. Let Bangladeshis develop the coal resources without foreign participation: In Bangladesh there is very limited availability of experienced technical staff in designing and operating large coal mines (open cast or underground). The capital requirements for such mines are immense. Proponents of this idea know very well this is not feasible but it appeals to Bangalee nationalism. Of course in time Bangladeshi citizens will play a greater and greater role in the provision of skilled staff and capital for developing the coal sector but it will take a long time. The belief that there is staff and capital sitting around ready to implement coal projects is simply wrong. This path will slowdown the development of coal fired plants by at least a decade. If enforced for both coal and gas it is two decades!3. Develop nuclear power: This can only be achieved with use of foreign capital and technicians. Furthermore to build up to 8000 MWs will take 10 nuclear power plants. This cannot be done in 15 years. Using nuclear power will result in very intrusive safeguards and provide years of argument over the environmental impact. It is important to go forward with nuclear power but it cannot solve the problems of the next 10 to 15 years.4. Renewable energy: It is a particularly silly idea to think all of Bangladesh’s additional energy requirements can be met by renewable sources. Renewable energy is very expensive and its use in Bangladesh in solar form is heavily subsidised. Wind power potential is limited and wind power remains much more expensive than hydrocarbon based electricity. Just as for nuclear power renewable energy use should be encouraged but only hydrocarbon based power will provide needed electricity for the next 10 to 15 years. All these approaches proposed by foreign NGOs are simply wrong for Bangladesh! It is outrageous that these organisations should be undermining Bangladesh’s development efforts. Their position is “It is better to be poor than to develop the coal resources.”The position is so simple: Economic growth needs cheap electrical energy available only from use of coal and gas. Renewable energy is too expensive for mass use. The opposition by JACSES (Japan) or AID Watch (Australia) to development of energy in Bangladesh is a deeply immoral act. People sitting in developed countries using electricity at a high rate generated by coal, gas and nuclear plants are preaching to Bangladesh not to produce electricity with the coal and gas Bangladesh has! Let these people come and live in Bangladesh for five years without electricity at the income level of the median rural household. Perhaps they would then understand the urgency of expanding the power sector and accelerating economic growth. Expanding electricity availability for rural households is one of the most important tasks to be achieved; it is unfortunate that these foreign NGOs, judged by their actions, are working to keep this from happening.No doubt greater use of gas and coal will have some negative input on the environment. Should Bangladesh sacrifice its economic growth to reduce this adverse impact? Bangladesh does far less damage to the environment than either Australia or Japan. Let these NGOs clean up their own houses.Turning now to the objections.Open cast coal mines are bad: There is no alternative to the open cast mine. The technical problems [water regime, acceptable environment recovery] are manageable according to the world class mine design engineers engaged by Asia Energy. The government must insure that the vendor takes care of the environment. Rather than attacking open cast mines one should ask “How can we achieve this while protecting the affected population and the environment?” Open cast mines are necessary to build up Bangladesh power sector; otherwise not enough coal is available from underground mines. The target is 12 million mt per annum for power; this can never be achieved with underground mines. In any event expert opinion is that the coal deposits are only marginally suitable for underground mining.Coal mines cause a lot of dislocated of people: The critics miss the point, Asia Energy has to agree to resettle all affected persons in such a way that people are better off financially than before the resettlement. It does not matter who is right about the number. The government must make agreements with the coal companies to insure this happens. Difficulties are not a reason not to do the project, but rather a reason to be particularly careful and to work to overcome difficulties. The government must insure that resettlement is done according to its rules protecting the financial position of these affected. The NGOs efforts to drive out ADB will adversely effect the poor in the project area. The hypocrisy is breath taking. The coal projects will use up valuable farm land that should be kept in agriculture: This is true but the project will make an enormous contribution to the economy. Land is lost to agriculture continuously and if Bangladesh is ever to become a middle income country it has to maximise return to the land through industrial development. The future of Bangladesh does not rest with rice farming but through industrial development.Private foreign investors exploit Bangladesh, so should not be allowed: Many believe this and hence argue such investment should be banned. But others say: Environmental NGOs are bad and should be banned. This is the level of this argument! Noise not fact. Self righteous behaviour is best replaced with some humility and doubt. Of course foreign investors are trying to make money! The question is the word “exploit.” The earnings are large became the investments are large. Private foreign investment in the Bangladesh energy sector has been beneficial for both the nation and the investor. It has provided gas at less than $1 per thousand cubic feet and electricity at less than 3 ¢ US per kwh. For all the accusations and claims the Bangladesh government through good management and encouraging competition did very well using foreign investors in gas and electricity.ADB should not participate in coal projects: I do not know if the government will approve the Phulbari Coal Project. But if the government does Asia Energy faces no difficulty in financing the project from private sources or sovereign wealth funds. The government should welcome ADB participation to strengthen achievement of high standards for resettlement and environmental management.Anyone genuinely interested in the Bangladesh peoples’ welfare wants the power and influence of the ADB on the side of the people. Indeed the implementation of large coal projects in Dinajpur will accelerate the growth of this part of Bangladesh raising incomes, providing employment and attracting people from surrounding areas. Asia Energy does not need ADB for financing the Project; it is the Bangladesh government that can use ADB to strengthen its hand! Open debate about the pros and cons of energy projects and strategy is of great benefit to Bangladesh. But for NGOs to interfere in the relationship of ADB and the government seems questionable behaviour. This argument needs to be based on truth and analysis not misrepresentations and unsubstantiated claims.

Date:15.06.08

Source: The Independent

Link:

http://www.theindependent-bd.com/archive.details.php?nd=2008-06-15&nid=86328