It has been decided to extend the duration of the Gas Development Fund (GDF) for another 10 years to increase the scope of investment. Deputy Secretary Dr. Muhammad Maniruzzaman of the Energy Division confirmed to Barta24.com that the gazette may be published next week.
The current fund is due to expire on January 31, 2022. The Bangladesh Energy Regulatory Commission (BERC) has ordered the formation of a GDF for oil and gas exploration, development and reform to increase oil and gas production. With the order to increase the price of gas on July 30, 2009, consumers were charged an additional 48 paisa per cubic meter for GDF. This charge is effective from August 2009. It was said in the public hearing that the local companies could not implement the project in time due to the financial crisis. So Bapex will be able to take the project using this fund.
The process of revising these funds is done with a lot of secrecy. Although there is talk of many cuts, the ministry or Petrobangla is in a dilemma. Although initially limited to research and development, this time the funds have been used for Bapex's rig reform. Besides, the representation of the ministry in the project approval committee has been made mandatory. Until then, these projects were approved under the leadership of Petrobangla.
Deputy Secretary in response to a question Dr. Muhammad Moniruzzaman said there was no major change. By changing some of the linguistics here, it has been made more straightforward. And there are some ongoing projects funded by this fund. They will be completed by 2024-25. The GDF has been extended for another 10 years to address the uncertainty of these projects.
However, several officials who attended the meeting on the draft policy told Barta24.com that the amendment raised at the meeting proposed that the fund be referred to as surplus money from gas sales. The ministry also wants to use the funds to purchase LNG. However, objections were raised at the meeting. The source could not confirm what was done later.
Note that the concept of GDF was first raised in the public hearing of BERC, energy expert Professor Nurul Islam said. He said local companies could not implement projects on time due to the financial crisis. Having to sit down with the project for foreign help, it delays the work a lot. And in the case of lending, donors have different conditions and orders. Many times the real purpose is disrupted; this fund will be interest free. With the help of this fund, the local company will take up the Bapex project to increase gas production in the country. In order to overcome the crisis quickly, consumers will get gas at affordable prices.
However, interest was later charged at 4 per cent. It was said that in order to take the project funded by this fund, proper verification and selection has to be done and BERC prior permission has to be taken. There are allegations of using this fund later. About Tk. two and a half thousand crore should be deposited every year. During the Corona period, the government also put its hand on this fund. Ministry sources said that Tk.1,000 crore has been taken from this fund.
Petrobangla Director (Finance) Harun Aur Rashid also told Barta24.com, "As far as I know, there will be no fundamental change." This policy expires on January 31, 2022, so it is being extended. Maybe there will be some minor corrections.
Consumer Association of Bangladesh (CAB) Energy Adviser Prof. Dr. Shamsul Alam said, if something wrong is done, there will be no way but to go to court. Many of these funds have been misused. Consumers are paying to form this fund. But the interests of consumers were not seen. This money is people's money, not given to the Ministry of Petrobangla.