KALADAN NEWS

Date: January 11, 2005

Bangladesh Delegation leaves for Rangoon to finalize Tri-Nation Gas Pipeline

Chittagong, Jan. 11: Today, a three member delegation of Bangladesh led by the State Minister for Energy and Mineral Resources, AKM Mosharraf Hossain, is leaving the country for Rangoon, the capital of Burma to finalize the proposed Tri-nation gas pipeline tomorrow.

According to a report, Bangladesh would propose at a discussion among Burma, Bangladesh and India on the proposed trans-boundary gas pipeline in Rangoon, as it would be part of a regional energy and power- sector cooperation, while Bangladesh would seek passage through Indian territories to import electricity from Nepal and Bhutan in exchange for allowing a tri-nation gas pipeline through Bangladesh.

Mohona Holdings Limited, a Bangladeshi private company, has proposed to install the Burma-Bangladesh-India gas pipeline to facilitate energy-hungry India's gas import from Burma.

"We would like to see the gas pipeline installed under a regional energy cooperation," State Minister for Energy and Mineral Resources AKM Mosharraf Hossain told the news agency on Sunday, 9th January 2005.

He also pointed out, indicating his plan to pursue the regional cooperation on energy and power sector in the tripartite meeting on gas pipeline. "The exchange should be on commercial basis," he said, adding that the proposal by a private commercial company should be supported by state-level policy decision to implement.

The tripartite meeting on gas pipeline will run from January 12 to 13, 2005.

According to the pipeline proposal report, Bangladesh would receive right of way (using lands to install the pipeline) charges worth US$ 125 million per annum at a time, wheeling (transmission) charges US$ 100 million per annum and management cost worth $20-25 million per annum. Besides, US$ 150 million will be an investment that will create employment opportunities for Bangladeshi workers.

Bangladesh would try to keep the management to maintain the pipeline by Bangladeshi Gas Transmission Company Limited (GTCL), they said. The pipeline project in Bangladesh part would cost $350 million.

Though the committee on three-nation gas pipeline felt that it was a good proposal, it needed the Indian and Burma governments' formal opinion to take any decision or discuss anything in this regard.

It was learnt that the Bangladesh government had accepted a formal invitation from the Burma’s military government to attend a meeting of the Ministers of Energy of Bangladesh, India and Burma in Rangoon in January to finalize the three-nation gas pipeline project.

The proposal, pursued since 1996 by Mohona Holdings, has been approved in principle by the governments. It will extend along the Kaladan River that runs from Akyab, the capital of Arakan State of Burma to two Indian states of West Bengal and Tripura.

The Bangladesh Ministry for Energy and Mineral Resources referred the matter to the Cabinet Sub-committee for taking a decision six months ago. The sources said the proposed pipeline would enter the Bangladesh border through Brahmanbaria from the Indian state of Tripura and will cross into West Bengal through the Rajshahi border.

Burma Energy Minister Lun Thai and Indian Petroleum Minister Moni Shankar Ayer will lead their respective sides, while the Bangladesh State Minister for Energy and Mineral Resources, AKM Mosharraf Hossain will lead his delegations, SR Osmani, the Petrobangla chairman and Golam Mohammad, Foreign Ministry director general for Southeast Asia.

Image courtesy: UNOCAL

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