Kaladan news

Date: Monday, February 28, 2005

At the Last Moment India Merging in Tri-nation Gas Pipeline MoU

Chittagong, February, 28: India at the last moment of the final–day meeting agreed to merge in the draft MoU prepared at the tripartite techno-commercial meeting in Rangoon in February 24-25.

Three conditions of Bangladesh for allowing India to install a gas pipeline from Burma through Bangladesh are ----transit facilities for Dhaka to import hydroelectricity from Nepal and Bhutan, space for Bangladesh to trade with the two countries and reduction of trade imbalance between Bangladesh and India, said sources in the government.

They said although Delhi was positive about the bilateral conditions, it did not want to incorporate them in the MoU, to be signed to pave the way for the gas pipeline.

The inclusion of three conditions means if Delhi wants a gas pipeline through Bangladesh, it will have to take steps to meet Dhaka’s demands, they said.

The meeting, represented by two representatives from Dhaka---Petrobangla Chairman SR Osmani and Gas Transmission Company Limited director (operation) Abdus Saleque Sufi and at least six officials from Delhi and a number of officials from host Burma--- could not, however, decide on the pipeline route.

In the draft, the meeting put forth a proposal for a committee, comprising officials of the state-owned gas companies of the three countries, to decide on a route in six months after a feasibility study.

The committee will also assess the quantity of gas in reserve, how much gas can be injected into the pipeline and the tariff, the sources said, quoting the draft.

They said, although Delhi initially opposed the provision for an international consortium for the installation, operation and maintenance of the pipeline, it was incorporated at the last moment in the MoU.

Bangladesh proposed two possible routes, including the “more viable” one, a 597-kilometer pipeline from Burma-Teknaf towards Chittagong and then to Brahmanbaria where a spur line can connect the Tripura gas fields. The pipeline will then crosses through Jessor and enter West Bengal, India, at Bongaon.

The sources said, if India wants the pipeline through Bangladesh, it will have to set it up along the route proposed by Dhaka as the officials of the Gas transmission Company already conducted a study.

They said as the Dhaka representatives would be there on the three-nation feasibility committee, they would press for the route proposed by Dhaka.

The memorandum will, however, be signed by Bangladesh, India and Burma, if it is ratified by the three governments, by April and the route will be decided later. ##

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