Finance Minister Amir Khosru Mahmud Chowdhury on Monday said the government is planning to drill 150 gas wells and set up three to four new liquefied natural gas (LNG) terminals to boost gas supply.
“The government is also offering tax waivers and incentives for solar power generation, pursuing reforms in the banking and revenue sectors, and moving to create a dedicated fund in the capital market to attract foreign investment,” he said.
The minister was speaking at a discussion titled "Sustainable Power and Energy: Driving Investment in Bangladesh", organised by the Foreign Investors' Chamber of Commerce and Industry (FICCI) at a city hotel.
Noting that the government is offering tax exemptions and incentives to increase solar power generation, he said people are being encouraged to install solar panels on the rooftops of homes and industrial establishments.
Arrangements have also been made to purchase surplus electricity generated from these panels at a higher-than-usual rate, Khosru said, adding that the government hopes this will help achieve the solar power generation target.
He said efforts are also being stepped up to increase the use of renewable energy and intensify gas exploration both onshore and offshore.
The minister said initiatives have been taken to strengthen the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) to increase gas supply.
Alongside contract-based exploration, the government has decided to drill 150 gas wells through the state-owned company, and approval has been given to procure the necessary equipment, he added.
"To tackle the gas shortage, there are plans to set up three to four new floating storage regasification units," Khosru said, adding that private investors from South Korea, China and the United States are getting involved in building them.
He said a new site near Khulna in the deep sea has been identified in addition to Matarbari. "Plans are in place to set up a modern terminal there, including facilities for directly unloading oil and LNG from large vessels, with the aim of developing an energy hub."
The minister said reforms are being undertaken in revenue administration, the banking sector and the capital market to stabilise the economy and reduce the cost of doing business.
He said the National Board of Revenue (NBR) is being split into two separate divisions – one for policy formulation and the other for policy implementation – to reduce conflicts of interest in policymaking and prevent corruption.
Initiatives are also being taken to relax unnecessary restrictions to ease the complexities of doing business, Khosru said, expressing hope that this will make it easier for investors to run their businesses and create opportunities for new investment.
He said the energy sector has become a critical pivot of the economy amid the global economic crisis and instability in the Middle East.
The government is working to ensure energy security and attract local and foreign investment while tackling challenges such as revenue shortfall, disorder in the banking sector and money laundering, the minister added.
To increase foreign investment in the Bangladesh capital market, he said, an initiative has been taken to form a special equity-based investment fund for Bangladesh in the Hong Kong stock market.
Khosru also said fruitful discussions have been held with top investors on Wall Street in the United States, and the government expects significant international investment to flow into Bangladesh's capital market and bond sector as a result.
He expressed hope that the overall economy and the energy sector will stabilise within a reasonable time, after which the economy will return to normal and gradually move towards rapid growth.