United News of Bangladesh

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood on Sunday said the government would ensure that national interests remain protected in all agreements signed under the Offshore Bidding Round 2026 process. “The BNP has always upheld nationalism as its core principle and we are proceeding with this bidding round keeping that spirit in mind so that Bangladesh does not suffer any loss or compromise its interests,” he said. The Minister made remarks while addressing a press briefing at his Ministry on the occasion of the launching of its long-awaited Offshore Bidding Round 2026, aiming to attract international oil companies (IOCs) to explore untapped oil and gas reserves in the Bay of Bengal as the country seeks to strengthen energy security and reduce dependence on imported fuel. He said the government would carefully analyse international production-sharing contracts before finalising any deals with foreign companies. Describing the launch as the beginning of “a new chapter”, he said Bangladesh had for years relied heavily on imported energy while leaving its own resources unexplored beneath the seabed. “As a result, the country suffered significantly and our foreign currency reserves came under immense pressure,” he said. Referring to the last offshore bidding round held in 1993 during the government of former Prime Minister Khaleda Zia, he said gas currently supplied from some offshore fields originated from contracts awarded during that period particularly involving US energy giant Chevron. “After that, no meaningful offshore bidding round involving foreign companies was held,” he said. The Minister said that although Bangladesh celebrated its maritime boundary victories in the Bay of Bengal over the past decade, sufficident attention was not given to actual exploration and extraction activities. “Many spoke about the victory at sea but perhaps forgot that resources also need to be extracted,” he said. He claimed neighbouring countries that had disputed maritime areas with Bangladesh are already extracting gas from their offshore blocks and exporting energy, while Bangladesh still lacks adequate knowledge about resources beneath its own seabed. The government, he said, pledged to strengthen state-owned exploration company BAPEX, but acknowledged that the company currently lacks the expertise and equipment required for deep-sea exploration. “We have encouraged BAPEX to participate in the bidding process through joint ventures with foreign companies, and we have kept BAPEX involved in the process,” he said. The minister noted that the government moved ahead with the bidding round within 180 days of assuming office, fulfilling one of its election commitments.  “If gas or oil can be extracted from our offshore areas in future, it will become a major driver of the country’s development,” he said. Highlighting the importance of energy security, he said no country could sustain economic development without ensuring adequate energy supplies. “When we assumed office, we found the energy sector in a very poor state. Since then, we have been trying to establish long-term energy security, and the situation is now much better than before,” he said. On possible reserve overlaps or disputes in offshore areas, he said such issues would be resolved through bilateral negotiations if necessary. The minister said several major international companies have already expressed interest in participating in the bidding round, including firms from the United States and China. “Many companies have spoken to me directly and expressed their interest. I hope this time the mistakes of the past will not be repeated and investors will participate actively in the bidding,” Iqbal Hassan  said. Responding to a question on labour-related provisions in the bidding framework, particularly the issue of strike clauses and compliance standards, he said Bangladesh has signed around 70 international labour protocols and is therefore obliged to comply with them. “Bangladesh has signed one of the highest numbers of international labour protocols in the world, so we must follow those commitments,” he said. Speaking at the event, State Minister for Power, Energy and Mineral Resources Aninda Islam Amit said the move was in line with the ruling BNP-led government’s election manifesto, which pledged to achieve greater self-sufficiency in the energy sector through exploration of offshore and onshore resources.  He said the government had revised several provisions in the tender documents to address past limitations and make the bidding process more attractive to international companies while safeguarding Bangladesh’s national interests. “We will do everything while protecting Bangladesh’s interests,” he said, seeking cooperation from the media in promoting the initiative internationally. Power and Energy Secretary Mohammad Saiful Islam said the government had undertaken extensive consultations with international oil companies after the previous offshore bidding round failed to attract any bids despite participation from seven firms in discussions. He said a review committee was formed to identify the reasons behind the lack of participation. The secretary said the government spent more than a year consulting international experts, major global energy firms including ExxonMobil, and local petroleum specialists to revise the production sharing contract (PSC) framework.  

The interim government will not increase power tariffs despite a recommendation from the International Monetary Fund (IMF), said Power and Energy Adviser Dr. Fouzul Kabir Khan on Thursday. "We will not raise power tariff despite IMF’s suggestion," Dr. Fouzul told reporters after a meeting with an IMF delegation at the Finance Ministry. The delegation, led by IMF Mission Chief to Bangladesh Chris Papageorgiou, held a meeting as part of the IMF’s third review under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). Finance Adviser Dr. Salehuddin Ahmed and Dr. Fouzul were present during the discussions. Govt prioritises timely textbook distribution: Education Adviser The energy adviser explained that while the IMF recommended a tariff hike to ease the subsidy burden in the power sector, the government emphasized the adverse effects such a move would have on citizens already grappling with high inflation. The government is focusing on reducing subsidies by cutting production costs in the energy sector, the adviser said. Old, polluting buses in Dhaka to be scrapped to combat air pollution: Rizwana He also highlighted several reforms aimed at improving efficiency and transparency in the power sector. The government has repealed the Speedy Increase of Power and Energy Supply (Special Provision) Act, 2010, and removed bureaucrats from the boards of directors in various power companies, he noted.

The Centre for Policy Dialogue (CPD) on Sunday called for discontinuation of the Speedy Supply of Power and Energy (Special) Act 2010, scheduled to expire in next October, in the interest of the country’s power and energy sector. “We apprehend, if it continues, it would create room for corruption, reduce scope for competition and increase non-transparency in the project implementation process”, said Dr Khondaker Golam Moazzem, Research Director of the think-tank said at a webinar presentation on “Power Sector in the National Budget for FY 2021-22: Perspective on Allocative Priorities & Reform Agenda.” Read: CPD dialogue calls for urgent cash transfers to COVID-hit households The law is supposed to expire on October 10 this year, he said. The virtual seminar was organized by the CPD with its Chairman Prof. Rehman Sobhan in the chair. It was addressed by energy expert and BUET teacher Prof. Dr M Tamim, Sustainable and Renewable Energy Development Authority (Sreda) Chairman Mohammad Alauddin, Power Cell Director General Mohammad Hossain, IDCOL Managing Director Mahmud Malik, Bangladesh Independent Power Producers Association (BIPPA) President Imran Karim and Mini-grid power plant operator Mojibur Rahman. Executive Director of CDP Dr Famida Khatun moderated the discussion. Dr. Golam Moazzem said the law was enacted targeting special needs in 2010. He said Bangladesh’s energy and power sector now needs to shift its activities from ‘emergency management to ‘market-led’ management and it needs to improve its transparency, accountability and efficiency. He noted that the power and energy sector received an allocation of Tk. 27,484 crore in which power got Tk 25398 crore and energy got Tk 2086 crore  with 62 per cent of the focus on generation. Read: Budget lacks clear outline to protect lives, livelihoods: CPD It now needs a shift in allocation more on transmission and distribution from generation, he said. The CPD suggested increasing budget allocation for renewable energy saying that financial incentive should be further widened in the sector. Foreign direct investment (FDI) in renewable energy should be facilitated by making the domestic business environment favourable including making the businesses viable and de-risking, he added. The power sector should be made competitive and all types of bidding should be held under ‘open bidding’ system maintaining transparency’, he added. Dr M Tamim said there is a huge gap between the government’s figure of power generation capacity and the real scenario. “We have actual deliverable capacity is 14,000 MW while the maximum generation capacity is 18,000 MW”, he said, adding, the statement about the 23,000 MW is a political propaganda.   Read: CPD finds much in budget out of touch with reality He said Bangladesh should adopt its own model based on an appropriate technology to address its energy problem instead of following any other country’s model.  Mahammad Alauddin said the government is preparing a Delta Plan where the country’s renewable energy generation target was set at 30,000 MW by 2041. Mohammad Hossain said the government is now trying to shift its focus on development of transmission and distribution lines from its current focus on generation.