The energy ministry is likely to annul the Gas Development Fund Policy, a guideline for release and utilisation of Gas Development Fund formulated by the Bangladesh Energy Regulatory Commission, said an Energy Division official.
The decision came from a meeting of the energy sector's high officials at the Energy Division on Sunday, he said.
The BERC tabled the idea of creating the GDF and its utilisation to enhance the capacity of the state-run oil and gas exploration and production companies while announcing the last gas price hike. The commission, in consultation with the government agencies concerned and other stakeholders in the sector, finalised the draft of the regulatory guideline, the GDF Policy, made by Petrobangla for release and utilisation of the fund and introduced it on January 16 this year.
But, earlier in 2009, the energy ministry also finalised the draft of another policy prepared by Petrobangla for the same purpose and introduced it on December 15 the same year.
The official said the energy ministry would formulate within 15 days yet another draft policy for release and utilisation of the GDF following the self-financing policy for autonomous agencies formulated by the planning ministry.
The energy ministry will send the draft to the Cabinet Division within this month after vetting of the law ministry, he said.
When asked about the initiative of the Energy Division, its secretary Mesbahuddin said there were a few procedural complications in the GDF policy formulated by the BERC.
'The policy needs a revision and a few amendments. After doing that, we may send the draft to the Cabinet Division,' he said.
When asked whether the ministry would annul the GDF Policy formulated by the BERC, Mesbah said it was too early to make a comment on that. It requires a review and then the government will take the decision, he said.
About the authority of releasing and utilising the fund, he said the issue would also be resolved after the ministry reviewed the GDF Policy.
Meeting sources said the ministry found that the BERC could not formulate any policy as per the Section 4(IX)(a) of the Rules of Business.
According to the Allocation of Business, all policies and matters relating to energy will be formulated by the Energy and Mineral Resources Division.
The sources also said that the ministry found a few loopholes in the GDF Policy introduced by the BERC in allocation and release of the fund.
There are also a few differences between the policy adopted by the government and that by the BERC.
The BERC, however, has been countering the ministry's assessment of the guideline formulated by the commission for release and utilisation of the fund.
According to the BERC's explanation, the ministry has mistakenly taken the guideline for the GDF as a kind of government policy. But, it is absolutely a guideline in which Petrobangla has been given the authority for releasing and utilising the fund for implementing projects in specific fields. Petrobangla will submit half-yearly activity plans of its oil and gas exploration and production companies to the commission and, after the commission approves the projects, Petrobangla will be able to release the fund required for implementing the projects.
In the meeting, the BERC chairman is reported to have said that the commission will cooperate with the government.
He is also reported to have expressed his concern at the procrastination in utilisation of the fund, as it two and a half years have already passed since the move was taken.
Source : New Age
