The New Nation - Internet Edition

Draft coal policy not okayed for differences over royalty, acquisition of land

SYED ZAHIRUL ABEDIN

The much-talked-about 8th draft coal policy was not approved at the Advisory Council meeting due to strong differences over the issues of payment of royalty, acquisition of land, and quite a large number of ambiguities in it.

Sources at the Ministry of Energy and Mineral Resources told The New Nation yesterday that the draft coal policy was sent back to the ministry concerned for further scrutiny.

Besides, the meeting of the Council of Advisers held on Wednesday in Chittagong suggested to make the draft coal policy smaller in size removing all the ambiguities.

The sources said the draft coal policy would again be placed before the Advisory Council before December this year for approval.

Earlier, the Energy Division of the Ministry of Energy and Mineral Resources sent the draft coal policy to the Cabinet Division to place it before the Council of Advisers for approval.

The meeting sources said there were strong differences among the Advisory Council members regarding the recommendations of coal extraction under open-pit system, environmental effects, payment of royalty, and rehabilitation of the affected people. The royalty issue, in particular, came under extensive discussion at the meeting.

Though 13 percent royalty has been recommended in the 8th draft coal policy, the Advisory Council noted that no local or foreign companies would come to invest in the country's coal sector if such a 'big amount' of royalty would have to pay the government.

"The amount of royalty proposed in the draft coal policy is not investment-friendly," a source said quoting the meeting.

During the meeting the amount of royalty that exists in Indonesia's coal sector was pointed out.

Special Assistant to Chief Adviser for Energy and Mineral Resources Dr M Tamim told the meeting that though the amount of royalty was only 6 percent in Indonesia, other taxes were higher in that country compared to Bangladesh.

Dr Tamim mentioned that except royalty, other taxes were quite lower in Bangladesh. "That is why 13 percent royalty has been proposed," he said.

It may be recalled that Asia Energy submitted a feasibility study report along with a development plan for Phulbari Coalmine Project during the reign of BNP-Jamaat led alliance government back in 2005. In its development plan, Asia Energy proposed 6 per cent royalty, i.e. Bangladesh would get only 6 percent of the coal after extraction from the Phulbari Coalmine Project.

However, at the same time the country's left-leaning political parties and different social organizations, including the National Committee for Protection of Oil-Gas-Mineral Resources and Ports and Power demanded of the government to raise the amount of royalty for extraction of coal. In the wake of that demand the present caretaker government formed an advisory committee with former vice-chancellor of BUET Dr Abdul Momin Patwari as convener to finalise the draft coal policy.

Other members of the committee were University Grants Commission chairman Nazrul Islam, BUET's Professor Nurul Islam, senior journalist Ataus Samad, Dhaka University Professors Badrul Imam and Mustafizur Rahman, chief engineer of the Bangladesh Army Major General Ismail Faruque Chowdhury, Petrobangla Director Maqbul-e-Elahi and chief executive officer of IIFC Nazrul Islam.

Subsequently the committee proposed that any company which will be awarded the contract for extraction of coal will have to pay 13 percent royalty to the government.

The sources said the amount of royalty proposed in the coal policy in 1968 was 10 percent. Later, it was raised to 20 percent in 1987. In 1995 the royalty was re-fixed at 6 percent for open-pit mining and 5 percent for underground mining.

At the meeting, some members of the Council of Advisers raised questions regarding the issue of acquisition of land incorporated in the draft coal policy.

They opined that any law ought not to be brought under the purview of any policy, rather laws should be kept out of the purview of a policy.

The members of the Council of Advisers said that the issue of land acquisition fell under the purview of land acquisition policy of the government, not under the purview of coal policy.

Some of the advisers also suggested making the coal policy smaller in size removing all the ambiguities.

The sources at the Ministry of Energy and Mineral Resources said that coal extraction under the open-pit method in at least one coal mine has been proposed in the draft coal policy as a test case since 'no one in the country has any real experience in open-pit mining.'

The advisory committee proposed that at least one mine should be developed following the open-pit method to gather hands-on experience, and to assess the effect on the environment.

The draft says that the first open-pit mining project will be experimental, and Bangladesh will gather data on the impact of water extraction on the environment, the impact on the underground through simulation, protection of the environment, resettlement of the evicted people and the socio-economic impact, and assess the success of re-injection of water into the underground and land reclamation and fertility.

'If the result of the open-pit mining method is satisfactory, the method can be used in other coal-fields for commercial extraction of the coal,' said the provision.

The draft coal policy says that either the proposed state-owned 'Khani Bangla' or a public-private joint venture under the management of the government would develop the coal-field using the open-pit method. The partner of the joint venture will be selected through competitive bidding.

However, the National Committee to Protect Oil, Gas, Mineral Resources, Port and Power demanded that the coal policy should not include any provision for open-pit mining, not even an experimental one.

Regarding underground mining, the policy said that necessary measures would have to be based on the experience of underground mining (in Barapukuria).

If any company wants to develop a coal-field, it has to carry out socio-economic and technical feasibility studies and submit reports on both open-pit and underground mining, and a government committee will choose the mining method, said the policy.

The committee also decided to fix a security deposit for environmental damages, which will be 2 per cent of the estimated project cost. The deposit will be in addition to the existing deposit of 3 per cent of the project's cost as stated in the mining rules.

The draft policy said that a representative group, comprising elected local representatives and local civil society members, would be formed, which would be involved with a coal project for observing environmental and social impacts and hear the complaints of local people.

The draft policy also restricts coal export and proposes to set up a large power station near every coalmine project. The coal which will be extracted will be used for generating electricity at these power stations.

It says that coal will have to be extracted according to the requirements. Coal will be extracted maintaining a balance between the extraction and utilization. In spite of it, if any company wants to extract additional quantity of coal it will not be allowed to do so.

However, the Council of Advisers suggested incorporating an explanation in detail regarding the sort of penalty if any company is found guilty for extracting additional quantity of coal.

Meanwhile, the sources at the Ministry of Energy and Mineral Resources also told The New Nation that the 8th draft coal policy would again be placed before the Council of Advisers by December next so that it could be approved within this year.

Credit line agreement of Tk 250m signed between NBL and BRAC

A credit line agreement of Tk 250 million has been signed between National Bank Ltd and Brac.

The signing ceremony was held at National Bank Ltd Head Office in Dhaka recently. The deal will help augment of fund of Brac for agriculture loan finance.

Md Abdur Rahman Sarker, Managing Director of National Bank Ltd and S N Kairy, Finance Director of Brac signed the agreement on behalf of their respective organisations.

Mohsin-UI-Karim, Azizur Rahman and Masqur Ahmed, Deputy Managing Directors, Sayed Md Bariqullah, Senior Executive Vice President, KAM Ahmed Hossain, Senior Vice President, Md Azim Uddin, Senior Vice President, Syed Rois Uddin, Vice President and Manager of Gulshan Branch of National Bank Ltd and Md Abdus Sattar, General Manager of Brac and other officials of both the organizations were also present on the occasion.

Foundation training program for BKB probationary officers

The fourth phase of Foundation Training Programme of 70 Probationary Officers, out of 404 newly recruited officers, of Bangladesh Krishi Bank has started.

The programme was inaugurated by Chairman of the bank, veteran banker and columnist Khondker Ibrahim Khaled, who was also the chief guest at the function, on August 18 at Bangladesh Krishi Bank Training Institute Auditorium, Mirpur Dhaka.

Md Mukter Hussain, Managing Director of the bank was the special guest on the occasion.

Deputy Managing Director Md Joynal Abedin, Divisional General Manager Md Siddiqur Rahman and other high-level officials of the bank were also present.

At the inaugural function, Khondker Ibrahim Khaled, terming the joining of the huge number of highly educated young officers as the important milestone in the history of Krishi Bank, expressed hope that the bank will go ahead with the pace of the new generation officers.

He urged the young officers to participate in the development activities of the country by devoting themselves to the service of Krishi Bank, the mass-people's organization, being committed to sense of patriotism and service to the nation.

Md Mukter Hussain, welcoming the newly recruited officers, said that BKB would be successful in running the modern banking activities with the help of the knowledge, skill and new approaches of the new generations officer.

Bank Asia Ltd holds workshop on BASEL-II

BUSINESS REPORT

Bank Asia Limited organised a day-long workshop on BASEL-II on August 16 to make its managers and sub-managers aware of capital requirements and the new procedures to minimize credit, foreign exchange and operational risks.

A total of 24 Managers and Sub-Managers of the bank from the Dhaka city branches attended the workshop at the bank's training institute at Motijheel C/A in the city.

Dr Sujit R Shaha and Dr Towfiq Ahmed of Bangladesh Institute of Bank Management (BIBM) conducted the workshop.

Premier Bank holds its 61st Board Meeting

The 61st (Emergency) meeting of the Board of Directors of the Premier Bank Limited was held on August 16 last at its Head Office, Banani, Dhaka.

BH Haroon, Vice Chairman of the Board of Directors of the Premier Bank Limited presided over the meeting.

Among other directors, Abdus Salam Murshedy, Shafikur Rahman, Shaila Shelly Khan, Md Lutfur Rahman, Masud Zaman, Director (alternate) AHM Ferdous, Independent Director Abu Haniff Khan, Managing Director Khondker Fazle Rashid, Observer from Bangladesh Bank Mohammad Abul Kashem and Company Secretary Syed Ahsan Habib were also present at the meeting.

The meeting discussed different issues relating to the 9th AGM of the bank.

Citi's Risk Director for Global Microfinance in Dhaka

Philip Brown, Director Risk for Citi Microfinance's global business arrived in Dhaka on August 18 on a three-day visit to Bangladesh.

During his visit, Philip is scheduled to meet senior government officials, major, clients in the micro finance sector of the bank and explore further growth opportunities for micro finance business in Bangladesh.

Philip is responsible for developing the policies, programmes and risk tools enable Citi's businesses to commercially engage in the sector.

Before moving to Citi Microfinance he was the Risk Manager for Project Finance and Structured Trade Finance within Europe Middle East and Asia (EMEA). He joined Citi Bank in 1971 and has had a variety of client and product assignments.

These span financial institutions, corporate, commercial, investment, and private bank 19 with product roles in cash management and trade. These have included country head, business and staff positions in the US, Europe, Sri Lanka, Channel Islands and Audit and Risk Review for Europe Middle East and Asia (EMEA).

GP sets up blood bank with TMSS in Bogra

Grameenphone has inaugurated a full-fledged blood bank at one of Thengamara Mohila Sabuj Sangha (TMSS) health initiatives, the Rafatullah Community Hospital (RCH) in Bogra. This is the first and the largest blood bank in the northern region funded by a private organization.

Safe blood transfusion is one of the most important pre-conditions for health safety. Grameenphone had provided financial assistance to TMSS to set up a full-fledged blood bank at the hospital, to ensure adequate resources required for safe and hygienic blood transfusions for every patient requiring blood at RCH, especially the underprivileged. Grameenphone also aims to create awareness among the mass for voluntary blood donation through this project.

Syed Yamin Bakht, Director, Public Relations, Grameenphone inaugurated the blood bank at a small ceremony on the RCH premises. Hosne Ara Begum, Executive Director, of TMSS was present on the occasion.

The Rafatullah Community Hospital is located at Bogra right next to the Dhaka Rangpur Highway, which is also an accident prone area, with a high incidence of need for surgeries and blood transfusion. In 2006, RCH transfused 1260 bags of blood to its patients. The surgery department of the hospital now takes complete shape with the establishment this blood bank.

The aim of TMSS is Family Development through women empowerment. TMSS works in all six administrative divisions and in 63 districts, covering 234 upazillas across the country. Other than RCH, TMSS runs other health programs - 64 Primary Health Care Centre called THCCs as well as the Medical technology Institute (TMIRT).

As a responsible corporate citizen of Bangladesh, Grameenphone is committed to addressing the needs of the country in its race for development, putting special focus on the healthcare needs of the country.

Kohinoor holds special promotional campaign on Fair and Care

BUSINESS REPORT

The Kohinoor Chemical Company (Bangladesh) Limited has organized a three-week long special product promotion campaign on its fairness cream, FAIR & CARE at the-districts of Mymensingh, Netrokona, Jamalpur, Sherpur & Kishoregonj. This campaign included three programmes entitled Ruper Mela, Da'ta Ha'tem Tai and Massive Communication Activities targeting selective shops/outlets, traders and end-users who live in the district towns and at the adjoining areas.

At the end of this special-natured promotion campaign a Meet-the-Press function was held on 16 August 2008 at Hotel Amir International at Mymensingh to meet the press as well as the female and male users of this product.

The local elites also attended meeting. It was a lively and spontaneous meeting.

Altaf Hossain, Senior Vice President, Sales & Marketing of Kohinoor Chemical Company (Bangladesh) Ltd spoke on the occasion as resource person. He explained the importance and purpose of such a programme.

He also answered the questions of journalists and audience as to why Fair & Care is the best and ultimate fairness cream for the beauty-loving males and females.

The meeting was also addressed by, among others, Messrs. Subrota Chandra Majumder, Vice President-Sales, GoJam Kibria -Sarkar, Assjstant Vice President-Brand, Md. Shahid Kabir, Executive-Brand and Sayed Munir Hossain, CEO of Response, the Event Management Agency.