THE government has decided, as reported in The New Nation on Thursday, to build two land-based LNG terminals to import 13 to 15 million tonnes of liquefied natural gas per annum without inviting tender for the proposed massive work. Without unearthing the potential gas fields and decreasing the daily waste, the government is hastily pursuing to set up the terminals at Maheshkhali of Cox’s Bazaar and Paira in Patuakhali under the Speedy Supply of Power and Energy (Special Provisions) Act, 2010. The setting up of quick rental plants for filling up the acute scarcity of electricity makes one perceive that any government enterprise bypassing due process of procurement is beset with corruption, nepotism and misappropriation. The government should set up the terminals, if it is justified and necessary, by following general rules.
Critics said the special provision for setting up any infrastructure is to be treated as an indemnity act, as it gives concerned officials indemnity against any legal proceeding for any irregularities in the implementation of any project. Petrobangla is now implementing a project under the Indemnity Act to supply 500 mmcfd gas to the national grid after re-gasification of imported LNG through a floating terminal to be set up near Maheshkhali Island in the Bay of Bengal. The government’s decision for implementing the costly projects by passing tenders came one and a half year after it conceived the plans.
The report added that the Energy Division has already asked Petrobangla to appoint a consultant for technical support to engage contractors to set up the LNG terminals. The officials said that the authorities concerned did not have any experience in dealing with land-based LNG terminals. An Energy Division official said that Petrobangla and US-based Excelerate Energy would sign the contract by December to set up the offshore LNG terminal in 16 months after the signing of the contract. Energy Division and Petrobangla achieved the progress five years after the government had taken the plan to increase gas supply by 500 mmcfd from imported LNG after re-gasification through the floating terminal.
When the country is undergoing a volatile economy and corruption is rampant, setting up two LNG terminals under the special provision will make ruling party men profiteer. And without conducting proper geological survey to map out gas resources, introducing digital meter system to decrease wastage, the new terminals will create extra burden upon the mass people.
Conventional wisdom suggests that the introduction of economic indemnity will open the windows of corruption and money laundering. It is advisable that the government should first justify the necessity of setting up the LNG terminals by carrying out pre-project feasibility studies both in terms of economic and social cost and if necessary then follow the proper tender process. That is the only acceptable means. No project should be imposed as a burden on the mass people who provide the money for public expenditure by paying taxes.
