Global Coal Management Plc (formerly Asia Energy PLC)



Overview

GCM Resources plc (GCM) is a London-based resource exploration and development company. Its principal asset is its undeveloped coal deposit in the Phulbari region of Bangladesh, the development of which is awaiting approval from the Government of Bangladesh. It also has investments in other companies with mining interests. The company's shares are quoted on the Alternative Investment Market (AIM). (Ticker code: GCM).

The Phulbari Coal Project is a substantial, world class coal resource that will support a long life, low cost mining operation. It is the only such deposit in Bangladesh that has been subjected to a full Feasibility Study and Environmental and Social Impact Assessment prepared to international standards. In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the Company’s shareholders and the people of Bangladesh.

The Company (GCM) under its former name, Asia Energy PLC, was incorporated in England and Wales as a public limited company on 26 September 2003. Asia Energy PLC was admitted to the Alternative Investment Market (AIM) of the London Stock Exchange on 19 April 2004. Through seed capital raising and the subsequent placement of shares, some £14 million was raised.

In November 2005, following submission to the Government of Bangladesh of the Phulbari Coal Project's Feasibility Study and Scheme of Development, the Company placed an additional 7 million shares and raised a further £33 million.

GCM actively reviews investment opportunities in order to broaden its global investment portfolio.

Coal Project facts

■ Energy security and diversity – The Project has a unique role to play in addressing the country’s electricity shortfall as its development will provide the basis for a step change in the country’s electricity generating capacity.
■Regional development – The Project will provide 17,000 jobs (direct and indirect). In addition the development of new industries using the industrial mineral co-products from the mine will create thousands of more jobs. The living conditions of all affected people will be improved and their livelihoods will be restored and in many cases improved. As a result of year round irrigation, improved water quality, improved inputs and improved farming practices it will be possible to produce three crops per year with higher yields than at present.
■Huge economic impact – Phulbari will contribute 1% to Bangladesh’s GDP each year and pay US$7.0 billion in taxes, royalties and service charges to the Government over the life of the Project. The replacement of high sulphur imported coals and other hydrocarbons will have a positive effect on balance of payments and air quality.

In partnership with the Bangladesh Government, civil society and the community, GCM is committed to developing the Phulbari Coal Project to the highest national and international social and environmental standards. By doing this, GCM seeks to maximise the benefits of the Project for both the company’s shareholders and the people of Bangladesh.

Background

Bangladesh is one of the most densely populated countries in the world with some 162 million people living in an area two thirds the size of the United Kingdom or about the size of New York State. Less than one third of its population live in cities while the majority live in rural areas relying on a predominantly subsistence lifestyle. GDP per capita is around US$1,700 (ppp) per annum compared with a world average of US$10,500. Less than half the population have access to electricity. Bangladesh is a country of enormous potential. It has the eighth largest work force in the world and is included in the “Next Eleven” countries that, after the BRICs (Brazil, Russia, India, and China), were identified by Goldman Sachs as having the potential to become the world’s largest economies in the 21st century. It has enjoyed more than 6% economic growth in real terms over the last five years as well as substantial improvements in measures of human development. For example, between 1980 and 2006 life expectancy has improved from 48 years to 63 years and literacy rates have improved from 29% to 53%.

Bangladesh is one of the most climate vulnerable countries in the world with a significant proportion of the population living in remote or ecologically fragile areas such as river islands or cyclone prone coastal areas. Two thirds of the country is less than five metres above sea level making it vulnerable to the predicted effects of climate change.

Although Bangladesh is vulnerable to the effects of climate change, it is not itself a significant emitter of carbon dioxide. Per capita carbon dioxide emissions (0.3t/capita) are substantially below other countries in the region (Pakistan 0.9t/capita, India 1.4t/capita, China 4.9t/capita) which themselves are substantially less than emissions from developed countries (UK 8.9t/capita, USA 18.9t/capita). Even with the addition of the 4,000MW of electricity capacity which Phulbari coal could support, Bangladesh would still be one of the lowest emitters of carbon dioxide in the world, substantially less per capita than its neighbouring countries.


http://www.gcmplc.com/

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Open Pit Mining Method is Most Suitable Option for Bangladesh
Posted by phulbarinews on July 23, 2008

Dr Raisuddin Ahmad

Senior geologist of LionOre Australia Pty Ltd, Dr Raisuddin Ahmad, has termed Bangladeshs coal sector a very promising one to accelerate the countrys national economy. Dr. Rais has been working in Black Swan Nickle, mine in Carlgorlley, Australia, one of the deepest nickel mine in the world. Born in Narsingdi, Bangladesh, Dr. Rais has obtained his higher degree in geology and mineral industry in Bangladesh, USA and Australia. He was involved in teaching profession for long in Australia. Dr Raisuddin is also a former fellow of Australias number one ranking National University said, Coal can be a useful and effective alternative source of energy to ensure the countrys future energy security and help developing the national economy.

But to utilize the countrys coal reserve potentials a bold decision and its immediate implementation are necessary, Dr Raisuddin Ahmed further stated to Energy & Power Editor Mollah Amzad Hossain during his recent visit to Bangladesh. Following are the excerpts.

EP: Bangladesh has huge coal reserves. But the country is yet to tap its potentials. According to you what are the bottlenecks the country faces and how it can be overcome?

RA: Bangladesh is now facing multifaceted problems like lack of necessary and realistic vision, policy-related complexities and weakness in taking appropriate and timely decisions. Overcoming these bottlenecks is intricate but not impossible. Firstly the governments vision needs to be changed. The government should be open, free from political confrontation and come out of conservative approach. Appropriate decision should be taken without fear and adequate measures should be taken for its quick implementation. The government must have to maintain strong monitoring especially in the case of social and environmental issues associated with coalmine development and immediate rectification is a must if a wrong is committed. An independent monitoring system can be considered involving eminent scientists, academicians of the country.

EP: How you see the prospect of coal sector in Bangladesh and how it can be utilized?

RA: Coal sector in Bangladesh is very promising. The government must not do any further delay in taking decision on coal sector development. Bangladesh is already lagging behind in utilizing coal resources. The global practice is that around 70-80 per cent of coal is used in coal-fired power plant in the coal-rich countries like USA, China, Germany and Australia. Despite having huge potentials Bangladesh has only one 250 MW coal-fired power plant, which is also struggling for regular supply shortages of coal due to application of wrong mining method in Barapukuria coalmine. The gas reserve of the country is depleting quickly with growing demand and Bangladesh doesnt have any alternative other than immediate extraction and uses of its coal resources. The preferred option for Bangladesh would be to use coal for base load power generation and save valuable gas resource for other productive uses.

EP: By the way you mentioned about Barapukuria coal mine, what should be the appropriate mining method in Barapukuria?

RA: Geologic reality and economic consideration should come first for selecting mining method. It is very much site specific. In Bangladesh, the main challenge for underground mining is to maintain the subsurface water bearing Dupi Tila layer overlying the coal seams. It is also a challenge for open pit mining. Thick coal seam and unconsolidated overburden materials are also factors in safe and economic mining of the coal resource. Considering the overall geological structure and soil condition of Barapukuria coalmine I must say open pit mining method is most suitable for its mining.

EP: There is a controversy regarding selecting mining method for Phulbari Coal Field. Which method you suggest appropriate for Phulbari?

RA: As the geological structure and soil condition of Phulbari is similar to that of Barapukuria, the open-pit mining method would be a suitable option for getting the maximum benefit out of it. But the authorities concerned must have to be careful about pollution, degradation of environment to maintain a natural equilibrium. Mine dewatering will have significant impacts on underground water regime in the area. But there are well-tested mitigation measures in the world to minimize the impacts of dewatering. RWE Mine, Germany is a great example of efficient subsurface water management. Bangladesh must have to implement those mitigation measures and experiences to ensure availability of water to the affected communities. The local people who will loss their land and other assets for open-pit mining must have to be properly compensated. After coal extraction, the affected lands must have to be reclaimed and rehabilitated for productive uses and should consider returning back to the owner or their successors. The mining should be done in phases to ensure that huge numbers of local people do not need to be rehabilitated at once. The local people must be given proper employment and other opportunities to maintain their livelihood with better status than before.

EP: Bangladesh has several coalfields. According to you how Bangladesh can go ahead to develop those.

RA: As currently Bangladesh has no expertise in coalmining, initially one or two coalmines should be developed with assistance from foreign companies. Foreign companies can develop Bangladesh coalmines under contracts. The remaining coalmines should be kept for local companies to develop. Manpower should be developed through necessary training. Provision should be kept in the contract with foreign companies to ensure employment of maximum number of Bangladeshi nationals. Arrangements should also be there so that local expertise develop seeing and experiencing the works of foreign companies.

http://phulbarinews.wordpress.com/2008/07/23/open-pit-mining-method-is-most-suitable-option-for-bangladesh/

lol thursday i wanted to add 2500 and it was the first day in a few it went up not having quite gotten to my target. i now have at least three, possibly 5 associates in this stock so it had better work out, not just for me!

I am sure it will its just slow progress but I do think with all the Positive news from bangladesh we are close now to a go ahead with a bit of Luck !!

Hi smiler and Terry - funny old share this..... would be nice to have something firmed up newswise as i really think this must be given the go-ahead in some form or another! ho hum - patience is a virtue!

Sunday, July 27, 2008
[BANGLA-IT] Bangladesh Coal has potentials to generate 15000mw power in 20 years
Coal has potentials to generate 15,000mw power in 20 years

M Azizur Rahman

The country's electricity generation might be augmented to 15,000 megawatts, over three folds the level of the current generation, by next two decades if coal resources are properly utilised, officials said.

"Despite the dwindling gas supply across the country, the coal deposits have the potentials to generate over 15,000 megawatts (MW) electricity in next 15-20 years and ensure energy security," Chief Adviser's Special Assistant professor M Tamim told the FE.

He said: "what we need is to take appropriate decision to extract coal from the underground to ensure its utilisation."

Tamim, also an energy expert, made this comment following his last week's remark to stop providing natural gas connection to new gas-fired power plants due to dwindling supply of the natural fuel.

The country is now currently reeling under acute gas crisis having a shortfall of at least 200 million cubic feet (mmcf) gas per day and the demand is mounting as many industrial units and power plants are not getting required gas.

Due to dwindling gas supply the country's power plants are now getting 620 mmcfd of gas on an average against the demand for 850 mmcfd.

The energy ministry has already informed its inability to supply gas to eight planned large and medium power plant projects having the generation capacity of total 1,700MW electricity.

Electricity generation of around 700 MW is also being hampered in different units of gas-fired power plants across the country due to gas supply crunch.

Energy ministry officials said Bangladesh has 2.5 billion tonnes of proven coal reserves, equivalent to 60 trillion cubic feet (TCF) of gas, in five coalmines in the northern region.

But electricity generation from coal-fired power plant is only around 250 MW, less than five per cent of the country's total electricity generations of around 3500 MW.

Whereas coal-fired power generation is 92 per cent of the total in South Africa, 79 per cent in Australia, 78 per cent in China, 49 per cent in Germany, 69 per cent in India and 50 per cent in the USA.

Over 80 per cent of Bangladesh's power plants are now run by natural gas and the remaining 20 per cent by hydro, coal and liquid fuel.

Despite having enormous potentials the country's coal sector has long been un-tapped due to politicising of the issue for years, professor M Tamim lamented.

"It is the consensus among the political parties in taking up necessary decision and action programmes to ensure utilisation of coal resources," he said categorically.

He said discussions should take place among the political parties, and decisions based on pragmatic visions should be taken shortly.

Otherwise, the country's future energy security will be in jeopardy, he cautioned.

Currently the government has a vision to make electricity available for all by 2020 when the country's total demand would be 17,800 MW.

"To reach that level Bangladesh needs to increase electricity generation every year by 1000 MW," a power ministry official said.

But with the declining trend in gas supply ensuring the augmented electricity supply would be a far cry if coal were not extracted properly, he said.

http://bd-it.blogspot.com/2008/07/bangla-it-bangladesh-coal-has.html

Govt set to adopt policy for merchant power plants

Monday, 08.04.2008, 07:47pm (GMT)


The government is set to adopt a merchant power plant policy to promote private sector investments and develop public-private partnership in the country's ailing power sector, officials said.
"Unlike the existing regulations of providing fuel supply and power purchase guarantees to power plant sponsors by the government, the new policy would provide liberty to the sponsors to make own arrangements for fuel and select their own customers," a senior power ministry official told.
He said once the policy is adopted the power ministry would not have to struggle for arranging fuel for the power plants against the backdrop of mounting energy crisis especially of natural gas, said the power ministry official.
Due to dwindling gas supply the country's power plants are now getting around 620 million cubic feet of gas per day (mmcfd) on an average against the demand for 850 mmcfd.
The energy ministry has already informed its inability to supply gas to eight planned large and medium power plant projects having a combined generation capacity of 1,700MW electricity.
Electricity generation of around 700 MW is now being hampered in different units of gas-fired power plants across the country due to gas supply crunch.


http://energybangla.com/index.php?mod=article&cat=PowerSector&article=856

SUNDAY, 03 AUGUST , 2008 |SRABAN 19, 1415 | RAJAB 30, 1429


Revisiting the Energy-Power Scenario in Bangladesh



Farhad Tuhin
The development of any country depends mostly on its power without which the national economy must fail to proceed. Everybody knows about the meager situation of power in Bangladesh. But the policymakers and experts are still not taking initiatives to improve this sector showing unknown reasons, which is unfortunate. However indecision, unnecessary delay in decision making process, bureaucratic tangles and fund constraints may be ascribed to the persisting energy crisis. Despite all the well-meaning intentions, it appears that for years the energy sector of the country is hamstrung by a kind of decision-making paralysis. In Bangladesh, the power is generated from natural gas (82%), oil (9%), Hydro (4%) and coal (5%).
Demand and Supply of Power
BPDB is responsible for distribution of electricity in most of the areas in Bangladesh. Dhaka Metropolitan City and its adjoining areas are under DPDC and DESCO, Khulna and surrounding Districts are under West Zone Power Distribution Company Limited (WZPDCL) and some of the rural areas of Bangladesh are under Rural Electrification Board ( REB).
The total installed capacity of power generation is 5245MW of which the achievable average generation capacity is around 3400 MW whereas the average peak demand of power is around 4200 MW. Therefore the present shortage of power is around 800MW. In the last 2 years, there was no additional power generation from any new plant. And in the last 7 years, only 80MW (Tongi power plant which is now closed due to gas unavailability) power has been added to the national grid. At present only 42.09% of the population is served with electricity and per capita electricity consumption is only 169.92 Kwh (FY -2006) where there is a goal in Power Sector Master Plan to reach the electricity for all by 2020 which is absolutely impossible considering the present condition. Present Gas Reserve and Projected Demand
According to the estimation, the recoverable gas reserve (proven and probable) of the 23 discovered gas fields of the country is 20.63 TCF of which 7.42 TCF has been used so far leaving a recoverable gas reserve of 13.21 TCF (as of December 2007).
Energy demand projection for a developing country like Bangladesh is difficult to perform. Several scenarios were used to get an understanding of the energy requirement for a level of economic performance. The natural gas requirement from 2000 to 2050 has been summarized as follows. (a) If the economic performance is on the low side (3% GDP growth rate), the total gas requirement will be between 40 and 44 Tcf. (b) If economic performance continues according to the historical trend (Business-as-usual; 4.55% GDP growth rate), gas requirement will be between 64 and 69 Tcf. (c) If performance is on the moderately high side (6% GDP growth rate), gas requirement will be between 101 and 110 Tcf. (d) If performance is on the high side (7% GDP growth rate), gas requirement will be between 141 and 152 Tcf. However, depending on low GDP rate the natural gas demand up to 2020 will be 9.9 Tcf to 17.4 Tcf. Now it is evident that the present natural gas reserve is not sufficient to meet our upcoming demand. The gas shortage has already been started all over the country. Government has already started rationing in distribution. Several power plants are not able to generate their maximum capacity because of gas shortage. Numerous industries are struggling for the production because of gas shortage.
Power Generation
At present around 82% of power generation is dependent on natural gas of which 85% (cumulative production) gas is supplied from governmental organization (Petrobangla) and 15% (cumulative production) gas is supplied from International Oil Companies (IOCs).
Khulna power plant (226MW), Bhola power plant (6MW), and Khulna Power Company Ltd (KPCL) (110MW) are producing electricity (9% of total) using oil/furnace oil as fuel.
Karnafuli Hydro Power Station, the only hydropower plant in the country is located at Kaptai, Chittagong. After being commissioned in 1962, the plant could feed the national grid with 80 MW of electricity. In later years, the generation capacity was increased in two phases to a total of 230 MW (4% of total). The plant not only plays an important role in meeting the power demand of the country but is also vital as a flood management installation for the areas downstream.
Around 3 billion tones of Gondwana coal has been discovered in 5 coal fields of Northwest Bangladesh. Among the 5 discovered coal fields, only Barapukuria and Phulbari have been intensively studied with significant number of drilled boreholes and estimated the resource confidently to internationally recognized standards. Resource estimation in other coal fields is inferred only with a limited number of boreholes and significant exploration activities will be required to define the resource confidently. Among these coal fields, only Barapukuria Underground Coal Mine is now extracting coal with the target of one million tones per year. A mine mouth 250MW coal-fired power plant (5% of total) has been established based on the coal. But the mine is struggling to feed the power plant with required amount of coal for various technical and geological difficulties. Huge amount (approximately 3 billion tones) of imported low quality coal (from India) is used in brick fields all over the country. A few quantity (as coal briquette) of coal is consumed both for domestic and commercial purposes (e.g., tea stall, blacksmith's traders etc).
However, the policy makers and the experts must analyze and discuss the present scenarios. The national economy will suffer unexpected stagnant situation for long periods, if the country does not take initiatives immediately to address this present uncertain and meager energy situation properly. We shall have to be realized that the continued crisis and trouble in power-energy sectors may cause disastrous situation in our industry, agriculture and other commercial sectors. The national economy will obviously become stagnant or even nonfunctional. Dr. M. Tamim, special assistant to chief advisor for the Ministry of Power, Energy and Mineral Resources said (Source: Daily New Nation 20 July 2008) 'No more Power Plant on Gas'. Therefore coal would be the only available alternative resource to overcome this power crisis. A long debate has been continuing on coal policy and coal sector development amongst the experts/policymakers. Now it is time for taking decision on proper coal exploration and utilization.
Farhad Tuhin: Geologist

Bangladesh Evaluates Coal-Fired Power Plants as Energy Deficit Affects Economy

BANGALORE, INDIA--August 5, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--Bangladesh plans to increase its power generation capacity to 8,000 megawatts (MW) by 2012, as it faces a shortage of about 1,500 MW each day. The country currently has an installed power generation capacity of 5,300 MW but an actual operational capacity of about 4,300 MW. The country had sought loans of nearly $500 million from the Asian Development Bank (ADB) (Manila, Philippines) to install two power plants with a total capacity of 175 MW at Karnaphuli in Chittagong and at Barapukuria in the Dinajpur district. Under the Sustainable Power Sector Development Program, the ADB provided Bangladesh with $465 million in 2007.
On July 15, 2008, the energy division of Bangladesh presented a draft coal policy to the council of advisers for their approval. The new policy is expected to reignite the development of the country's coal sector, which recently has not seen much progress. In regard to the huge demand for energy, the policy discourages coal exports and suggests that a state-run entity be awarded the license to explore and develop coalfields. License holders can form joint ventures with partners selected through competitive bidding. The policy also suggests setting up of a state-run entity called Khani Bangla to manage all coal- and mine-related activities. It will also form the Coal Sector Development Committee to determine the royalty rate of different coal mines taking into account the geological structure of the specific mine.

Bangladesh has five coalfields with reserves of more than 2.55 billion tons. However, it has only one 250-MW coal-fired power plant, which is facing a severe shortage of coal because of the irregular supply from the Barapukuria coal mine. With the current energy scenario, Bangladesh has no option but to exploit its coal reserves for power generation. The coal discovered at Barapukuria, Phulbari, Khalaspir, Jamalganj and Dighipara is of high quality and meets international standards.

http://asiantribune.com/?q=node/12575

http://article.wn.com/view/2008/08/01/Bangladesh_is_growing_due_to_freak_environmental_conditions/


http://www.abc.net.au/news/stories/2008/08/05/2325192.htm

Thursday, August 7, 2008 03:31 PM GMT+06:00



Power Plant Projects
Lobbying may let 2 rental companies off the hook
Sharier Khan


The power ministry is considering extension of project deadlines for two unqualified local rental power companies instead of penalising and cancelling contracts with them for failing to commercially launch five rental power plants with a total capacity of 200 MW even three months behind schedule

The two companies -- Energy Prima of Hosaf Group and Kaltimax-GBB-- were selected despite their lack of experience. After signing contracts with Power Development Board (PDB) on January 16 and January 24 this year, they were supposed to commercially launch the five plants back in mid May.

But till date the companies failed to launch any power plant commercially. Their failure forced the PDB to serve them with notice of default and intent to terminate the contracts. But at the same time, the power ministry verbally assured the companies that 'nothing will happen', sources said.

They pointed out that failure of the two companies should be penalized with a daily fine of $ 500 per MW from May 15. This means till date the companies should pay the government about eight million dollars of liquidated damage, said an official.

The power plant deals will be automatically cancelled if the companies fail to launch at least test operation within a three-month bank guarantee period against each of the rental power contract. Some of the bank guarantees will expire this month, some next month, said the official.

The submission dates of bank guarantees by Energy Prima and GBB had stretched between January, February and April though they should have been submitted within a few days of signing of the deals.

This demonstrates that from the beginning of the tender, the power ministry had been very relaxed with Energy Prima that bagged four of the five deals, said one a source.

Energy Prima bagged three 50 MW rental power deals in Kumargaon, Shahjibazar and Fenchuganj and one 20 MW deal in Bogra. Kumargaon, Shahjibazar and Fenchuganj deals were signed on January 16, and Bogra deal on January 24. But the company submitted $2.8 million bank guarantee against Kumargaon project on January 30, $ 3 million against Shahjibazar project on February 5, $3 million against Fenchuganj project on April 15 and $0.9 million for Bogra project on February 13.

Energy Prima chief Moazzem Hossain is being backed by a strong lobby in the government. His brother is a former BNP lawmaker from Feni. And Moazzem is one of the accused in the Barapukuria scam case filed by the Anti-Corruption Commission.

Moazzem has allegedly siphoned off huge money from various supplier's credit projects with China in which he worked as a local agent for two decades.

The GBB's 33 MW Bhola power project deal was signed on January 16, and this company also submitted its bank guarantee after a long delay.

Till date, Energy Prima could only launch one power plant in Kumargaon on test basis. The plant is supposed to generate 50 MW power for 100 hours steadily to pass a dependable capacity test by the PDB. A successful test run will give it a commercially operable status.

The test operation of Kumargaon plant began in early July. But till now the plant never succeeded in the test as it could achieve a maximum generation of 48.5 MW for 72 hours. The PDB's committee on Dependable Capacity Test visited the plant twice and found it could not deliver the promised power.

Energy Prima's three other projects in Shajibazar ,Bogra and Fenchuganj are far from completion, sources said. Some equipment has been mobilised at Shajibazar plant site but things do not look bright, said an official.

At a meeting with the power ministry on Monday, Energy Prima and Hosaf Group chief claimed that both Shajibazar and Bogra plants can be launched on test later this month.

GBB-Kaltimax representative at the same meeting said their 33 MW power plant in Bhola may be commercially commissioned in October.

Instead of reprimanding these companies for wasting time, a high official of the power ministry suggested the companies to apply to the PDB for extending the deadline for completion of the project.

But contractually there is no room for any extension, noted one source.

In fact, if the government is so lenient about extending project implementation period to 240 days from 120 days, it could have easily bagged much better deals from competent companies. Price of rental power is higher than conventional power because it is delivered within a very short time. Extending this delivery time contradicts the justification of costly power, he added.

Power purchase from these plants will be costly but the power ministry had convinced the caretaker government's cabinet to approve these projects on the plea that these would surely come into operation within 120 days of signing of contracts as the penalty for failure of the contractor is very high.

The government signed seven rental power plant contracts with four companies in January and one in April. Of the seven, only one 40 MW plant in Khulna installed by British company Aggreko came into operation from the first week of June. The plant was supposed to come into operation on May 28.

http://www.thedailystar.net/story.php?nid=49317

A sign of stability maybe ?

Bangladesh Says State of Emergency Will Not Be Lifted Before Elections
By VOA News
07 August 2008



Bangladesh's interim government says it will not lift the country's state of emergency before general elections in December.

But government adviser Anwarul Iqbal Thursday stressed that emergency measures will be eased to allow politicians to campaign properly.

On Wednesday, during a visit to Dhaka, European Union parliament member Nirj Deva said the EU remains concerned about the state of emergency.

He said the EU does not send election observers to any country where a state of emergency is in place.

Earlier this week, Bangladeshis voted in local elections. It was the first poll since the military-backed interim government imposed emergency rule early last year.

The head of Bangladesh's independent National Election Observation Council, Nazmul Ahsan Kalimullah, declared the vote to be "fair and credible."

He said there was no sign of rigging, fraud or violence in Monday's polls.


http://www.voanews.com/english/2008-08-07-voa34.cfm

yah SP performance is frustrating isnt it, the market hates this country and th project. hopefully therein is the reason forthe SP being so low. i think if the news is good - im hoping it comes on a sunday so people can sweat it out for a night and then get screwed at the open - the SP will make a large move north. however GPNs non response to a 220p is a bit disconcerting. shows what a ridiculous market AIM is.

I to hope all be it slow things are slipping into place ! as to gpn will be Interesting to see what unfolds ?

Emergency rule boosts Bangladesh garment exports: industry
11 hours ago 09/08/2008

DHAKA (AFP) Bangladesh's garment exports are booming thanks to a new, stable business climate under the country's state of emergency, officials said Wednesday.

The nation's exports of knitted and woven items rose by nearly 17 percent to a record 10.7 billion dollars in the financial year to June 2008.

"We had an image as a strike-prone country. Buyers from all over the world used to worry a lot about whether our manufacturers could meet shipment deadlines," Export Promotion Bureau chief Shahab Ullah told AFP.

"But the state of emergency brought much-needed stability as there have been hardly any strikes."

The garment export growth rate in the last financial year was up only marginally from the previous year's 16 percent rise.

But industry officials said the headline figure masks a big achievement considering exports fell 5.37 percent in the first quarter of the last financial year, amid concern about the country's political outlook.

It took a while for buyers to realise that Bangladesh could be a stable supplier of garments and after that "export orders jumped," Ullah said.

"To buyers, stability means a lot," said Anwar-ul Alam Chowdhury Parvez, head of the Bangladesh Garments Manufacturers and Exporters Association, which covers 4,200 factories.

Chowdhury said global buyers -- mainly from the US and the European Union -- started looking towards Bangladesh from October.

Exports leapt by 51 percent year-on-year in January and by more than 20 percent in the other months until the end of the financial year.

A state of emergency was imposed in Bangladesh in January 2007, banning strikes after months of bitter political and industrial unrest that left dozens killed and closed factories and ports.

The military-backed government has promised elections in December 2008 after it completes political, electoral and economic reforms.

Garment industry officials said they hoped the industrial climate would remain stable after democracy is restored.

Constant general strikes paralysed the country amid a duel between Bangladesh's two main rival political parties, the Awami League and the Bangladesh National Party, before the imposition of emergency rule.

The garment trade accounts for 40 percent of all industrial jobs in Bangladesh, with women making up more than 80 percent of the workforce.

Some 40 percent of Bangladesh's 144 million people live below the poverty line. Poor households spend nearly 70 percent of their income on food.

Garments, which make up three-quarters of the impoverished country's export earnings, helped boost total exports by 16 percent to a record 14.11 billion dollars in the last financial year.

http://www.steelguru.com/news/index/2008/06/09/NDk2MzE%3D/Bangladesh_to_adopt_coal_policy_soon_to_increase_production.html

http://www.theindependent-bd.com/details.php?nid=93370

Cabinet to discuss draft coal
policy in Ctg on Aug 13
Staff Correspondent
The draft coal policy is scheduled to be placed for approval before the council of advisers at the weekly meeting in Chittagong on August 13 (Wednesday) amid controversies persisting for two years.
A number of energy experts alleged the Energy Division had dropped off the latest draft some provisions such as return of mined land to owners, which was in the draft prepared by an advisory committee, in aid of foreign companies such as Asia Energy.
The division officials, however, brushed aside the allegations saying the provisions were dropped to avoid complexities in future. They said it was not true that the division was thinking of any specific foreign company.
The advisory committee, headed by former BUET vice-chancellor Abdul Matin Patwari, submitted the seventh draft, which was finalised in 19 meetings, to the division in January. The division finalised the eighth draft in six months and sent the draft to the Cabinet Division in July to be placed for the approval of the council of adviser.
The draft is likely to be placed at the council meeting scheduled for Wednesday in Chittagong, said a source in the Energy Division.
The energy experts, however, criticised the division for dropping a provision off the draft prepared by the Patwari committee that the land, to be acquired for mining, would be returned to the owners after the recovery of the land in its original form after mining.
The division has also dropped another provision that set the criteria based on which royalty rate would be set by a proposed coal sector development committee.
The experts also criticised the division for withdrawing the sections on environmental management during mining from the main text of the policy and including them in the policy appendix.
Energy expert Professor Nurul Islam of Bangladesh University of Engineering and Technology, who was one of the members on the Patwari committee, told New Age on Sunday if the council approved the latest draft without any change, the economy would be affected, the interest of the affected people of coal mine area would be hampered and the companies interested in coal mining would get additional benefits.
He alleged the latest draft had dropped some provisions of the Patwari committee draft in aid of the controversial Asia Energy for its proposed Phulbari coal project.
The latest draft says the recovered land would be used properly although the previous draft said the land would be recovered after mining and would be given back to the owners by enacting a law, he said.
He said the provision was dropped to enable investors to make more profits as the handover of land to the owners involved cost.
An Energy Division source, however, said they had discussed the issue with the land and law ministries and the both recommended keeping the land under government as giving back the land to the owners would create huge complexities.
After 20 years of mining, if the government takes steps to give the land back to the owners, there will be debate over ownership and the government will face litigations. The existing act does not support that the government acquired land will be returned to original owners, he said.
He also brushed aside that the provision was dropped for the benefits of the investors. We have not said that the land would not be given its original shape. Giving the land its original shape and not returning it to the owners will entail cost, he said.
Nurul Islam differed on the view of the Energy Division on the possibility of litigations over ownership. We are living in an ear of technology, and not in 19th century. It is now easy to keep record of the owners and their family members even with photographs. If the government is sincere, it can return the land to the owners. And for that, we have proposed enactment of a law if the existing laws do not cover the issue, he said.
He also observed the division had intentionally omitted the criteria based on which the coal sector development committee would set the royalty rate.
At our committee meeting, we tried to set the royalty rate but because of pressure of the lobbyist of Asia Energy, it could not be done. Then we recommended some criteria based on which the royalty rate will be set. But that recommendation has also been doped, he said.
He demanded that the government should set the royalty rate at 16 per cent and put a cap on coal price.
The Energy Division source said the Patwari committee had proposed a 28-member coal sector development committee to set the royalty rate. The committee will include people from all sections. The committee should be enough to set the criteria for the royalty rate, he said.
Nurul Islam also criticised the division for withdrawing the issues related to environmental management from the main text of the policy. Environmental management is an important issue in coal mining. This issue should be in the main text, and not in the appendix, he said.
Another member on the Patwari committee echoed what Nurul Islam said.
Asia Energy, meanwhile, has intensified its campaign for the Phulbari coal project as the council is set to discuss the policy.
The company has published a series of advertisement in national and local daily newspapers highlighting what benefits the proposed Phulbari open-pit mine would yield.

http://www.newagebd.com/2008/aug/11/front.html

August 12, 2008


Bangladesh draft coal policy sent to cabinet for approval
Energy Bangla reported that the energy division of Bangladesh sent a draft coal policy to the cabinet division to place it before the council of advisers for approval. Officials of the division are hoping that the much talked about draft policy would be placed before the council soon in any of its regular weekly meetings.

The countrys coal sector development, which has virtually remained stalled, is expected to begin once the coal policy is approved by the council. Special aide to the Chief Advisor, Prof M Tamim told Energy Bangla that this new policy will help to develop the coal sector of Bangladesh.

The policy has discouraged export of coal considering the demand for energy in the country, and suggested awarding of the exploration and development license of any coal field to a state-run entity, which will be able to take joint venture partner/partners through competitive bidding.

It has also recommended formation of a separate state-run entity, Khani Bangla to oversee the coal and mine related activities in the small scale pit mines to find out the viability of such mining method, and formation of a coal sector development committee to fix the royalty rate.

http://www.steelguru.com/news/index/2008/07/28/NTY0MDI%3D/Bangladesh_draft_coal_policy_sent_to_cabinet_for_approval.html

Draft coal policy for Mine Bangla
Proposal goes to cabinet today
Sharier Khan

The eighth draft coal policy that emphasises immediate government-led action in coal sector to meet the country's surging energy demand is likely to be placed before the caretaker government's cabinet today.

The draft proposes to set up a "mine Bangla" in line with Petrobangla by 2010 to spearhead different mining schemes. This government body will take strategic partners from private sector through open tenders for quick development of the schemes.

Other proposals include compulsory release of 20 percent shares of a mining venture to the local market as per the laws of the Securities Exchange Commission. When selling back, shareowners will be only able to sell those to the government at market price.

"Because of excessive revisions and inputs from a wide number of people, the draft policy now sounds more like a law than a policy," says a source. "And this was exactly the observation of the law ministry about the policy when the energy ministry sent the draft to the law ministry a few months back."

The draft policy tries to touch almost all aspects of coal development. "That is why the law ministry observed that instead of such a policy, the government should work on several laws instead of just one," the source adds.

The coal policy was first drafted in December 2005. The seventh draft was prepared by a committee to review the draft policy. Headed by former VC of Buet Prof Abdul Matin Patwari, the 10-member committee submitted its report to the energy ministry in December last year.

The ministry itself has also modified some of the contents. Only recently, the ministry has forwarded the draft to the Cabinet Division for approval by the cabinet.

Under this policy, private companies will not have sole ownership over any coal mining deal and must come as partners with a national coalmining company.

The draft restricts export of coal to be used as fuel, allowing exports of higher grade coking coal.

It lays out a detailed plan on how the government should handle rehabilitation and resettlement of communities that will be displaced by a mining project. The Patwari committee had suggested that the land acquired by a project be returned to the original owner upon completion of the project.

The land and the law ministries however deleted this part as it conflicts with the laws of the land. "Once the government acquires a piece of land, it can't be returned to the original owner. The government can however restore the land and allow its agricultural use," says a source.

The policy does not restrict open pit mining, as was initially demanded by some pressure groups. Instead, it identifies mining method as a technical issue, which should be decided on the basis of individual cases and technical viability.

The policy prioritises private partnership that puts highest emphasis on coal-fired power projects.

A 29-member committee led by the energy ministry will review coal sector master plan, royalty, the sector's development issues from time to time and give decisions.

By 2010, the government must frame a coal sector master plan, identify coal zones, review coal industry infrastructures and initiate restructuring measures.

It will also restructure the Bureau of Minerals Development and Geological Survey of Bangladesh and chalk measures to protect the environment and develop the legal frameworks for it.

The government will also have to chalk out a security measure for mines and a plan to reclaim land.

The draft recommends that the government decide on implementing an open pit mine as a "test case" in the northern part of the Barapukuria underground mine. If such a venture is "commercially successful", the government will review all technical aspects and take follow-up measures.

"There has been no study by any group about such an open pit mine in Barapukuria. How can this committee suggest this? Besides, who would invest for a test case if there is no guarantee of any profit?" asks another source.

"Again, technically you also need bigger land for an open pit mine. The Barapukuria mine area has a power plant and other structures. Then is this a feasible idea or just an undue idea?" the source quips.

The draft policy says till 2025 if Bangladesh's GDP remains as low as 5.5 percent, the country will need to add 19,000 megawatt additional power. On the other hand, if the GDP is as high as 8 percent, additional 41,000 MW power will be needed.

But at the same time, Petrobangla says production of gas, which has been the key source for power generation, will start to decline from 2011. This is where the country's coal should play a role.

It adds that to meet its power demands in a GDP growth rate scenario of 5.5 percent, Bangladesh will need 136 million tonnes of coal till 2025. If the GDP rate is 8 percent, then Bangladesh will need 450 million tonnes coal.

The draft says the country's existing four discovered coal fields of Barapukuria, Phulbari, Khalashpir and Dighipara can cater this need till 2030 or so.

http://www.thedailystar.net/story.php?nid=50253

Also on the eve of the Meeting !

Power sector in for grave crisis


Implementation of 14 power projects uncertain as Petrobangla drops gas commitment


Tuesday August 12 2008 00:56:38 AM BDT


The power sector is headed for a grave crisis as implementation of 14 proposed power plant projects with a composite capacity of 2,850MW has become uncertain with the Petrobangla withdrawing its commitment for immediate supply of gas.(The Newage)

Officials of Petrobangla at a joint meeting of energy and power divisions on Monday said it could at the moment supply gas to only three of the proposed plants 450MW Bibiyana independent power plant, 150MW Sylhet and 150MW Bhola plants.

They also said that they would supply gas to the under construction 11 short- and long-term rental power plants and seven out of 10 under construction small independent power plants, which are likely to be commissioned by January, 2009, as per Petrobanglas earlier pledge.

But, Petrobangla said, it would not be able to supply gas in near future to the 450MW Sirajganj IPP, 450MW Meghnaghat-III IPP, 450MW Bheramara power plant, 250MW Dhaka North Power Plant, 360MW Haripur, 210MW Khulna, 150MW Shikalbaha, 150MW Chandpur, 2x150MW Shiddhirganj, 150MW Sirajganj and 150MW Khulna plants, one unit of the under construction 2x120MW Shiddhirganj plant and three small independent power plants at Feni, Mohipal and Barabkunda.

Petrobangla, which had made the commitment to the Power Development Board in August, 2007 that it would supply gas to these plants between 2009 and 2012, backed away from the pledge asking the PDB to defer the projects by at least two to three years until gas supply could be ensured.

Of the power plants, power agencies have already invited tenders for the 450MW Sirajganj IPP, 210MW Khulna and 150MW Chandpur power plants. The government has also finalised lending agreements with Japan Bank of International Cooperation, Asian Development Bank and World Bank for the 360MW Haripur, 150MW Siddhirganj, 150MW Sirajganj, 150MW Khulna and 2x150MW Siddhirganj plants. The government has also awarded contracts to a Chinese company for setting up the 150MW Shikalbaha and three local entrepreneurs for installation of three SPPs.

Petrobangla in August 2007 also said that it would not make a commitment for gas supply to eight other power plants, including the 450MW Ashuganj power plant, 225MW Shikalbaha plant, 210MW Shiddhirganj second unit, 225MW Ghorashal plant, and 150MW Sylhet Gas Turbine. The Power Division did not proceed with the plants any further following the Petrobangla decision last year.

Petrobangla on Monday said it would supply gas to the proposed power plants in future if gas production in the country increased and new gas fields were discovered. Petrobangla currently supplies around 1,780 million cubic feet of gas against a demand for around 2000mmcfd. Power plants get around 650mmcfd against the demand for 850mmcfd.

It will be a severe blow to the power sector if Petrobangla does not supply gas to the proposed plants. Almost all of our projects have become uncertain which means we will not be able to install plants with a combined capacity of at least 3,000MW, said a PDB official.

He said that these plants were supposed to come into operation by 2012 when the demand for power would be more than 7,500MW.

At present, we produce around 3,300MW against the demand for around 5,000MW. We can produce around 3,800MW by January 2009 if the small IPPs and rental power plants come into operation and if gas is available to them. But after that only three power plants may come into operation, he said.

Power secretary M Fouzul Kabir Khan, who was present at the meeting, told New Age he did not think Petrobanglas refusal to supply gas to the power plants in the pipeline was final.

They have requested us to defer some of the projects because of gas shortage at present. We will review their proposals and will sit with government high-ups to discuss what can be done for the power sector, he said.

Energy secretary Mohammad Mohsin said that they were forced to request the PDB to defer some projects. What else can we do when we are facing a severe gas shortage because of increasing demand for gas in industries and CNG stations, he asked.

Mohsin, however, said that most of these projects would get gas once Petrobangla would augment around 300mmcfd of gas by 2012 from different fields.

Thursday, August 14, 2008 12:25 AM GMT+06:00


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Ctg to get emergency gas, rental power plant
Advisers' council sends back coal policy to ministry
Staff Correspondent, Ctg


The Council of Advisers at its meeting here yesterday decided to provide 20 mcf (million cubic feet) additional gas and set up a 50-MW rental power plant for immediate and short-term solutions to the acute gas and power crises prevailing in Chittagong.

Chaired by Chief Adviser Fakhruddin Ahmed, the meeting also discussed the draft National Coal Policy and asked the energy ministry to place the draft policy again after scrutiny.

Held at Chittagong Circuit House, the meeting decided to set up a separate gas distribution centre titled Karnaphuli Gas Systems Limited (KGSL) to ensure smooth distribution of gas in Chittagong.

To resolve seat crisis in the educational institutions, the meeting decided to increase additional 19,000 seats through infrastructure development of six private schools and setting up of two new model school and colleges here at a cost of Tk 71 crore.

Different local issues like acute gas and power crises and waterlogging prevailing in the port city featured in the meeting where we have tried to give some immediate and short-term solutions to the problems, said Chief Adviser Fakhruddin Ahmed at a press briefing after the meeting.

Additional gas will be supplied to the industrial units that could not go into operation for want of gas, he said.

As a short-term solution to power crisis, we have decided to set up a furnace oil-run rental power plant, he said, adding, Though we know it will be a bit expensive, we have to look for an alternative way of producing power as an instant solution.

Regarding the proposal for setting up coastal township in Chittagong by the world leading steel manufacturer, Mittal Group, the chief adviser said the government is actively considering the proposal.

Talks with Board of Investment (BoI) and others concerned are going on, he said, adding, Since it's a huge project all the details need to be discussed thoroughly.

Briefing the reporters, Commerce and Education adviser Hossain Zillur Rahman said 20 mcf additional gas will be provided for Chittagong through two separate supply lines from Bangura and Bakharabad gas fields.

Of the 20 mcf gas, 10 mcf will be supplied to the already installed industrial units that could not go into operation while the rest will be required for producing 40MW electricity at the existing plants.

Besides setting up of the 50MW rental power plant under short-term solution, initiative was there to ensure smooth and equitable distribution of power through demand management, said the commerce adviser.

He said a Tk 95 crore project for infrastructure and drainage system and a Tk 22 crore project on garbage management are awaiting Ecnec approval.

The meeting decided to provide all out cooperation for implementation of the Tk 10,000 crore JBIC (Japan Bank for International Cooperation) project for construction of outer ring road in Chittagong.

Besides, we will hold talks with the Italian ambassador for reviving and immediate implementation of Madunaghat Water Treatment Plant to resolve the water crisis in the port city, said the commerce adviser.

The meeting thoroughly discussed and laid emphasis on implementing projects for construction and repair of six inter-district highway and roads in this region, he said.

Moreover, the meeting underscored the need for taking decision on priority basis on construction of Chittagong-Dohazari-Cox's Bazar (upto Ghundhum bordering Myanmar) railway track involving Tk 1300 crore.

The meeting also decided to take up project for setting up the CDA proposed IT tower.

To overcome the godown crisis in the port city, the meeting decided to set up seven warehouses in the city's Dewanhat area.

Besides, the meeting also decided to approve two projects (Gymnasium and Prof Yunus Social Science Building) of Chittagong University and construction of an annex building of Chittagong Circuit House, said the commerce adviser.

UNB adds: while visiting the construction site of the 3rd Karnaphuli Bridge in the morning, the chief adviser directed the authorities concerned to complete the bridge and its approach road at the same time.

He mentioned that some big bridges in the country had been opened to traffic without completion of its approach road. As a result, full benefits of the bridges could not be derived soon after those were opened to traffic.

The CA was informed that the construction of 950- metre long and 24.47-metre wide bridge over the Karnaphuli is expected to be completed by July 2009, two months ahead of schedule.

The bridge is under construction at a site between Bakulia and Shikalbaha on the Chittagong-Cox's Bazar highway.

The total cost of the bridge along with 1.5 kilomtre approach road and 2.6 kilometre service road is Tk 590 crore of which Kuwait Fund for Arab Economic Development (KFAED) provided Tk 372 crore, while the rest Tk 218 crore was financed by the Bangladesh government.

The chief adviser expressed satisfaction with the progress of the construction work and hoped that the bridge would be opened to traffic well ahead of the schedule.



http://www.thedailystar.net/