Bangladesh News

The Council of Advisers yesterday approved the draft of production sharing contract (PSC) for offshore oil and gas exploration.

A meting of the council with Chief Adviser Fakhruddin Ahmed in the chair approved the PSC model subject to discussion with the Energy and Mineral Resources Division and the Ministry of Law.

The draft was prepared by Petrobangla with the help of experts and following the PSCs of some other countries like India, Pakistan and Vietnam.

A total of 35 articles, including agreement site, various conditions, guarantee, working area, price payment, partnership with government, tax and VAT, limitations and matters related to effectiveness and revision, are in the PSC model

In the latest PSC model, mandatory work programme has been incorporated which was not there in the previous PSC model. Also, market price has been included in the present deal model for the country’s potential sector.

In the previous rules, it was not mandatory to take prior permission of the Petrobangla in case of share transfer by the contractor concerned, which gave rise to problems during transfer of stakes by IOCs.

But, in the new model, a provision has been stipulated that a contractor will have to take approval of the petroleum corporation (Petrobangla) in case of transferring over 50 percent shares.

The meeting also approved a proposal for including a new section in the Income Tax Ordinance

1984 for fixing all inclusive taxes in case of importable power production plant of rental power companies.

The meeting approved the proposal as the government has taken initiative to have rental power plants installed in the private sector for a period of three years, aiming to increase the supply of electricity very quickly.

The government hopes that under the process power situation will be improved “remarkably within the next summer”.

Under the process rental power companies will bring power-generation plants from abroad and sell generated electricity to the Power Development Board. After expiry of the three- year term, the power plants will be sent back abroad.

The meeting also approved the signing of an agreement related to avoidance of double taxation between Bangladesh and Morocco to increase trade and investment relations between the two countries.

Besides, a presentation on bird flu was made in the meeting and it was informed that 137 poultry farms in 37 districts had been affected by the avian influenza until February 4.

A total of 449,595 fowls, ducks and pigeons were culled.

In the meeting, the authorities concerned were asked to place a proposal regarding privatisation of BTTB.

It was also decided that the adviser for the civil aviation ministry would present before the Council of Advisers’ meeting the latest status of Biman Bangladesh after its corporatisation.

Advisers and special assistants to the chief adviser attended the meeting at the CA’s office. Cabinet Secretary, Secretaries concerned and CA’s Press Secretary were also present.