Govt sets new rules for fuel import
The energy ministry has for the first time prepared a policy for petroleum import to make the process transparent.
The policy, which has kept scope for import through both government-to-government contracts and open tenders, was approved on Wednesday by the cabinet committee on economic affairs.
However, in any calendar year, 50 percent of the Bangladesh Petroleum Corporation's import of fuel, or as determined by the government, will have to be on a government-to-government basis.
In case of an open tender, the bidders will have to fulfil several criteria for participation in the process.
For instance, a bidder must have: an annual turnover of $3 billion, refineries and yearly processing capacity of three million tonnes.
It must have at least five years' experience in exporting fuel oil and its average export over the last three years has to be two million tonnes.
The bidder's working capital will have to be $2 billion.
Besides, the bidder will have to be free from trade restrictions of various international organisations like the United Nations, the World Trade Organisation and the Organisation of Petroleum Exporting Countries.
In case of government-to-government import, the supplier will have to fulfil several mandatory criteria including having an annual turnover of $5 billion.
The supplier organisation has to be 100 percent government-owned. The subsidiary firm of the organisation can supply fuel, but its 100 percent share has to be at the hands of the original supplier. The government organisation will have to own refinery with annual processing capacity of six million tonnes.
The government-owned organisation must have five years' experience and annual fuel export capacity of five million tonnes. In case of export of finished petroleum products, the supplier organisation or any of its directors cannot be loan defaulters. Any case in this regard cannot be pending in any international court.
However, in case of supply on government-to-government basis, the organisation will have to be listed with the BPC on the basis of specific criteria.
The criteria include the government-owned supplier organisation must submit expression of interest to BPC or the mineral resources division.
The BPC through the Bangladesh embassy in the country concerned of the exporter will collect and scrutinise the necessary information regarding the ownership and other information.
If the organisation is considered satisfactory, the BPC will enlist it after the necessary talks.
The BPC imports fuel worth about Tk 50,000 crore to Tk 60,000 crore every year, but various questions remain over its import process and the accounting system.
Even the International Monetary Fund under its extended credit facility loan set a condition that the BPC would have to get audit done by an international firm.
As BPC did not comply with it, the release of an instalment of the loan was deferred.
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