Home ›› 18 Aug 2022 ›› Front
Amid dwindling energy, dipping forex reserve and other economic strain, Bangladesh is thinking of importing Liquefied Natural Gas (LNG) from Aramco to mitigate energy pressures.
Along with other bilateral trade issues, the issue will be discussed broadly at the upcoming 14th session of Bangladesh-Saudi Arabia Joint Commission scheduled to be held in between October 30 and 31 in Riyadh.
Petrobangla is working to finalize the draft of the MoU with Aramco on collaboration for procurement of LNG.
In addition, the Energy and Mineral Resource Division is waiting to discuss with Saudi Arabia on the installation of ‘Eastern Refinery Unit-2’ with three million metric tonnes of crude oil processing capacity per annum, expecting 68,000 barrels per day to reduce dependency on import of refined petro-products.
At present, Eastern Refinery has one and a half million tonne capacity of crude oil processing per annum.
The Business Post has recently obtained minutes of inter-ministerial meeting for the Joint Commission’s session, which took place virtually on July 19 this year.
The Power Division will ask for the financing of Matarbari 2X600 MW Ultra Super Critical Coal-Fired Power Project (Phase - 2) from Saudi Arabia and discuss on the signing of MoU between BPDB and ACWA Power for the implementation of renewable energy projects (solar or wind) in Bangladesh.
Bangladesh is going to shift to Saudi for financing the coal-fired power plant after the Japan’s announcement of cancelling the funding for the project.
Japan’s Foreign Ministry Press Secretary Hikariko Ono announced the cancellation at a press conference on June 22 this year.
After that the cabinet members and other officials concerned were worried about the implementation of the second phase of the project.
Talking to The Business Post the Executive Chairman of BIDA Md Sirazul Islam said financing and investment in power and energy sector by the Saudi Arabia is required in this energy crunch situation.
Some Saudi investments are already on the cards. The development in Patenga Container Terminal including Red Sea Gateway Terminal (RSGT) under public and private partnership is one of them, he added.
The new investment of Saudi government will depend on the progress of the ongoing project financed by the KSA, he said.
Earlier, Bangladesh signed two different agreements and four MoUs in 2019 with the Saudi Arabia to finance and invest in power and industrial sectors.
Cooperation in investment, economy and trade
Bangladesh Economic Zones Authority (BEZA), Economic Relations Division (ERD) and Public-Private Partnership Authority (PPPA) set agenda for KSA to attract cooperation in the field of economy, investment and finance.
Signing MoU with Al Bawani Company Ltd was set by BEZA on the Saudi Bangla special economic zone in Bangabandhu Sheikh MujibShilpa Nagar while increased financing and development assistance of Saudi fund for development (SFD) of Bangladesh was set by the ERD.
PPPA finalized the discussion on the signing of MoU for developing PPP projects in Bangladesh including Saudi investment in Patenga Container Terminal Port, Payra Container Terminal Port and Project with Petroleum Corporation through PPP modality.
The Ministry of Commerce decided a plan aiming to export pharmaceutical products along with diversified products including frozen fish, cut flower, agro process, RMG and agro-based products, Jute goods and light engineering products to Saudi Arabia.
It will propose to invest in the area of textile, pharma, leather including power renewable energy sectors.
More scholarship
The Post Telecommunication Ministry will urge assistance in signing MoU between Aljomiah Group of KSA and Bangladeshi Teletalk.
The ICT Division will seek high-tech park investment and human resource development along with supports in startups and new stream of entrepreneurs.
Bangladesh will seek cooperation in utilizing Saudi sponsored scholarship for Bangladesh and eliminating information gap in taking admissions into renowned Saudi educational institutions.
The Ministry of Health and Family Welfare has set the agenda for the session along with finalizing MoU to exchange medical knowledge and experience and Saudi assistance for establishing special care units in different hospitals.
Easing of iqama rule and death cases
The Ministry of Expatriates Welfare and Overseas Employment is going to call for improvement of the contractual relationship between workers and sponsors and ensuring human rights for iqama expired and run-away people with settlement of death compensation cases.
