The Energy Security Fund

There is little doubt that the country’s demand for energy will substantially increase every year and a fund like this can help the energy and power sector immensely

It is expected that the Bangladesh Energy Regulatory Commission (BERC) would soon be able to frame a policy on the use of the Energy Security Fund. Any delay in this may ultimately hamper the country’s development that depends to a great degree on energy. Though there is no a finalised policy, according to a report published in this newspaper, the BERC wants to meet the import cost of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) with the money from the fund. 
There is little doubt that the country’s demand for energy will substantially increase every year and, to meet a potential crisis in this regard, a fund like this can help the energy and power sector immensely. However, the importance of the management of a fund like this is crucial for a poor country like Bangladesh that is aspiring to become a middle income country within a short time. And misuse of the fund will not help in achieving the end. 
The projected annual amount of Tk 2,600 crore—Tk. 1.01 is being saved from the sale of each cubic metre of gas—is a large amount and if the fund is properly used, this can render substantial help in achieving the country’s energy security. The draft guidelines of the fund state that the fund management committee comprising the BERC chairman as its head would set the criteria for selection of projects for spending the fund. 
The separate committee to monitor and evaluate the projects would be constituted by BERC soon. On the other hand, the fund management committee will meticulously and transparently prepare the annual report of the income and expenditure of the fund.  
According to The Independent report a part of the money earned by selling gas should be kept aside for investing in ensuring energy security for future as the country has limited gas resources. This is a good idea. As the country’s gas reserves are depleting, Bangladesh should vigorously start for the exploration of the new gas field. It is expected that the Gas Development Fund will be used properly in this regard.
The construction work for LNG and LPG terminals in the country is facing problems due to financial crisis. If money from the energy security fund can be judiciously injected into these projects, the energy sector will indeed be benefited. But for all these we need a well-thought out policy for using the Energy Security Fund first.

 

The Energy Security Fund

There is little doubt that the countrys demand for energy will substantially increase every year and a fund like this can help the energy and power sector immensely

It is expected that the Bangladesh Energy Regulatory Commission (BERC) would soon be able to frame a policy on the use of the Energy Security Fund. Any delay in this may ultimately hamper the countrys development that depends to a great degree on energy. Though there is no a finalised policy, according to a report published in this newspaper, the BERC wants to meet the import cost of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) with the money from the fund. There is little doubt that the countrys demand for energy will substantially increase every year and, to meet a potential crisis in this regard, a fund like this can help the energy and power sector immensely. However, the importance of the management of a fund like this is crucial for a poor country like Bangladesh that is aspiring to become a middle income country within a short time. And misuse of the fund will not help in achieving the end. The projected annual amount of Tk 2,600 croreTk. 1.01 is being saved from the sale of each cubic metre of gasis a large amount and if the fund is properly used, this can render substantial help in achieving the countrys energy security. The draft guidelines of the fund state that the fund management committee comprising the BERC chairman as its head would set the criteria for selection of projects for spending the fund. The separate committee to monitor and evaluate the projects would be constituted by BERC soon. On the other hand, the fund management committee will meticulously and transparently prepare the annual report of the income and expenditure of the fund. According to The Independent report a part of the money earned by selling gas should be kept aside for investing in ensuring energy security for future as the country has limited gas resources. This is a good idea. As the countrys gas reserves are depleting, Bangladesh should vigorously start for the exploration of the new gas field. It is expected that the Gas Development Fund will be used properly in this regard. The construction work for LNG and LPG terminals in the country is facing problems due to financial crisis. If money from the energy security fund can be judiciously injected into these projects, the energy sector will indeed be benefited. But for all these we need a well-thought out policy for using the Energy Security Fund first.