Russian company Gazprom is reportedly using wheat and fertiliser as bait to secure contracts in Bangladesh’s energy sector.
The company is set to provide 30,000 tonnes of potash and 50,000 tonnes of wheat free of charge to entice the interim government.
A local agent from Gazprom's Bangladesh office, who wished to remain anonymous, confirmed the information. He said that while the government requested 30,000 tonnes of fertiliser and wheat, the company would supply 50,000 tonnes each. These supplies are being provided as assistance for flood victims, the agent said.
On 29 August, Russian Ambassador to Bangladesh Alexander Mantitskiy met with Agriculture Adviser Lieutenant General (Retd) Md Jahangir Alam Chowdhury at the secretariat, during which the ministry announced the donation of 30,000 tonnes of potash fertiliser to Bangladesh.
Gazprom is allegedly attempting to forge closer ties with the Dr Yunus-led government through these donations, seeking to continue drilling operations in Chardara.
The company has taken advantage of its closeness to the Awami League government, creating an unprecedented pattern of corruption and misappropriation.
By leveraging its proximity to the Awami League government, Gazprom has set a troubling precedent of corruption and misappropriation.
While the state-owned company BAPEX could complete similar drilling work for between Tk70-80 crore, Gazprom has been lobbying to secure contracts for approximately Tk300 crore.
Over time, Gazprom’s agents in Bangladesh have increasingly become a dominating force, reportedly putting BAPEX under immense pressure.
The latter’s situation has deteriorated to the point of near collapse, as they are being kept afloat by government intervention.
Following the ousting of the Awami League government on 5 August, BAPEX has reportedly saved around Tk3,000 crore.
Bangladesh was set to enter into a contract worth approximately Tk4,200 crore, at a rate of $23 million per well for drilling 15 proposed wells. BAPEX could have completed this work for a maximum of Tk1,200 crore, a fact substantiated by numerous examples within the country, yet the government has consistently awarded contracts at exorbitant rates.
Energy experts have raised alarms about such exorbitant practices, which they describe as alarming.
The involvement of the Tawfiq-e-Elahi Chowdhury syndicate has only exacerbated the situation.
In 2014, BAPEX’s 354th board meeting approved the proposal for drilling the Shrikail-4 well, followed by the approval of a development project proposal (DPP) worth Tk64 crore at the 556th board meeting.
The approved DPP was sent to Petrobangla, with the stipulation that work would commence subject to their approval.
However, Petrobangla did not approve the Tk64 crore DPP and instead requested a Tk200 crore DPP for the same project, which was ultimately awarded to Gazprom.
Recently, Gazprom has drilled three wells in Bhola (Ilsha, Tobgi, and Bhola North-2), and the contract awarded exceeded their proposal price.
Despite discussions aimed at reducing the rates for Charadar’s proposal, the opposite has occurred.
In multiple instances, Gazprom has been awarded contracts for drilling 17 wells at inflated prices, with another 15 wells nearly finalised.
Among these, the project to drill five wells in BAPEX’s Bhola gas field was on the verge of completion and awaited a final meeting of the Cabinet Purchase Committee.
However, the interim government's energy and mineral resources adviser, Fauzul Kabir Khan, suspended these projects, averting a significant financial burden.
The prospect of spending nearly Tk300 crore for a project initially priced at Tk80 crore raises concerns about the escalating debt load.
BAPEX, with no returns on investment, finds itself in a precarious position, having previously been destabilised under similar circumstances.
Abdus Sattar Mia, chairman of the National Group and a former ambassador to Russia, has been accused of orchestrating these events.
His extensive connections within the Awami League have allowed him to operate without accountability, and despite controversies, he has not ceased his questionable activities.
Currently, he seeks to open avenues with the potash and wheat supplies, potentially aiming to gain an additional Tk3,000 crore from the 15 wells.
In Bhola, there are nine wells capable of producing approximately 200 million cubic feet of gas.
However, due to the lack of demand and a pipeline to transport gas to the mainland, only 60 million cubic feet of gas is being extracted daily.
The situation raises significant questions about the motives behind the fast-tracked drilling projects in Bhola.
Observers assert that these initiatives do not serve the national interest but rather cater to the Russian company Gazprom.
Despite previous objections to the drilling of Tobgi and Bhola North wells, which remain inactive, contracts were awarded at inflated prices, a practice that continues unabated.
While some may support the notion of pre-emptively drilling wells, the reality remains that these projects yield no returns for BAPEX.
Instead, BAPEX’s investment capacity is diminishing due to preposterously high-interest debts, having incurred a burden of Tk400 crore in 2017 that could have been managed for a maximum of Tk120 crore if conducted internally. Delaying these projects would have posed no issues.
Professor Shamsul Alam, an energy adviser to CAB, remarked that the drilling of wells in Bhola is not aligned with Bangladesh's energy requirements.
"Similar to past instances involving Niko, contracts are being awarded based on special interests. The special powers act is being exploited, creating an environment of rampant corruption, where work costing Tk10 is being awarded at Tk100, a level of mismanagement virtually unheard of elsewhere in the world," he added.
Dr Tawfiq-e-Elahi Chowdhury, energy adviser to former prime minister Sheikh Hasina, has consistently defended Gazprom, publicly stating that contracts were awarded at prices significantly lower than international rates.
Aniruddha Roy, once closely associated with former chief justice SK Sinha, previously acted as Gazprom’s local agent. Subsequently, Mia Sattar emerged, with influential political figures pulling the strings from behind the scenes. BAPEX found itself powerless against this pressure, with some individuals willingly succumbing to the allure of commission-based corruption.
