Petroleum Import
Govt to request Kuwait for extending payment time
The government has decided to seek extended credit facility from Kuwait in order to facilitate Bangladesh Petroleum Corporation in payment of bills of petroleum imports from the country, Economic Relations Division officials said.
At the upcoming joint committee meeting of the two countries to be held in the second week of December, the government will request Kuwait to extend the period for the import bill payment to 90 days from the existing 30 days, they said.
In the last week, the division made the decision finalising a set of proposals to be placed to the Kuwait authorities at the joint committee meeting.
According to Bangladesh
Petroleum Corporation, Kuwait is one of the largest fuel exporters to Bangladesh. In 2012, Bangladesh imported about 12 lakh tonnes petroleum products from the country while its total import of the products was 52 lakh tones with estimated cost of $5 billion.
According to the division, the government will also request the oil-rich country to set an oil-refinery, an international standard university, a manpower training institute and a nursing institute in Bangladesh.
It will also request the Middle East country to invest in medicine and medical equipment manufacturing industries in Bangladesh and import readymade garment, textiles, jute, leather and pharmaceuticals products from Bangladesh, the officials said.
They said that energy and mineral resources ministry sent a proposal to them for requesting Kuwait for providing extended credit facility to the corporation, an state-owned agency, so that it can arrange the payment without interest.
Currently, Kuwait provides deferred payment facility for 30 days from the opening day of letter of credit to the corporation for paying import bills without interest.
After 30 days, the corporation has to pay interest for delayed days.
Officials in the energy and mineral resources ministry said that entire payment process was time consuming while the authorities cannot unload imported petroleum products in time due to inadequate facilities in the Chittagong port.
It takes around four months for completing total payment process from opening letter of credit to collecting money from local market after selling imported fuels, a ministry official said.
If Kuwait extends the deferred payment time to 90 days from the existing 30 days, it will be comfortable for the petroleum corporation in paying the import bills, he said.
The government would also request Kuwait Petroleum Corporation for arranging training programmes for BPC officials to enhance their capacity, he said.
Economic Relations Division officials said that the division requested the energy and mineral resources ministry for formulating a detailed project document of setting up an oil refinery.
They said that foreign ministry also requested the division for seeking assistance in the constructions of Karnaphuli Tunnel and a single line metre gauge railway track from Dohazari to Cox’s Bazar via Ramu and Ramu to Gundum near Myanmar border.
The division has decided to take steps in this regard after discussing with other related wings of the division as some other development partners may be involved in financing those projects, the officials said.
They said that the Kuwait government would be requested for considering a country programme under its Kuwait Fund for Arab Economic Development for Bangladesh which would be aligned with the Sixth Five Year Plan and Perspective Plan of Bangladesh.
The meeting will also review the ongoing projects with assistance of the Kuwait government, the officials said.
-With New Age input
