Promoting Private Sector Participation in the Energy Sector (ADB AOTA: BAN 36268-01)

Bangladesh Oil, Gas and Mineral Corporation (Petrobangla)

The TA will establish a Public-Private Partnership Forum to: (i) undertake a comprehensive review of the existing framework for private sector investments; (ii) disseminate the information on the best practices of public-private partnerships in energy sector from various countries; (iii) specify goal and roles of the partners, extend and timing of their involvement, knowledge sharing and building social/institutional capital in the sector; and (iv) select energy sector projects for future investment that will involve private sector participation.

The key TA activities are grouped into five components:

(i) Component A: Assessing the adequacy of the existing policy and regulatory framework for private-sector participation in the gas sector. The assessment will include recommendations for improvement and suggestions for better enforcement of the framework.

(ii) Component B: Examining the corporate structure of gas-sector entities and preparing a corporate strengthening plan. Developing policies and procedures for gas companies that reflect recent developments in corporate governance arrangements in more developed countries.

(iii) Component C: Analyzing gas transmission and distribution pricing framework to evaluate how these prices are reflecting the size of the pipeline, volume of gas transported, distance or length of pipelines, and return on investment. Developing recommendations for adequate pricing framework for these business segments.

(iv) Component D: Examining unbundling options for gas transmission and distribution entities, identifying major issues to be addressed, and defining steps to achieve this unbundling.

(v) Component E: Designing an investment package covering transmission and distribution business segments of gas sector that would facilitate additional private-sector investment.