AMBASSADOR DISCUSSES ENERGY, LABOR AND

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 000684

SENSITIVE
SIPDIS

DEPARTMENT FOR SCA/PB

E.O. 12958: DECL: 06/24/2018
TAGS: EFIS ECIN ENRG ELAB PREL TINT BG
SUBJECT: AMBASSADOR DISCUSSES ENERGY, LABOR AND
TELECOMMUNICATIONS ISSUES WITH BANGLADESH MINISTRIES

SUMMARY
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1. (C) Key Government of Bangladesh (GOB) officials were
focused on the future of energy resources in Bangladesh, new
developments in telecommunications, ongoing concerns about
avian influenza (AI) and child labor in recent courtesy calls
with the Ambassador. The discussion on energy highlighted
the urgent need for a pragmatic assessment of Bangladesh's
energy needs and resources, one that accounts for available
reserves, including coal, that addresses investor concerns
and that balances economic, environmental and social demands.
The Special Assistant for Telecommunications discussed his
plans to expand the sector, and the Special Assistant for the
Fisheries and Livestock Ministry affirmed his commitment to
stamping out child labor and open communication on AI. All
three special assistants sounded the right notes on issues
for which they are responsible, but with only six months left
in their tenure it appears unlikely they will be able to make
significant progress on the challenges they face.

PROGRESS AND FRUSTRATION IN THE ENERGY SECTOR
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2. (C) An engineer by training, the Special Assistant to the
Chief Adviser for the Ministry of Power, Energy and Mineral
Resources, Prof. M.A.Tamim is widely respected in the energy
industry and considered a pragmatist. Citing the current and
growing shortfall in electricity generation and the
development of new power plants, he said there could be ample
supplies of gas, but exploration had frozen because would-be
investors had not been guaranteed an adequate return on
investment. That said, he believed Bangladesh's gas should
increasingly be used for industrial uses, such as fertilizer
production. Power generation, he suggested, should come from
Bangladesh's enormous coal reserves or perhaps even from
civilian nuclear reactors.


3. (C) The Ambassador raised Chevron's concern about
international arbitration in disputes on future projects, and
GE's concern about turbine specifications for power plants.
Tamim replied that the Law Ministry had approved the
inclusion of international arbitration clauses in power
contracts versus domestic arbitration, and that future
tenders for power plants would allow a wider range of plant
specifications.


4. (C) As a pragmatic man representing an often
non-pragmatic government, Tamim's frustration was evident.
He described how the long-awaited draft coal policy had been
sent back to the drawing board after its circulation through
the ministries resulted in an impractical document. Hopeful
the draft coal policy would soon be approved by the Council
of Advisers, he emphasized that the public's skepticism of
large energy projects was understandable, given Bangladesh's
bad experiences with some energy projects in the past.

CHILD LABOR, AVIAN INFLUENZA HIGHLIGHTED
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5. (U) With Mr. Manik Lal Somaddar, the Special Assistant
for the Ministries of Fisheries and Livestock and Science and
Information Technology, the Ambassador highlighted the
importance of adhering to international labor standards in
export industries, such as shrimp processing. The Ambassador
acknowledged recent progress against child labor in shrimp
processing plants but stressed that the job would not be done
until all child labor in the industry was eradicated. On
avian influenza (AI) Somaddar highlighted the promptness with
which the GOB had announced the news of the country's first
human case, reporting that surveillance activity had been
stepped up. He also mentioned the importance of cross-border
cooperation with India on AI and recent visits of a USAID
delegation to both countries. The Ambassador announced that
USAID had awarded $12 million for the Integrated Protected
Area Co-management (IPAC) program, through which USAID will
continue to support the development of inland open water
fisheries. Mr. Somaddar expressed his appreciation.

TELECOMMUNICATIONS TO EXPAND
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6. (U) A former chairman of the Rural Electrification
Board, the Special Assistant for the Ministries of Post and
Telecommunications and Social Welfare, Brig. Gen. (retired)

DHAKA 00000684 002 OF 002


M.A. Malek Mollah, praised USAID's long-term commitment to
the development of Bangladesh's power infrastructure. He
discussed the ministry's efforts to enhance
telecommunications, including the expansion of fiber-optic
networks to all districts. Mollah expressed support for
public-private partnership in developing the
telecommunications sector and his desire to move forward with
legalized voice-over internet (VOIP). He also stressed his
commitment to transparency and open competition for
investments in the telecommunications sector.

COMMENT
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7. (C) While all three special assistants appear to
understand well the challenges that face their ministries,
the fact that they plan to depart office following elections
scheduled for December limit their effectiveness. Issues
important to the development of the energy sector, including
a coal policy and terms of tenders for energy exploration and
distribution, continue to be bogged down by government
bureaucracy. The GOB is actively engaged on the issue of
child labor in the shrimp industry, due in part to the
petition pending in the United States to suspend Bangladesh's
access to the Generalized System of Preferences (GSP). To
date, there has been no active regional cooperation on avian
influenza, and expansion of Bangladesh's telecommunications
sector is slowed by poor infrastructure and poor policy,
including the prohibition of foreign investment in VOIP
projects.
Moriarty