The prime minister, last week, okayed the controversial Western Region Integrated Project (WRIP) that focuses on energy sector development in the country's southwestern region, despite expert opinion to the contrary.' The project proposes developing the Shahbazpur gas field in Bnola. setting up a regional gas pipeline and four power plants.

An Energy Ministry committee evaluating the WRIP. earlier, sent its report to the prime minister. The report observed that the deal had severe negative implications.

Since the submission of WRIP proposals in mid-97, Petrobangla opinion was: Though WRIP sounds very lu-

crative. its' components are highly favourable for UNOCAL. They argued, the proposal put all risk factors on the govern^ ment and the nation would lose billions of dollars from the deal. UNOCAL, on the other hand, argued that the country would gain millions of dollars by developing the energy sector.

The World Bank, which usually promotes private sector investment in the energy sector, also believes: The project is unrealistic. It said, there was no feasibility study to Justify such a huge investment proposal.

The US Energy Department took the final stand. Earlier this year„they said. Bangladesh should protect its own interest

before going for such a complicated project The US Energy Department has extended support by agreeing to appoint a consultant. They felt, Bangladesh lacked expertise in understanding the loopholes and the pricing of components under WRIP.

Before the consultant could be appoi^ed. the government encouraged UNOCAL to negotiate WRIP and outline tender documents.

.Meanwhile, unsolicited ne-§otiations for power plants un-er WRIP are almost complete.

Petrobangla has identified the gas pipeline route. All these were supposed to have been done under guidance of the consultant.

US company UNOCAL, which recently purchased Occidental's three blocks In Bangladesh has also been offered Block 7 in the second round bidding. It has been pursuing WRIP, since late 1996. The project envisages an investment of 700 million US dollars.

The proposed project will now be reviewed by a consultant. appointed and paid for by the US. The consultant will evaluate the viability and technicality of the project and float a tender to seek matching proposals from other companies.

Sources said there will be a very short time for submission of tender and as such no genuine proposal is expected.