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Niko Pipeline Scam

Probe points finger at energy ministry

Staff Correspondent
Petrobangla has concluded its investigation into the Niko gas pipeline scam with the findings that Titas gas company had to illegally give pipes to Niko for a 19km pipeline as per a directive of the energy ministry.
Titas gave the pipes which belonged to Dhaka Clean Fuel Project (DCFP) on condition that Niko would replace those within three months.
The DCFP is an Asian Development Bank (ADB)-funded
project, and 'litas was in no position to lend tire pipes.
Wliilc giving tire pipes to tire Canadian company. 'Utas just mentioned that these belonged to die DCHl
Niko replaced the pipes after three months.
Tire three-member Petrobangla probe committee was preparing its report yesterday and it will be submitted to tire energy ministry next week. Earlier this week, the ministry had asked Petrobangla to irtyesti-gate the scam as the ADB thrcatcntYl to suspend funding the $1134
million DCFP. Stakeholders of the DCFP include Titas and other gas companies under Petrobangla.
'Hie ADB warning followed a report in The Daily Star in the previous week that exposed the pipeline scam. "The investigators found the reportauthentic," said onesourcc.
Ilie Daily Star reported that while Tengratila gas field was burning during March- June, Niko was busy constructing the 19 km pipeline to carry Tengratila gas to Doarabazar.
The then slate minister for
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energy (later ousted) Mosharraf Hossain had forced Titas to give the pipes to Niko although those beloned to the DCFP and were not suitable for supplyinggas from gas fields.
The Canadian company had no permission from the Energy Regulatory Commission (ERC), the government's Explosives Directorate. Petrobangla, Jalalabad Gas Transmission Company Ltd or even the Joint Management Committee comprising Bapex and Niko officials to construct the pipeline. There is no Gas Purchase Sales Agreement (GPSA) against this pipeline.
The DCFP on the other hand suffered delay because of this illegal act