This power point presentation provides information on legal issues on energy security and general Investment law in Bangladesh. How to set up a business in Bangladesh specially in energy sector/
Energy related and General Investment law in Bangladesh
1. Legal issues on energy security and
cooperation between China and
South Asian Countries
From perspective of Bangladesh presented by
Sanwar HOSSAIN, Barrister at law, Advocate ,
Supreme Court of Bangladesh, Managing
Partner, S HOSSAIN & ASSOCIATES
www.shossainandassociates.com
2. Introduction on legal system of
Bangladesh
• The laws of Bangladesh are based on English
common law style and many laws enacted
during colonial period are still the same with
minor amendments.
• The Highest court is the Supreme Court of
Bangladesh.
• There is a written constitution.
• Laws are enacted by parliament and by
delegated authorities.
3. Bangladesh Government’s vision for
energy security
• To achieve energy security for the country
through supply of sustainable energy services
for all at affordable prices and
exploit mineral resources in an
environmentally sustainable manner.
• The energy sector has been identified as the
most important sector for rapid development
of the country.
4. Opportunities for investment in energy
sector in Bangladesh
• The current electricity generation of the
country is around 7700 MW, the Government
plans to increase power generation to 34,000
MW by 2030.
• The government is inviting foreign investors to
set up power plants in Bangladesh to
contribute to the increase of power
generation.
5. Law regarding foreign investment in
energy sector
• The Policy Guidelines for Enhancement of private
participation in power sector , 2008 describes in
detail how foreign investors can invest and set up
power plants in Bangladesh.
• Any foreign company with adequate financial
strength and technical knowledge and experience
may apply for license to establish a Commercial
power plant to the Bangladesh energy Regulatory
Commission (BERC). The license is called
Generation license.
6. Law regarding foreign investment in
energy sector
• The electricity generated can be sold to the
Government distribution company or any
large consumer such as Export processing
zones, large industry etc.
• The new power plants shall mostly rely on
liquid fuel, coal etc.
• Government is also encouraging investment
on solar energy on consumer level in remote
reverie areas.
7. Law regarding foreign investment in
energy sector
• Public private partnership for old government
owned power plants.
• The investment can be made in two ways :
ROO or ROT
• ROO means rehabilitate , operate and own
• ROT means rehabilitate , operate and transfer
8. Law regarding foreign investment in
energy sector
• There is provision for no competition from
Government power generation companies for
large consumers of Commercial power plants.
• Foreign companies can establish joint venture
with local companies to set up power plants.
9. Opportunities in specialized power
generation
• Nuclear power plants
• Solar energy
• LPG
• Coal based large power plants
• Import of electricity from bordering countries
10. Business registration in Bangladesh
• Foreigners can set up a limited company in
Bangladesh
• Foreigners or foreign companies can have
100% equity shares in companies in
Bangladesh.
• Shares can be transferred any time and equity
can be repatriated.
• Can also set up liaison or branch office in
Bangladesh.
11. Major laws affecting businesses in
common in Bangladesh.
• The Contract Act
• The labor Act 2006
• Negotiable Instrument Act 1861
• Foreign Exchange Regulations
12. Major laws regarding energy sector
• Bangladesh Energy and Electricity Research
Council Act 2015
• Sustainable and Renewable Energy Development
Authority (SREDA) Act 2012
• Fast Extension of Electricity and Energy
Distribution (Special Provision) Act 2015
• The Bangladesh Power Development Boards
Order 1972
• The Electricity Act 1910
• The Electricity Act (Bill) 2015
13. • Liquid Petroleum Gas (LPG) Rules 2004
• Carbide Rules 2003
• The Petroleum Act 1934
• The Petroleum Rules 1937
• Pressure Vessel Rules 2004
• Mine and Minerals (Control and Development) Rules 2012
• The Bangladesh Petroleum Act 1974
• The Bangladesh Petroleum Corporation Ordinance 1976
• Cylindered Natural Gas (CNG) Rules 2005
• Natural Energy Policy 2004
• Natural gas Security Rules 1991
• Bangladesh Energy Regulatory
14. Major regulators in Bangladesh for
foreign businesses
• Board of Investment (BoI)
• Registrar of Joint Stock & Companies (RJSC)
• Bangladesh Export Processing Zone Authority
(BEPZA)
• Bangladesh Export Zone Authority (BEZA)
• Controller of Export & Import
• National Board of Revenue
• Bangladesh Bank
15. Bangladesh Energy Regulatory
Commission (BERC)
• The BERC has been established with the vision “To make provisions
for the establishment of an independent and impartial regulatory
commission for the energy sector” It is generally regulated by the
Bangladesh Energy Regulatory Commission Act 2003. The
Commission’s mission includes:
• Enforcement of fiscal discipline of the energy sector
• Introduction of performance targets and incentive-based regulation
• Introduction of uniform operational standards and quality of supply
•Transparency in tariff determination and economic efficiency
• Increased opportunities for development of competitive markets
• Increased opportunities for efficiency and economic growth
• Public involvement into the energy sector