Keep politics out of economic decisions, ADB urges Bangladesh

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"People want to see politicians take decisions, considering the economic benefits of the country, not on political consideration," ADB Country Director Hua Du said, during a press conference.

"Not deciding on Tata's investment proposal does not make economic sense," The Daily Star newspaper quoted her as saying.

Hua Du said after reviewing Tata's last proposal that the ADB had found the gas price offered by the Indian conglomerate "is higher than what the government gets from existing foreign investors in Bangladesh."

This assertion is contrary to the claims made by various Bangladesh agencies, including the Bureau of Investment (BOI) which is handling the proposal, that Tata's offer was lower than the international price.

The proposal was "suspended" by both sides earlier this month after prolonged negotiations, nearly two years after Tata chief Ratan Tata visited Dhaka and offered to invest $ 2 billion in gas-related industries like fertiliser, besides steel and other infrastructure industries.

The proposal, revised to $ 3 billion, ran into some road blocks like a sustained campaign by former officials of Petrobangla, the state-owned oil major, and others raising "national interest" issues.

Tata agreed to suspend the proposal after three ministers of the Khaleda Zia government conveyed that this being the "election year" the situation was too volatile for an economic decision of this size.

Even while leaving a decision on it for the next government, which would take office after the elections, likely early next year, BOI and other agencies of the Zia government have been engaged in processing the proposal, media reports have indicated.

The proposal is to go before a ministerial team, headed by Industries Minister Motiur Rahman Nizami, who heads the Islamist block in the ruling coalition and is chief of the Jamaat-e-Islami, a party ideologically opposed to India.

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