Dhaka and Moscow may soon sign Investment Protection and Promotion Agreement as the two countries have decided to expedite the process of negotiation.
A five-member delegation led by a joint secretary of Industries Ministry, Afroza Khan, is scheduled to leave Dhaka on March 2 to conclude negotiation for striking the deal.
Bangladesh’s foreign ministry sources said Russia wanted to speed up the process as its business interests in Bangladesh had increased.
“We have been negotiating with Russia to sign the agreement since 1999. In middle of last year, Moscow showed interest to conclude it as soon as possible,” said a foreign ministry official in Dhaka.
“This is the first time we are going to have face-to-face negotiation, and we want to conclude it this time,” the official said.
Russia sent its first draft of IPP agreement in 1999 and then the two countries exchanged several drafts over the last 15 years.
Besides, Dhaka and Moscow signed an agreement last year to set up a nuclear power plant while Russian energy company Gazprom has been working with Bangladesh’s state-owned oil company Petrobangla for the last couple of years.
“The countries have some differences over the environmental issue, compensation to victims of related accidents and civil disturbance etc. Both the nations will now try to reduce the gap,” said the official.
Bangladeshi laws do not allow any project which could pollute environment to a level hazardous to public health.
“Russia wants softening of the law. But we told them it is not possible and Bangladesh will follow its laws in all international deals,” said the official.
Bangladesh wants to include a compensation provision in the IPP agreement under which the Russian authorities will have to pay compensations to the victims of any accidents and hazards to be in the Russian plants.
Bangladesh also wants to drop a compensation provision under which the Russian companies can claim demurrage for civil disturbances like in hartals or shutdowns.