In other words, the requirement is not only a firm with capability to invest, but also the experience of successful project implementation and operations in the past. Starting a greenfield project is a much more complex game compared to running an existing operation. Even for operating business, it is a normal condition to have sufficient experience in a business to qualify for any large bid (essential for international bid) for normal work/supply tender.

It is surprising to note that most of the proposals of FDI in energy sector in Bangladesh come from companies without any previous experience, except for Tata (Hefty Investment Carrot for Unsolicited Deals, Sharier Khan, The Daily Star, September 20). The article is based on facts and one has to accept it (like it or not).

With globalization and the whole world getting converted to one single market, it is logical to see business interests traveling in all directions with reduced importance of physical boundaries of countries. But, it must be noted that most of the companies make a beginning in the country of origin first, gain sufficient experience of running the business and develop few unique strengths related to business before venturing in to a global path.

Normally the way to globalization goes through opening of sales office, getting to know the business environment, and finally establishing some manufacturing facility. The companies named in the article of Sharier Khan do not seem to have any past experience in energy sector either in their country of origin or anywhere else.

In fact, if Bangladesh is their first business location, they should be a Bangladeshi company without any control from any company listed outside Bangladesh. It is really unfortunate to term them as FDI in this context.

What is the way out? On one hand, the way things are today, people of Bangladesh are quite skeptical about FDI mainly because the past experience has not been good. Most of the past deals are linked to benefits to few individuals.

On the other hand, the current power crisis in the country can not remain unresolved forever. We have seen violent protest against power crisis and industries are suffering badly. There is no way, we can avoid FDI. Even the institutions like World Bank, ADB, and JICA have not shown any interest in funding energy projects.

The only answer seems to be FDI, but FDI from a credible company. This will not only solve the problem of power crisis, but also help in reinforcing the trust of people of Bangladesh in FDI.

Now the question is how to go about the selection of a credible company for FDI. There is no straightforward answer, but it is not very difficult also if we are serious and honest in approach. Here the biggest point of reference will be obviously the past history of the company.

Technological capabilities are easier to judge as these are readily available information in the industry. There are other issues requiring careful study. Study and evaluation of parameters like ownership pattern, management philosophy, records of industrial relations, commitment to corporate social responsibility, and involvement in controversies, could be made to select the right ones needed for FDI.

General impression of people where these companies have their operating base could also provide important clues. Adherence to environmental rules, benefits to local society, preservation of local culture, help to build ancillary industry, etc. may further help in the decision-making. Though I have limited information about it, I feel that it may be worthwhile to look at Tata's proposal in this context.

We are now at a threshold point, FDI by a credible company will not only help improve our energy scenario, but also trigger other good companies to invest in Bangladesh and help the people of Bangladesh forget the bad experiences of the past.