Bangladesh Economy: News & Updates

[Bilal9]

Are most of the developments in this thread in place (at least in planned or starting phase) or are most simply dreamt up? I do think we need to build some really nice subarbs in the major cities, modelled on subarbs from major cities from across the world, like some you get in London, San Francisco, New York, Dallas, etc. Really nice leafy subarbs, that are highly liveable.

@tahsin :

Nice leafy suburbias with single-family dwellings are a rarity in Bangladesh. The nice leafy part comes auto-magically - there's plenty of rain and things grow. But the safety and security you get in suburbs in the US is at this time non-existent with such income divergence all around.

This being said - there has been (in the last five years) quite a few developments happening in Purbachal (opposite the highway from Shahjalal Int'l Airport) and other newer developments where you have single family cookie-cutter homes in a grid pattern similar to US suburbia patterns. Go through my posts - I have posted some pics in the past like the one here.

Xenovalley Pink City

 

[AbidM]

Building new cities help - Dhaka Tribune

New cities are just what the country needs in order to shift the brunt of the focus away from Dhaka
Singapore has expressed interest in constructing an independently-operating city which would incorporate modern-day facilities on the outskirts of Dhaka at Purbachal.

Bangladesh can benefit greatly by building this type of proposed new urban centre. It could both improve infrastructure and support moves towards decentralisation to relieve pressures on Dhaka.

Although building an entirely new city is a massive undertaking, the experience and capability available from Singapore should provide a fillip to its construction and quality.

With people from all parts of the country migrating in at an inexorable rate, the resources and infrastructure of Dhaka are being exhausted well beyond the city’s capacity. This is a direct result of the capital being considered the sole urban zone which can offer a decent living in the minds of many Bangladeshis.

We need to build more modern centres and facilities all around the country to reduce the pressures caused by this perception. In terms of costs, building a city from-the-ground-up is more likely to save money in the long run than simply pouring increasing amounts of funds into improving the condition of Dhaka alone, which, in the past, has yielded little in the way of desired results.

New cities are just what the country needs in order to shift the brunt of the focus away from Dhaka – a city which we’ve been continuously failing to take better care and preserve the heritage of – and bring the rest of the country up to standards.

 

[Bilal9]

Although building an entirely new city is a massive undertaking, the experience and capability available from Singapore should provide a fillip to its construction and quality.

Great article - but the writers are probably oblivious to the fact that Banani and Gulshan were both designed as entire towns back in the late fifties by Mazharul Islam - the architect under Ayub Khan. The project was entirely local...and they did a great job in my opinion. The fact that RAJUK allowed multi-storied development on these single-family properties is a sad story.

Source: Developments in Bangladesh | Page 18

 

[Bilal9]

RUPAYAN Group is developing the first private inland container terminal in the country after Pangaon River Container terminal. The port will connect the main sea port of the country in Chittagong with the industrial hub eliminating dependence on the road transport. The port plan was being developed with technical assistance from 'Seaport Innovations AS' - Denmark. The port will be able handle 390,000(three hundred ninety thousand) TEUs annually when fully completed. Customers will enjoy modern facilities at the port and prompt service including full custom facility for import and export of goods to and from Bangladesh. It may also serve traffic from neighboring Indian ports such as Haldia, Kolkata and Vizag for trans-shipment to North Eastern states in India.

RUPAYAN port is under construction on a land of 30 acres area on the bank of the river 'Shitalakhya' at Dhamgarh, Narayanganj near Dhaka and the management is working hard to bring the port into operation by 3rd Qtr. 2015 (estimated) with an initial capacity to handle 200,000 TEU's per year, gradually expanding up to 390,000 TEU's by 2017-18. 40% of the infrastructure work has been completed.

 

[Bilal9]

Shipbuilders on the Mend Due to Domestic Market demand in Bangladesh

The shipbuilding industry expects better business ahead as demand from domestic market is picking up, shipbuilders said.

Orders from international buyers resumed with the recovery of the global economy after several years in the doldrums, they said, adding that the blue economy has also opened a window of opportunity.

Western Marine Shipyard, a leading shipbuilder, has now work orders worth Tk. 500 crore from domestic and foreign buyers, said Md Sakhawat Hossain, managing director of the shipbuilder.

It has Tk. 250 crore orders from Japan, Denmark, Kenya and Tanzania, while the rest is from the domestic market. Western Marine will hand over all the ships to the foreign buyers within one and a half years.

“Additionally, five buyers are communicating with us. Their orders will be finalised in January,” Hossain said.

Western Marine focuses on making environment-friendly ships run by liquefied natural gas instead of oil, he said.

The shipbuilding industry will see 15 percent growth this year, compared to last year, Hossain said.

Western Marine has recently received a go-ahead from the stockmarket regulator to raise Tk 157.5 crore. The company will float 4.50 crore ordinary shares worth Tk 10 each with Tk 25 as premium.

The shipbuilder will use the fund from the initial public offering to develop infrastructure and repay bank loans, according to Bangladesh Securities and Exchange Commission.

Ananda Shipyard and Slipways, another shipbuilder, is currently handling work orders worth Tk 800 crore received in the past one year from the domestic market, said Tariqul Islam, its executive director.

Bangladesh Inland Water Transport Authority, Bangladesh Water Development Board, and Bangladesh Navy called international bidding for building vessels and Ananda won the bids beating international shipbuilders, Islam said.

Bangladesh will be able to save a huge amount of foreign currencies as local companies are building ships for the country, he said.

The industry had to go through rough times as most of the foreign orders were halted due to global economic slowdown, he said.

"Now most of the foreign buyers are showing interest to resume the orders," Islam said, adding that Ananda is not taking fresh orders from foreign companies as its shipyard has no free space. A two-member team from Germany will visit Ananda Shipyard on Thursday to buy two ships worth Tk 185 crore built earlier.

The shipbuilder is trying to recover losses by focussing on the domestic market, which is worth around Tk 3,000 crore, he said.

A good number of container vessels will be needed to ply the new river route from Chittagong port to Pangaon inland container terminal in Keraniganj, he said.

After the resolution of a dispute with India over the Bay of Bengal, the shipbuilding industry now looks to brighter days ahead as research vessels will be needed to assess ocean resources, Islam said.

If the government wants to reap maximum benefits from the ocean economy, the work of gas exploration should be given to local companies, he said.

“We have the capacity and expertise to build oil rigs and floating production storage and offloading vessels that are used to explore underwater gas and oil fields.”

Export of ships rose 7.35 percent year-on-year to Tk 481 crore in fiscal 2013-14, according to Export Promotion Bureau.

(Shipbuilders on the mend | Growing domestic market and global recovery make them optimistic

 

[Bilal9]

Denmark shows interest in Bangladesh deep-sea port

The government has received fresh interest from Denmark to construct the country’s lone deep-sea port today.

“Denmark has shown interests in the deep-sea port project and was supposed to make a presentation before the committee today”, said Abdus Sobhan Sikder, principal secretary to the PMO and also the chief of a high-profile committee on the project.

He said the Danish team has deferred the presentation date and for this reason they could not take final decision about the deep-sea port project.

The principal secretary, however, said they would soon decide on the matter.

“We made a comparative study on the proposals of the three countries at the meeting. But no decision was taken,” Jamal Abdul Naser, chief executive officer of the Deep Seaport Cell at the shipping ministry told The Daily Star after the meeting.

The government put the deep sea port on a fast track on January 22.

Denmark shows interest in Bangladesh deep-sea port

------------------------------------------------------------------------------------------------------------------

Mayor Hanif Flyover Commissioned!

To the few Indian PDF members who were having issues about Bangladesh Infrastructure being not done by Indian Companies. I present 'Mayor Hanif Flyover' connecting Jatrabari to Gulistan, opened recently and completed by SIMPLEX Infrastructures Ltd. Good Job
Thank the Lord for ending the Cluster-Freak situation it solved. Some say the toll is a bit high - but oh well.

However - there has been talk about giving them the contract for the Dhaka Metro.
This has been hampered and moderated by the fact that they are the primary contractors of the Teesta Dam as seen below.

 

[AbidM]

About 4000 crore sitting in sylhet banks like wow.

 

[imkhasif]

Denmark shows interest in Bangladesh deep-sea port

The government has received fresh interest from Denmark to construct the country’s lone deep-sea port today.

“Denmark has shown interests in the deep-sea port project and was supposed to make a presentation before the committee today”, said Abdus Sobhan Sikder, principal secretary to the PMO and also the chief of a high-profile committee on the project.

He said the Danish team has deferred the presentation date and for this reason they could not take final decision about the deep-sea port project.

The principal secretary, however, said they would soon decide on the matter.

“We made a comparative study on the proposals of the three countries at the meeting. But no decision was taken,” Jamal Abdul Naser, chief executive officer of the Deep Seaport Cell at the shipping ministry told The Daily Star after the meeting.

The government put the deep sea port on a fast track on January 22.

Denmark shows interest in Bangladesh deep-sea port

------------------------------------------------------------------------------------------------------------------

Mayor Hanif Flyover Commissioned!

To the few Indian PDF members who were having issues about Bangladesh Infrastructure being not done by Indian Companies. I present 'Mayor Hanif Flyover' connecting Jatrabari to Gulistan, opened recently and completed by SIMPLEX Infrastructures Ltd. Good Job
Thank the Lord for ending the Cluster-Freak situation it solved. Some say the toll is a bit high - but oh well.

However - there has been talk about giving them the contract for the Dhaka Metro.
This has been hampered and moderated by the fact that they are the primary contractors of the Teesta Dam as seen below.

Hanif is not just a flyover you can call it as Elevated express way too..... 12 km long it is.

 

[AbidM]

You know your city's urban planning is bad, when you take a look at Kabul city map and compare it to Dhaka's.

 

[Bong]

You know your city's urban planning is bad, when you take a look at Kabul city map and compare it to Dhaka's.

Kabul and Dhaka hasn't got same scenario.
Dhaka is old city and started to expand without any planning. Most of its areas were paddy fields. Only some of its areas are planned.
Where Kabul city is starting from total destruction. So they can start from the beginning.

 

[extra terrestrial]

KPI plans to construct $6bn crude oil refinery in Bangladesh


Kuwait Petroleum International (KPI), which is affiliated to Kuwait Petroleum Corporation (KPC), is currently looking into the possibility of constructing a crude oil refinery in Bangladesh with a capacity of 10 million tons per year at an estimated value of US$6.0 billion, says a high-ranking oil sector official.


It has been reported that a KPI delegation headed by President and Chief Executive Officer (CEO) Bakheet Al Rashidi visited Bangladesh last week where they met top officials of Bangladesh Petroleum Corporation (BPC), Board of Investment (BoI).

According to sources, the KPI delegation’s visit is aimed at presenting details of requirements for constructing the crude oil refinery. KPI intends to demand from the Bangladeshi government all the required infrastructure in the project site such as land and its development, electricity, fresh water, roads and communication.

KPI will also request for tax holiday and 100 percent profit repatriation benefit for the project and its foreign employees.

Another reliable source revealed the existing international regulations state that investment of at least $6.0 billion is necessary to construct a refinery with capacity of 0.2m barrels or 10 million tons per day.

Meanwhile, BPC Chairman Md Eunusur Rahman has been quoted as saying, “KPI informed us that a 0.3m barrels per day crude oil refinery would be of a standard capacity refinery it wants to build and it should not be less than 0.2m barrels per day capacity for its economic viability.”

“We have informed KPI about the benefits of foreign direct investment in Bangladesh, which include tax holiday for a certain period, 100 per cent profit repatriation etc. The Kuwaiti firm is eyeing to build a complex refinery having arrangements to convert less valuable petroleum output to valuable ones,” the chairman revealed.

He went on to say, “KPI also wants that the refinery must have options for future expansions to cater to the needs of growing petroleum demand in the country as well as the region. The refinery project might be of a joint venture with BPC or KPI alone could build it with its international partners, while the modality of the project would be decided later.”

“We shall send the outcome of the discussion with the KPI to the Energy and Mineral Resources Division of the ministry of Power, Energy and Mineral Resources (MPEMR) for future action. Everything depends on the decision of the government. We shall inform KPI the government’s feedback on its investment proposal after getting feedback from the government,” he added.

On the other hand, sources disclosed that prior to the meeting, KPI conducted a feasibility study on the construction of the refinery; covering Bangladesh’s oil import trend, demand- supply status, source of imports and other aspects. It also looked into the South Asian region’s oil import and consumption pattern to see whether the planned refinery could serve the regional demand.

If the project pushes through, it will be considered the second refinery in Bangladesh which currently has one - the Eastern Refinery Limited, a wholly-owned subsidiary of BPC. It has 1.5 million tons per year crude oil refining capacity plant which actually can refine 1.4 million tons at its de-rated capacity.

Earlier in March 2012, BPC sent letters to KPC and KPI inviting them to set up an oil refinery plant in Bangladesh.

Sources disclosed Bangladesh currently imports around 6.0 million tons of refined and crude oil combined every year to meet the growing domestic demand.

BPC imports a total of 1.4 million tons of crude from Saudi Aramco and Abu Dhabi National Oil Company. Saudi Aramco and ADNOC supply 700,000 mts of crude each.

It imports refined petroleum products from KPC, Petco - the trading arm of Malaysia’s Petronas, Emirates National Oil Company (ENOC), PetroChina, Vietnam’s Petrolime, Middle East Oil Refinery (MIDOR) of Egypt, Philippines National Oil Company (PNOC), Bumi Siak Pusako of Indonesia and Unipec Singapore under term deals.

Bangladesh’s oil imports have been increasing steadily over the past several years in order to meet the rising demand, especially for oil-fired power plants.

Amid fast-depleting natural gas resources, Bangladesh in 2010 launched a drive for more oil-based power plants and nearly three-dozen of those plants most of which have already come online.

The new oil-fired power plants alone require over 2.0 million mts of oil products — around 1.2 million mts of fuel oil and 0.8m mts of gasoil — to generate electricity, BPC statistics spells out.

 

[extra terrestrial]

Danish firm signs wind power MoU

Danish wind turbine technology provider Vestas wants to play “an important” role in building wind-power facilities in Bangladesh.

Vestas signed a MoU with US-DK Green Energy (BD) Ltd (UDGEL) recently in Singapore for this purpose, the Danish embassy in Dhaka has said in a media release on Wednesday.

With this MOU, Vestas and UDGEL expressed their interest in exploring “collaboration opportunities” to develop wind power projects.

“As an experienced wind turbine manufacturer, we seek to play an important role in helping our customers in Bangladesh embark on an exciting wind journey,” President of Vestas Asia Pacific and China Chris Beaufait was quoted as saying in the release.

“With our global expertise on wind and site identification, electrical pre-design, transportation, installation, supply, erection, service, and financing assistance, I believe Vestas is able to help our customers shape a competitive edge in an untapped market”.

The Danish ambassador to Singapore, Berit Basse, and the Bangladesh High Commissioner, Mahbub Uz Zaman, were present at the signing ceremony at the Vestas office in Singapore.

Danish ambassador in Dhaka Hanne Fugl Eskjær welcomed the initiative and hoped “this positive step will lead to further co-operation in renewable energy between the two countries”.

UDGEL Director Sajid Rahman saw “a great potential within the market for wind energy”.

“As a renewable energy pioneer in Bangladesh, we want to partner with the best in the industry in order to develop a world-class wind farm based on Vestas’ extensive experience,” he said.

“We believe the partnership with Vestas through the MOU signals a significant first step for our wind business.”

In emerging markets like Bangladesh, wind is still an untapped resource.

The country’s National Energy Policy has expects renewable energy to account for five per cent of the total power generation energy by 2015 and 10 per cent by 2020.

The Danish embassy says the expansion of the potential of wind energy will be crucial for Bangladesh to achieve its national vision of providing electricity to all by 2021.

Entering into a MOU in Bangladesh is in line with “the new corporate strategy announced earlier this year, under which emerging markets are highlighted as a global priority”.

 

[tahsin]

@tahsin :

Nice leafy suburbias with single-family dwellings are a rarity in Bangladesh. The nice leafy part comes auto-magically - there's plenty of rain and things grow. But the safety and security you get in suburbs in the US is at this time non-existent with such income divergence all around.

This being said - there has been (in the last five years) quite a few developments happening in Purbachal (opposite the highway from Shahjalal Int'l Airport) and other newer developments where you have single family cookie-cutter homes in a grid pattern similar to US suburbia patterns. Go through my posts - I have posted some pics in the past like the one here.

Xenovalley Pink City

Not a fan of suburbs such as this one. It's too cookie-cutter. I think homes within a suburb need to be more individualized in style, not like this where every home exactly identical. Also, I like suburbs that develop slowly, within a planned environment. I would like to see more suburbs with single or double story homes rather than lots mid rises.

As for skyscrapers in the downtown/business districts, I'd like to see much taller towers, that are extremely modern and futuristic. When you build skyscrapers you are not going to bring them down anytime soon and you only really get one chance. I'd love to see something similar to downtown Chicago in Bangladesh.

I know Bangladesh and the U.S are not in the same league, but there's no rush.

We need to stop using Far Eastern architectural firms in coming up with the designs. It's the US and how they build their great cities that we should try to follow.

Incidentally, the Sears Tower in Chicago downtown(the black tower you can see standing the tallest) was actually the design of FR Khan, a Bangladeshi.

 

[extra terrestrial]

Pharma leaders to grow 16pc this quarter: study

Market leaders in the pharmaceutical sector are expected to grow at around 16 percent in the fourth quarter this year owing to superior product quality and brand value, said a recent study.

Although one of the most developed sectors in the country, the pharmaceutical sector is highly concentrated, with 85 percent of the market share being in the hands of 20 companies. Square Pharmaceuticals is the market leader, followed by Incepta, Beximco, Opsonin and Renata.

Competition in the sector is primarily based on quality and brand name, with the market leaders enjoying a 30-40 percent premium over others.

The sector itself is forecasted to grow at around 12 percent this quarter, according to the study by LR Global, an asset management firm.

Gross margin of pharmaceutical companies will slightly decline this quarter as the active pharmaceutical ingredients (API) price, the sector's raw material, has been on an increasing trend in recent months, it said.

The study forecasted the API price to increase around 1.5 percent this quarter.

Meanwhile, in recent times the sector has seen a massive structural shift, moving from the manufacture of antibiotic drugs towards preventive medicines and chronic drugs.

Going forward, the study expects the sector to go from strength to strength given the country's large consumer base with increasing purchasing power and growing health consciousness among people.

On the export front, the demand for the country's generic drugs is growing in Asia, Africa and Europe, so higher export earnings are expected.

But the sector's vast potential can be unlocked by addressing regulatory constraints through policy reforms and process simplification in government agencies including Bangladesh Bank and Directorate General of Drug Administration, the study said. Export earnings stood at Tk 553 crore last fiscal year, and as of December last year, the sector's annual turnover stood at Tk 11,461 crore.

 

[Bong]

What is the GDP (PPP) of Dhaka and Chittagong in 2014?
Wiki reports $217 billion for Dhaka, $104 billion for Chittagong. How authentic it is?

@extra terrestrial @Bilal9