Bangladesh Economy: News & Updates

[eastwatch]

BNP backs Bay exploration, wants terms public :: Bangladesh :: bdnews24.com ::

BNP backs Bay exploration, wants terms public
Thu, Oct 8th, 2009 7:50 pm BdST

Dhaka, Oct 8 (bdnews24.com)—Main opposition party BNP has given its endorsement to the proposed agreement with foreign companies on exploration of gas in three Bay blocks, a day after the prime minister vowed to go ahead with the exploration.

But the party demanded that the conditions of the deal be made public.

"We are not against gas extraction. Initiatives must be taken to use the extracted gas to develop the country," secretary-general Khandaker Delwar Hossain said on Thursday.

"But the public need to be informed beforehand under which conditions the foreign companies are being allowed to extract gas, what are the terms and conditions of the proposed agreement.

"The people have the right to know if those conditions safeguard the national interest," he told reporters at the party's Naya Paltan headquarters.

Prime minister Sheikh Hasina on Wednesday told parliament that her government was determined to extract oil and gas from the sea at any rate even though some groups are opposed to the move.

Clarifying the stance of his party, Delwar said, "We agree with the prime minister's statement. Gas has to be extracted. BNP is not against this."

Prime minister Sheikh Hasina had said in the weekly question-answer session: "We will definitely extract gas whatever the difficulties."

"We will do whatever is required for the development of the country," she said.

Delwar asked the government to ensure transparency. "Our national resources should be utilised for national development.The extracted gas has to be used to strengthen the foundation."

The government in August approved the proposal to award ConocoPhilips and Tullow Oil plc contracts to explore oil and gas in three blocks in the Bay.

ConocoPhillips, the third largest energy company in the US, will get deep-sea blocks 10 and 11. Shallow-sea block 5 will be awarded to Irish company Tullow that already operates in Bangladesh's Bhangura gas field.

State-owned exploration authority Petrobangla chairman Moktadir Ali said last week that Conoco is expected to sign deal in the first week and Tullow in the second week of the current month.

The National Committee on Protection of Oil, Gas and Mineral Resources and Power and Port--a pressure group of left-leaning professionals and politicians-- is protesting against the deals which it claims would allow the two foreign companies to export up to 80 percent of gas extracted.

The government has said the committee is confusing the public on the issue with such false information.

Not against Asian Highway either

The BNP secretary-general took a question on the Bangladesh's move to join proposed Asian Highway Network.

"BNP does not oppose the Asian Highway. It was our government that proposed the construction of this international road to ESCAP.

"But the current government is awarding corridor to India by linking one end of India to the other in the name of Asian Highway. This is not acceptable.

The current unrest in the northeastern Indian states may spill over through 'the corridor' to Bangladesh, he observed.

"We don't want that, so the people are against the corridor.

Replying to a question, he said BNP favours the route through Chittagong, Myanmar and Thailand to be connected to the highway.

The parliamentary standing committee on communications on Sep 2 recommended choosing Benapole-Dhaka-Tamabil or Banglabandha-Hatikumrul-Dhaka-Tamabil routes for the Asian highway

The ruling Awami League and the BNP are sharply divided over the selection of the routes of the Asian highway which will ultimately connect Asia with Europe.

The AL says the highway should come from India and re-enter into India's northeastern states bordering Bangladesh. But the BNP said the highway must enter Myanmar via Bangladesh with the ultimate target of reaching China through the former Burma.

The BNP and its allies say, if the highway passes from and back through India instead of Myanmar, it will make Bangladesh too dependent on India with regard to the international road network.

The opposition says the government wants to give India transit facilities, a very politically sensitive issue in Bangladesh, in the name of the Asian highway.

Joint secretaries general Mirza Abbas and Goyeshwar Chandra Roy, organising secretary Mohammad Shahjahan were also present among others at the press briefing.

 

[Al-zakir]

Bangladesh to become carmaker
Star Business Report

Bangladesh is set to become an automaker by the next two years, as a South Korean investment company yesterday announced a plan to invest $2 billion for setting up a Korean brand car manufacturing plant in the country.

The proposed car unit is expected to go into production in 2012, targeting to make 50,000 Korean Tagaz brand cars a year, and sell those in both local and international markets.

The plant will also manufacture cars to be branded locally.

If the plant is set up in time, it will be the first-ever car making venture in Bangladesh.

Industries Minister Dilip Barua formally unveiled the $2 billion investment plan, and termed it as a good sign for Bangladesh amid a sluggish foreign investment flow.

Cimillae Development Co Ltd, the local agent of Korean investment company CCGI, will coordinate the investment implementation.

Abdul Mannan, managing director of Cimillae Development, said local customers will get a Tagaz brand new car at only Tk 7 lakh. The company has already acquired land at Bhairab in Narsingdi for the plant.

Mannan said the plant will require two years to be set up. As many as 15,000 jobs will be created to run the car manufacturing plant.

CCGI Chairman Lee Young Choung said his company has already decided to invest more in Bangladesh besides the car manufacturing plant. He said CCGI has plans to invest in 30 sectors in future.

Presently Japanese reconditioned cars dominate the Bangladesh market. Around 20,000 used cars are imported each year, while the number is 2,000 for brand new cars.

Some brand new carmakers like Ford have already initiated move to enhance their presence in Bangladesh.

Japanese Toyota still leads the market in both used and brand new car segments.

:The Daily Star: Internet Edition

 

[eastwatch]

The Daily Star - Details News

Tuesday, October 13, 2009
PM asks to speed up N-deal with Russia
High-powered delegation goes to Moscow Saturday
M Abul Kalam Azad

Prime Minister Sheikh Hasina yesterday directed the Ministry of Science and ICT to expedite the ongoing negotiation with Russia for setting up nuclear power plants in Bangladesh, in a bid to alleviate the country's power generation crisis.

"The prime minister directed the ministry to take all necessary measures regarding implementation of the country's lone nuclear power project at Rooppur," a cabinet minister told The Daily Star.

The directive came from Hasina at a weekly cabinet meeting in Bangladesh Secretariat, while she was talking about a report prepared and submitted by a Bangladeshi delegation that had attended the 53rd general assembly of International Atomic Energy Agency (IAEA), held in Vienna from September 14 to 18.

Energy Secretary Mohammad Mohsin put forward the report with some recommendations regarding improvement of the country's energy situation, and for creating scope for inclusion of Bangladeshi nuclear scientists in IAEA.

Meanwhile, an eight-member delegation, headed by Science and ICT Minister Yafes Osman, is scheduled to leave for Moscow on Saturday, to visit some of the Russian nuclear plants for having clearer ideas about that country's nuclear technology.

Power secretary, energy secretary, secretary to the Economic Relations Division, a joint secretary to the power, energy, and mineral resources ministry, chairman of the parliamentary standing committee on the same ministry, project director of Rooppur Nuclear Power Project, and a member of Bangladesh Atomic Energy Commission are the other members of the team.

"The visit is a follow-up to the successful discussion between the two countries in Dhaka in April this year," Joint Secretary to the Power, Energy, and Mineral Resources Ministry MM Neazuddin told The Daily Star yesterday.

The Awami League government, which had assumed office with a promise of improving the country's power situation, kicked off nuclear talks with different countries including Russia, in a bid to strike a deal for installation of nuclear power units.

At the talks, Moscow expressed its keen interest in assisting Dhaka in that regard while the latter articulated its desire to set up two 1,000 megawatt (MW) power plants.

According to a paper prepared by the science and ICT ministry, the estimated cost of a 1,000MW nuclear power plant ranges between $1.5 billion and $2 billion. Experts say installation of such a unit will take at least five years since commissioning of the project. If the project is realised, it will manifest the government's vision of a mid-term power solution.

Russia's Deputy Director of Rosatom Nuclear Energy State Corporation NN Spasskiy already visited Bangladesh in the second week of May, and signed a memorandum of understanding (MoU) with Dhaka to pave the way for exchanging nuclear technology, and for setting up nuclear power plants in Bangladesh.

According to the MoU, both countries acknowledged that the use of nuclear energy for peaceful purposes, and assurance of nuclear and radiation safety are important factors in ensuring social and economic development of both states.

Moscow will assist in the development of nuclear energy infrastructure in Bangladesh, the MoU says adding that Russia will supply Bangladesh with nuclear materials, and provide services in the field of nuclear fuel cycle in accordance with national legislations of the two states and international treaties to which both countries are parties.

Yafes Osman told reporters that Russia will initially set up a 600-1,000MW power plant at Rooppur.

Rooppur Nuclear Power Project was conceived in the early 1960s, and 260 acres of land was acquired for it. Feasibility studies also found the project to be technically and economically viable, and IAEA gave

 

[eastwatch]

Korean co to manufacture cars in Bangladesh

KOREAN COMPANY TO MANUFACTURE CARS IN BANGLADESH
Jasim Uddin Haroon

A South Korean automobile company unveiled a US$ 2.0 billion plan Monday to manufacture cars in Bangladesh aiming to grab the country's fastest growing market and explore export abroad.

Tagaz Korea, established in 2006, has already purchased 350 acres of land at Bhairab in Kishoreganj to set up its second largest plant in Bangladesh, company officials said Monday.

"We want to start construction work at our site by the next six months and it will be completed within 24 months. We will then go for manufacturing cars," Abdul Mannan Nasir, managing director of Cimillae Development Co, a concern of the Tagaz in Bangladesh, told the FE.

Officials at the Tagaz Korea, a Korea and Russia joint venture automaker, wants to manufacture cars in Bangladesh mainly because of its low labour cost and strategic location for export market.

Bangladesh is enjoying a special facility to European market under EBA (everything but arms) and labour is comparatively cheaper. Automobile industry is a semi-labour intensive industry.

Mr Nasir said Bangladeshi auto technicians, who are quick learners, have average wages between US$300-$400 a month, which is more than double in other developing nations.

He said: "A sedan costs US$ 10,000 in South Korea. But we can reduce the cost here by around $3000 due to cheap labour and other facilities existing in the country."

He hinted that local buyers would get a sedan with 1500 cc engine capacity at Tk 700,000-Tk 800,000.

State-owned Pragati Industries Ltd has also taken a move to assemble Mitsubishi sedan by 2011.

Company officials said CCGI, a Korea-based leading funding agency, will invest in the Bangladesh plant.

Company officials said Bangladeshi partners will have 20 per cent stake in the joint venture.

Tagaz Korea, a comparatively new automobile maker, said around 30 South Korean companies will also set up their plants in Bangladesh to provide major raw materials for the plant.

Company sources said around 400 local companies will also be developed to supply different kinds of accessories for the plant.

Tagaz is currently rolling out over 500,000 cars from its Korea plant a year and it is mostly exported to European market. They are planning to manufacture at least 50,000 cars in Bangladesh's plant a year.

Bangladesh's car market has been growing steadily over the past few years mainly because of the credit facility. The average import of re-conditioned cars is around 30,000 a year.

 

[eastwatch]

South Asian Media Net

Bad image hurts foreign investment
Friday, October 16,2009

DHAKA: The government is trying to brighten Bangladesh's image to attract more foreign investment, said the industries minister at the Japan Trade Fair that began yesterday.

“Foreign investment has suffered because of the country's negative image about political instability in previous years. We have to change the image to attract more foreign investment to the country,” said Dilip Barua.

“We will take steps to encourage and facilitate foreign investment to the country, as the government is investment-friendly. At the same time, we will move to create a more investment friendly political atmosphere in the country."

The minister inaugurated the three-day trade fair, organised by the Japan Bangladesh Chamber of Commerce and Industries (JBCCI) at Bangabandhu International Conference Centre in Dhaka.

“In addition to attracting new investment in the country, the government is also enthusiastic about strengthening domestic industrial capacity and diversifying the export basket to boost local economy,” added the minister.

Annisul Huq, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the government should take measures to increase the confidence level of both local and foreign investors.

“The government should ensure good governance and facilitate present and future investments in the country,” he said.

"We should take lessons from Japan to boost our economy. Japan took effective measures to reconstruct the economy after the massacre in the Second World War and now it is one of the largest and strongest economies in the world,” he added.

Tamotasu Shinotsuka, ambassador of Japan, said his government is keen to enhance bilateral trade relations and investment between the two countries.

“Simultaneously, there is good demand for Bangladeshi products on the Japanese consumer market. Local entrepreneurs can take advantage of this opportunity by diversifying their products and increasing export volumes to Japan," he added.

Abdul Haque, president of JBCCI, and Toshihito Tamba, president of Japan-Bangladesh Committee for Commercial and Economic Co-operation, were also present at the ceremony.

The Embassy of Japan, Japan External Trade Organisation and Japanese Commerce and Industry Association in Dhaka are supporting the event.

Along with several Japanese government and semi-government organisations, 45 companies are showcasing products and services at the fair, which includes automobiles and spare parts, electronics, capital machinery, IT equipment, leather products, shipping and logistics.

Aktel is sponsoring the fair, while Windmill Advertising Ltd is managing the event. The Daily Star, Channel i, Daily Samakal and ABC Radio are the media partners for the three-day fair.

The entry fee has been fixed at Tk 20 for a person and the all proceeds from ticket sales will go to charity.

 

[leonblack08]

Bangladesh leads South Asia in fighting hunger
Ranks 13 among 29 vulnerable nations
Unb, Dhaka
Bangladesh has ranked 13th among 29 vulnerable countries in terms of combating hunger by successfully reducing its rate over the last few years.

Scoring 41 points in the global scorecard on hunger situation, Bangladesh has outpaced its two neighbouring countries--India (22nd) and Nepal (19th).

Marking the World Food Day, ActionAid International yesterday published the scorecards in its UK based research titled 'Who is Really Fighting Hunger.'

"Bangladesh has made a good progress in reducing the number of chronically food insecure citizens--from 40 million to 27 million--over the last decade," said the research report.

It, however, said Bangladesh has the third highest number of hungry people in the world after India and China partly because of its large population.

The report also said that though Bangladesh has improved the status of nutrition of the under-five children in the last two decades, it still has a long way to go to combat malnutrition.

"Providing hot cooked school meals to its 20 million school-going children could potentially make a huge impact in this regard," it said.

It lauded the government for its budgetary allocations for the absolute poor through increased safety net programmes, which include partial coverage of nutritional programmes, subsidised food and employment programmes.

In order to reduce the vulnerability of rural poor, the report suggested finding out a permanent solution to the annual monga (near famine situation).

"Bangladesh is trying to address the issue of hunger of its 150 million people with its meagre resources and in the last two decades it has succeeded to improve, to some extent, the health of the under-five children," said ActionAid Bangladesh Country Director Farah Kabir while talking about the issue.

Farah Kabir pointed out hunger as one of the root causes of poverty and underscored the need for increasing investment in sustainable agricultural development to address the two problems, said a press release.

"Any discussion on hunger and intervention must put the poor, marginalised section and women at the core of planning and investment," she added.

She demanded the government ensure equitable distribution of food across the region at different times.

Brazil topped an anti-hunger scorecard followed by China where 58 million people have more to eat but India earned low marks in the ActionAid index, reports AFP.

ActionAid said 30 million more people in India, listed at number 22 after countries like Ethiopia and Lesotho, had slipped into the hungry category since the mid-1990s.

Less than nine percent of China's population now go hungry with 58 million people no longer undernourished, edging the Asian giant into second place on the developing state table.

ActionAid also called on world leaders to fight hunger by supporting small farmers, protect rights to food, and tackle climate change.

The Daily Star - Details News

 

[Al-zakir]

Bangladesh leads South Asia in fighting hunger

Good progress but we have long way to go brother.

 

[eastwatch]

The New Nation - Internet Edition

PLAN TO CONSTRUCT SUBWAY TO EASE TRAFFIC JAM
Rafiqul Islam Azad

Japanese experts select first metro route in city

JAPANESE EXPERTS SELECT FIRST METRO ROUTE IN CITY
Munima Sultana

A team of Japanese experts studying the city's transport network has confirmed that a 20km route from Uttara to Sayedabad via Pallabi would be feasible for construction of the first ever metro railway track to ease traffic jam.

The study found that traffic between the two parts of the city is higher than the other parts on which construction of the country's first mass rapid transit (MRT) is possible through elevated and underground ways.

Sources said the Japanese team proposed to link Uttara on Mirpur-Sayedabad route through an underground rail line discarding an option between Uttara and Sayedabad via Mohakhali.

The traffic from Uttara can be connected to southern part through a single line via Mirpur-Sayedabad route, said an official of Dhaka Transport Coordination Board under which the JICA funded study is being conducted.

"MRT is possible between south and north. Some parts of the metro rail line can be passed through underground and some parts over," Team leader Toshio Kimura told the FE.

He said traffic between east and west is less than north and south parts of the capital.

Mr Kimura said as the government has already introduced Bus Rapid Transit (BRT) from Uttara through Zia International Airport and also planned to construct elevated expressways on the route, MRT option on Uttara-Sayedabad route can be relaxed.

The team members are likely to present part of the study in a seminar on Wednesday and November 2 to seek opinion from the government. The first phase of the DHUTS will be finished April, 2010.

Sources said JICA is funding the entire cost of the DHUTS with its expert team as the ministry of communication requested it in January to conduct the feasibility study on finding the MRT options. The JICA under the project decided to conduct the study on the feasibility of the all transport options suggested in the Strategic Transport Plan.

Different sources said bypassing the study work, the Cabinet Committee on Economic Affairs approved the communication ministry's proposal to start pre-qualification bidding on MRT alongwith elevated expressways.

 

[TopCat]

Japanese experts select first metro route in city

JAPANESE EXPERTS SELECT FIRST METRO ROUTE IN CITY
Munima Sultana

A team of Japanese experts studying the city's transport network has confirmed that a 20km route from Uttara to Sayedabad via Pallabi would be feasible for construction of the first ever metro railway track to ease traffic jam.

The study found that traffic between the two parts of the city is higher than the other parts on which construction of the country's first mass rapid transit (MRT) is possible through elevated and underground ways.

Sources said the Japanese team proposed to link Uttara on Mirpur-Sayedabad route through an underground rail line discarding an option between Uttara and Sayedabad via Mohakhali.

The traffic from Uttara can be connected to southern part through a single line via Mirpur-Sayedabad route, said an official of Dhaka Transport Coordination Board under which the JICA funded study is being conducted.

"MRT is possible between south and north. Some parts of the metro rail line can be passed through underground and some parts over," Team leader Toshio Kimura told the FE.

He said traffic between east and west is less than north and south parts of the capital.

Mr Kimura said as the government has already introduced Bus Rapid Transit (BRT) from Uttara through Zia International Airport and also planned to construct elevated expressways on the route, MRT option on Uttara-Sayedabad route can be relaxed.

The team members are likely to present part of the study in a seminar on Wednesday and November 2 to seek opinion from the government. The first phase of the DHUTS will be finished April, 2010.

Sources said JICA is funding the entire cost of the DHUTS with its expert team as the ministry of communication requested it in January to conduct the feasibility study on finding the MRT options. The JICA under the project decided to conduct the study on the feasibility of the all transport options suggested in the Strategic Transport Plan.

Different sources said bypassing the study work, the Cabinet Committee on Economic Affairs approved the communication ministry's proposal to start pre-qualification bidding on MRT alongwith elevated expressways.

This study is redundant and may be little late. I did not like their findings either. They only looked at the financial aspect of the project leaving aside the accessibility of every resident in the system and also the future growth of the city.
We should stick to the Strategic Transport Plan of the city where every route, stoppage, expansion etc already defined for the metro. No private company or govt company or NGO should be allowed to make any modification to that plan. Whoever wants to implement metro rail system, they must also have to build the route which are not financially viable, yet they have to make that up from commercially profitable route.

this news is quite relevant.
http://www.thedailystar.net/story.php?nid=110679

 

[eastwatch]

The New Nation - Internet Edition

5.5 to 6pc GDP growth in FY 10 likely
UNB, Dhaka

Wider implementation of the Annual Development Programme is the best stimulus package for facing the recession and helping people out of the poverty trap, the World Bank said yesterday in appreciation of the new government's development budget. World Bank lead economist for Bangladesh Sanjay Kathuria came up with the evaluation at a workshop on 'Economic Updates for Bangladesh' at the World Bank Office in Dhaka.

"The best thing the government can do is implement the ADP in a strong way," he said, terming the ADP pro-poor and pro-growth.

He said that due to the global recession and lower GDP rate, about 2.4 million fewer people would be able to climb out of poverty line over 2005-2010.

Prior to the twin-crisis, Bangladesh was on target to cut poverty by nearly 11 percentage points between 2005 and 2010. With the impact of the crisis, the poverty rate is now projected to fall by about 9 percentage points.

"The estimated impact is uneven between different regions of the country, with the more industrialized and integrated regions (eastern part) likely to be affected more because the east has a much higher concentration of industry and external remittances than the west," he said. The multilateral funding agency, the World Bank, projected that the GDP growth is likely to be in the range of 5.5 to 6 percent in FY10.

Kathuria said that to get higher pace of poverty reduction, Bangladesh needs an 8 percent GDP growth.

Senior Economist of the World Bank Dr Zahid Hussain said that the projected poverty reduction in Bangladesh from 2005 to 2010 was from 40 percent to 29 percent. But, due to the prevailing problems, the poverty rate will be reduced to 31 percent from 40 percent in the same period of time.

He observed that the investment rate remained stagnant due to high and rising real interest rates with growing infrastructure and energy deficit.

Zahid said invest remained stagnant due to the declining public investment arising from poor ADP implementation while the political transition in the country was going through uncertainty in the global economy.

 

[eastwatch]

A news from New Age (Sept 18, 2009)

BIBIYANA HAS MORE GAS THAN ESTIMATED, claims Chevron
Staff Correspondent

American company Chevron has submitted to the Petrobangla a new estimate of gas reserve in the Bibiyana field, putting the proven recoverable reserve・at 4.4 trillion cubic feet, up by a staggering amount of 2.7 TCF, said Petrobangla officials.

Review of Chevron's claim about higher gas reserve begins

Review of Chevron's claim about higher gas reserve begins

An expert panel started probing minutely a foreign agency's study report on Bibiyana gas field that shows a doubly larger reserve structure of 7.43 trillion cubic feet (TCF) of natural gas, reports UNB.

The newly projected volume of gas comprises proven plus probable reserves. The recoverable reserve is estimated to be 5.76 TCF.

According to official sources, the expert committee of the state-owned Petrobangla, led by its director Yusuf Ali Talukder, is now examining the latest projection on the Bibiyana gas field's reserve.

The committee has been given one month to submit its review report to the Petrobangla management.

US-based international oil company Chevron, which operates the Bibiyana gas field, got the survey done recently by a reputed foreign survey firm, DeGolyer and MacNaughton (D&M), and then submitted the report to the government's petroleum corporation, Petrobangla.

As per recommendation of the Petrobangla, Chevron appointed the world-famous geographically based petroleum-consulting firm (D&M) to conduct the study, at a time when the country feared gas crunch and adopted belt-tightening measures.

Chevron submitted both the electronic version and the final official hardcopy on the find in September.

When contacted, Petrobangla Director (Operations and Mines) Yusuf Ali Talukder said that the committee got down to making the review. But some data and information need to be supplied by Chevron to justify the new reserve position.

"We've requested Chevron to provide the required data and other information to help the review," he told UNB.

Petrobangla officials said that after completion of the review, the organization would start to work to determine the future use of gas for different sectors in the new perspective, as the fossil fuel is so vital for fueling the country's development.

Earlier, the government had adopted a policy not to set up any new gas-based power plant in the country due to gas-supply constraints, although the country faced a nagging power crisis.

But, after the announcement of the substantially bigger reserve position, the government started rethinking the setting up of some gas-fired large power plants.

The D&M company said in its report that the assessment was a combination of volumetric and performance evaluation. Material Balance analysis was used as a check of the volumetric estimate.

The current assessment report indicates that Bibiyana has significantly larger reserves than what was estimated earlier in 2000, prompting the government to place the moratorium on gas-consuming power plants as well as restricting gas-based investment projects.

The survey report in 2000 had proven-plus-possible total gas volume of 3.14 TCF with recoverable reserves of 2.14 TCF-half the latest find.

But now the latest report indicates that Bibiyana has 2P (proven-probable) ultimate gas reserves of 5.76 TCF from an initial gas in place of 7.43 TCF.

Officials said according to the Bibiyana's new reserve estimate, the field has the capacity to produce around 1.130 billion cubic feet (bcf) a day.

However, due to plant capacity and the pressure-constrained pipeline, it will not be possible at this moment to utilize the full potential of the field.

An additional 25 percent potential was noted by DeGolyer & MacNaughton in the 'Possible' category.

Petrobangla recently moved to install a compressor station at Muchai which is believed to increase the field's production capacity.

Two and a half years of field-performance data demonstrated higher gas in place and reserve volumes by using a method called 'Material Balance.'

 

[eastwatch]

Review of Chevron's claim about higher gas reserve begins

Review of Chevron's claim about higher gas reserve begins

An expert panel started probing minutely a foreign agency's study report on Bibiyana gas field that shows a doubly larger reserve structure of 7.43 trillion cubic feet (TCF) of natural gas, reports UNB.

The newly projected volume of gas comprises proven plus probable reserves. The recoverable reserve is estimated to be 5.76 TCF.

When contacted, Petrobangla Director (Operations and Mines) Yusuf Ali Talukder said that the committee got down to making the review. But now the latest report indicates that Bibiyana has 2P (proven-probable) ultimate gas reserves of 5.76 TCF from an initial gas in place of 7.43 TCF.

A proven and probable gas reserves of 5.76 trillion cft is not a small field. Its international export value, when measured at $5.0 per thousand cft, is $28.8 billion. BD will use this gas to produce urea fertilizer and generate electricity.

Fertilizer will increase the production of food and power generation will increase the industrial production.

 

[TopCat]

A proven and probable gas reserves of 5.76 trillion cft is not a small field. Its international export value, when measured at $5.0 per thousand cft, is $28.8 billion. BD will use this gas to produce urea fertilizer and generate electricity.

Fertilizer will increase the production of food and power generation will increase the industrial production.

I have serious reservation in using those gas in producing electricity. Electricity can be produced from multiple of different sources, why to waste those valuables when we could use coal or even renewable energy.

 

[leonblack08]

Bangladesh to export $1b RMG to Japan in 2 years
Visiting business tycoon hopes

Hiroshi Okada
Refayet Ullah Mirdha
Trends show that Bangladesh will be able to export apparel items worth about $1.0 billion to Japan in the next two years, said a Japanese business tycoon, now in Dhaka in connection with the biggest knitwear exposition held every year.

Hiroshi Okada, president of Japan Textile Products Quality and Technology Centre (QTEC), said Japanese lab testing and quality inspection companies are visiting Bangladesh to survey investment potential, as there is a strong presence of Japanese apparel buyers.

The QTEC will start operations in Dhaka from February 1, Okada said in an interview on the sidelines of the 5th knitexpo at Dhaka Sheraton Hotel.

Okada said at present, at least 20 Japanese companies are in Dhaka to procure Bangladesh made apparels. But lab test and quality inspection is important to Japanese buyers, as Japanese customers are highly quality-conscious, he said.

After conducting a market study, he said, it now takes a lot of time to complete lab tests and inspect quality for the Japanese market, as Japanese buyers test all apparels pieces, instead of following a sampling method.

Local manufacturers have to send fabrics to Hong Kong or other important destinations to test results, as there are no such facilities in Bangladesh to meet Japanese quality standards, Okada said.

"We will start operations with an investment of half a million US dollars in Bangladesh as lab tests do not need large investments at first. But we will employ a significant number of trained employees here," he said.

QTEC, which has been testing garment, leather and jute goods worldwide over the last 64 years, will work in joint collaboration with the local Pacific Quality Control Centre Ltd.

At present, QTEC has operations in Japan, China, Korea and the fourth will be in Bangladesh, he said, adding that QTEC earned $38 million in 2008 in testing fees alone.

He said Japan is the latest avenue for Bangladeshi exports as a large number of Japanese customers are coming to Bangladesh after the Japanese government announced the China+1 Campaign.

Last year, Japanese entrepreneurs were advised to invest in other countries as well.

As a result, Japanese started relocating their factories in different countries, including Bangladesh. A strong presence of Japanese buyers was seen at the just concluded knitexpo, where more than 60 Japanese buyers and investors took part.

Leading Japanese socks maker Okamoto is also coming to set up a modern factory in Bangladesh.

BKMEA President Fazlul Hoque said the largest Japanese retail chain Uniqlo invested $70million in Bangladesh and they target purchase of apparel items in large huge volumes.

"Since Japanese customers are quality-conscious, setting up of such test labs and quality inspection companies will play a vital role in increasing exports to Japan," Hoque said.

Bangladesh to export $1b RMG to Japan in 2 years

 

[idune]

Investment remains stagnant

United News of Bangladesh . Dhaka

Investment in the country remained stagnant though business confidence is rising, according to a survey conducted by the Bangladesh Investment Climate Fund.
The summary of the survey was presented at a programme on ‘IFC-BICF Business Confidence Survey Highlights 2009: A Reflection on Business Survey’ at the Dhaka Chamber of Commerce and Industry auditorium Thursday.
It revealed that investment remained stagnant but profit and employment in terms of business confidence index is rising in the current (October-December) quarter.
Some 778 firms representing–small 74%, medium 7% and large 19%–were surveyed of which 27% were from manufacturing sector and 73% from services sector.
Eminent economist Prof Wahiduddin Mahmood said there is stagnation in investment although the foreign reserve is increasing. Confidence is an important factor for business and it has a psychological aspect as well.
‘In terms of performance, there was stagnation in the present and last quarter. The next quarter seems to be psychological turnaround and have better expectations in future,’ he said.
Commerce minister Faruk Khan speaking as chief guest at the function predicted bank interest rate will come down to a single digit by 2014 before they hand over power to the next elected government.
But, he said, the interest on deposits and the level of pension to retired personnel will remain at high.
Khan viewed that things are getting better for the government. It succeeded in protecting country’s economy from the impacts of the global meltdown.
He informed that they are working on infrastructure and also to improve the situation of gas and power supply. ‘We have been pressing hard. Yesterday (Wednesday) a power plant of 150MW was approved.’
About the traffic jam which is causing wastage of lot of time and energy, the minister said the government has taken steps to introduce elevated highway, monorail, tube, deep sea port projects.
He also said that the political commitment of the government is very clear. Extortionists are not part of the government.
The government is absolutely against ‘crossfire’ by the law enforcers, he added.
Aminur Rahman, investment policy officer of BICF, presented the highlights of the survey

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