Bangladesh Economy: News & Updates

[idune]

Garment exports fall last fiscal

FE Report

Export of readymade garments fell in fiscal 2009-10 which, experts say, was due to the adverse impact of global recession.

Both the Knitwear and Woven garments export to the United States of America, Germany, the Netherlands and France fell sharply, halting years of impressive growth.

RMG export to United Kingdom, however, managed to maintain a slim growth.

Dropped by a net 3.9 per cent for the first time, Bangladeshi knitwear export to its largest market - Germany - fetched only US$1282.77 million at the end of FY 2009-10, Export Promotion Bureau (EPB) data shows.

Similar negative trend was also witnessed in the woven export to the European country, which earned US$717.31 million during the period. It was 10.5 per cent fall from US$801.4 million in FY 2008-09.

According to the statistics, Knitwear export to the USA during FY 2009-10 faced a 7.0 per cent decline, earning US$891.61 million. In FY2008-09, it was US$ 959.421 million.

Woven export to the USA in FY 2009-10, however, managed to record a growth at 0.09 per cent, earning US$2736.4 million. It was US$2733.98 million in FY 2008-09.

According to EPB data, knitwear export to UK increased by 0.7 per cent at US$725.74 million. On the other hand, export of woven garments to the country earned US$534.3 million, a 6.0 per cent gain against the previous fiscal year.

Export to France declined by 1.9 per cent in knitwear at US$692 million and 1.2 per cent in woven at US$260.92 million against the corresponding period of FY 2008-09.

Garments export to the Netherlands also reported a marginal growth in knitwear but declined in woven, according to EPB data. Earning US$528.57 million in FY 2009-10, knitwear export to the country managed a yearly 2.76 per cent growth over that of the previous fiscal year.

Unlike knitwear, export of woven garments to the European country declined by 1.27 per cent earning US$388.8 million at the end of FY 2009-10.

"Recession caused a drastic price fall for our products," Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Abdus Salam Murshedy said.

"Present figure shows that export volume in fact increased during the period against the corresponding period of last fiscal year, but our earnings dropped," he added.

Outgoing Bangladesh Knitwear Manufacturers and Exporters Association (BGMEA) President Md. Fazlul Hoque echoed the same sentiment saying: "This is what we have been forecasting since the beginning of the recession."

Moreover, chronic shortage of power, rising labour unrest followed by a rising production cost and declining price of finished products in international markets turned the country's prime export product vulnerable, the RMG leaders said.

However, the country's total exports in 2009-10 reached US$16.20 billion, which was 4.11 per cent higher than the previous fiscal 2008-09. Knitwear products worth US$6483.29 million were exported during the period, marking a net 0.84 per cent growth. Similarly, export of woven goods increased by 1.60 per cent growth against the corresponding period of last year. The sector earned US$6013.43 million in fiscal year 2009-10, which was US$5918.51 million in the previous fiscal, EPB data revealed.

Garment exports fall last fiscal

 

[CaPtAiN_pLaNeT]

Rangamati Forests Circle
earns over Tk 11cr

Bangladesh Sangbad Sangstha . Rangamati

Rangamati Forests Circle, consisting of six territorial divisions, has eared Tk 11,20,70,338 by disposing off seized timbers and collecting royalty of bamboo and other forests products during the 2009-2010 fiscal.
Conservator of Forests, Shafiul Alam Chowdhury told the news agency that the Chittagong Hill Tracts South Forest Division had earned highest amount of revenue Tk 4,42,49,970 while the Rangamati Jhum Control Division earned Tk 60,18,836 in the past fiscal.
Of the rest forests divisions, the Chittagong Hill Tracts North Forest Division has earned Tk 2,40,33,102 taking its stance at second in earning followed by the Kaptai Pulpwood Plantation Division Tk 1,66,84,552 while the Khagrachari Forest Division Tk 1,29,32,856 and Rangamati unclassed State Forest Division Tk 80,89,840 during the last fiscal.
The Karnaphuli Paper Mills Limited at Chandraghona under Kaptai upazila of the district, the largest paper manufacturing plant in the south-east Asia, an industrial unit of the Bangladesh Chemical Industries Corporation, is solely depend for raw materials on RFC, observed the CF.
The KPDD supplies pulpwood to KPM as raw materials while the other divisions of the circle cater it with bamboo to produce paper, he added.

http://www.newagebd.com/2010/jul/25/busi.html#13

 

[CaPtAiN_pLaNeT]

Govt mulls waiving of Tk 28.43b debt of BJMC


FE Report

The government mulls waiving of a Tk 28.43-billion outstanding debt of the state-run Bangladesh Jute Mills Corporation (BJMC) in a bid to give its ailing units a new lease of life.

The Finance Minister AMA Muhith recently expressed the government's willingness to bail out the BJMC mills from its debt liabilities.

"During a recent meeting, the finance minister said he will consider waiving the entire loan with interest amounting to Tk 28.43 billion that the BJMC mills owe to government and banking system," Textile and Jute Minister Abdul Latif Siddique told a recent meeting of Jute Advisory Committee.

Mr. Abdul Latif also informed the meeting that finance minister had hinted at providing incentive package to the 'genuine' mills under the Bangladesh Jute Mills Association (BJMA) and Bangladesh Jute Spinners Association (BJSA).

The Jute Advisory Committee at its meeting made some recommendations including measure to keep the raw-jute prices at reasonable levels, ensuring product diversification of jute goods and necessary steps by banks concerned for re-valuation of security/mortgage property of jute mills for enhancement of their credit limit.

Textile and jute minister, however, informed the meeting that a separate meeting would be convened to discuss the repayment of loan, which was received by private and BJMC mills under a World Bank (WB)-financed project 'Jute Sector Adjustment Credit (JSAC).'

The meeting also discussed the issues relating to implementation of the recent official decision on providing of a 30-month moratorium facility to private jute millers and recovery of their outstanding loans in 10 years at 8.0 per cent rate of interest.

Senior government officials, top executives of different commercial banks and representatives of private-sector jute mills were present at the meeting.

Govt mulls waiving of Tk 28.43b debt of BJMC

 

[idune]

FDI in Bangladesh drops by 36pc

FE Report

The Foreign Direct Investment (FDI) in Bangladesh has declined by 36 per cent and stood at $700 million last year compared to 20.11 per cent decline in South Asian countries and 14 per cent in terms of the least developed ones, according to the World Investment Report (WIR), 2010.

FDI inflows to developing and transition economies declined by 27 per cent to $548 billion in 2009 and FDI flows to developed countries suffered the worst decline of all regions, contracting by 44 per cent to $566 billion in the same year, the WIR added.

The WIR, compiled by the United Nations (UN) was been officially released on Thursday by Board of Investment (BoI) at its conference room. The BoI's Executive Chairman SA Samad, Privatization Commission's Chairman Mirza Jalil and Dr. M Ismail Hossain, Professor of Economics, Jahangirnagar University, among others, spoke on the occasion.

The BoI chief said the global economic downswing that led to the downward trend of global FDI is the major reason for the dismal FDI scenario in Bangladesh last year.

He, however, differed on the issue of crises of power, energy and gas which was said to discourage investment, particularly that of FDI, in the country now and in future.

"Not a single investor expressed concern to me for the dearth and crises of power, water and gas in the country," SA Samad told newsmen in reply to a question.

"The investors often express their dissatisfaction over the procedural complexities in investing here, which the BoI alone cannot solve as seven to eight government agencies are involved in the process of implementing any private investment, particularly FDI ", the BoI chief added.

Samad said the FDI in Bangladesh has never been impressive despite the fiscal incentives provided to foreign investors which is the most attractive in the world.

Citing his own finding, the BoI Executive Chairman said 57 Muslim countries received only 2 per cent of total FDI in 2009.

"It is utterly surprising that FDI goes to Vietnam and other LDCs, having less attractive fiscal incentives than those Bangladesh offers. The Muslim countries receive the least FDI," Samad said.

He said incentives alone could not attract FDI in any country. If economic growth takes place and rule of law is ensured, the much needed foreign investment will come to Bangladesh to a great extent.

According to the UN statistics on WIR, Bangladesh received $700 million FDI in 2009 compared to $1.86 billion in 2008, India received $34.61 billion FDI in 2009 compared to $40.14 billion in 2008, Pakistan received $2.38 billion FDI in 2009 compared to $5.43 billion in 2008, Sri Lanka received $404 million FDI in 2009 compared to $752 million in 2008, Afghanistan received $185 million FDI in 2009 compared to $300 million in 2008.

The countries like Nepal and Bhutan posted growth in receiving FDI in 2009, the WIR said. The FDI in Nepal was $39 million in 2009 compared to $1.0 million in 2008 and the FDI of Bhutan was $36 million in 2009 compared to $ 30 million in 2008.

'The current FDI recovery is taking place in the wake of a drastic decline in FDI flows worldwide in 2009. After a 16 per cent decline in 2008, global FDI inflows fell by further 37 per cent to $1114 billion, while outflow fell some 43 per cent to $1101 billion," the WIR says.

"FDI flows to the 49 LDCs declined by 14 per cent to $28billion. The impact of lower inward investment is particularly serious for this group of countries, as the high ratio of FDI to their gross fixed capital formation (24 per cent in 2009) suggests that it is a major contributor to capital formation," the report further added.

Dr. M Ismail Hossain, while speaking on the report, said the country needs FDI with the commitment of emitting low carbon. He said the policy balance is needed between the investors and the country's interest, while coherence between national and international policies is of importance to attract the FDI and reap benefit out of it.

Abu Reza Khan, Member, BoI, said investors are not concerned over power and energy crises. Rather, they are in need of land to invest as dearth of land is affecting the country's FDI badly, he added.

FDI in Bangladesh drops by 36pc

 

[CaPtAiN_pLaNeT]

Banglalion WiMAX launches
operation in Khulna

Staff Correspondent . Khulna

WiMAX operator Banglalion Communications Limited launched its operation in Khulna on Saturday.
Banglalion chief commercial officer Md Shafiul Haque Chowdhury at a press conference in Khulna city said the company started its wireless internet service in Khulna after its successful commencement in Dhaka, Chittagong, Sylhet and Rajshahi.
The company offers attractive packages starting from 128 Kbps to 5 Mbps, he said. He also announced a special package for students who can get Banglalion WiMAX connection of 265 Kbps at Tk 800 per month.
Banglalion general manager (admin) Abul Kalam Azad Babla, head of media and communications GM Faruq Khan,
head of strategic sales Tamim H Chowdhury and head of WiMAX plaza Md Nazrul Islam were present on the occasion, among others.

Business

 

[idune]

Price hike of essentials grips the nation

M. Abdul Latif Mondal

The people of Bangladesh are again under the grip of another price hike of essential commodities, including rice. This has happened before the upcoming holy month of Ramadan, when the unscrupulous traders usually raise the prices of essential commodities for windfall profit.

Available reports suggest that in the past three plus weeks, the prices of different varieties of rice increased by Tk. 4 to 5 per kg in the retail markets. One kg of coarse rice, which is eaten by more than 75% of the people, was being sold this week in the retail markets at Tk. 31-32 per kg against Tk. 27-28 a kg in the third week of June.

Available information suggests that over the past four weeks or so, the prices of different varieties of vegetables increased in average between 50% and 75% in the kitchen markets. A report in an English language daily this week said that per kg of green chilli was sold between Tk. 100 and Tk. 110, garlic between Tk. 135 and Tk. 140, ginger between Tk. 100 and 110 and turmeric between Tk. 250 and Tk. 280 . Brinjal was sold between Tk. 48 and Tk. 50 per kg while tomato between Tk. 75 and Tk. 80 a kg.

Beef, mutton and fishes remained almost beyond the reach of the common people. Beef was sold at prices between Tk. 240 and Tk. 250 per kg while mutton between Tk. 360 and Tk. 380 per kg. Hilsa fish, medium size, was priced between Tk. 500 and Tk.600 while Ruhi fish between Tk. 200 and Tk. 220 a kg.

Rice is the staple food of Bangladesh and provides about 93% of the country's cereal intake. It accounts for 39% of the average monthly household consumption expenditure at national level and 42.25% in rural areas (Source: HIES, 2005 of BBS). The increase in the price of rice has hit hard the people, in particular the ultra poor and the vulnerable, who constitute about 40% or 60 million of the population.

Lack of access to sufficient meat, fish, lentil and some vegetables containing rich protein due to their high prices causes malnutrition, particularly among children. According to a UNICEF report of last November, about 7.2 million children under five suffer from malnutrition in Bangladesh.

It seems that controlling price spiral of essential commodities is nobody's business although maintaining economic stability and reducing commodity price hike was one of the five priority issues in the 2008 election manifesto of Awami League (AL).

The AL election manifesto said: "Measures will be taken to reduce the unbearable burden of price hike and keep it in tune with the purchasing power of the people. After giving the highest priority to the production of domestic commodities, arrangements will be made for timely import to ensure food security. A multi-prong drive will be made to control prices along with monitoring the market. Hoarding and profiteering syndicates will be eliminated. Extortion will be stopped. An institution for commodity price control and consumer protection will be set up. Above all, price reduction and stability will be achieved by bringing equilibrium between demand and supply of commodities."

Eighteen months have elapsed since the AL's coming to power, and except passage of the Consumer Protection Law, which is yet to be implemented, nothing has been done to implement the above pledge. We do neither see the cabinet discussing the burning issue of price hike of essentials, nor do we find the Parliament with four-fifths of members from the ruling alliance debating it.

It needs no repetition that increase in price level means inflation which erodes the purchasing power of the people. This affects the poor and the fixed wage earners in the low and middle grades most. Whatever financial benefit had accrued to the fixed wage earners in the public sector from the national pay scale has been eaten away by the high rate of inflation which, as admitted by the Finance Minister in his budget speech, was 8.8% on point-to-point basis in March last. It has risen further.

We are living in a democratic society of the twenty-first century. Although it may not be quite appropriate in modern days, yet we may refer to the famous price control system of a medieval Indian ruler to learn from history. Sultan Alauddin Khalji (1296-1316 A.D) of the Khalji dynasty established his suzerainty almost over the whole of the Indian sub-continent. But he had to face repeated attacks from the Mongols, which seriously affected agriculture, and crippled trade and commerce. This led to prohibitive prices of essential commodities in the markets. Since Alauddin had to maintain a large army for repulsing the attacks of the Mongols, and the low paid soldiers and the common people had been hard hit by the prohibitive prices of food grains and other essentials, he introduced a strict price control system which made him famous as a benevolent ruler.

The price control system had three main heads: (a) food control; (b) cloth control; and (c) the control of cattle market and of other necessities of life.

Alauddin had issued edicts regulating the prices of all articles from the absolute necessaries of life to things of luxury and adjusting the laws of supply and demand. He strengthened supervision to ensure effective implementation of the system.

The price control system raised the standard of living of the common people and helped achieve greater strength and efficiency of the army. Praising the price control system of Alauddin, the famous historian Ziauddin Barani writes that "the unvarying price of grains in the markets was looked upon as one of the wonders of the time."

Sultan Alauddin Khalji had not made any promise to his people to control the prices of commodities. He felt it necessary in the interest of the common people and did it. Before the election, the AL had promised to control price hike of commodities and bring it within the purchasing power of the common people. But, after forming the government, the AL seems to have forgotten the promise.

HOLIDAY > FRONT PAGE

 

[CaPtAiN_pLaNeT]

Hanoi eyes trade deal with Dhaka

Saturday, 24 July 2010 21:50

Hanoi eyes trade deal with Dhaka

Hanoi eyes trade deal with Dhaka
Diplomatic Correspondent

Vietnam is eager to sign a trade agreement with Bangladesh to enhance bilateral trade and investment between the countries.

Deputy Prime Minister of Vietnam Nguyen Sinh Hung said this when Foreign Minister Dipu Moni paid a courtesy call on him in Hanoi yesterday on the sidelines of the 17th Asean Regional Forum Ministerial Meeting that began on Friday.

During the meeting, the ministers discussed the common bilateral issues.

Dipu Moni said Vietnam has achieved tremendous development in many sectors, especially in agriculture.

Bangladesh has many things to learn from Vietnam, she said and emphasised enhancement of trade and investment from Vietnam.

The Vietnamese deputy prime minister also voiced the same and expressed his interest to promote trade relations with Bangladesh.

He said Asean (Association of Southeast Asian Nations) Regional Forum (ARF) is to ensure peace, security and friendship in the region. He also said ARF can be more cooperative in future in the issues of climate change and natural disaster.

The Vietnamese minister also expressed his interest to work together for socio-economic development of the Bangladeshi people.

Dipu Moni said Bangladesh is very much concerned about climate change.

Trade bodies of both the countries can work together to promote bilateral trade relations, she added. She also stressed an agricultural cooperation agreement, and student exchange.

The ministers also talked about a convenient schedule for the prime minister of Vietnam to visit Bangladesh.

The Vietnamese deputy prime minister said there should be visa exemption facilities for the businessmen of the two countries.

The foreign minister of Bangladesh said the authorities of the countries can work on it.

 

[CaPtAiN_pLaNeT]

ERL to install 77-km submarine pipelines for supply of oil from tankers to refinery depot

Saturday, 24 July 2010 21:44

Bangladesh Sangbad Sangstha (BSS)

ERL to install 77-km submarine pipelines for supply of oil from tankers to refinery depot
Debdulal Bhowmik

CHITTAGONG, July 24 (BSS)- Bangladesh Petroleum Corporation (BPC)-run Eastern Refinery Limited (ERL) has launched preliminary work to install 77-kilometer long submarine pipelines for straight supply of imported crude oils from the Bay to the refinery depots.

ERL, a sister concern of BPC, has taken up a TK 952 crore submarine pipeline installation project to ease the delivery intricacy and procrastination in shifting of fuel oil from mother tankers in the deep sea.

BPC sources said ERL had already completed the pre-bid discussion with six foreign companies to appoint an efficient consultant for this project on the basis of Expression of Interest (EI) on July 20 and also asked the companies to submit their proposals within August 30 next.

Deputy Manager (Development) of ERL Monirul Huda told BSS that of the project cost of Taka 903 crore would be financed by Islamic Development Bank (IDB) and the rest Taka 49 crore would be available from the Government of Bangladesh (GOB).

"ECNEC has already approved the project and IDB has also given the final consent for releasing the fund," Monirul Huda added.

ERL officials hoped that the final work of the installation would begin in November next and be completed in 2012 if everything is all right.

Monir said the pipelines would a route of 61 kilometers under the sea from the southwest of coastal Island Kutubdia to Parky Beach of Anwara in Chittagong and from there it will finally be linked to ERL oil depots.

A four-member delegate of IDB experts after spot visit primarily agreed to invest in the project in November last year.

ERL invited EI and 33 international companies including from America, Malaysia, Germany and the Netherlands have applied, of which ERL chose six companies and will finally appoint one of them.

General Manager (Planning) of BPC Mahmudunnabi told BSS that if this modern technology-based project is implemented, it would be an epoch-making step for rapid delivery and saving time in supplying crude oils from mother tankers to ERL.

According to BPC sources, Bangladesh annually imports 38 lakh tons of fuel oil, of which 12 lakh tons is crude oil.

This amount of the crude oil is refined in the country's lone oil refinery.

Bangladesh Shipping Corporation (BSC), a national flag carrier, presently delivers petroleum products from the mother tankers anchored near Kutubdia Island by its vessels to the depots.

This process of delivery takes much time and over-costs. Besides, the delivery process sometimes is stopped if the BSC ships remain inoperative.

A Pakistani brand name ENERPAC in its survey, suggested BPC with two proposals - the setting up of another double-capacity refinery beside ERL and delivery of crude oils from mother tankers through submarine pipelines instead of carrying out Balancing Modernization Renovation and Expansion (BMRE) of ERL. BPC as per proposals of ENERPAC took initiatives to install the submarine pipelines.

 

[CaPtAiN_pLaNeT]

Dutch pvt firms keen to invest in Bangladesh

Saturday, 24 July 2010 21:45

Dutch pvt firms keen to invest in Bangladesh

Dutch pvt firms keen to invest in Bangladesh
Envoy envisions broader bilateral ties

M Azizur Rahman

The Netherlands has aimed at changing its approach towards Bangladesh from a 'traditional development partner' to an active 'trading counterpart' to boost productive sectors, business and knowledge exchange.

"Currently we have a rather traditional development programme with a focus on social sectors. We aim to change this to a programme with more emphasis on productive sectors, trade and knowledge exchange," the Netherlands ambassador to Bangladesh Alphons JAJMG Hennekens told the FE in an exclusive interview.

The bilateral relationship will become more diverse and will foster a broader range of partnership, particularly in the private sector, he said.

Growing interest from the private sector of Netherlands to do businesses in Bangladesh is acting as a catalyst for changing the outlook.

Private firms of the Netherlands are keen to get involved in businesses of shipbuilding, infrastructure development, river dredging and in the ailing energy sector in Bangladesh.

They already showed interests to involve themselves in construction of the country's largest US$ 2.4 billion multipurpose Padma Bridge, especially in river training and relevant dredging works.

"I think the Netherlands private sector has a lot to offer for construction of the Padma Bridge including river training, which requires dredging," said the Dutch envoy in Dhaka.

He said the Netherlands has special expertise in river dredging.

They have helped develop major projects such as the Palm Island in Dubai, added the ambassador.

In the past, the Dutch companies were involved in river training work in Bangladesh for the Jamuna bridge.

"Currently there is a great interest from Bangladesh for dredgers built by Dutch companies. These companies belong to the world's top dredger-builders," said Mr Hennekens.

A joint venture between a Dutch and a Bangladeshi company is now building three dredgers for the government of Bangladesh.

The government has taken up an ambitious plan for dredging rivers, which raised demands for dredgers both from the public and the private sectors in Bangladesh, and opened the windows of opportunity for involvement of Dutch companies.

The envoy of the north-western European country has also spelled out his country's potential to help Bangladesh build the planned and much needed deep- sea port.

Port of Rotterdam is the largest port in Europe with sophisticated traffic management system. The firms which constructed it can assist in the development of the new deep-sea port, he said.

"The Port of Rotterdam acts as the gateway to Europe and has strategic partnerships with ports all over the world to assist them in port development," said Mr Hennekens.

The Netherlands' energy companies, that include world's leading infrastructure builders, are also closely monitoring developments in Bangladesh's energy sector and are looking forward to business opportunities here, he added.

Pointing out steps to strengthen bilateral relations Mr Hennekens said his country has already started introducing such partnerships through the 'Water Mondiaal' programme in delta-management."

One of the major benefits of this programme for Bangladesh is the exposure to innovative and climate change-tolerant water management practices in the Netherlands and around the world, he said.

"Over the next two years we will lay the foundation of new ways of working together," said Mr Hennekens.

Currently trade links between the two countries are relatively modest and mainly skewed towards Bangladeshi exports than that of the Netherlands.

Bangladesh exported goods worth 381 million Euro in 2009, while the import value was 70 million Euro.

"It is evident that the Netherlands has a structural trade deficit with Bangladesh, which is common for Bangladesh with most Western markets," he said.

The Netherlands mainly imports readymade garments, and exports machinery, transportation products and chemicals.

"We see an increased interest in Bangladesh for the maritime sector in the Netherlands. Dutch companies are highly specialised component producers relating to the shipbuilding industry in Bangladesh," he said.

Dutch private investment in Bangladesh is also modest.

"An important reason for this low investment is the poor image of Bangladesh in the Netherlands," said the Ambassador.

Bangladesh is seen as a country suffering from natural disasters, poverty, corruption, and a thorny investment climate.

"The more positive side of Bangladesh, namely its considerable economic growth over the past decade, is not the first thing which comes to mind when people think of Bangladesh," he said.

The Netherlands embassy, however, tries to present a more balanced portrayal of Bangladesh.

"We focus on positive elements Bangladesh has to offer. We inform Dutch investors directly by simply taking up the phone or participating in seminars in the Netherlands, and we are in close contact with the business support organisations," Mr Hennekens said.

The website of the embassy ::Netherlandsembassy:: Index Page clearly mentions business opportunities and challenges in Bangladesh.

 

[CaPtAiN_pLaNeT]

Govt moves to set up compression stations again to boost gas flow


Saturday, 24 July 2010 21:55

Govt moves to set up compression stations again to boost gas flow

Govt moves to set up compression stations again to boost gas flow
M Azizur Rahman

The government has moved again to install the much-needed compression stations to boost natural gas transmission across the country with a fresh momentum as the Asian Development Bank (ADB) has almost doubled its committed funds, said a top official.

State owned Gas Transmission Company Ltd. -- the sole authority for transmitting country's natural gas - has already floated tender and would be receiving bids until August 19 to install two compression stations at Ashuganj and Elenga, a senior energy ministry official told the FE.

He said the ADB, the financier of these projects, has raised its funding commitment to US$ 100 million from the previous $55 million for completing installation of the compression station projects.

The multilateral donor agency's previous $55 million funding commitment was for installation of three compression stations in Muchai, Ashuganj and Elenga areas.

The GTCL had subsequently floated tenders twice but failed to award works as the quoted bids were much higher than the project allocations.

"This time ADB has increased its allocation by $45 million to complete installation of two compression stations instead of previous three," said a senior Petrobangla official.

The remaining compression station at Muchai would be built by US oil giant Chevron at a cost of $52 million as Petrobangla and Chevron reached consen -sus in this connection.

Chevron has already started installation of the compression station after debates over awarding of the project work and is expected to complete it by 2012.

For Ashuganj and Elenga compression stations the GTCL has set a target to complete installation of the stations within 21 months from the date of signing agreements.

"The previous tenders to install the compression stations did not bear fruit due to inadequate funding," GTCL Managing Director Aminur Rahman told the FE.

"But I am hopeful of a successful result this time," he said.

Officials said the GTCL initially pointed out in 2004 the necessity for setting up all the three compression stations in 2004.

The ADB approved US$ 55 million in 2006 for completion of Muchai, Ashuganj and Elenga compression stations and the GTCL had floated tenders in 2006 and 2008 respectively but failed to award contracts.

The delayed installation of compression stations has led to the deterioration of the already acute gas crisis in the port city Chittagong, the officials said.

The country is now reeling under an acute energy crisis as the gas supply shortage is now around 500 million cubic feet per day (mmcfd) of gas, which is soaring rapidly.

The extent of gas supply crunch differs from one area to another area as the country's transmission network is not capable of carrying gas sufficiently with required pressure to the user ends.

The country has sufficient gas supplies in the north-east region where most of the producing gas fields are located.

Due to transmission constraints the gas from the north-east region not being supplied to the country's south-east region, where the crisis is more acute.

Also, low gas pressure, caused by the absence of compressors, is impeding industrial production and electricity generation, and scores of industries across the country are already feeling the pinch after having invested heavily in their units.

Installation of these gas compressors and setting up of necessary transmission pipelines would ensure smooth supply of gas across the country.

Bangladesh is now producing around 1,980 mmmcfd of gas against the demand for over 2,480 mmcfd.

 

[CaPtAiN_pLaNeT]

Country has now 59.98m mobile phone customers

Saturday, 24 July 2010 21:54

:: The Daily Independent Bangladesh :.. Internet Edition

Country has now 59.98m mobile phone customers
BSS, DHAKA

The country's mobile phone operators added 13.29 million new customers in one year till June, raising the total number of users to 59.98 millions.

According to Bangladesh Telecommunication Regulatory Commission (BTRC), there were 46.69 million customers of six mobile phone vendors till June last year. But the number reached 59.98 millions in June this year.

Of the six operators, the sources said, Grameenphone (GP) maintained its solo lead in terms of customer acquisition by adding 5.30 million subscribers in last one year. The number of GP users is now 26.46 millions which was 21.16 millions till June last year.

Egyptian Orascom Telecom's Banglalink retained the second spot adding 5.06 million clients in the last one year. The number of Banglalink users reached 16.10 millions till June which was 11.04 millions in June last year.

Robi, formerly known as AKTEL, owned by Axiata (Bangladesh) Ltd, remained in the third position with 11.10 million customers. It added 2.25 million subscribers in last one year raising the total number of its customers to 11.10 millions.

The market's new entrant Warid Telecom grabbed the number four position adding .59 million customers in the last one year.

The number of customers of Warid Telecom, the Emirates telecom vendor which was launched in 2008, reached 3.17 millions in June this year. The number was 2.58 millions till June last year.

Citycell, the country's first and only CDMA operator and a joint venture between Pacific Bangladesh Telecom Limited and Singapore Telecommunication, remained in the fifth spot with 1.99 million customers. The Citycell added only .03 million subscribers in the last one year.

The state-run TeleTalk now remained at bottom place with 1.16 million customers. It roped in .06 million subscribers in last one year.

An official of the BTRC told BSS today that the number of mobile customers is increasing rapidly in the country due to reduction in call charges and SIM prices.

 

[CaPtAiN_pLaNeT]

ICT facilities to be expanded to all UPs by December

Saturday, 24 July 2010 21:47

Bangladesh Sangbad Sangstha (BSS)

ICT facilities to be expanded to all UPs by December

DHAKA, July 24 (BSS)- In line with the present government's vision to build `Digital Bangladesh' by 2021, ICT facilities will be expanded to all 4,484 unions in the country by this year to reach such facilities to the doorsteps of the rural people.

"Against the backdrop of tremendous success in 102 unions, the information and communication technology (ICT) facilities will be expanded to all 4,484 unions by December this year to build Digital Bangladesh, envisioned by Prime Minister Sheikh Hasina," a review meeting on the activities of Digital Bangladesh was told here today.

The meeting arranged by the UNDP-funded Access to Information (A2I) Programme under the Prime Minister's Office also took a decision to bring all government offices at the upazila level under computer and internet network.

Besides, decisions were undertaken to arrange `digital innovative fair' in all divisional cities in the country from October to December and to introduce unicode Bangla typing in all ministries.

Adviser to the Prime Minister HT Imam was the chief guest at the meeting held at the Prime Minister's Office.

With Principal Secretary to the Prime Minister's Office M Abdul Karim in the chair, the function was addressed by Cabinet Secretary M Abdul Aziz as the special guest.

National Project Director of A2I Programme Mohammad Nazrul Islam Khan gave answers to various questions as the coordinator of the function, while secretaries of all ministries and `e-governance focal points' were present.

Speaking on the occasion, HT Imam called upon the government officials to work hard for raising literacy rate to implement Digital Bangladesh envisioned by Prime Minister Sheikh Hasina.

"Without increasing the country's literacy rate, implementation of Digital Bangladesh will not be possible as both are related with each other," he said.

HT Imam urged the secretaries to work with a service-oriented mindset and undertake programmes to reach the digital services to the doorsteps of the people speedily and at a low cost.

The PM's adviser also asked the government officials to take the next steps after evaluating the progress of the earlier programmes.

The meeting reviewed the progress of 53 `quick-win initiatives' innovated by the 53 ministries and government departments to reach digital services to the doorsteps of the people. Besides, 39 `quick-win initiatives' were identified.

At the meeting, all ministries and government departments were reminded to present these new innovations to the divisional innovative fairs as the digital services.

It also discussed in detail the issues of cyber safety and ICT Policy-2009.

 

[idune]

Govt moves to set up compression stations again to boost gas flow


Saturday, 24 July 2010 21:55
.

Oh good $55 million was not enough Sajeeb Wazed Joy and Toufiq Elahi to loot, now they will have $100 of millions of dollars to loot from.

 

[CaPtAiN_pLaNeT]

Oh good $55 million was not enough Sajeeb Wazed Joy and Toufiq Elahi to loot, now they will have $100 of millions of dollars to loot from.

What the hell you are talking about... have you read the article.... the bidder put more money then their initial budget of 55 million. That is the reason ADB came to provide the remaining 45 million funding. For the 3rd project US is providing the funding. Do you think that ADB and US those who are providing the fund only for looting and without checking the feseability of the project???

If anything good is happening try to acknowledge it instead of saying everything bad. This sort of mentality that what ever the opponant of my supported party do is bad, hindering the developmant of bangladesh.

 

[idune]

What the hell you are talking about...

Go educate yourself on Awami version of development aka deception