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Bangladesh Economy: News & Updates

BRTC gets Tk 1.14 billion for bus procurement

Tue, Jul 27th, 2010 6:42 pm BdST
Dhaka, July 27 (bdnews24.com)— Bangladesh Road Transport Corporation will buy over 900 buses at a cost of Tk 1.14 billion aimed at easing the chronic transportation problem, especially in Dhaka city .

The Executive Committee for the National Economic Council on Tuesday approved the funding, which will enable BRTC to procure CNG-run buses.

Of the total amount, Tk 190 million would come from the state coffer while the remaining Tk 950 million would be arranged through loans from the Nordic Development Fund (NDF), planning minister AK Khandaker told reporters after the ECNEC meeting.

Chiared by prime minister Sheikh Hasina the meeting altogether approved four projects worth Tk 2.72 billion.

Two projects of the roads and railway division have been allocated Tk 1.14 billion for construction and renovations of highways.

Local government division's 'Development of Water Supply System of Khulna City' was given Tk 440 million.

:: biz.bdnews24.com ::
 
Western Marine launches ice-class vessels

Marking a milestone in the shipbuilding industry, Western Marine Shipyard Ltd has rolled out two ice-class vessels.

"These are specially designed vessels," said Md Saiful Islam, chairman of Western Marine. Ice-class ships have strengthened hulls to enable them to navigate through sea ice.

EMSSEA -- a 100-metre, 5,200DWT (deadweight tonnage) multi-purpose dry-cargo ship, was the first to leave the docks on Monday. The second -- EMSRIVER -- a sister vessel of EMSSEA, floated yesterday from the shipyard in Chittagong. The EMSSEA is the largest vessel built by a local shipbuilder until now.

The two are part of the 12 vessels worth $130 million in total, ordered by Grona Shipping, a German company. The vessels will be delivered by 2012 in phases.

Built in compliance with Germani-scher Lloyds standard and designed to endure extreme weather conditions, the ice-class vessels will be deployed in the Atlantic Ocean and the Baltic Sea, said the shipbuilder.

"Bangladesh had established its name as a successful shipbuilding nation by delivering such massive vessels," said Sakhawat Hossain, managing director of Western Marine, during the launch.

Marku Vedder, fleet manager of Grona Shipping, also present on the occasion, expressed his satisfaction over the quality workmanship and timely delivery of the ships.

The shipbuilder is now receiving many orders from Germany, Denmark, Pakistan and Middle Eastern countries as Bangladesh is increasingly being recognised as an attractive destination for medium and small vessel building.

Western Marine launches ice-class vessels
 
GMG may fly to Jeddah and Riyadh next month

The country's biggest private carrier, GMG Airlines, may begin operations on two major money-spinning routes Jeddah and Riyadh of Saudi Arabia early next month.

The seven-jet carrier wants to fly to Jeddah on August 8 and later to Riyadh, its Chief Executive Christian Heinzmann said.

The airline aims to operate six weekly flights to Jeddah and four to Riyadh.

“We have got permission from the KSA (Kingdom of Saudi Arabia) to operate a total of 10 flights per week on the two routes. And we have decided to utilise all the slots,” said Heinzmann in an email reply to The Daily Star.

The entry of the private airline is expected to break the decade-old monopoly of Biman Bangladesh Airlines in Saudi Arabia, employer of nearly 20 lakh Bangladeshi workers and a destination of hajj pilgrims.

At present, Biman and Saudi Arabian Airlines carry bulk of the travellers between Bangladesh and Saudi Arabia.

Heinzmann said the routes are profitable for any airlines operating from Dhaka, and would help GMG generate higher revenue.

“Though I can't give you the exact revenue figure, we expect to grab a big chunk of the market.” he said.

The carrier now flies to eight international destinations, including the world's busiest airport Dubai. Now foreign airlines, as a group, enjoy around 71 percent of the more than 35 lakh air-passenger market.

The airline said it would use its newly acquired 264-seater Boeing 767-300 ER aircraft on Jeddah and Riyadh routes.

GMG may fly to Jeddah and Riyadh next month
 
The shipbuilder is now receiving many orders from Germany, Denmark, Pakistan and Middle Eastern countries as Bangladesh is increasingly being recognised as an attractive destination for medium and small vessel building.

So we are exporting ship to Pakistan??? very good.:tup:
 
BB forms re-financing fund to boost SME operation


Wednesday, 28 July 2010 21:07

BB forms re-financing fund to boost SME operation

BB forms re-financing fund to boost SME operation
FE Report

A new re-financing fund worth Tk 6.65 billion (US$ 95 million) has been formed aimed at facilitating financing small and medium enterprises (SMEs) across the country, officials said Monday.

The Bangladesh Bank (BB) will provide the re-financing facility through eligible commercial banks and financial institutions at the existing bank rate, which is now 5.0 per cent.

"We've formed the fund aiming to develop the SME sector across the country through providing re-finance facility," Sukomol Singha Chowdhury, General Manager of the SME and Special Programmes Division of Bangladesh Bank, told the FE.

He also said it's a new investment fund which will be used for project financing.

The central bank of Bangladesh will operate the fund under the 'Small and Medium sized Enterprise Development Project (SMEDP)' to accelerate the development of the SMEs, especially those in the rural and non-urban areas, by improving their access to medium and long-term credit facility.
 
50-bed hospital at Mirpur to treat burn victims


Home Minister Sahara Khatun Tuesday said the Home Ministry would construct a 50-bed hospital in Mirpur for providing treatment to burn injury victims, reports UNB.

Presently Dhaka Medical College has a burn unit funded by the ministry, she told reporters after a review meeting of the Annual Development Programmes (ADP).

Chaired by the home minister, the meeting was attended by Home Secretary Abdus Sobhan Sikder and senior officers of various departments under the ministry.The meeting reviewed the progress in various development projects implemented by the ministry during the last fiscal year.

Referring to the progress of ADP, the home minister said her ministry achieved 96 per cent of ADP implementation which she said is the highest among the ministries. Sahara said the Home Ministry implemented 36 projects amounting to Tk 4.81 billion as against Tk 4.98 billion allocated in the last fiscal year. Sahara said 34 more projects have been approved for implementation during the current fiscal year.

50-bed hospital at Mirpur to treat burn victims
 
Chinese cos dominate central ETP bid list

Construction expected to begin in 3 months

Shakahwat Hossain

Chinese companies are the majority in the list of firms which are vying to win the contract for building the proposed Central Effluent Treatment Plant in the new site for the tannery industries outside the capital.
Five out of the 13 companies, which submitted technical proposals to construct the estimated Tk 430 crore CETP under the much-talked-about tannery relocation project in Savar, are Chinese, said project officials.
They are Jiangsu Lingzhi Environmental Protection Company Ltd, MCC Chenggong Shanghai Wuye Construction Corp Ltd, CS Guo Yi Environment Protection Engineering Co Ltd, Shanghai Tongji Construction Science and Technology Co Ltd and China Haohua Engineering Co Ltd.
The Ministry of Industries has been considering the project since 2003 to stop the discharge of hundreds of tonnes of untreated chemical waste by some 150 tanneries located in Hazaribagh into the Buriganga River.
But reportedly it did not find a suitable construction firm despite calling international tenders twice in the last couple of years, which has delayed the construction of the CETP and the tanneries relocation project although the High Court set a deadline of August 2010.
The secretary Ministry of Industries, Dewan Zakir Hossain, who heads the steering committee of the tanneries relocation project, told New Age that the delay in setting up the CETP was not surprising.
‘It is a very large project and is being implemented for the first time in the country,’ he said, adding that his ministry would submit an overall progress report of the project to the High Court to seek extension of the deadline for two more years.
Projects officials said this was the third international tender they had called.
Apart from the Chinese companies, three local firms, two each from India and Singapore and one from the United Arab Emirates, also took part in the bidding process of the CETP in response to tenders floated last February.
The CETP will have the maximum capacity of treating 20 million litres of toxic chemicals daily.
The short list of technically eligible companies will be readied soon to invite financial bids from them. The project officials said they are expecting to select the most suitable company and start construction work of the CETP by the next three months.
Following are the other bidders: Doel Enterprise, Mir Akhter-UEM Consortium and Chittagong Waste Treatment Plants Ltd (Bangladesh), Epure International Ltd and United Texmac Pte Ltd (Singapore), VA TECH WABAG Ltd and Ramky Enviro Engineers Limited (India) and METITO-AL-KAFAAH (UAE).

Business
 
Govt to explore economic opportunities in Africa

Wednesday, 28 July 2010 21:08

Front Page

Govt to explore economic opportunities in Africa
African nations almost untapped by Bangladeshi businessmen

Shahidul Islam Chowdhury

The government will send a fact-finding mission to Africa, which is rich in oil and minerals, to advance economic and strategic interests in the continent as well as reduce its dependence on the European and the US markets, a senior official of the foreign affairs ministry told New Age.

‘Fact-finding missions will visit several African countries to discover new economic opportunities,’ the foreign affairs ministry’s director general, M Wahidur Rahman, told New Age after an inter-ministry meeting on Tuesday.

‘Africa is still an unexplored continent to us and one of the most neglected regions from both the economic and diplomatic points of view, although there is scope to increase exports and send skilled Bangladeshi manpower and professionals there, he said.

The first fact-finding mission will visit Nigeria, the Ivory Coast, Ghana, Liberia, Congo and Senegal in the second half of August.

The delegation will try to open up scope for exporting pharmaceutical products, readymade garments, knitwear, ceramics, jute and jute goods, leather and leather goods, processed food, shrimps, fruits and vegetables to the region.

It will also try to find opportunities to send more skilled, semi-skilled and unskilled manpower — including physicians, engineers and teachers — to the health, mining, agriculture, tourism and service sectors there.

The delegation will also try to attract investment from African countries.

It will also try to assess the necessity of setting up residential diplomatic missions and consulates in several countries to advance the country’s economic and strategic interests in the continent.

Bangladesh has missions in only five out of 55 African countries. It has two missions in Kenya and South Africa among about 50 sub-Saharan countries, and three other missions in North Africa — Egypt, Morocco and Libya — are concurrently accredited to some countries.

As a result, most of the African countries hardly support Bangladesh on strategic and political issues in international forums, said a senior foreign affairs ministry official.

Foreign affairs secretary Mohamed Mijarul Quayes will lead the first fact-finding delegation, which will include representatives of the Prime Minister’s Office, and commerce and expatriate welfare and employment ministries.

In the second phase, a fact-finding mission will visit Botswana, Angola, Zambia, Lesotho and Mauritius to find economic opportunities in those countries.

Leading exporters, including former BGMEA president Fazlul Haq, believe that the countries in Africa offer bright prospects for export of goods and manpower as well as import of raw materials for the industries here.

Bangladesh’s greater diplomatic presence in Africa, together with banking facilities, can be mutually beneficial, he said.

Several Bangladesh companies that manufacture pharmaceuticals, refrigerators, knitwear and steel products have signed initial agreements with some countries in Africa, said a senior foreign ministry official.

Bangladesh exported woven and knit garments worth $46.51 million only to South Africa, the biggest economy in the continent, in fiscal year 2008-09. The rest of the African countries still remain almost untapped.

‘Now it is the responsibility of the government to widen the scope for exporters,’ said the oficial.

The country exported goods worth $15.56 billion in fiscal year 2008-09, according to the Export Promotion Bureau. Of that amount, $8.2 billion came from Europe and nearly $4 billion from the US. The destinations of most of the remaining exports were some Asian countries, Australia and Canada.
 
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Hi-Tech Park, still a dream seven years after


Hi-Tech Park, still a dream seven years after
Maswood Alam Khan

About 250 guests representing not less than 150 IT companies of Bangladesh on Sunday, 25 July, 2010 enjoyed a kind of a picnic in a quiet and serene environment at a remote village at Kaliakoir in the district of Gazipur as they were invited by Bangladesh Association of Software and Information Services (BASIS) to attend a conference in the newly-built administrative building in the under-construction Hi-Tech Park, 50 kilometers north of Dhaka, to discuss "The Role of Hi-Tech Park, Software Technology Park and ICT Incubator for the development of IT industry in Bangladesh".

Presided over by BASIS President Mahbub Zaman the conference was attended by the State Minister of Science and ICT Ministry Architect Yeafesh Osman as the chief guest and the local Member of Parliament from Gazipur-1 constituency and also the Chairman of the Parliamentary Standing Committee for the Ministry of Land Affairs Mr. A. K. M. Mozammel Haque as the special guest.

The picnic spirit of the conference was palpable as the representatives of the IT companies immediately after having their lunches rushed to an outer edge of the 232-acre sprawling compound of the High-Tech Park to plant more than 100 coconut saplings in a long row on the bank of a fallow marsh to avail of a unique opportunity for each of the BASIS member companies to leave a tree planted with a nametag as a silent sentry of their respective company's presence in the park.

While attending the conference as an adviser of BPO Solutions Limited, a business process outsourcing company and a BASIS member, I was flabbergasted by the sheer size of the park's landscape lying vacant with weeds growing aplenty and felt like painting in my emotional terrain a wishful picture reminiscent of a park in Malaysia I saw back in 1996, the Kulim Hi-Tech Park (KHTP) in the making, the first high technology industrial park in Malaysia comprising a total land area of approximately 4,000 acres with a view to propelling the country towards realizing their goals of the Vision 2020, a grand dream for Malaysia to be a fully industrialized nation by the year 2020.

The Kulim Hi-Tech Park was envisioned to be the 'Science City of The Future' of Malaysia, an integrated science park targeting technology-related industries primarily in the fields of advanced electronics, mechanical electronics, telecommunications, semiconductors, optoelectronics, biotechnology, advanced materials, research and development and emerging technologies.

There was a lively discussion at the Kaliakoir Hi-Tech Park in the afternoon where speakers stressed upon the need of adopting long-term strategy and allowing the global players with local roots to develop the burgeoning IT industry in Bangladesh. They urged upon the government to build in the under-construction Hi-Tech Park internal power generation, high-speed broadband connectivity and also a shuttle train service between Kaliakoir and Dhaka as immediately as possible as the preliminary step to attract joint-ventures to set up their companies in the proposed park premises.

Representatives of BASIS recommended for setting up six STPs (Software Technology Park) at Dhaka and one at Chittagong by the year 2014. As a short-term goal they have sought the government's help in setting up the STPs in Janata Tower at Karwan Bazaar, BSCIC Electronic City at Mirpur and BCSIR premises at Elephant Road in Dhaka city. As a long-term goal they have appealed to the government for allotting 36 acres of land at Mohakhali exclusively for software technology parks.

On Sunday evening, the chief guest Architect Yeafesh Osman, Science and ICT State Minister and the special guest Mr. A. K. M. Mozammel Haque, the Member of Parliament, both in their respective speeches in the conference of the IT Industry entrepreneurs agitated the seemingly gullible minds of the audience to start knitting a cocoon of dreams centering on the Hi-Tech Park in Kaliakoir.

Mr. Mozammel while visualizing the future of the Hi-Tech Park in his own constituency became a little emotional as he did foresee a day when Kaliakoir would be the Hi-Tech capital of Bangladesh.

While mentioning the government's plans to set up a fast commuter train service shuttling between Jaidebpur and Dhaka, touching a rail station inside the Hi-Tech Park, an IT University inside the park and facilities essential for such a park to be made available in the vicinity Mr. Mozammel was quite upbeat in his outpourings of bright future of Bangladesh in line with the Prime Minister's dream to turn the country into a 'Digital Bangladesh' by 2021, a tone that touched a chord with the audience willing to see the Park providing the scientists of our country a springboard to success.

Refuting a notion that 10,000 employments would be generated in the Hi-Tech Park, as was mentioned earlier by a speaker in his PowerPoint presentation, Mr. Mozammel who recently visited Hi-Tech parks in India said: "Not a few thousands, at least 10 million people would find jobs in the Hi-Tech Park in Kaliakoir by the grace of the Almighty".

In his address as the chief guest of the function Architect Yeafesh Osman said that Bangladesh High-Tech Park Authority Bill 2010 has already been passed by the parliament. He stressed upon the need of joint ventures of local entrepreneurs with reputed international high-tech companies to set up projects in the Kaliakoir High-Tech Park by building their own laboratories and factories in accordance with their own designs and styles befitting their project requirements. He said that the government through the High-Tech Park Authority is to allot only vacant plots to interested entrepreneurs and provide them with the common infrastructural facilities.

Architect Osman while narrating the experiences he gathered during his recent visits of Hi-Tech parks in many countries of the world, especially those in Bangalore in neighboring India urged upon the IT professionals of our country to follow the footsteps of the IT wizards in India and Singapore.

An architect by profession and an enthusiastic amateur poet Mr. Osman is confident that the talents of our country, given their proven track records, can turn anything impossible into possible in whatever the field: science, arts, sports, economics, adventures or any other innovations. He cited as bright examples of Bangladeshi talents the recent innovation in jute genome sequence discovered by a group of Bangladeshi scientists led by Professor Dr. Maqsudul Alam and the conquering of the Mount Everest by Musa Ibrahim, another Bangladeshi hero.

Architect Osman advised the scientists to carry on their researches relentlessly to whet their appetite for more and more knowledge. He recited two lines of an allegorical poem he instantly composed in Bangla for his message to strike home: "A river dies when its water ceases to move; a scientist dies when his mind ceases to research".

In Bangladesh scientists are there to continue their researches relentlessly, but laboratories are not there in the public sector to continue their uninterrupted existence -- mainly due to change of doggedly rival political parties in governing the nation every five years.

A laboratory or for that matter any long-term project in Bangladesh commissioned by one government historically has to hibernate at least for five years if the next government changes hands.

It's an irony in our country, perhaps the only country in the world, where our political leaders loath to participate in a long relay race of a team composed of a variety of political parties for the sake of national development. Our political parties believe only in solo race. Therefore, unless a political party holds uninterrupted governing power at least for a decade no long-term project in the public sector -- call it high-tech or low-tech -- is going to bear fruits on the soil of Bangladesh.

The ICT ministry in fact initiated the project of the Hi-Tech Park in Kaliakoir back in the year 2003, a project that was trumpeted by the then party in power as their own achievement. But with the departure of the alliance government in October 2006 the dream of a Hi-Tech Park seems to have been still in the incubator; there has practically been not much of progress in its implementation except constructing an administrative building, acquisition of land and passage of the Bangladesh High-Tech Park Authority Bill 2010.

A lot of time has been wasted by the successive governments in foot-dragging and indecision on the ownership model of the park. The bureaucrats, politicians, civil societies and the scientists are still wrangling over options of three ownership models: maximum government ownership, private-public partnership or wholly private ownership.

The Hi-Tech Park in Kaliakoir today would perhaps have been pulsating with life and created thousands of jobs by this time if the whole lot were leased out, for instance, to any of the global giants like Microsoft or TATA for developing an ICT village or any other emerging technologies on condition that they would have to build the infrastructures themselves, create Bangladeshi talents through establishing learning institutes inside the park and employ only Bangladeshi people in their research, development and production activities.

There is a huge Bangladeshi Diaspora in the West comprising hundreds of Bangladeshis who are working in different developed countries as qualified IT experts and many of them would love to come back to their home to invest both their talents and savings if they are offered opportunities in building the Hi-Tech Park in joint ventures with the companies they are now working for.

However, participants in the conference were excited to learn many development efforts being undertaken by various stakeholders in both public and private sectors. One such effort is to set up a world-class ICT Institute that may ultimately be turned into an IT University under Public-Private Partnership with Bangladesh Computer Samity and the Ministry of Science and ICT entrusted with its implementation. Such a university will undoubtedly serve as a fountain to ensure a smooth supply of resource persons to man the Hi-Tech Park. It is hoped that wards of middleclass families who are meritorious students but cannot really afford high education expenses to study in private universities at home or abroad will be given special preference to enroll themselves in the proposed IT Institute.

A bright future is awaiting Bangladesh with the tremendous growth in IT sector during the last one decade with a potential for generating annual income of US dollar 400 million through business process outsourcing and exportation of software. It is high time we invited foreign investors to invest in this sector in Bangladesh. ICT associations like Bangladesh Computer Samity (BCS) having more than 700 member companies and Bangladesh Association of Software and Information Services (BASIS) having about 150 member companies can play their pivotal roles in this regard.

What is now needed in our country is an eco-friendly IT environment to develop innovative technologies to both reduce poverty and enhance industrialization with an eye also to address the environmental challenges. Well-coordinated participation of our investors, academics, companies and local authorities is an important prerequisite to achieve such a truly intelligent IT environment.

Kaliakoir Hi-Tech Park may be the first stepping stone in our journey towards a justly digital future, provided our country is ridden of all the negativities-from bureaucratic tangles to poor law and order. For Hi-Tech industries to flourish in the realm of our economy there should also be an end to the seesawing games in the realm of our politics.

What is however most needed is our determination to leapfrog to high-tech---not low-tech---for our survival and advancement in this age of neck-breaking global competitions.

Hi-Tech Park, still a dream seven years after
 
Jobs to Korea gains traction

Some 1450 Bangladeshi workers found jobs in South Korea in seven months to July as Korean firms clawing back from the recession ramped up recruitment, employment officials say.

Last year, hiring from Bangladesh faced headwinds, with the Korean manufacturing sector employing only 160 Bangladeshis under its Employment Permit System or EPS.

If the figures of entire 2009 are put in perspective, officials at the EPS Centre in Dhaka said, the recruitment from Bangladesh was up by 1290 in January-July period of this year.

"I think this figure will reach 2000 by year-end," said Jung Ju Sung, director general at the Foreign Workforce Bureau.

"The job quota is not pre-ordained for a particular country. It depends on our employers' demand and preference," he told his counterparts of Bangladesh Overseas Employment Services Ltd or BOESL.

Dhaka and Seoul signed a deal in 2007 to send labourers under the EPS and the deployment Bangladeshi workers began since 2008.

Introduced in 2004, the EPS was intended to improve the recruitment system of foreign workers and reduce the cases of workers' abuse in Korea, replacing the industrial trainee system (ITS).

Bangladeshi workers used to go to South Korea since 1994 under the ITS, but the system's alleged abuse by Bangladeshi private recruiters forced Seoul to take in workers using the government channel only.

Mr. Sung flew to the capital last week to visit the first round of Korean Language Test Centre in Bangladesh, which became the first nation to introduce computer-based language testing out of 15 EPS-eligible countries in Asia.

Employment under the new scheme requires a foreign worker to pass in the language test, a prelude to inclusion in job roster.

This month, 568 candidates sat for the language test and officials say only 180 will be selected and short-listed for job roaster.

"Our employers like hard-working guys but dislike those who jump ships quickly," the head of the Seoul-based bureau said, adding the future increase in quota will largely hinge on the performance of existingBangladeshi workers.

EPS Centre officials said Bangladesh's higher population, workers' reputation, and intense diplomatic drive after Sheikh Hasina's Korea visit are among the factors that sealed its success in sending increased workers to the 1.0 trillion dollar East Asian economy.

On Friday, more than 80 candidates of the first batch took part in the language test at Wage Earners' Hostel in the capital and Mamunur Rashid, from Natore district, was one of them.

Mr. Rashid appeared to be confident and he said he is upbeat about securing 196 out of 200 in the test.

"I loved this language and I've a passion for learning new languages," Mr. Rashid told this correspondent in English with near fluency.

Lured by higher wages and the prospect of better future, the 30-year-old seasonal trader, who was ordering his passport and Siemens cell phone set after the examination, said the Korean job would be crucial to the future of his two issues.

"My father died when I was just five. And it is my mother who has struggle much to educate me," he said, pointing at his responsibility toward the widowed mother, who turns 55 this winter.

Ahn Myung-Won, who directs the Bangladesh chapter of EPS, said his country would also include 480 potential jobseekers this year, who passed the test but failed to be enrolled owing to the fault of a section of BOESL officials.

The Korean official noted that this year his government also boosted quota for Bangladesh to 4400, from 3800, out of 24,400 set aside for 15 nations included in the scheme.

Overseas Employment Ministry officials said the introduction of EPS has not only reduced the cost of migration, but also significantly curtailed the influence of private recruiting agencies, blamed for charging higher fees fromforeign jobseekers, mostly poor.

Workers can secure jobs in Korea, spending just Tk 54,000, which is much lower than Tk 84,000 in official fees for employment in Malaysia alone.

For Bangladesh, international migration is increasingly becoming a major avenue for employment generation and also one of the biggest sources of foreign exchange earnings.

Over a period of 33 years, between 1976 and 2008, more than 6.26 million Bangladeshi workers found overseas jobs, according to official figures, thus reducing pressure on the domestic job market.

The annual outflow almost halved last year as a result of the global recession after reaching an all-time high of 875,000 in 2008. In contrast, remittances sent home by overseas Bangladeshis grew robustly in 2009, peaking at $ 10 billion.

Jobs to Korea gains traction
 
Sugarcane growers get subsidy from RSML

The sugarcane growers of mill zone areas got subsidy of last fiscal year properly from the Rangpur Sugar Mills Limited (RSML) here to boost production of sugarcane on their respective land.

Mills sources said a total of 99 lakh and 81 thousands Taka were disbursed to over 3500 growers to cultivate 3000 acres of land in the mill zone areas through applying spaced transplantation method during the current season. Each of the growers got subsidy of Taka 3100-4400 as per category against the cultivation of per acre of land, sources said.

Earlier, local lawmaker Engineer Monowar Hossain Chowdhury formally inaugurated the subsidy distribution to the growers of the mill zone areas in a function held at the training complex of the mill in Mohimaganj area under Gobindaganj upazila in the district on July 07 as the chief guest.

Managing Director of the mill Modan Mohan Saha, General Managers, public representatives, political leaders and the local elite including journalists were present on the occasion.

The New Nation - Internet Edition
 
All overhead cables to go underground by Oct 31

The government has decided to take the city's all overhead cables, excepting electricity lines, to underground by October 31 to ensure public safety, cleaner environment and cut operational costs.

A high-powered meeting recently set the deadline for all the concerned players including the internet service providers, cable TV operators, public switched telephone network (PSTN) operators to bring down their overhead cables from main roads and take those to underground.

Bangladesh Telecommunication Regulatory Commission (BTRC) has already provided nationwide telecommunication transmission network (NTTN) licences to two private enterprises to facilitate streamlining overhead distribution lines to underground.

Two NTTN license holders -- Fiber@Home style=color:#0066FF>Fiber@Home style=color:#0066FF>Fiber@Home style=color:#0066FF>Fiber@Home and Summit Communications -- have also initiated their works in this connection.

They will take 'nominal' charges for taking the overhead distribution lines underground.

The meeting held at the secretariat with Power Secretary Md Abul Kalam Azad in the chair has asked all the concerned for taking all the overhead distribution lines from road in front of Prime Minister's Office by next week.

It has set August 31 next as the deadline for streamlining all the overhead cables to underground from Shahbag to Uttara and September 31 as the deadline to clear overhead cables of Motijheel to Uttara, Gulshan.

To monitor overall activities a committee headed by Joint Secretary Power Division has also been constituted with representatives from Dhaka City Corporation, Dhaka Power Distribution Company Ltd (DPDC), Dhaka Electric Supply Company (DESCO), BTRC, Fiber@Home style=color:#0066FF>Fiber@Home style=color:#0066FF>Fiber@Home style=color:#0066FF>Fiber@Home, Summit Communications, Internet Service Providers' Association of Bangladesh (ISPAB) and Cable Operators' Association of Bangladesh (COAB).

The committee will monitor overall progress of the works at least twice by August 20 next.

A good number of internet service providers (ISP) and cable operators have already signed deals with the NTTN licence operators to take their cables underground.

Currently, jungles of cables are hanging over city streets and the localities posing threat to safe public movement.

The ISP, cable and PSTN operators have invested millions each in building overhead infrastructures in an unplanned way across the country.

They did not share the facilities in the past due to lack of sufficient policies and measures from the telecom regulator.

"The government is taking the overhead distribution lines underground to ensure public safety and reduce costs of operators' concerned," said Power Secretary Abul Kalam Azad.

He said the government has also planned to take electricity distribution lines to underground in future.

When contacted the Managing Director of the Fiber@Home style=color:#0066FF>Fiber@Home style=color:#0066FF>Fiber@Home style=color:#0066FF>Fiber@Home Moynul Haque Siddique expressed his confidence to complete the work by the deadline.

All overhead cables to go underground by Oct 31
 
Malek Spinning makes debut Monday

Thursday, 29 July 2010 20:28

Malek Spinning makes debut Monday

Malek Spinning makes debut Monday
FE Report

Malek Spinning Mills Limited, the country's leading yarn producer, will make debut Monday at the stock market.

The company offered 40 million shares for public to raise Tk 1.0 billion from the stock market to expand its business. Its offer value is Tk 25 each share, including a premium of Tk 15.

It will be the 13th textile listed company on the stock exchanges-Dhaka Stock Exchange and Chittagong Stock Exchange.

The DSE board Thursday approved the listing and fixed date of debut day of the textile company.

The initial public offering (IPO) subscription has fetched a huge sum of Tk 16.31 billion, which is 16.31 times higher than the IPO amount. It is the highest IPO over-subscription record in textile sector in Bangladesh.

In fiscal 2008-09, the company's annualised EPS stood at Tk 2.63, net profit Tk 183.99 million and paid up capital Tk 700 million, according to the company's prospectus.

A Matin Chowdhury, Managing Director of the company earlier said Malek Spinning will utilise the proceeds from the IPO to establish a PetroChemical Complex, which will be the first of its kind in Bangladesh producing Bottle Grade PET resin and Textile Grade Chips along with Polyester Fiber.

"This will result in import substitution which will translate into significant savings of foreign currency as well as stimulating tremendous growth in the polyester manufacturing industry", said Matin.

Starting with a capacity of 6,000 spindles and annual sales of Tk 95 million, the company now has a capacity of 63,624 spindles along with an open-end capacity of 40 tons daily with a projected annual sale of approximately Tk 3.88 billion per annum.

Subscription for ordinary shares allotment of Malek Spinning opened on June 6, and closed on June 10 for the resident Bangladeshis and on June 19 for non-resident Bangladeshis.
 
BB raises $250m fund for energy sector


Thursday, 29 July 2010 20:29

http://www.theindependentbd.com/business/finance/2071-bb-raises-250m-fund-for-energy-sector.html

BB raises $250m fund for energy sector

The Bangladesh Bank has raised a fund of 250 million US dollars for the energy sector for the first time to encourage public-private partnership projects with an option to raise money from the capital market to help meet the power crisis. This was stated by Dr Atiur Rahman, Governor of BB while addressing as chief guest at the opening ceremony of the three day long "3rd Bank and Financial Institutions Fair-2010" at Dhaka Sheraton.

"We will also create a fund for nuclear energy to encourage the private sector to produce power for the economic development of the country." he said.

The BB governor said that the monetary authorities have prepared guidelines for the banks to reduce risks in the banking sector by adopting regular stress testing which was being held to find out weaknesses of the banks.

The central banks in Europe conduct stress testing regularly for commercial banks, Dr Atiur said, adding that India has also started it to cover the banks from risks. "Our support is always for a risk free banking system." he pointed out.

He urged the banks to follow the prudential guidelines set by the central bank to increase production and create employment opportunities in the country, taking into consideration that the rural economy is the foundation of the national economy, generating internal demand.

"The banking sector is now stronger than it was earlier and we can identify the weakness of the banks and give them advice to overcome the weakness, the BB governor said. Dr Atiur Rahman called for cooperation from the banks to achieve the monetary targets of BB.

Pointing to the Corporate Service Responsibilities (CSR) of the banking sector the BB governor said the contribution of CSR is 35 per cent higher than FY 2009-10. He also urged the banks to increase their CSR activities.

The governor also called upon the banks to be sincere in creating scope for higher education for the students of underdeveloped community of the society.

He said the BB has attached priority to encourage mass banking in the country. He also said the banks have to be automated and digitised to bring success in the banking sector.
Dr Atiur expressed the hope that the fair would serve to disseminate information and data of the participating institutions among the customers.

Presided over by general manager of Dhaka Sheraton, Ahmed Bukhari Hamza the vopening session was addressed among others by chairman of Bangladesh Association of Banks Md. Nazmul Islam and chairman of Bangladesh Insurance Association AKM Rafiqul Islam.
 
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