Bangladesh Economy: News & Updates

[fallstuff]

Remittance rises 11pc in August

Bangladesh fetched Tk 6,651.58 crore ($957.93 million) remittance in August, marking a rise of 11.73 percent from the previous month.

The remittance sent by non-resident Bangladeshis was 2.44 percent higher than in the same month of fiscal 2009-2010, according to Bangladesh Bank data.

In August 2009, the inflow of remittance stood at Tk 6,493.40 crore.

The remittances received during the first two months of the current fiscal year totalled Tk 12,604.48 crore against Tk 12,641.21 crore during the same period of the last fiscal year.

The inward remittance in July, the first month of the current fiscal year, was

Tk 5,953.16 crore.

The remittance sent last fiscal year was Tk 76,010.98 crore that rose by 14 percent from the previous fiscal year.

During the first quarter of the last fiscal year, the NRBs sent Tk 18,702.15 crore.

Link:
http://www.thedailystar.net/newDesign/news-details.php?nid=155137

 

[eastwatch]

2022. why?

Because, it is 12 years away, that's all.

 

[TopCat]

Please refer to the 3rd picture. I am a little surprised to see the almost 90* curve in the higher level Jatrabari flyover. 90* curve is okay, but the "Radius of Curvature" must be larger than here the model shows. The location is tight for a larger radius, no doubt. But, the curve should be re-designed with, say, a 500m radius. I have assumed this radius only to make a point.

In case of R=500m, the piers will certainly fall on top of the lower bridge. So, the entire layout needs re-designing. The present radius is a sure recipe for continuous accidents. It seems to be no more than 200m. So, you better tell your BUET seniors working for R&H to check the matter and rectify it.

You may yourself calculate the radius when the maximum speed is set at 60km per hour and the curve angle is, say, 95*. If the radius is small, then the superelevation, e, becomes very large, creating an unusual transverse slope at the curve.

Well its a Ram and maximum speed limit should not be more than 25 km/hr. This is the standard Ram speed if I am not mistaken it as Ram.

 

[TopCat]

I have a serious problem with this word aid and donation partners that I hear in our head less media all the time. How is it aid? Is WB giving us this money as gift or merely a loan? I think our media has gone mad. They must differentiate between donation and loan. They must choose right word for right substance.

Unlike IMF, WB loans are soft loan or it is considered as free money without interest (small percentage are charged for loan servicing and administrative cost recovery). Also the repayment period is in most cases more than 20 years. So it can be called as Aid.

 

[eastwatch]

Well its a Ramp and maximum speed limit should not be more than 25 km/hr. This is the standard Ramp speed if I am not mistaken it as Ramp.

Yes, it is certainly called a 'Ramp' whenever there is a slope like this or in most of the cases. Ramp or no ramp, people have a tendency to do speed driving. They may not obey the rules. Anyway, I wrote my suggestion because it may be dangerous in the long run.

You must be aware that many of the bridges and box culverts in the country are so low that boats cannot pass beneath them. These are the typical examples of failiure to set correct design criteria. So, these were built under rule of the thumbs, and without considering the functionality of these bridges. The models you have posted seemed similar to me.

Another example is R&H designers do not specify that there must be one or two layers of asphalt paving on top of the concrete slabs in bridges and culverts. This is needed to protect the slab concrete from wearing down by the tires. But, BD engineers do not know even this small thing. Jamuna bridge is the finest example of this kind of silly design.

I felt that if the source of the subject flyover models is your seniors in the R&H, then you may alert them before the piling work starts, that's all. Thanks.

 

[Skies]

UAE, Bangladesh to sign economic relations pacts

Agreement on promotion and protection of investments finalised yesterday(Monday) agreement between the two countries will boost economic growth

By Binsal Abdul Kader, Staff Reporter
Published: 00:00 September 21, 2010

Khalid Ali Al Bustani and Afroza Khan sign the draft agreement on the promotion and protection of investments on Monday in Abu Dhabi. Mohammad Nazmul Quaunine, Bangladeshi Ambassador to the UAE (second from right), and Majid Ali A Omran of the UAE Ministry of Finance (third from left) look on.
Image Credit: Supplied picture



Abu Dhabi: The UAE and Bangladesh will soon sign two significant agreements as part of enhancing economic relations.

Both sides finalised an agreement on promotion and protection of investments yesterday during a meeting between a UAE delegation and a visiting Bangladeshi delegation, the Bangladeshi Ambassador to the UAE told Gulf News yesterday.

Khalid Ali Al Bustani, Executive Director for International Financial Relations in the UAE Ministry of Finance, and Afroza Khan, Deputy Secretary in the Bangladeshi Ministry of Industry, signed the draft agreement, Mohammad Nazmul Quaunine said.

He said both sides had finalised the second agreement a few months ago on the agreement to avoid double taxation.

Both agreements will be signed during a high level visit of Bangladeshi officials to the UAE, Quanine said.

Both parties have agreed to expedite the procedures required to sign the agreement in the presence of high level dignitaries, the ambassador said. Quanine described the development as a "milestone" in bilateral relations because the draft agreement had been pending for years.

The agreement would certainly boost the scope of investments in both countries, he said.

He said the potential investors from the UAE would enjoy a secure environment in Bangladesh following the finalisation of the agreement.

Majid Ali A Omran and Dr Hamed Nasr Abdul Qader of the UAE Ministry of Finance also represented the UAE delegation. Mohammad Mizanur Rahman, Senior Assistant Secretary in the Bangladeshi Ministry of Industries and Mohammad Shahid Bakhtiar Alam, Councillor at the Bangladeshi Embassy in Abu Dhabi also took part in the negotiations.

UAE firms pump in $2.5b

The private sector companies in the UAE have invested about $2.5 billion (Dh9.18 billion) in Bangladesh, Mohammad Nazmul Quaunine, the Bangladeshi Ambassador to the UAE, told Gulf News yesterday.

Dhabi group in Abu Dhabi [in telecom and banking] and Ras Al Khaimah Ceramics are the major investors, he said.

Apart from them, many private companies have invested in construction, real estate and pharmaceutical sectors, Quaunine said.

The UAE Government does not have major investments in Bangladesh but it has granted certain loans to the country, he said. "We would like to attract investments from UAE Government companies also," the ambassador said. Two major UAE airlines - Etihad and Emirates - are flying 42 flights to Bangladesh every week, he said. "We understand that they are interested in investing in related sectors such as hotels, hospitality and food catering in Bangladesh," Quaunine said. "We hope the finalisation of the agreement [to protect investments] will encourage them."

Although Bangladeshis are the third largest expatriate community in the UAE at about 700,000, the number of investors in the community is much less, according to the ambassador.

"About 10,000 Bangladeshi investors are working in small and medium enterprises in the country," he said.

But they have concentrated in some sectors such as automobile workshops in Mussaffah in Abu Dhabi and groceries in Sharjah, he said.

Entrepreneurs inspire community

There are several Bangladeshi small and medium entrepreneurs who built up their businesses from scratch after coming to the UAE, the ambassador said.

Alam supermarkets, which have branches in Abu Dhabi and employ around 500 people, are a good example, he said. Islam Engineering, an automobile workshop employing about 300 workers in Mussaffah, is another example, Quaunine said. He called upon the community to derive inspiration from these examples and to become entrepreneurs.

Abu Dhabi

There are several Bangladeshi small and medium entrepreneurs who built up their businesses from scratches after coming to the UAE, the Bangladeshi Ambassador said.

"They came here as workers and built up the enterprises with nothing but continuous hard work. And it is inspiring that now they provide jobs to several compatriots and others," Mohammad Nazmul Quaunine said.

Alam supermarkets which have branches in Abu Dhabi and employing around 500 people are a good example, he said. Islam Engineering, an automobile work shop employing about 300 workers in Mussaffah is another example, Quaunine said. He called upon the community to derive inspiration from these examples and to become entrepreneurs. (end)

gulfnews : UAE, Bangladesh to sign economic relations pacts

 

[TopCat]

$1.8b earned by exporting garment in Aug

Inspired by a healthy performance by the major export-earning knitwear and woven garment sectors, Bangladesh's export earnings this August registered an astonishing growth of 31.25 percent to earn $ 1795.18 million, or $1.8 billion, which is around $217 million higher than the strategic target for the month.

The export performance for August, 2009 was $1367.79 million, according to the latest statistics provided by the Export Promotion Bureau (EPB).

With the earnings, the overall export income for the first two months (July-August) of the current fiscal witnessed a 28.8 percent rise compared to the corresponding period of the previous fiscal (2009-10).

The overall export earnings for the current fiscal, which started in July, now stands at $3.6 billion, exceeding the strategic target of $3.1 billion. The export earnings in the July-August period of last fiscal stood at $2.8 billion.

According to EPB statistics, the knitwear export fetched nearly $1.6 billion, registering a 32 percent growth over the corresponding month of last year while export earnings for woven garments totaled $1.3 billion, marking a rise of 30 percent.

The export of home textiles totaled $85.8 million while footwear exports earned just over $54 million.

The export of primary commodities fetched nearly $156 million, frozen foods including frozen fish, shrimps and others $91.3 million, and export of agricultural products earned $64.6 million.

The export of tea, however, faced a setback at it accounted for only $240,000, less than a quarter of its strategic target of $1.02 million.

The export trend for petroleum byproducts and chemical products are also in the negative, accounting for just $ 41.6 million and $ 24.4 million respectively.

By contrast, the export trends for cotton and cotton products, and leather and leather products were on the rise. Leather export totaled $47.3 million, leather products $8.8 million while cotton and cotton products together earned $21.5 million.

The export growth of rejuvenated jute and jute made goods maintained its eye catching 20.7 percent rise totaling almost $123 million. Raw jute exports fetched $24.6 million, jute yarn and twine earned over $65 million, jute sacks and bags $25.7 million and others $7.5 million.

The specialized textiles including terry towel, special woven fabric and knitted fabrics grew by nearly a fifth, earning $34.5 million.

The engineering products including iron steel, bicycle, and electronic products fetched $47.7 million, while plastic products $10 million.

However, man-made filaments and staple fibers totaled $ 14.4 million, cap $8.4 million, computer services $2.5 million and other manufactured products $9.6 million

 

[akash57]

Chinese cellphone manufacturer eyes Bangladesh market

Many mobile phone users will soon be using home-made sets as a Chinese company is expanding its manufacturing plant to Bangladesh to take benefit of the country's rapidly expanding mobile phone market. The company, Phoenix Group, had already done market study on Bangladesh's mobile phone market and decided to set up a plant here for producing cellphone sets. Representatives of the company last week met with Commerce Minister Faruk Khan during his visit to Beijing and discussed its investment plan in Bangladesh. The minister went to China to attend the "National Day" of Bangladesh at the Shanghai Expo 2010.

Faruk Khan told BSS in Shanghai that the company would add 60 percent value to their products from Bangladesh when it would only source basic material from China for manufacturing mobile phone sets. He believes mobile phone users in Bangladesh would get cheaper sets once the company starts producing locally.

The company specialises in designing and developing GSM mobile phone and digital electronics equipment in China. Its product ranges cater to needs of both the low end and high end users. With more than six crore mobile phone users in Bangladesh until last July, the market is expanding at a phenomenal growth rate, creating ever increasing demands for mobile phone sets. But the market is flooded with imported sets mostly from China, South Korea and some other east Asian countries.

The New Nation - Internet Edition

 

[akash57]

B'desh, China would work jointly for dev of world economy: Commerce minister

SHANGHAI, Sept 23 (UNB): Commerce Minister Mohammed Faruk Khan Wednesday said Bangladesh would take lesson from China in technological advancement and Bangladesh would also work jointly for the development of world economy.

"We want to transform Bangladesh into a middle-income country by 2021. And for this we need modern technology," he said in the Shanghai World Expo-2010 being held in the Chinese city..

Nearly 20,000 visitors from different countries are visiting the fair every day. The six-month fair that began on May 1 will continue until October 31.

A total of 246 pavilions from 192 countries have been set up in the fair.

Mr Khan also said Shanghai World Expo-2010 would play a role in projecting Bangladesh's cultural tradition, natural beauty and history of liberation war to the world community.

The Minister made the remarks while visiting the Bangladesh pavilion- "Spirit and Growth of Golden Bengal"- at the fair.

Bangladesh Commissioner General M Nazrul Islam MP, Vice Chairman of Export Promotion Bureau (EPB) Jalal Ahmed, joint secretary of Commerce Ministry Monoj Kumar Roy, joint secretary of Information Ministry Farhad Hossain and wife of Commerce Minister Nilufar F Khan were present during the visit.

The Minister earlier visited the pavilions of Saudi Arabia, Kazakhstan, Qatar, Sri Lanka, China, Japan, India and USA.

B'desh, China would work jointly for dev of world economy: Commerce minister

 

[eastwatch]

Govt gives in to Cairn's pressure to sell gas to third parties
M Azizur Rahman

The Scottish Cairn Energy will sell gas from offshore Magnama and Hatia structures at higher prices directly to private buyers as the government has agreed to a Cairn proposal recently, top officials said.

State-owned Petrobangla has refused to purchase gas from Cairn at lower rate paving the way for Cairn to sell gas to third parties bypassing Petrobangla, a senior energy ministry official said.

But Petrobangla would have to pay corporate and advance income taxes for Cairn although it would not purchase gas from the company's new offshore structures.

A supplementary agreement to the existing production sharing contract (PSC) between Cairn and Petrobangla would be signed shortly to this effect, said the official.

Following the deal Cairn will be the first foreign company operating in Bangladesh that has been allowed to sell gas directly to the private sector, but the gas will have to be sold within the country.

An energy expert fears the government's supplementary deal with Cairn might set a bad precedent for other foreign firms exploring natural gas in the country.

If more foreign firms are allowed to follow the Cairn suit, it would have a terrible consequence for the energy sector, he said preferring not to be named.

Currently, all foreign companies in the country, including Cairn, sell their gas output to state-owned Petrobangla which then sells it to state-owned gas distribution companies to reach end-users.

The UK company for a long time has been arguing with the government to allow it to sell gas to private buyers to ensure, what the company said, the viability of oil and gas exploration from its Magnama and Hatia structures.

It also threatened several times not to conduct exploration works in the offshore structures unless the company was allowed to sell gas to third parties.

In late May, Cairn had asked Petrobangla to amend the existing PSC terms and allow it to sell gas at freshly negotiated prices to third parties.

Under the existing PSCs, all foreign firms have to sell all their gas to Petrobangla at a maximum price of $2.90 per unit (1000 cubic feet).

The state-run company then distributes the gas to end-users.

In case Petrobangla refuses to lift the gas, the operators can sell directly to third parties, but at the fixed price of $2.90 per unit.

Cairn believes that it can get a higher price for the gas, given that most potential buyers are using more expensive oil to run their plants amid the ongoing acute gas shortage.

Chittagong-based industries including the Karnaphuli Fertliser Company Ltd, Korean Export Processing Zone and some large local conglomerates are seen as potential buyers for Magnama and Hatiya gas.

Cairn and Australia's Santos have a 37.5 per cent stake each in the Magnama and Hatia structures which lie close to their producing Sangu field in block 16.

The remaining 25 per cent stake in the two structures is owned by Halliburton Energy.

Cairn recently completed 3D seismic surveys in both the structures and was expecting the final interpretation of gas findings within months.

Cairn had earlier said that it had found gas both in Magnama and Haitia during exploration drilling in the winter of 2007-2008.

It, however, did not disclose the size of the reserves.

Cairn now operates Bangladesh's lone operating offshore Sangu gas field in the Bay of Bengal, which now produces around 24 million cubic feet (mmcfd) of gas per day or less than two per cent of the country's overall output of around 1980 mmcfd.

Cairn also holds a 45 per cent stake in block 7.

Cairn and Santos last year gave up Bangladesh's block No. 5 in greater Khulna district after a poor seismic survey result.

They also gave up rights to block No. 10 despite striking hydrocarbons in two structures in that block following row over marketing rights and inclusion of some areas in the block.

 

[eastwatch]

$770m Chinese loan tied with conditions

Tuesday, September 28, 2010
Front Page$770m Chinese loan tied with conditions
2 Chinese firms have to be selected for setting up fertiliser factory, telecoms network
Rejaul Karim

The government is going to sign a $770 million tied loan deal with China, which will require selection of two Chinese firms to set up a fertiliser factory and lay out telecom network.

This will leave no scope for Bangladesh to get the best price offers or look for technology options.

Such selection of contractors is required under the new lending policy of China.

After discussing the issue at several high-level meetings, the government has agreed in principle to the Chinese conditions, as it has no alternative source of funding for these two projects, said sources at Economic Relations Division (ERD).

Once the prime minister gives the go-ahead, the ministries concerned will take steps to ink the deal.

Of the loan amount, $559 million will be for the setting up of Shahjalal Fertiliser Factory and $211 million for the introduction of 3G technology and expansion of the existing 2.5G network, added the ERD sources.

ERD documents say natural gas will be available for Shahjalal factory in future, but Petrobangla's forecast does not show any surplus gas supply in the coming years. An acute gas crisis has compelled the government to cut gas supply to the existing fertiliser factories.

Interest rate on the Chinese loan is two percent and it is payable within 20 years with a five-year grace period. Besides, the commitment charge is 0.2 percent and management fees are 0.2 percent.

ERD sources mentioned that the interest rate is slightly higher than that of the $1billion credit from India under the recently signed deal but it is lower than that of suppliers' credits offered by China in the past. The rate of interest on Indian credit is 1.75 percent and commitment charge is 0.5 percent.

The Chinese government set conditions that Bangladesh will have to sign commercial contracts with China National Complete Plant Import and Export Corporation Ltd to get credit for Shahjalal factory and with China National Machinery and Equipment Import and Export Corporation for 3G technology and 2.5G network.

An ERD official said signing of the commercial contract is mandatory as per China's new credit policy. And the ERD had sought clarification from the Chinese government as to why a commercial contract has to be signed beforehand.

The Chinese government informed the ERD that it has introduced the new policy for giving concessionary loans.

Against this backdrop, an inter-ministerial meeting with Finance Minister AMA Muhith in the chair on September 8 took up the issue. It was attended by ministers for planning, industries and post and telecommunications, the prime minister's economic adviser, governor of Bangladesh Bank and high officials of the ministries concerned.

The meeting decided that the government will accept the Chinese conditions and sign the agreement.

It noted that in signing the commercial contract, the highest caution has to be exercised to ensure that the interest of Bangladesh is upheld.

The two projects have been included in the current fiscal year's annual development programme. Shahjalal factory project is scheduled to be completed by June 2013 and the 3G Technology project by June 2012.

Sources pointed out that during the prime minister's visit to China last year, Beijing expressed its interest to give the credit as part of providing loans for different projects.

 

[akash57]

Arvind to set up denim plant in Bangladesh

Indian textile maker Arvind will set up a denim manufacturing plant in Bangladesh with an investment of $66 million over three years, officials in Bangladesh said yesterday.

The Indian company has signed an agreement with the local Nitol Group in Dhaka on Sunday to invest in Comilla Export Processing Zone for producing exportable denim fabrics and denim trousers, said Nitol Chairman Abdul Matlub Ahmad.

He said the investment would be made in three phases in three years.

"Nitol Group will hold 20 percent of the stakes and Arvind the rest. I am hopeful that the formal operations of the company will begin within a year," Ahmad said.

He said more than 3,000 workers would be employed in the factory.

"We demanded 40,000 square metres of land in the CEPZ from the government. We, however, need more land for setting up the factory," Ahmad added.

He said this was the first investment in textiles by the local industrial conglomerate. "Nitol Group is in talks with more Indian companies," he said.

Ahmad, also the president of India-Bangladesh Chamber of Commerce and Industry, said the present venture is expected to produce 13 million metres of fabric a month with a growth of 12 percent.

Cheap labour, lower production cost and a burgeoning fabric market are among the factors why India wants to invest in Bangladesh, he said.

"Since we are already exporting 36 million metres of denim to Bangladesh annually, we have a ready market available and hence the proposed plant shall be profitable from day one," news agency Reuters quoted Arvind's Chief Financial Officer Jayesh Shah as saying.

Moyzuddin Ahmed, a member of Bangladesh Export Processing Zones Authority, and Aamir Akhtar, chief executive officer of Denim Fabrics of Arvind Textile Mills Ltd, signed a memorandum of understanding in Dhaka.

Arvind to set up denim plant in Bangladesh

 

[eastwatch]

Arvind to set up denim plant in Bangladesh

I do not know what this DENIM is. Can someone here educate me?
Is it a kind of fibre named as Denim?

 

[SpArK]

Bangladesh to pay more for China loan than for Indian loan​

DHAKA: To set up a fertiliser factory and lay out a telecom network, Bangladesh will be paying more for a Chinese $770 million loan than for India's $1 billion commitment.

It is accepting the Chinese condition for selecting two Chinese firms because it has no alternative source of funding for these projects, officials said.

Such selection of contractors is required under the new lending policy of China, The Daily Star newspaper said quoting sources at Economic Relations Division (ERD).

This will leave no scope for Bangladesh to get the best price offer or look for technology options, the newspaper said Tuesday.

Interest rate on the Chinese loan is two per cent and it is payable within 20 years with a five-year grace period. Besides, the commitment charge is 0.2 per cent and management fees are 0.2 per cent.

ERD sources mentioned that the interest rate is "slightly higher" than that of the recently signed deal for $1 billion credit from India -- for a range of projects particularly in the transport and communication sectors.

The rate of interest on Indian credit is 1.75 per cent and commitment charge is 0.5 per cent.

Dhaka has agreed in principle to accept the Chinese loan after discussing the issue at several high-level meetings "as it has no alternative source of funding for these two projects", the officials told the newspaper.

Once the prime minister gives the go-ahead, the ministries concerned will take steps to ink the deal.

Of the loan amount, $559 million will be for the setting up of Shahjalal Fertiliser Factory and $211 million for the introduction of 3G technology and expansion of the existing 2.5G network, ERD sources added.

A meeting chaired by Finance Minister A.M.A. Muhith noted that in signing the commercial contract, the highest caution has to be exercised to ensure that Bangladesh's interests are upheld.


Bangladesh to pay more for China loan than for Indian loan National English News : khabarexpress.com : The news portal of North India



Bangladesh to pay more for China loan than for Indian loan - The Economic Times

 

[Water Car Engineer]

I do not know what this DENIM is. Can someone here educate me?
Is it a kind of fibre named as Denim?

Bro, its what jeans are made off. Denim, just google it...