Bangladesh Economy: News & Updates

[CaPtAiN_pLaNeT]

Mega dredging plan runs aground
Arrival of dredgers, including four from Kuwait, delayed

MIR MOSTAFIZUR RAHAMAN
WITH ANISUR RAHMAN KHAN
Uncertainty looms over the much-touted Tk 12,000-crore plan to dredge over 300 rivers by 2018 due to delay in getting dredgers for implementing the project.
Roughly, 50 dredgers would be required to complete the mega-dredging project, including four heavy-duty dredgers from Kuwait, sources said adding that there would be delay in procuring the dredgers required to start the project.
“A proposal to procure 11 dredgers has been approved by the Executive Committee of the National Economic Council (ECENC), but it will take at least one and half years to get those dredgers,” Water Resources Minister Ramseh Chandra Sen told The Independent yesterday.
He also admitted that the programme had already been delayed due to lack of logistic support.
“Only two dredgers outsourced from China have arrived and we have to start the Gorai dredging project, a part of this mega programme, with those dredgers. We are expecting two dredgers from India under the recent agreement,” he said but could not give the exact time of their arrival.
Officials of the Bangladesh Inland Water Transport Authority (BIWTA) told The Independent yesterday that the Sheikhdom had offered four dredgers as gift. “But the reality is, even if all formalities were completed today, it would take two years to complete the process,” said one official.
According to the sources, the modalities of receiving the dredgers had still not been settled, as Kuwait was yet to ensure financing of the dredgers as gift through the Economic Relation Division (ERD) of Bangladesh.
Emir of Kuwait had expressed desire to gift those four dredgers to Bangladesh during the visit of Bangladesh's Prime Minister Sheikh Hasina to Kuwait in February this year.
Abdul Matin, chief engineer of the dredging division of the BIWTA, said they had sent a proposal for collecting the dredgers from Kuwait as gift on May 5 to the foreign ministry through the shipping ministry.
According to the project proposal, about Tk 407 crore would be spent on procuring the four dredgers, along with a crane boat, tug, crew house boat, officers' house boat and others, from Kuwait.
"We have prepared the project as per the directives of the shipping ministry. The estimated cost has been shown for the sake of records only, but the government of Kuwait will give the dredgers free of cost as per their commitment," Matin said.
"We do not know about the details like who is going to pay the taxes, custom duties or receive relevant documents from the Kuwaiti government," he added.
A project evaluation committee (PEC) meeting was held on October 10, with Planning Commission Member Nasir Uddin Ahmed in the chair.
It was decided at the meeting to write word 'gift' as the mode of financing in the project proposal and the words ‘the government of Kuwait’ as the source of money.
The ERD has already sent letters to the government of Kuwait formally in this regard, but the Kuwait was yet to confirm the release of dredgers.
The BIWTA officials said they had identified 2,393 kilometres of waterways to be dredged in two phases.
Twenty-three routes are marked for dredging in the first phase, which is scheduled to end by December 2013 at an estimated cost of TK 4,201 crore, and the four-year second phase would start in 2014, for which Tk 7,271 crore would be required.
Under the programme, the total volume of dredged riverbed soil will be 3,276 crore cubic metres, and the BIWTA has only seven age-old dredgers.
(Published in The Independent on Nov 13, 2010)

 

[CaPtAiN_pLaNeT]

Prove capacity to access $100b aid: UNDP chief
FE Report

Prove capacity to access $100b aid: UNDP chief

UNDP administrator Helen Clark said Bangladesh should show its strategy and capacity to secure the global climate adaptation fund, which could be as big as US$100 billion a year.

She said her organisation is advocating for the "best system" to deliver international climate financing for smaller developing nations.

"This requires a very smart adaptation strategy," Ms Clark told a press briefing in the city while winding up a three-day visit to Bangladesh, her first since helming the UN agency in 1999.

She said a committee led by the prime ministers of Ethiopia and Norway agreed that a $100 billion annual climate fund is "feasible", even if the fund is ready yet.

The UNDP chief flew Thursday to the far-flung Char Kukri-Mukri Bhola district to see first hand how the islanders are adapting them to a changing climate by planting mangroves. The aim of her visit, she said, is to look at Bangladesh's climate change adaptation issue.

Climate scientists forecast that if sea level rises by up to a metre this century, as many as 30 million Bangladeshis could become climate refugees.

Ms Clark said Bangladesh is the "most exposed country" and the vulnerability of its southwestern region shows how endangered Bangladesh's environment is.

The UNDP top executive noted much of the CDM (Clean Development Mechanism) money under the Kyoto Protocol went to large, emerging nations such as China, India and Brazil. Small and poorer nations couldn't access it, she added.

So, she said, her organisation is advocating for the best system to benefit smaller developing nations like Bangladesh.

Last year's UN climate summit agreed to disburse almost $30 billion over the next three years in quick-start funds under the Copenhagen Accord.

"But all depends on the ongoing climate change talks," she told reporters.

Bangladesh is the second biggest recipient of UNDP development aid in the Asia Pacific region after Afghanistan, she said. Its annual development budget in Bangladesh averages $70-80 million.

She avoided a direct answer when pressed to comment on the latest political situation in Bangladesh and the chaos over giving up the cantonment residence of the Opposition leader Begum Khaleda Zia.

"I think we can contribute to the development of politics, that is, through dialogue. And parliament is a place for that kind of dialogue," said Ms Clark who served as the Prime Minister of New Zealand for nine years.

Earlier, Prime Minister Sheikh Hasina, calling for quick release of international fund as promised in UN climate conference in Copenhagen, sought Saturday UNDP's support to address poverty and migration induced by a shifting climate.

"We are anxiously waiting for operation of the 'International Climate Fund' and hope COP-16 in December next would establish this fund with specific allocations for Bangladesh as the most vulnerable country (MVC)," she said.

Inaugurating the Asia-Pacific Regional Cluster Conference of UNDP at a local hotel, she expressed the hope that the world leaders would reach a positive agreement based on the Bali Plan of Action with agreed cuts of greenhouse emissions to reduce climate change risk.

Listing her government's various programmes for socio- economic development, she said all efforts of the government are being adversely affected by the impacts of climate change, although the country's share of carbon gas emission is negligible.

She said natural disasters have increased in frequency in recent times in Bangladesh due to adverse impact of climate change that wreak havoc on lives and properties in the country.

"Climate migrants are already pouring into our cities causing social disorder and straining existing infrastructure," she said adding that quarter of the country's landmass would go under water with one meter rise of sea level in the coastal areas.

In this context, she said her present government has adopted a 134-point adaptation and mitigation action plan in facing the climate change challenges caused by global warming.

The plan includes dredging of rivers, recovering cultivable land, afforesting 20 percent of land by 2015, creating green belts on river banks, developing climate resilient crops, using renewable and clean energy and constructing cyclone shelters in the coastal areas.

The Prime Minister said despite resources constraint her government had set up a "Climate Change Resilient Fund' to this end.

 

[akash57]

Income tax collection grows 29pc in four months

Income tax collection grew nearly 29 per cent in the first four months of the current fiscal year over the same period in 2009-10, thanks to the impressive performance of import and higher economic activities.

The National Board of Revenue (NBR) received Tk 47.39 billion in income tax in July-October period against its target for Tk 43.19 billion. Last year, the NBR received Tk 37 billion income tax in the first four months.

"We have received Tk 4.20 billion more revenue over the target and achieved 28.34 per cent growth over the corresponding period. This has been possible because of the effective monitoring and drive against tax evasion," said Basir Uddin Ahmed, who heads the income tax administration and monitoring wing.

Taxmen have seen a radical change among the taxpayers in payment of income tax, the tax member said.

"Unwillingness and fear factor in payment of tax has been eliminated with the motivational campaign of the taxmen," he added.

Usually, income tax collection goes ups up in the second half of every fiscal, but this year the revenue board observed huge enthusiasm among the taxpayers from the beginning.

Revenue collection increased with implementation of the Annual Development Programme (ADP) and other development work.

Officials said a big chunk of money of income tax comes from advance income tax and at source, which is adjustable with the actual tax.

Taxmen said the budgetary measure in fiscal 2010-11 also helped the government collect more revenue.

In the current fiscal, the NBR has raised Advance Income Tax (AIT) by 2.0 per cent and raised most of the at source taxes aiming to increase the volume of direct tax.

The government has estimated income tax at Tk 210 billion or 29 per cent of the total revenue budget in the current year.

Income tax officials said the revenue collection target will be surpassed if such trend in revenue collection continues.

NBR has taken a number of initiatives to boost income tax collection. These include spot assessment, motivational campaigns and tax fairs to attract more taxpayers.

Income tax collection grows 29pc in four months

 

[akash57]

Bangladesh to get ADB loan for railway

Dhaka - Bangladesh will receive a $150 million in loan from the Asian Development Bank (ADB) to improve railroad services, a senior official said on Saturday.

Musharraf Hossain Bhuiyan, secretary of the economic relations division of the finance ministry, told Reuters the loan would be used to revamp the dilapidated railway sector, which has been incurring losses.

A better railway network would also help Bangladesh's trade with neighbouring countries, Bhuiyan said. Most people in Bangladesh use roads, because trains are unreliable or do not service many areas in the country.

Bangladesh railway would utilise the loan to renovate railway tracks and signalling systems, procure modern locomotives, develop railway workshops and construct bridges and other infrastructure, the official said. - Reuters

Bangladesh to get ADB loan for railway - International - IOL | Breaking News | South Africa News | World News | Sport | Business | Entertainment | IOL.co.za

 

[CaPtAiN_pLaNeT]

BAPEX moves to hunt gas in onshore blocks

BAPEX moves to hunt gas in onshore blocks
FHM Humayan Kabir

State-owned petroleum exploration firm BAPEX has taken a massive gas hunt programme in the country’s untapped onshore gas blocks as it is going to appoint foreign contractor for the exploration works, officials said Saturday.

“The seismic survey at the untapped gas blocks in the country’s western region would be started next year. Foreign contractor will conduct seismic survey,” BAPEX Managing Director Murtoza Ahmed Farooq told the FE.

He said, “we have already evaluated bids of foreign firms that participated in the tender invited a few months back.”

Cash-starved Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) would invest more than Tk2.00 billion to explore oil and gas at the block numbers 3, 6, 8 and 11 situated in greater Pabna, Rajshahi, Faridpur, Mymensingh and Manikganj districts.

“We are hopeful of finalising selection of the foreign company to conduct two-dimensional seismic survey in the next month (December),” Mr Farooq said adding the contractor will conduct survey is block numbers 3, 6 and 8.

BAPEX has already conducted survey in block no. 11 and a partial area of block no. 8.

The foreign firm will conduct 2D seismic survey in 3100 line kilometres areas at the untapped blocks in western Bangladesh by December 2012.

“Since we have shortage of equipment and manpower to hunt oil and natural gas, we are appointing a foreign firm as contractor,” the BAPEX managing director said.

He said as the energy demand of Bangladesh has been swelling, which has already walloped the supply chain, the energy division has taken the “first-track programme” to hunt the locations of possible oil and gas reserves.

Attaching highest priority to looking for gas in the untouched onshore areas, the government has decided to provide adequate money for the state-owned energy explorer, producers and suppliers aimed to ensure the country’s long-term energy security.

The caretaker government allocated Tk32 billion in FY2009 for next seven years to mend the impoverished BAPEX, replace more than 20-year old two rigs and arrange adequate experts and tools.

“Since the BAPEX at this moment has had lack of adequate drilling rigs and other tools to start exploration works from next year, we have planned to appoint qualified firms to do the job,” he said.

Amid growing energy crunch in the country, the government has taken initiatives to boost its hydrocarbon exploration and production activities in the untapped areas in the country.

The Petrobangla has said the country’s proven gas reserve will start to deplete in 2012 before drying up completely in 2019 unless new discoveries are made.

Hundreds of factories have failed to go into production due to energy crunch, although the investors have spent hundreds of millions of dollars to build up the facilities.

The untapped block numbers 3 and 6 are situated Pabna, Manikganj and greater Faridpur areas and blocks 8 and 11 are situated in the greater Mymensingh areas.

BAPEX would conduct 2D survey, geophysical and geological studies and delineation of drillable subsurface structure in over 1,000 line kilometres areas in blocks 8 and 11 and 2,100 line kilometres at block numbers 3 and 6.

The country has so far not any gas and oil discovery in the western, northern and southwestern districts, which covered more than half of Bangladesh.

All the existing gas fields are situated in the north-east, eastern, and south-eastern parts of the country.

 

[CaPtAiN_pLaNeT]

Local shipbuilder to deliver two vessels to German co Nov 26

Local shipbuilder to deliver two vessels to German co Nov 26
Western Marine creates history

Pankaj Dastider and Jasim Uddin Haroon

CHITTAGONG, Nov 20: Western Marine Shipyard, a leading shipbuilder of Bangladesh has created a milestone in the country’s shipping industry by successfully launching the largest and longest marine vessels in Bangladesh.

The company is going to deliver the ice class multipurpose vessels of 5200 DWT each – EMS SEA and EMS RIVER – to the German owner Ms Grona Shipping GmbH formally from Chittagong Dry Dock on November 26 next.

Each of the ships has been built at the cost of Tk 1800 million under a contract signed for building as many as 12 ships for the same German company. The company will make complete delivery of all the 12 ships within 2012 as per contract signed in 2008.

Industries Minister Dilip Barua will attend the vessels’ delivery and reception ceremony of the two vessels as chief guest while Martin Biesel, state secretary of the federal foreign office of FRG and Holger Michael, ambassador of Germany in Bangladesh, will be present as special guests.

Each ship is multipurpose dry cargo equipped for carriage of containers having strength for heavy cargo with overall length of 99.53 metres and draught load 9.00 metre and the container capacity is 108 TEUs in the hold and 88 TEUs in the hatches.

Gross tonnage of each of these Antigua flag vessels is 3500 MT and net tonnage is 1382 MT. The export price of each of the vessels is 8.0 million euros (US$11 million).

WMS officials said sea trial of the ships was accomplished by the engineers of the vessels’ German buyer Grona Shipping on November 15 in the sea waters of Bangladesh.

The 40-men strong special team headed by owner of the company came to Chittagong from Germany and joined the day-night sea trial. They made the voyage with the ships at 9.00 am from Chittagong and returned at 9.00 pm at 12 nautical miles an hour in the deep waters of Kutubdia.

The engineers and crew were fully satisfied at the performance of both the vessels after examining their machineries and speed capacity, they said.

WMS managing director Shakhawat Hossain said, the ships have been built with the world’s sophisticated machineries.

He said that it was a great achievement for Bangladesh that it is building 12 highly sophisticated ships for a German company. Building of eight more ships for the German company has been going on at the shipyard in Chittagong.

He said that they have successfully completed two ships now and expressed the hope that other countries would come forward with orders of building bigger ships for them.

Earlier in December 2008, the local ship building giant inked a deal to build 12 vessels for the company.

Sakhawat said, “These vessels are bridge controlled. Bridge controlled vessels are operated remotely having few people on the engine room. Those can also ply on the ice.”

Western Marine Shipyard Ltd was established in 2000. In 2008, the Chittagong-based company set up a Tk2.00 billion shipyard and slipways at Kolagaon on the bank of the river Karnaphuli with orders from European companies to build 18 ships at a price of US$180 million.

 

[akash57]

KL to regularise 3 lakh workers
Canada may hire agricultural workers first time from Bangladesh

Malaysia has started regularising three lakh undocumented Bangladeshi workers and will hire more on completion of their regularisation, Expatriates' Welfare and Overseas Employment Minister Khandaker Mosharraf Hossain has said.

The workers remained undocumented since they were employed through "underhand dealings" that involved some Bangladeshi private recruitment agencies, the minister told journalists at Shahjalal International Airport on his return home yesterday after a two-week visit to Mexico, Canada and Switzerland.

"We have excellent bilateral relations with Malaysia. It is a gesture of goodwill that Malaysia is absorbing the undocumented workers in its economy," Mosharraf said.

"They are not being arrested or harassed. Malaysia is gradually regularising them. Once they are regularised, Malaysia will hire more workers from Bangladesh," he said.

Mosharraf, also minister for labour and employment, said some private recruitment agencies sent there more workers than what was required.

"About 120 workers were hired for a company which actually needed only 20."

He said Canada has agreed in principle to hire agricultural workers from Bangladesh for short terms. Negotiations on the matter would be done during the Bangladesh visit of the premier of Canada's Saskatchewan province in January next year.

The minister travelled to Mexico on November 8 to attend a conference of Global Forum for Migration and Development (GFMD).

He went to Canada from there on 12 November and met Bangladeshi expatriates and apparel buyers. Mosharraf also attended a meeting of the ILO governing body in Geneva.

Malaysia, hosting some five lakh Bangladeshis, stopped hiring Bangladeshi workers in March last year for anomalies in recruitment process.

Referring to his visit to Canada, the minister said Canada's Saskatchewan Province needs many workers for its farms. It usually recruits labourers from the Caribbean countries but now it wants to hire workers from Bangladesh.

He said Bangladesh and Canada would establish an institute to train the workers who would migrate to the province. The minister did not mention the required number of workers.

Mosharraf said the governments of the two countries would handle the recruitment process. The issues of salary and facilities for the workers would be settled during the province premier's visit to Bangladesh in January.

On his meeting with apparel buyers in Canada, he said the buyers are happy with present wage structure for garment workers in Bangladesh. The misunderstandings that arose from the labour unrest in Bangladesh's garment sector are over now.

About the GFMD conference, he said representatives from 140 countries gathered in Mexico and discussed how migrants help both the source country and the employer nation.

The participants put emphasis on ensuring the rights of migrant workers and decent working conditions, he said.

"It was a meeting to create awareness. No agreement was signed there," said the minister.

KL to regularise 3 lakh workers

 

[CaPtAiN_pLaNeT]

More buyers shift to Bangladesh

More buyers shift to Bangladesh

Garment items made for leading global brands are put on display at a showroom of an apparel factory in Gazipur. International buyers are flocking to Bangladesh as it offers competitive prices for its textile products. Photo: Amran Hossain

Refayet Ullah Mirdha

Opportunities are widening as globally renowned apparel brands look to source more garments from Bangladesh amid the widening recovery from financial crisis.

Some buyers have already shifted to Bangladesh from competing countries, while others are increasing order quantities.

Prices of garments in China, Turkey, Sri Lanka, Cambodia and Vietnam have gone up due to higher production costs. Bangladesh has also diversified its product range and marketing over the last few years.

Apparel exports grew by more than 30 percent in the first quarter (July-September) of the current fiscal year, riding on high demand for competitively priced items.

Export Promotion Bureau data shows knit products worth $2.18 billion and woven worth $1.79 billion were exported during the time — 32 percent and 30 percent more than a year earlier.

Top German brands Hugo Boss and Adidas are in talks with local apparel-maker Viyellatex Group to buy direct for the first time, in 2011.

Michael Otto, chairman of Otto Gmbh and Co KG, said in an interview that the German retail chain is investing 20 million euros (Tk 197 crore) in Dhaka to run a social business that produces garments.

German lifestyle brand s.Oliver moved to a new, bigger Dhaka office last month to strengthen sourcing.

Retail giants including Wal-Mart, JC Penny, Zara, Tesco, IKEA, Marks and Spencer, H and M, G-Star Raw, Uniqlo and Li & Fung have also increased quantities purchased from Bangladesh.

Spanish retail chain Inditex Group, which manages eight brands (Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe), also plans to expand sourcing.

Apparel exports to Japan, a newer market, started picking up after 2008, when Tokyo announced the China+1 strategyto shift sourcing focussed on China to other nations, such as Bangladesh.

Fast Retailing Company Ltd, which owns Japan’s casual-clothing chain Uniqlo, signed a $100,000 deal with Grameen Bank Group on July 13 to produce garments at the group’s factories. Uniqlo opened a liaison office in Dhaka in 2008.

Other Japanese companies, including Maruhisa, Yokohama Tape, TM Textiles, NI Teijin, CHORI, FVG and Onward Holdings Co, also began doing business in Bangladesh.

Apparel exports have grown to South Africa, New Zealand, Canada, Brazil, Mexico and Australia.

“It’ll not be difficult to double export earnings from apparels as international buyers are coming at such a higher rate,” said Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association.

But success hinges on a smooth supply of gas and power to the factories and relieving congestion at the Chittagong Port, he said.

Mohammad Hatem, vice-president of Bangladesh Knitwear Manufacturers and Exporters Association, said apparel-makers have the capacity to cater to additional orders, but the power crisis, and high cotton prices hold them back.

Economist Wahiduddin Mahmud said the sector has shown resilience in the face of global recession.

“While some effect of the recession was felt belatedly in early 2010, the industry seems to have emerged from it even stronger and more competitive in the global market,” he said.

“In fact, the main reason why Bangladesh’s garment export has been able to withstand the recession is its ability to capture higher shares of the US and European Union markets at a time when the total volume of garment trade has contracted.”

“The future looks even more promising, as China may increasingly lose its competitive edge in garment export due to its rising wage costs and a possible revaluation of its currency,” said Mahmud, a former caretaker government adviser.

“Among our garment entrepreneurs, those who are smart enough may now be able to exercise some bargaining power in price negotiations as well,” he added. “True, Bangladesh is known as a low-cost supplier of garments. But the low average unit price of exported garment is mainly due to the kind of basic apparel items that we export. For similar kinds of items, our exports fetch similar or sometimes even higher prices compared to those from, say, Vietnam or Pakistan.

“Yet our garment industry faces formidable challenges. Its competitiveness is mainly derived from low wages, which also remains a potential source of labour unrest, even with newly announced minimum wage rates. There are large variations across the garment factories in productivity and managerial efficiency. Improved productivity needs to be translated into better labour conditions. To stay competitive while maintaining sound labour relations will require a restructuring of the industry. That process will not be painless,” the economist said.

If the country wants to move up the value chain in global trade, a skilled labour force and better management are required. “That will also make it possible to raise wage rates as labour productivity increases,” he said.

The more immediate challenges are improving the efficiency of Chittagong Port and ensuring energy supplies, he added.

reefat@thedailystar.net

 

[CaPtAiN_pLaNeT]

Dipu Moni looks to Japanese, Chinese development fillips
EPA with Tokyo, Kunming bid stressed

Dipu Moni looks to Japanese, Chinese development fillips

November 21, 2010

Sheikh Shahariar Zaman

The government is considering signing economic partnership agreement (EPA) with Japan to strengthen bilateral relations between the two Asian countries.

“The bilateral trade between the two countries has reached $1.3 billion and in the future we want to sign EPA with Tokyo to make exports and imports and investments easier,” said an official at the foreign ministry.

The EPA covers the entire range of issues including export and import facilitation, customised tariff rate structure and investment opportunities.

Japan has EPA with a number of countries where it has significant economic interests.

The government is also planning to create an ‘exclusive industrial corridor’ under the framework of export processing zone for the Japanese investors, the official said.

“Foreign minister Dipu Moni on Sunday held a meeting with a Japanese business delegation on the issue and sought their assistance in this regard,” he said.

The minister asked the delegation to fund the Padma bridge, Dhaka-Chittagong four-lane highway and help develop the railway infrastructure, he added.

“The Japanese team also expressed their interest in the issues,” he said adding, “Prime Minister Sheikh Hasina will visit Japan this month and it is expected she will strike a deal with the Japanese government for funding Padma bridge.”

“Japan has helped us in developing the Bangabandhu Bridge and this time we seek their help in building the Padma bridge,” he said.

Another foreign ministry official said Dr Dipu Moni sought assistance from a Chinese delegation to materialise the Kunming initiative when they met her at her office Sunday.

The Kunming initiative will physically link Bangladesh and China and it could be done through road and rail networks, he said.

“If the network can be developed through Myanmar, Chinese products can be shipped to Dhaka at lower costs and it is also important for Bangladesh to make the deep-sea port viable,” he added.

Bangladesh also sought $1.2 billion in Chinese assistance in developing the deep-sea port in Sonadia to make the country a regional hub of cargo handling taking in the entire region stretching from China to Nepal and Bhutan.

“Dr Dipu Moni sought Chinese support in agriculture, climate change management, renewable energy and infrastructure,” the official said.

The foreign minister urged the Chinese delegation to request their business people to invest more in Bangladesh that offers attractive tax and legal regime along with cheap and efficient workforce.

 

[eastwatch]

WB commits $1.9b to cut recession impact
FE Report

The World Bank (WB) pledged to lend out a total US$1.9 billion during 2008 and 2009 fiscal years to help Bangladesh ward off the impact of the global economic crisis, according to a new study.

The study by Independent Evaluation Group, an agency responsible for watching the bank, said in 2009, the Washington-based lender's commitment from its soft-lending arm amounted to $1.1 billion, while it was $0.8 billion in 2008 financial year.

The actual disbursement during the period totalled $1.1 billion, the IEG assessment estimated.

Bangladesh saw its growth rate wipe out by 0.68 per cent due to the global crisis as the economic growth pared back to 5.73 per cent in 2009 fiscal, down from 6.42 per cent in the pre-crisis fiscal year of 2007.

The bank estimated that the economic downturn left an estimated 50 million more people in extreme poverty last year and some 64 million more will fall into that category by the end of 2010 across the globe.

"Even in a financial crisis, the WB needs to support the crucial requisites for long-term results-fiscal and debt sustainability, structural reforms, environmental and social sustainability, and actions to reduce risks related to climate change," the IEG said in its report.

In 2009-10 fiscal, the bank also channelled $130 million in development policy loans to support Bangladesh's efforts to minimise the impact of food crisis and improve the social safety nets.

The International Finance Corporation (IFC), the bank's private sector lending arm, was also active in Bangladesh to help the nation cope with the global crisis.

The corporation's investment in six areas reached $164 million from fiscal 2009 through the third quarter of 2010.

Vinod Thomas, who heads the IEG, said: "The World Bank Group's response has fitted the nature of the crisis-which called for a fiscal expansion to compensate for sharply declining trade and private capital flows. The financing from the WB and other IFIs (international financial institutions) has helped in the worldwide effort to avert what might have been a harsher global downturn."

"The ensuing challenges are with emerging fiscal imbalances, higher debt levels and financial sector vulnerabilities-and with ensuring that the increase in spending produces sustainable results."

The World Bank disbursed a record US$80.6 billion during 2009 and 2010 fiscal years to respond to the global economic crisis-more than any other international financial institution.

The IEG's evaluation sought to achieve three objectives: support the most vulnerable, maintain long-term infrastructure investment and sustain the potential for private sector-led growth.

 

[CaPtAiN_pLaNeT]

RMG exports to benefit from relaxed EU rules

RMG exports to benefit from relaxed EU rules

Refayet Ullah Mirdha

Bangladesh’s apparel exports will benefit from Europe’s relaxed rules for the least developed countries (LDCs) under the generalised system of preferences (GSP) in textile trade, experts said.

The new rules of origin (RoO) adopted by the European Union will be effective from January 1.

The biggest change is that single-stage processing (manufactured from fabric) will be allowed in many cases, instead of only two-stage processing (manufactured from yarn).

It means most apparel items from all LDCs will get duty-free access, no matter where the raw materials originate. The standard import duty for readymade garments in the EU is 12 percent.

The GSP is a trade arrangement allowing reduced or zero tariff on imports from developing countries; and the RoO determines whether imported goods really do originate in the countries covered by the GSP.

Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), sees the new move as a boon for Bangladesh.

“Once implemented, if any exporter uses imported fabrics, manufactures in Bangladesh and exports to the EU, he will get the GSP facility.”

A majority of the woven garment exporters import fabrics from China because the backward linkage industry is not strong like knitwear, Rahman said.

He, however, thinks the domestic backward linkage industry will face slight competition because many manufacturers import fabrics from other countries, especially China.

Rahman suggested the government continue an adequate supply of gas and power to the backward linkage industries so that they can produce fabrics and yarn in time to tackle competition.

“Apparel exports to the EU will increase manifold for the new move.”

Zillul Hye Razi, trade adviser of EU trade delegation to Bangladesh, is also upbeat on reaping more benefit from the new move by woven and knit exporters.

“It may also provide opportunities for the local exporters to go for the higher end of the EU market as Bangladesh could not benefit from the GSP under the existing rules, as a high quality fabric is not sufficiently manufactured locally.”

Abdul Hai Sarker, president of Bangladesh Textile Mills Association, said the backward linkage industry is fully equipped to take on the challenge, at least for knitwear.

reefat@thedailystar.net

 

[CaPtAiN_pLaNeT]

Western Marine to hand over two 5200DWT vessels


Western Marine to hand over two 5200DWT vessels

EMSSEA and EMSRIVER, renamed Grona Ammersum and Grona Biessum. Source: PriyoAustralia.com.au - connecting community people - Bangladeshi "Western Marine" launches ice-class vessels

NURUL AMIN, CHITTAGONG

Nov 23: With orders on the rise, global shipbuilding majors are finding it

difficult to accommodate orders for small and medium vessels, which has given new starters, like Bangladesh, a golden opportunity to carve a slice of the shipbuilding pie. Taking a cue, Bangladesh-based shipbuilders, like Western Marine, are now gearing up to cut their teeth into this highly competitive market by churning out ships that are at par with global technical standards, and help earn precious foreign exchange for the country.

Westen Marine is all set to create history of sorts when two of its vessels are handed over to their German owner on November 26.

The 100-metre-long 5,200 DWT ice-class multi-purpose cargo vessels – Grona Ammersum and Grona Biessum – the largest-ever built in Bangladesh, will be handed over to German owner Grona Shipping GmbH & Co. KG, in a grand ceremony in Chittagong Dry Dock Ltd. About 60 dignitaries from Europe, comprising members from the German embassy, German ministries and representatives of marine machinery makers, are scheduled to attend the launch.

Foreign missions, industrialists and a number of media-heads have also been invited to this landmark event.

Industries minister Dilip Barua will be the chief guest, while German ambassador Holger Michael and state secretary of Foreign Office of the Federal Republic of Germany, Martin Biesel, will be the special guests.

The vessels were earlier tested on the Karnaphuli in July, and, later, completed successful dock and sea trials on November 14 and 15, respectively.

According to sources, Western Marine’s success lies in streamlining its operations to achieve better efficiencies.

The company’s procurement department buys 80 per cent of the raw material from outside the country.

As Western Marine avails the facility of a bonded warehouse, there is no duty to pay on the equipment and the finished vessels. Their data-base system manages and monitors the warehousing facilities, and ensures that the materials coming in and going out, are taken through customs and are dealt properly. The company has adopted efficient methods of production, using mega-blocks, thereby saving time and costs.

During the testing phase, the operations department checks the condition of a ship, ensuring the navigation systems, mooring and shifting are all in order.

Their delivery protocol department then collects the necessary documents and certificates, and prepares them for handing over to the owners.

 

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RMG exports rise as demand buoyant Shipment grows 37pc in four months

RMG exports rise as demand buoyant

Refayet Ullah Mirdha

Garment exports went up by more than 37 percent in the first four months of the current fiscal year compared to the same period a year ago, according to government data.

The growth came due to a higher demand for Bangladeshi textile products abroad and the success of the country in exploring new markets.

In the July-October period, the country fetched $6.8 billion from exports.

The latest data from the Export Promotion Bureau (EPB) shows that Bangladesh exported knitwear items worth $2.88 billion, a 37.97 percent rise, during the period.

Woven items logged in $2.34 billion with a growth of 39.45 percent.

Jalal Ahmed, vice-chairman of EPB, said exports from Bangladesh are increasing mainly because of higher shipments to the new destinations and a rebound in exports of some items such as leather and leather goods.

“We are also maintaining a good export growth in China and Japan,” Ahmed said.

India has also become a good market for Bangladesh, and so apparel export is growing, he said.

Ahmed said export of leather and leather goods faced a serious setback a few months ago due to anthrax scare, but such exports are rebounding now.

He said some non-traditional items like plastic waste have entered the export basket.

Habibur Rahman, acting president of Bangladesh Knitwear Manufacturers and Exporters Association, attributed the export growth to a shift in orders from other competing countries, especially China, the world’s largest apparel supplier.

“The knitwear sector is receiving a significant number of orders as those were diverted from China to Bangladesh due to higher production cost there,” Rahman said.

Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association, said the global financial meltdown was a blessing for Bangladesh.

“Many international buyers have shifted their orders to Bangladesh from other countries for higher cost of production during the global recession,” Murshedy said.

Stable cotton prices and smooth operations of Chittagong Port are necessary to ensure a sustainable growth of apparel exports, he said.

reefat@thedailystar.net

 

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US $ 19.874 million Indian investment in Adamjee EPZ

Bangladesh Sangbad Sangstha (BSS)

DHAKA, Nov 22 (BSS)- BRFL Bangladesh Private Limited, an Indian company, will set up a garment manufacturing industries in the Adamjee Export Processing Zone.

This 100 percent foreign owned company will invest 19.874 million US dollar in setting up their unit to produce garments related items, a handout said here today.

The company will also create employment opportunity for 8,884 Bangladeshi nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and BRFL Bangladesh Private Limited in BEPZA Complex here today.

Md Moyjuddin Ahmed, member (Investment Promotion) of BEPZA and Nazim Khan and president of garments division of BRFL Bangladesh Private Limited signed the agreement on behalf of their respective organizations.

Jnan Ranjan Sil, Member (Engineering), AZM Azizur Rahman, General Manager (Investment Promotion), Md Khorshed Alam, General Manager (Public Relations) and other officials of BEPZA were present at the signing ceremony.

 

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Export earnings rise by 37pc in July-October

Business

Kazi Azizul Islam

Export earnings in the last month made an astounding leap of 65 per cent from that of October 2009 as exporters sent more consignments to foreign destinations while an increased cost of raw materials compelled importers to pay more.

The country’s export earnings in October 2010 amounted to $1,688 million, announced the Export Promotion Bureau on Monday.

With this, the export proceeds in the first four months of the current fiscal year amounted to $6.72 billion, posting a 37 per cent growth over that in the corresponding period of the last fiscal year.

According to the EPB report, readymade garments accounted for 78 per cent, or $5.24 billion, of the total export earnings during the period, achieving a 39 per cent year-on-year growth. Export of home textiles fetched $176 million, tarry towels $47 million and non-apparel textiles more than $324 million or nearly 5 per cent of the total export proceeds in the July-October period.

In the apparel segment, knitwear export proceeds in the four months amounted to around $2.89 billion, rising by 38 per cent year on year. The earnings from woven or cut and sewn garment export in the period came to $2.34 billion, posting a 39.5 per cent year-on-year rise.

Bangladesh Garment Manufacturers’ and Exporters’ Association president Abdus Salam Murshedy said garment exporters had to struggle hard to achieve such a tremendous growth.

He said, although there were plenty of opportunities on the global market for expanding the country’s export volume, manufacturers here were deterred from taking advantage of the situation by gas and energy crisis, shortage of skilled manpower, and slothful port services.

‘Buyers across the globe have much confidence in Bangladeshi suppliers. So, if the infrastructure can be strengthened, exporters will be able to continue with sustaining such a high growth rate, may be even more,’ he observed.

Anwar-Ul-Alam Chowdhury Parvez, chairman of Evince, a leading fabric and garment manufacturing group, said the earnings from garment exports increased so much as a sharp rise in the cost of raw materials pushed the price level up.

Parvez attributed the stiff price hike of cotton-based knitwear and denim wear, the two prime export goods, to the more than 50 per cent rise in cotton and yarn prices over the past few months.

Earnings from most of the non-garment export items also increased significantly in the period, the EPB report shows.

The proceeds from frozen shrimp and fish exports in July-October amounted to $208 million, posting a 38 per cent year-on-year growth, that from raw jute exports amounted to $98 million, up by 47 per cent, jute goods and jute yarns $156 million, up by 56 per cent, and jute products $61 million, posting a 16 per cent growth. Export earnings from finished leather advanced by 42 per cent year on year to $86 million and footwear by 51 per cent to $98 million.

The export earning from bicycles in the four months however posted a 4 per cent negative growth year on year, amounting to $35 million, and furniture a 5 per cent negative growth, amounting to $5 million.

Exports of agricultural products, including fresh vegetables, foliages, fruits, spices, and dry foods brought in $120 million, making a 38 per cent average growth but, in this category, the earning from tea exports declined to $0.6 million, showing a 66 per cent negative growth.