Japan closes in on infrastructure deal with Bangladesh.

[Homo Sapiens]

https://asia.nikkei.com/Business/Deals/Japan-closes-in-on-infrastructure-deal-with-Bangladesh
December 8, 2017 7:49 am JST
Japan closes in on infrastructure deal with Bangladesh
Battling Chinese competition,Tokyo eyes a rare win

Obayashi has helped build an urban railway in Dubai by collaborating with the Turkish.

TOKYO -- Japan has snagged preferential negotiating rights from the Bangladeshi government to build highways and other structures there under an exclusive arrangement.

Tokyo seeks to capitalize on this and other opportunities to catch and surpass China, which has a much larger infrastructure footprint in developing countries due to its huge edge in pricing.

No bidding wars

The governments in Dhaka and Tokyo have created a council to discuss infrastructure in six areas: highways, ring roads, subways, economic zones, redevelopment, and new community development. Private-sector companies will be involved in the construction and management of facilities under a public-private partnership.

Forming the council limits the negotiations to Japanese interests, which will be free to tout their technological prowess in negotiations. "The Bangladesh government is concerned that a majority of projects will go to the Chinese if deals are sealed solely on price," said a source at Japan's Ministry of Land, Infrastructure, Transport and Tourism.

Japan will involve such general contractors as Obayashi and Kajima, as well as trading companies Marubeni and Mitsui & Co. Megabanks like the Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank will help with financing.

The two sides will hammer out concrete projects so that orders may be placed as early as next year. The Public Private Partnership Authority of Bangladesh will handle projects proposed by various ministries and agencies.

 

[Homo Sapiens]

"The Bangladesh government is concerned that a majority of projects will go to the Chinese if deals are sealed solely on price," said a source at Japan's Ministry of Land, Infrastructure, Transport and Tourism.

Quality should also get consideration along with cost.It is good that Bangladesh govt. is trying to wean from the Chinese money.Over dependence on China for investment and infrastructure project is not good, nor is depending China for arms import. I think, China got priority in Bangladesh in various project in the past for the mistaken notion that China is a 'very good friend' of Bangladesh.Which they proved they are not.We need more diversity in dealing with partners.

 

[bluesky]

Japan closes in on infrastructure deal with Bangladesh.Battling Chinese competition,Tokyo eyes a rare win

Tokyo will certainly win over China in providing fund, technology and knowhow to build the BD infrastructure. Soil testing for roads is completely different from the soil testing for structure and building. Tokyo participation will cause the improvement of engineering design and construction technology of the BD engineers and contractors.

 

[Dot]

Inspite of being the lowest bidder on many projects, govt of BD is somewhat dissatisfied/irritated with many Chinese engagements that they overshoot the deadlines many places, blackmail somewhat (remember Dhaka-Chittagong highway blackmail; to bag the bank protection & river trainning work of Padma Bridge Project!) and also creates hussle with the release of funds (Karnafulli tunnel funding!).

 

[bd_4_ever]

Japan = Quality, so big yes! Its good that the government is looking to diversify into other option apart from the Chinese. This will give us lot of leverage in future tenders and reduce dependency over a single source. That's the 101 of doing business and similarly applies to development.

PS:- Before brain-dead dumbf*ks go monty on this comment, must clearly understand this will not hamper any good relations with China. They will remain our important close trading, development and military partner in the future too.

 

[Species]

Diversifying the funding-source is the way to go. The BIG-B initiative looks to be going smooth!

But interestingly, the priority areas don't include port development, is it left for the Chinese?

 

[HannibalBarca]

One thing ppl should understand... Japan almost perfect quality and work is doable ONLY when it's 100% (or almost) made by them... meaning from the bottom work to the Top... with 100% japanese hands...

The quality of the installation could be less or equal to other bidders around the globe...since it will be made by national workers...

That's a point many seems to forgot...
Japan don't transfer know-to techs...

 

[Bilal9]

One thing ppl should understand... Japan almost perfect quality and work is doable ONLY when it's 100% (or almost) made by them... meaning from the bottom work to the Top... with 100% japanese hands...

The quality of the installation could be less or equal to other bidders around the globe...since it will be made by national workers...

That's a point many seems to forgot...
Japan don't transfer know-to techs...

There may be some confusion here.

The Japanese firm is supervising the project and they are 'responsible' for the end result. Hence it really does not matter who does the work.

Japanese machinery and process will be used, like in the last ten years with scores of large projects in Bangladesh. After Thailand, Bangladesh has become the next large destination for Japanese investments in low-cost industrial production.

People in Bangladesh are used to working with Japanese on many projects. The cultural tie remains strong - sixty some odd years after industrial ties started. Every Bangladeshi I know has positive attitudes about Japanese culture because our values are quite similar. Local Japanese expat population is rather large and they have adopted local norms/culture in most cases, also vice versa with expat Bangladeshis living in Japan.

There are mixed parentage celebrity people among our cultures too,

Bangladeshi-Japanese model Rola is a young fashion icon and super-popular pop-idol who is blazing a trail in celebrity-obsessed Japan due to her mixed race.

Dhaka's celebrity restaurateur Tareq Rafi Bhuiyan is a person of mixed Japanese-Bangladeshi ancestry as well who runs expensive Japanese-themed restaurants here. His is the only local chain that serves expensive Wagyu beef flown in all the way from Kobe Japan. Since there is a ban on serving beef in India food industry, Dhaka is the only local eastern South Asian city where you can get this KOBE Wagyu beef. Each KG costs USD 350 or so.

 

[bd_4_ever]

@Bilal9

Thanks for the share above, brings back a lot of memories! I personally came in contact with Tareq Rafi Bhuiyan when I was working in Dhaka long back, through a professional dealings with one of his research & consultancy firm. Extremely soft-spoken and gentle guy. Was a pleasure working with him. But didnt know back then that he was a famous restaurateur as well.

 

[Nilgiri]

After Thailand, Bangladesh has become the next large destination for Japanese investments in low-cost industrial production.

Uh....no it hasnt. Japan invests next to nothing in BD. In fact BD barely pulls in foreign investment from the whole world to begin with, forget focusing on Japan. It's not changing by any significant stretch either.

 

[Bilal9]

@Bilal9

Thanks for the share above, brings back a lot of memories! I personally came in contact with Tareq Rafi Bhuiyan when I was working in Dhaka long back, through a professional dealings with one of his research & consultancy firm. Extremely soft-spoken and gentle guy. Was a pleasure working with him. But didnt know back then that he was a famous restaurateur as well.

Your description matches his personality. Great guy!

Here is the Facebook page for the restaurant. Needless to say I am a regular. Authentic stuff!

https://www.facebook.com/pg/Koberestaurantdhaka/photos/?ref=page_internal

There are a lot of local engineers who have local software companies (especially for Japanese language DOCOMO mobile software) catering to the Japanese market. Lot of things going on trade-wise with Japan we Bangladeshis don't even know.

There was a company based in Rajshahi, weaving expensive Kimono fabric for Japan from local high quality silk.

 

[bluesky]

Diversifying the funding-source is the way to go. The BIG-B initiative looks to be going smooth!

But interestingly, the priority areas don't include port development, is it left for the Chinese?

Japan will fund the design and construction of a limited scale deep seaport somewhere near Matabari. This port will be used, but may not be exclusively, by the industries to be set up by the Japanese themselves in an exclusive EPZ nearby. I think, the port will be built before Japan builds a power plant with super-critical technology nearby which will have about 50% efficiency comparing to the normal 30% efficiency. Why before? it is because Japan has to unload the power plant equipment at a nearby port.

Another point. Japan has been helping the road transport system in Rangoon with its own money. Most of the present roads in Rangoon ends at some riverbanks and pagodas. It means the Burmese have been unable so far to do bridge building over the rivers by themselves. Because of Japanese govt contribution there, even Nissan Motors has bought a big chunk of land somewhere.

However, I have been seeing a change in Japanese attitude recently. They are giving more importance to BD, and I think, Japan is coming forward to help BD because this country is willing to work hard. I hope, someday Nissan also vacates that hinterland called Burma and comes to our shore.

 

[TopCat]

A good portion of Jessore High Tech park is taken by Japanese that I saw in the newspaper today.

Japan will fund the design and construction of a limited scale deep seaport somewhere near Matabari. This port will be used, but may not be exclusively, by the industries to be set up by the Japanese themselves in an exclusive EPZ nearby. I think, the port will be built before Japan builds a power plant with super-critical technology nearby which will have about 50% efficiency comparing to the normal 30% efficiency. Why before? it is because Japan has to unload the power plant equipment at a nearby port.

Another point. Japan has been helping the road transport system in Rangoon with its own money. Most of the present roads in Rangoon ends at some riverbanks and pagodas. It means the Burmese have been unable so far to do bridge building over the rivers by themselves. Because of Japanese govt contribution there, even Nissan Motors has bought a big chunk of land somewhere.

However, I have been seeing a change in Japanese attitude recently. They are giving more importance to BD, and I think, Japan is coming forward to help BD because this country is willing to work hard. I hope, someday Nissan also vacates that hinterland called Burma and comes to our shore.

Japanese firm can't own land in Myanmar. In BD anybody can buy lands. I dont know why Japanese or any other foreign company are so shy about Bangladesh. No country in this region is as open as BD for foreign investors.

 

[bluesky]

Every Bangladeshi I know has positive attitudes about Japanese culture because our values are quite similar. Local Japanese expat population is rather large and they have adopted local norms/culture in most cases, also vice versa with expat Bangladeshis living in Japan.

Sorry to say that Japanese values are quite different from the BD ones. It is different not only from BD, but also from all other nations. This is their specialized values that made them once a technologically superior mighty world military power that conquered almost all the parts of eastern Asia. Now, it is an economic and technology mammoth. They learned from the westerners very fast and surpassed them. In comparison, we are just a group of valueless people who got a country which they cannot properly rule or develop. Our expats in Japan are labors doing menial jobs in Japan, while the Japanese in BD are not.

 

[Homo Sapiens]

Sorry to say that Japanese values are quite different from the BD ones. It is different not only from BD, but also from all other nations. This is their specialized values that made them once a technologically superior mighty world military power that conquered almost all the parts of eastern Asia. Now, it is an economic and technology mammoth. They learned from the westerners very fast and surpassed them. In comparison, we are just a group of valueless people who got a country which they cannot properly rule or develop. Our expats in Japan are labors doing menial jobs in Japan, while the Japanese in BD are not.

For me, more fascinating than East Asian empire was how Japan transform itself from a totally isolated and self absorbed country into a modern industrial and military power within 20 years in 1870s and 1880s.Up to 1853, Japan refused all the contact with the western world and remain entirely traditional.But when they broke their isolation and came into contact with western world, they rapidly absorbed all the western knowledge and technology within 20 years in the era of Meiji Restoration and became a serious global player.Which western power forced to acknowledge when Japan defeated the mighty Russian empire in 1905 in Russo-Japanese war.A country which had no modern school, college or University up to 1860s, attained universal literacy in 1905 ! This transformation of Japan is unlike anything else in the history.