Bangladesh News Bangladesh Economy & Development Thread

[Isa Khan]

Bangladesh Railway (BR) has taken a move to bring Manikganj under the railway network.

The state-run transport agency will do a feasibility study for building a rail line from Gazipur's Tongi to Paturia via Manikganj.

A Tk 48.09-crore feasibility-study project has already been sent to the Planning Commission last month for approval, BR officials said.

Once the line is built, it will encourage people to live in sub-urban areas like Manikganj and its adjacent locations. They will be able to swiftly go to and from Dhaka for daily work, which will ultimately take some pressure off the city, they said.

Besides, those travelling between Dhaka and northern and western parts will get a new route, which will reduce travel times.

However, it would take quite some time for all this. If the Planning Commission approves the project, BR will hire a consultant to carry out the study and work out the design, they mentioned.

If the line is found to be feasible, BR, depending on the availability of funding, will take another project to build it, they added.

However, some BR officials said the project may not be viable until the second bridge over Padma River, on Paturia-Daulatdia route, is built.

Mentionable, Daulatdia has long been connected to the railway network.

Besides, BR should work on building more important tracks, like one from Dhaka to Cumilla via Narayanganj to reduce the distance between Dhaka and Chattogram, they said.

However, other BR officials said since the government is definitely going to build the second bridge, they want to plan out the Dhaka-Paturia track beforehand.

As a point of argument, they said the Padma rail-link project was taken several years after the Padma Bridge project, and due to this, they cannot start both road and rail operation on the bridge simultaneously.

DHAKA-MANIKGANJ LINE​

Leaders of different socio-cultural organisations of Manikganj have long been demanding a rail line from Dhaka to Paturia via Manikganj town.

BR took a move around three years ago to carry out the feasibility study and held several meetings over the issue, BR sources said.

After discussions, the Planning Commission had several queries and asked to recast the development project proposal (DPP), they said.

After answering all those queries and recasting the DPP, Bangladesh Railway, through the railways ministry, sent the DPP to the Planning Commission last month, they added.

As per the proposal, around Tk 34 crores would be spent for consultancy services for feasibility study, designs and tender documents.

Around Tk 14 crore would be used for other works, including project management, show documents.

The consultant will carry out a feasibility study for constructing a railway link from Tongi of Gazipur to Paturia via Manikganj.

Asked why the track would be built from Tongi, a BR official said a direct line through the capital may not be possible, so Tongi was discussed.

However, the consultant will check all viable options, he said, wishing not to be named.

The Daily Star could not reach BR's director general Dhirendra Nath Mazumder for comments.

New rail line to link Manikganj to Dhaka

Bangladesh Railway (BR) has taken a move to bring Manikganj under the railway network.

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The Bangladesh Bank has set up a refinancing scheme of Tk2,000 crore to provide entrepreneurs in the shipbuilding industry with low-interest loans for the development of this sector to reduce the country's import dependence.

In a circular on Thursday, the central bank said borrowers in this sector will get the loan at an interest rate of only 4.5%.

The central bank asked lenders to decide loan limits based on the relationship between banks and customers. The loan will be repaid in 12 years with a grace period of three years. Under this central bank's refinancing scheme of Tk2,000 crore for this sector, all banks will be able to collect money and disburse it as loans.

At the bank level, the interest rate will be 1%. But, the Bangladesh Bank has asked lenders to provide the necessary information for lending to customers by 30 January 2024, it added.

According to the directive, banks will collect funds for the scheme and disburse loans in line with the target of the Shipbuilding Industry Development Policy 2021. Special emphasis will be given to sustainable development of the shipbuilding industry, increase in export earnings and employment and reduction of import dependence.

Banks interested in disbursing refinancing loans will be able to collect funds for the scheme by entering into a partnership agreement with the Bangladesh Bank, the directive added.

Under this scheme, banks will be able to disburse loans or invest in working capital for a period of one year. If the business transaction is satisfactory, it can be renewed. However, through renewal, any customer will get this facility for a maximum of three years.

At present, there are 120 shipyards in the country. In which, shipbuilding and repair work is being done. The shipyards now employ about 30,000 people. In the next five years, it will increase to more than one lakh. Considering the potential of this sector, a new refinancing scheme has now been formulated.

Shipbuilding industry to get loans at 4.5% interest

The loan will be repaid in 12 years with a grace period of three years

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Nasrin Akhter, a resident of Dhanikhola union in Trishal, Mymensingh, never went to school as her day labourer father could not bear her educational expenses. She grew up with her two younger brothers in extreme poverty.

But, she has now become the saviour of the family thanks to Consumer Knitex Ltd, a garments industry established in Trishal's Raghamara area, where she joined as a worker two years ago.

She earns about Tk15,000 including overtime per month which helps her alleviate poverty in the family. She got married to one of her co-workers a year ago.

"I got the job with the help of one of my friends. Around 3,000 people work in the factory. Most of them have come from the same background as me. Now, I have got some economic freedom as my husband also earns. Although I have got married, I help my father and brothers," Nasrin told The Business Standard.

Factories like Consumer Knitex have transformed the mostly agriculture-based economy of Trishal by creating employment opportunities for thousands of people. In the past few years, several factories have been set up in the area including some big investments. Women are also being employed in these factories equally besides men.

Md Tanzil Hasan, associate professor of economics at Jatiya Kobi Kazi Nazrul Islam University, and executive director of the Economic Development Research Organisation (EDRO), said, "Industrilisation has become a major force in eradicating poverty and unemployment in Trishal. As people's income increases, it propels the wheel of the economy. Increasing money transactions have improved the standard of living in the rural areas."

The trend of migrating to the capital in search of jobs is also on the decline as people now prefer staying in the area having employment opportunities, he added.

Large investments, huge job opportunities

Akij Ceramics Limited set up a factory at Mokshapur union of Trishal several years ago. It produces tiles, sanitary products, particle boards, and BOPP for food packaging.

Md Mamun Akhtar, admin manager (HR) of Akij Ceramics, said, "Our factory has employed around 4,000 people. Around 40% of them are young men and women. We provide increment, provident fund, medical facilities and health and life insurance services for our workers. We have another factory nearby. Our total investment here is around Tk3,000 crore."

Dabiruddin Spinning Mill Ltd has invested around Tk2,000 crore in a factory in the Amirabari area. Around 3,000 people are employed in the factory and 70% of them are from the local areas.

Md Selim Al Reza, assistant manager (HR admin) of Dabiruddin Spinning Mill Ltd, said, "We produce 120 tonnes of yarn every day which is being used in different garments factories of the country."

"We provide all the services as per the rules to the workers. We have bus services for the workers who come from far away. The lifestyle of the workers from the village areas has changed a lot due to industrialisation," he added.

Md Bulbul Ahmed, deputy inspector general of the Department of Inspection for Factories and Establishments in Mymensingh, said, "There are five to six big industrial establishments in Trishal including Akij, Bhuiyan Paper Mill, Dabiruddin Spinning Mill, Rose Garments etc. More industrial establishments are being set up in this area."

"We oversee the interests of the workers such as the working environment, and different other facilities. We have disposed of 54 complaints in the last one year. We also arrange meetings and awareness campaigns to make workers conscious about their rights. We visit factories very frequently," he said.

Self employment

The large factories, besides generating huge jobs, have also played a role in creating opportunities for self employment.

Aminul Islam runs a shop of fancy goods in front of the Dresden Textiles Limited beside the Dhaka-Mymensingh Highway in Amirabari union.

He said, "A small market has been created around the factory gate. The land owner has built several shops here and rented them out. I have invested around Tk4 lakh in this shop that I have rented. Now, I feed my family from the income of this shop."

Along with opportunities come problems

Rapid industrialisation has, however, also brought some problems in Trishal, especially in the environmental front.

Shibbir Ahmed Liton, general secretary of Paribesh Rokkha and Unnayan Andolon, Mymensingh, said, "We have seen that industrialisation has caused extreme damage to the environment. The River Banar is already facing extreme pollution. We want planned industrialisation. For this, the authorities concerned need to take the matter seriously."

Rising crime rate has also been a problem in Trishal which has become a serious threat to the people living in the area.

According to local people, one of the major crimes is happening during the land acquisition process before setting up industrial establishments. The companies generally approach the brokers without buying land directly from the farmers. As a result, a powerful circle has been created in the area who acquires land from the farmers at a very low price by threatening them with muscle power.

These criminals also kill people if they resist their illegal pursuits.

In 2016, Matin Master, a freedom fighter from Khagatipara in Trishal, was murdered in land acquisition related disputes. Another person named Rafiqul Islam was also killed in 2019 for the same reason. In April this year, a man named Abul Kalam Azad from the Jamtali village was killed while trying to save his nephew from the land grabbers.

Main Uddin, officer-in-charge of Trishal police station, said, "The police have identified the culprits in all the murders related to land acquisition and filed complaints in the court. Criminals are also being arrested. We are working to prevent such incidents in the future."

Industrialisation transforming rural economy in Trishal

Five-six big factories have already been set up in Trishal, and work is underway on several more

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[Isa Khan]

Mexican retail giant Coppel is keen to import more readymade garments from Bangladesh as well as bicycles, home textiles, undergarments, home appliances, jute products, and ceramics.

To this end, a 10-member delegation led by the retailer's sourcing manager Jorge Gomez Garcia will visit Bangladesh in July, said Abida Islam, Bangladesh ambassador to Mexico, to the commerce ministry in Dhaka.

In a 27 May letter to the ministry's Senior Secretary Tapan Kanti Ghosh, the ambassador said Coppel had been conducting successful and satisfactory business with Bangladesh for several years – its imports from Bangladesh having increased from $5 million to $20 million in a few years.

"During a recent discussion with me, Coppel expressed interest in purchasing readymade garments as well as bicycles, home textiles, undergarments, home appliances, jute products, and ceramic products from Bangladesh. They are interested in meeting with manufacturers and suppliers of these products," Abida said in the letter.

Founded in 1941, Coppel has about 1,600 department stores in 700 cities across Mexico and has about 3 crore customers. In 2021, the company's total sales exceeded $12 billion.

Coppel purchases various products such as cell phones and accessories, computers and accessories, bicycles, motorcycles, tyres, luggage, linen, furniture and home decor, jewellery, home appliances and electronics, from suppliers of nearly 2,700 national and international brands, to sell in its department stores.

Mexico’s Coppel keen to increase RMG imports from Bangladesh

Mexico's retail giant Coppel aims to import more RMG and other products from Bangladesh

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Akij Plastics Limited, one of the most substantial industrial concerns of the Akij Group, has targeted to export goods to Nepal, Bhutan and the United States of America soon, top officials of the company said.

"After achieving tremendous success in the domestic market, we started exporting goods to India in recent years. We need to expand our export market further," Akij Group Chairman Sheikh Nasir Uddin said at the Akij Plastics Dealers' Conference-2022 at the Tulip Beach Resort in Cox's Bazar on Friday.

Akij Plastics has fetched a strong position in the national plastic product market since its inception just six years back, he added.

To boost trade further both home and abroad, Akij Plastics held its annual dealers' conference to accelerate as well as to encourage the relentless efforts of its workers and dealers.

At the event, Akij Group Senior General Manager Chowdhury Hasan Tareq said, "We are the best in the market due to using state-of-art technologies, modern machinery, diverse product range and being uncompromising with quality."

"We will move forward on a larger scale in the coming future by maintaining the current trend. Our excellent marketing services have also helped earn the trust and confidence of all," he said.

Akij Group, one of the leading industrial enterprises in Bangladesh, has contributed significantly to the country's economic development for more than 73 years. It started Akij Plastics in 2016.

Apart from the domestic market, Akij Plastics exported goods worth Tk20 million to India in the last calendar year.

Hundreds of dealers and workers of Akij Plastics and dignitaries from home and abroad were present at the conference.

During the colourful two-day conference, Akij Plastics distributed attractive gifts and souvenirs to its hardworking staff and dealers.

Akij Plastics targets to export goods to Nepal, Bhutan, USA soon

Apart from the domestic market, it exported plastic goods worth Tk20 million to India in the last calendar year

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The first consignment of 500kg of Gopalbhog mangoes from Rajshahi is en route to Dhaka today to be exported to Sweden.

The mangoes were picked from the city's Jinnah Nagar orchards and will be sent to Dhaka for export, reports our Rajshahi staff correspondent.

Anwarul Haque, president of Bangladesh Mango Growers' Association, will send the mangoes to Sweden through Syed N Hossain Sajal, managing director of Angel Group, an exporter of mangoes.

Anwarul Haque told The Daily Star, "I send about 20 tonnes of mangoes to eight countries every year through exporters. I have planned to send 10 more tonnes this year."

"This time I have bagged 1 lakh mangoes, the amount is about 30 tonnes", he said.

He added that he would be able to bag more mangoes if the exporters contacted him.

Contacted, Exporter Syed N Hossain Sajal told The Daily Star that an agreement had been signed with a Swedish buyer to send 500 kg of mangoes to the country.

"I export mangoes to Finland, Germany, and Sweden every year. Like every year, we will export 100 tonnes of mangoes this year," he said.

According to the Department of Agriculture, the target for mango production in Rajshahi this year is about 2 lakh tonnes on about 18,000 hectares of land.

Asked whether the target could be increased to more than 100 tonnes, the exporter said that it was not possible even if they wanted to.

"There are some problems. No export targets are set for us. Besides, the air fare is high and there is no government support. These are exported by the initiative of producers and exporters."

"When it comes to exporting mangoes to Europe or other countries, they judge the quality of mangoes. If you set up mango processing methods such as hot water treatment plants at the field level, you will get benefit during exporting mangoes. But these facilities are available only in Dhaka," he said.

But this year's mango yield is less than the desired production. So, the price is too high.

To stop the sale of immature mangoes, the picking of Gopalbhog mangoes has started from May 20, as per the deadline set by the district administration.

Gopalbhog mangoes of Rajshahi en route to Sweden

The first consignment of 500kg of Gopalbhog mangoes from Rajshahi is en route to Dhaka today to be exported to Sweden.

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[Isa Khan]

The government has decided to give tax exemption on foreign currency income by Bangladeshi flagged oceangoing ships from the upcoming fiscal year in a bid to earn $3 billion to $4 billion a year, according to finance ministry officials.

Currently, these local ships have to pay 10% tax on their incomes.

Ministry officials said the facility will continue till 2030 if the vessels' foreign exchange income is brought into the country through banking channels.

Experts and industry insiders lauded the government decision, saying it will be a milestone towards establishing the shipping industry as a service exporting sector with huge foreign currency earnings for the country.

"This will be a timely move to encourage investment in the oceangoing shipping industry, which is a very potential sector," Professor Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told The Business Standard.

The government has taken initiatives to incentivize industries with earning potential in recent years, he added.

He also said this is the right time to invest in the shipping industry, as the Covid-19 pandemic has led to a massive surge in freight charges.

Meanwhile, industry insiders said the initiative has been a long time coming.

"We are absolutely delighted. It has been a long-standing demand and a most necessary step for this industry", said Shahriar Jahan Rahat, deputy managing director of KSRM Group, the largest oceangoing fleet owner in the country.

"We expect the move to boost the [shipping] industry and increase the inflow of foreign remittance through this sector", he added.

According to the Mercantile Marine Department, Bangladesh currently has a fleet of 81 ocean-going vessels, with KSRM Group alone owning 23 oceangoing bulk carriers.

Besides, Meghna Group of Industries owns 16 vessels, Akij Group has 10, the state-run Bangladesh Shipping Corporations owns 8, Karnaphuli Group owns 6, and Bashundhara Group and BSA Group each own 5 vessels.

The sector has an investment of $2 billion, according to sources.

Bangladeshi businesses have to spend over $9 billion as freight charges for export and import, but local oceangoing vessels can tap into only 10-15% of it, which is less than $1 billion.

Industry leaders have urged local entrepreneurs to invest in new vessels, noting that hiked freight costs have created a lucrative opportunity for the shipping sector's growth.

They said with new investment, it will be possible to earn about $3-4 billion in foreign currency every year.

In the last 10 years, export and import increased around two-and-a-half times but the number of Bangladeshi flag carrier vessels did not increase.

However, 2019 had been a different year from when things started to change.

According to the Department of Shipping, there are 4,565 Bangladeshi registered seamen and 1,887 of them are working at Bangladeshi and foreign vessels.

Tax-free forex earning for flag vessels on cards

Currently, local oceangoing flagged ships have to pay 10% tax on their income

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BBS Cables – the second-largest cable manufacturer in the country – will supply cables for the Bangabandhu Sheikh Mujibur Rahman Tunnel under the Karnaphuli River in Chattogram.

To this end, the company has signed an agreement with China Communications Construction Company Ltd – the foreign firm constructing the country's first underwater expressway tunnel.

BBS Cables will supply cables amounting to Tk47.25 crore. The materials will be delivered within ninety days from the date of signing.

Up to 40% of the revenue of BBS Cables comes from the sale of products to government companies and the rest to corporations and retailers.

In the January-March quarter of 2022, its revenue fell 12% to Tk114 crore, and net profit 37% to Tk13 crore compared to the same period of the previous fiscal year.

Despite the fall in revenue, its sales and distribution expenses surged 75% to Tk7.73 crore, up from Tk4.41 crore in the January-March quarter of 2021.

BBS Cables got listed on the capital market in 2017. In fiscal 2020-21, the company paid a 15% dividend – 10% in cash and 5% in bonus – to its shareholders.

As of 30 April 2022, sponsors and directors jointly held 30.90%, institutions 21.18%, foreign investors 0.42, and the general public 47.42% shares in the company.

The last trading price for each of its shares on the Dhaka Stock Exchange was Tk56.80 on Tuesday.

BBS Cables to supply materials for Bangabandhu tunnel

BBS Cables will supply cables amounting to Tk47.25 crore

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[Isa Khan]

Purbagaon Economic Zone (EZ), a sister concern of the City Group, has received a pre-qualification license from the Bangladesh Economic Zones Authority (Beza).

As a part of Beza's aim of establishing 100 economic zones across the country by 2030, it provided the pre-qualification license Purbagaon EZ at a function at Beza headquarters on Thursday.

Purbagaon EZ, located at Kayet Para union under Rupganj upazila in Narayanganj, will be established on 94 acres of land, on the bank of the River Shitalakshya, adjacent to the Dhaka-Sylhet highway.

The EZ is 25 kilometres away from the capital city of Dhaka and 180 kilometres from the Chattogram seaport by road.

There is a plan to expand the EZ to 150 acres in future.

Beza Executive Chairman Shaikh Yusuf Harun said many investors from home and abroad have expressed interest in investing in economic zones in the country.

He hoped that the Purbagaon EZ will facilitate rapid economic development in the country through increased and diversified industrialisation, employment, production and export.

City Group Chairman Fazlur Rahman said an initial investment of Tk10,000 crore would be made in the establishment of Purbagaon EZ, which would create employment for about 11,000 people.

He hopes that all the surveys will be completed within the next five months and then the final license will be obtained. After getting the licence, the industrial construction work can be started.

So far, 20 private EZs have been given pre-qualification licenses, of which 12 have got final licenses. About $4 billion has already been invested in these private economic zones and about 35,000 jobs have been created.

Bangladesh planned for the establishment of economic zones for large-scale industrialisation a decade ago.

Purbagaon EZ gets pre-qualification license

The EZ is 25 kilometres away from the capital city of Dhaka and 180 kilometres from the Chattogram seaport by road

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Work is underway on the Padma Bridge to connect the lamps that have already been installed on the country's longest bridge to the power grid.

Project authorities have completed installation of 415 lampposts on the 6.15km bridge and 200 lampposts on the approach roads.

The work to connect the lamps to the electricity grid will be completed in the next two to three days, if the weather and other conditions are favourable, said Padma Bridge Assistant Engineer (Electrical) Saddam Hossain.

There are some posts on the Mawa and Jazira ends of the bridge that are yet to be connected to the substations.

An engineer, wishing to remain anonymous, said lights may be lit on the bridge on a trial basis between June 10 and June 15.

Prime Minister Sheikh Hasina will inaugurate the bridge on June 25.

There are 415 lampposts. Of these, 328 lampposts have been set up on the main bridge, 46 on the viaduct on the Jazira side and 41 on the viaduct on the Mawa side.

On the approach road at the Mawa end, 103 lampposts have been set up, while 97 lampposts have been set up at the Jazira end.

Padma Bridge: Work on lights almost done

Work is underway on the Padma Bridge to connect the lamps that have already been installed on the country’s longest bridge to the power grid.

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Singer Bangladesh has signed an agreement with Bangladesh Special Economic Zone (BSEZ) in Narayanganj's Rupganj to take 35 acres of land on lease to establish new manufacturing complex.

The multinational electronics and home appliance maker shared the information with its shareholders today.

BSEZ is the first special economic zone developed by a Japanese company. It was established jointly in partnership with the Bangladesh Economic Zones Authority.

"Since Singer has partnered with Arçelik, we have chalked out mid- and long-term goals in Bangladesh. We have already started developing products to match the specific needs of consumers in Bangladesh," said Singer Bangladesh CEO MHM Fairoz.

"Singer has been investing in product development with the support of Arcelik R&D team. Our goal is to have the technologies to produce superior quality products, not only for Bangladesh market but also for other countries."

"We have targeted to position Bangladesh as an export hub in this region," he said.

In last March, Singer Bangladesh approved a budget for establishing a new manufacturing facility in order to increase its manufacturing capacity.

The land would be used for the expansion of manufacturing capacity.

The budget approved by the board of directors of Singer Bangladesh was around 71 million euros, which is equivalent to around Tk 680 crore, according to another disclosure of the company.

Singer inks deal to take 35 acres on lease at BSEZ

Singer Bangladesh has signed an agreement with Bangladesh Special Economic Zone (BSEZ) in Narayanganj’s Rupganj to take 35 acres of land on lease to establish new manufacturing complex.

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Bangladesh recorded export amounting to $3.83 billion in May this year, according to data released by the Export Promotion Bureau (EPB) on Thursday (02 June).

The export receipts couldn't surpass the $3.89 billion target set for the month. However, the export has been 23.24% high than the $3.10 billion of May last year.

Earnings in May fell compared to April when the country's export earnings crossed $4.73 billion. Export was above $4 billion per month for the last eight months, before falling from the mark in May this year.

Apparel shipment stumbled to $3.15 billion in May, which was the lowest earning in the last nine months, according to the EPB data.

Talking with The Business Standard, Fazlul Hoque, managing director of Plummy Fashions Ltd, one of the greenest knitwear manufacturers in the world said "due to Eid vacation apparel shipments were a little bit lower in May, as it was a small month to do business".

He also mentioned that the export volume still remains good compared with last year. But it might fall in the coming months as the order placement is going slow. He further explained that now the industry is coming back to the natural situation after enjoying overflow of orders due to the pandemic Covid 19.

Eng Kutubuddin Ahmed, chairman of Envoy Textile Ltd, world's first LEED platinum certified denim textile said the apparel export might face some cancellations and deferred shipment in the coming days as stores are facing a decline in sales.

"We had the pressure of orders after Covid-19 recovery in our export markets as almost every store was empty. When they refill stores with new goods, Russia- Ukraine war changed everything".

Now inflation rate is higher even in Europe and USA, food price hike is almost 40%, he said adding that people have to cut some expenses that might affect the apparel sector.

Citing his company experience, Eng Kutubuddin Ahmed said, "We are observing that the number of order placement is decreasing. Some buyers are asking for about a two-week deferred shipment."

He went on to say, "A buyer has already asked for a 2.5% discount. The situation will worsen in coming days if the war is not stopped immediately."

The country's exporters posted 34.09% year-on-year growth in export earnings to $47.17 billion in the July-May period of the current fiscal year of 2021-22.

In April, the exports clocked the $4 billion mark with 51% year-on-year growth, raking in $43.34 billion in 10 months of the current fiscal year.

Due to the huge trade deficit in the current financial year, Bangladesh has also plunged into a large deficit in the current account balance of foreign transactions.

The country's trade deficit is growing sharply owing to a massive increase in imports compared to exports and the rise in prices of all kinds of products such as food items and fuels in the world market.

In the first nine months of fiscal 2021-2022, the trade deficit was about $25 billion which was 9.25% higher than that of the full period of the previous fiscal year. The deficit is around 64% more than the July-March period.

The trade deficit for the nine months of fiscal 2020-21 was $15.28 billion while it stood at $22.80 billion for the entire fiscal year.

RMG sector sees 34.87% export growth

During the July-May period of 21-22, the overall RMG export grew by 34.87% to $38.52 billion which was $28.57 billion in July-May, FY 2020-21.

The export of knitwear was $20.99 billion, while woven garments was $17.53 billion.

BGMEA director Mohiuddin Rubel said "If we look at the exports of single month May, the RMG export was $3.15 billion dollar with 23.53% growth compared to May 2021. The growth in May is less than compared to the previous months. Although the overall export growth is showing a continuous positive growth trend which is really inspiring, there are certain challenges we are facing currently due to ongoing Russia-Ukraine conflict, increased raw material prices and the prevailing energy situation.

Moreover, Mohiuddin said, after the lockdown people used to shop more which is one of the reasons behind this unusual growth in previous months.
But currently that scenario has started to come to the normal level.
Also, due to increase in the price of materials, countries are facing inflation problems.

"What we foresee is that order volume is not like how we have seen in previous few months, growth is slowing down, May export data already shows the decline in growth. We need to work on how we can retain the growth pace in the longer term," said the BGMEA director.

He also mentioned that despite the price being slightly better, it does not go with the increased cost of production. We need to focus more on improving efficiency (both process efficiency and workers efficiency), modernise our factories and develop skills.

Exports see 23% growth in May

Bangladesh recorded export amounting to $3.83 billion in May this year, according to data released by the Export Promotion Bureau (EPB) on Thursday (02 June). The export receipts couldn't surpass the $3.89 billion target set for the month.

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Tea export from Bangladesh has not increased keeping pace with the use and production of tea in the country, Commerce Minister Tipu Munshi said today.

The economic condition of Bangladeshi people has improved, which has fuelled tea consumption here, the minister said.

The government has taken special initiatives to increase tea production and researches are being done to innovate new and improved varieties of tea leaves, he said.

The minister spoke at a press briefing in the conference room of the commerce ministry in Dhaka on the eve of the National Tea Day, which will be observed countrywide on June 4.

There are now 167 large tea gardens in the country and more than 8,000 small tea gardens.

Bangladesh has beat its record in tea production as a total of 96.50 million kilogrammes (kgs) of the plant were produced by 167 farms across the country in 2021.

This is the highest annual yield on record, eclipsing 2020's harvest by a good 10.111 million kgs, according to officials of the Bangladesh Tea Board.

The previous highest annual production came in 2019, when a record 96.069 million kgs of tea was produced.

Tea export can’t keep pace with production: Munshi

Tea export from Bangladesh has not increased keeping pace with the use and production of tea in the country, Commerce Minister Tipu Munshi said today.

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[Isa Khan]

The Padma Bridge will not only connect two sides of the mighty Padma River it will also boost the country's economy with fresh industries and jobs, according to industrialists and locals.

Some last-minute tasks are nearing completion to ready the much-awaited bridge for its formal flag-off on 25 June.

The 6.15-km long bridge is expected to create huge economic opportunities as numerous public and private industries are being set up in the vast areas around the bridge.

The construction of Sheikh Hasina Nakshipalli, apparel factories, cold storage, gas stations, and industrial parks are going on in full swing with promises of new jobs for the unemployed. Expanding local business and trade, the bridge is expected to significantly boost the national economy.

The south-eastern districts of the country were isolated for a long time because of the Padma River and no industrial establishments were formed due to a lack of communication.

Industry owners had little to no interest in building businesses in these districts because the Padma River had to be crossed by ferry. The ferry crossing is a nightmare for business communication as it involves a lot of suffering including being stranded at the ferry ghat for days, loss of goods, and cancellation of shipments.

But industrialists started to rethink their plans once the progress of the Padma Bridge construction became visible. Several industry owners started buying land for the construction of factories in the area. After developing the land, they have now begun construction work of infrastructure.

Sheikh Hasina Nakshipalli is being developed on 120 acres of land in the Naodoba and Kutubpur areas of Shibchar upazila at the Jajira end of Shariatpur. In the first phase, the construction of boundary wall and land development work is nearing completion at Tk307.45 crore. The infrastructure building will start in the second phase.

Bangladesh Handloom Board is implementing the handloom village project intending to create employment for weavers, improve product quality, as well as boost the supply of textiles in the international market. Aside from building loom sheds, schools, mosques, and playgrounds will also be constructed under this project.

Visiting the project area On Sunday, labourers and engineers were seen working in full force on both sides of the approach road of the Shariatpur-Naodoba Padma Bridge. The vast land was being levelled by filling sand with excavators, a long boundary wall is being constructed, and the construction of a building is progressing at a rapid pace.

Chinmoy Sardar, project manager of Khokan Construction and Engineering Limited, said, "The sand filling work at Sheikh Hasina Nakshipalli would be completed by June. The work of the border wall is almost 50% complete. Now we are starting construction work of main structures."

"Some 2,000 weavers would be rehabilitated here in the first phase. There are plans to increase the number of weavers step by step. Sheds will be built for the weavers' accommodation and markets," he added.

Entrepreneurs also have plans to make sauces from Shariatpur tomatoes, process garlic into powder packets, and process the honey produced from black cumin in the region and export them abroad.

Mubarak Ali Sikder, chairman of Mastrade International Garments Ltd, said thanks to Prime Minister Sheikh Hasina for providing immense economic opportunities to the people of South Bengal through the Padma Bridge.

"I am creating an industrial park by taking advantage of the Padma Bridge. For that I have started working with 40 bighas of land in the first phase," he said.

Badal Jamaddar of the Naodoba area said, "The Padma Bridge will draw a huge amount of vehicles from far and near. That is why I bought land to build a gas station with LPG and CNG gas support. Documents have been submitted for the license and the construction work will start after getting permission."

Ayesha Begum, a resident of Naria upazila, said, "We earn a living by working. Girls and boys from our area go far and wide to work in garments. Now, garments are coming near our home. We don't have to go far for work."

Padma Bridge opens door for new industries, employment

The south-eastern districts of the country were isolated for a long time because of the Padma River and no industrial establishments were formed due to a lack of communication

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A vast array of new employment opportunities will emerge from different sectors in Barishal division after the inauguration of the Padma Bridge, according to regional business leaders.

Various manufacturing plants in ready-made garments, medicine, tourism, transportation, and commodity sectors are sprouting up fast in six districts of the division.

"In my estimate, at least 2 lakh jobs will be created soon after the opening of the country's longest bridge. Many garment factory owners have already started building infrastructure at different spots by the highway connecting Barishal and Payra Port," Saidur Rahman Rintu, president of Barishal Chamber of Commerce and Industry said.

Factory owners have also demanded that gas be brought through a pipeline from Bhola so that they can manufacture products in competition with Dhaka and Chattogram, said the Barishal Chamber chief.

Around 50,000 people will get the chance to work in the apparel sector alone, while manufacturing plants of other companies will create opportunities for an additional 50,000 people, he said.

"The tourism sector will also employ a good number of people as there are numerous tourist spots in the division which will now be easily accessible to visitors because of the bridge," Saidur Rahman Rintu added.

Amir Hossain, the proprietor of Alex Shoes in Barishal, said that his factory production will be doubled once road communication with Dhaka improves.

"At present, around 50 people are working here but the number of workers will go up to 200 after the inauguration of the bridge," he said.

Tawhid Hossain Jamal, owner of Jim Food Products in Barishal BSCIC, said, "Around 150 people are working in my company now.

The number will double after the bridge opens. I will have to ramp up production as sending products to the capital will take much less time and hassle."

Mizanur Rahman, chairman of Fortune Group, has plans to open another agro-based factory in Patuakhali, where at least 1,000 jobs will be created.

"I have taken a six-acre plot in the Jhalakathi BSCIC area for opening a technology company where 10,000 people will get employment opportunities," he said.

Construction work on the factory will begin after the opening of the Padma Bridge as construction materials can be transported easily then," said Mizanur Rahman, who is also the president of the BSCIC Industry Owners' Association in Barishal.

A good number of agro-based firms are coming forward to open their factories in Barishal because of improved communication with Dhaka, he said, adding that businessmen are thankful to the prime minister for constructing the Padma Bridge.

"The number of public transports will increase five times in the Barishal region, which will require at least 10,000 more transport workers." said Kawser Hossain Shipon, secretary of the Barishal-Patuakhali Bus Minibus Owners Association, adding that the same situation will be seen in goods transportation.

"Huge employment will be created in the tourism sector as more people will swarm the tourist spots in the division round the year, particularly in Kuakata," said Motaleb Hossain, secretary of Kuakata Hotel and Motel Owners Association.

A number of new hotels and restaurants are under construction now and they will need more people for running their operations, he added.

According to 20 factory owners in various sectors, the Padma Bridge has paved the way for boosting their production. With the bridge opening, job opportunities in the region will also increase by 30-50%.

Payra Sea Port in Patuakhali will be more effective after the opening of the bridge, requiring more workers for maintenance work, according to businessmen concerned.

"The demand for healthy salt will surge as the supply capacity will increase because of the bridge. The salt factories will recruit more workers to boost production," said Salek Ahamed Saleh, a salt factory owner and former president of Jhalakathi Chamber of Commerce and Industry.

Padma Bridge to create 2 lakh new jobs in Barishal: Chamber chief

Factory owners have also demanded that gas be brought through a pipeline from Bhola so that they can manufacture products in competition with Dhaka and Chattogram, said the Barishal Chamber chief

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Bangladesh police has inaugurated two separate police stations to ensure the safety and security of the Padma Multipurpose Bridge.

The police stations are named Padma Shetu Uttar Thana, which is under Munshiganj District Police, and Padma Shetu Dakkhin Thana, under Shariatpur District Police.

The prime minister is likely to virtually inaugurate both police stations on 19 or 20 June ahead of the Padma Bridge inauguration. A meeting has been held at the police headquarters on Monday (6 June) in this regard.

Abdul Momen, superintendent of police, Munshiganj, told The Business Standard that both police stations have been constructed to provide services to ensure protection, safety and security of the mega structure and the adjacent area.

Each of the police stations will comprise one inspector, two sub-inspectors, two assistant sub-inspectors and 15 constables.

Abdul Momen said both four-storey police station buildings have been constructed with a six-storey foundation, next to the toll plaza at both ends of the Padma Bridge. "Two more floors can be added any time, if necessary."

Jehadul Kabir, acting deputy inspector general (promoted to DIG) of Dhaka Range, told The Business Standard that all recruitments and establishments have already been done.

Md Kamruzzaman, assistant inspector general (media) of police headquarters, told The Business Standard that both police stations are ready to provide services to the citizens and beneficiaries of the bridge.

Sub-Inspector Farid of Padma Bridge South Police station told The Business Standard that they will be informed about their duty and jurisdiction through a government order very soon.

The police will oversee tax collection at toll booths and traffic congestion around the mega bridge and the service roads.

"Although the construction work of these two police stations was completed around a year ago, it has not been possible to start it administratively yet.

"However, a notification has been issued by creating manpower posts in both police stations. As a result, two state-of-the-art police station buildings are now awaiting for inauguration," he added.

In addition to the main Padma Bridge, there are various facilities including connecting roads, service areas, and rehabilitation projects.

Road and railway slabs, the work of gas pipeline will also be a concern of the police stations.

Toll collection will continue from the day of inauguration of the bridge. Keeping the safe withdrawal of money in mind, the police station buildings have been constructed right next to the toll plaza.

Two Police Stations built for Padma Bridge’s safety and security

Bangladesh police has inaugurated two separate police stations to ensure the safety and security of the Padma Multipurpose Bridge. The police stations are named Padma Shetu Uttar Thana, which is under Munshiganj District Police, and Padma Shetu Dakkhin Thana, under Shariatpur District Police...

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Global tech giants such as Google and Facebook are likely to come under the tax net from the next fiscal year as the authorities plan to make submission of returns mandatory for the firms that have no physical presence in Bangladesh but are doing business here.

Until now, the National Board of Revenue (NBR) has exempted non-resident firms having no offices in the country from filing income tax returns.

But this could change from the next fiscal year, starting on July 1, as the exemption is expected to be withdrawn as part of an initiative planned to collect taxes from digital service providers.

The lifting of the waiver will make it compulsory for digital multinational companies, which are doing business in Bangladesh by providing various services without setting up any physical office, to submit the statements of their income originating here, finance ministry officials said.

"What we see is that the business of tech companies is growing in Bangladesh. So, regular filing of tax returns by the firms with no office will allow us to tap into the expanding digital economy," said one official.

At present, global technology companies can secure value-added tax registration from the NBR without opening offices in Bangladesh.

Last year, a number of tech biggies, namely Google, Facebook, Amazon and Microsoft, received VAT registration, enabling the revenue authority to ensure compliance of the firms under the rule framed in 2019.

In October 2021, the High Court also directed the government to take steps to collect taxes, VAT and other charges on the revenues generated by the companies in the country.

It also said the companies must complete their VAT registration with the NBR – a process that is mandatory under the Value Added Tax and Supplementary Duty Act, 2012.

The finance ministry official said the latest measure to bring tech companies under the rule of mandatory submission of tax returns has been considered in line with the High Court directive.

Various countries have already brought multinational tech companies under their tax net.

Tech giants like Google, Facebook may come under tax net in Bangladesh

Global tech giants such as Google and Facebook are likely to come under the tax net from the next fiscal year as the authorities plan to make submission of returns mandatory for the firms that have no physical presence in Bangladesh but are doing business here.

www.thedailystar.net

 

[Isa Khan]

The work to install a 146km off-shore pipeline at a record depth beneath the seabed of the Bay of Bengal has been completed, said sources.

The Bangladesh Petroleum Corporation (BPC) took up the project to set up a single point mooring (SPM) to unload imported crude and refined oil from large ships anchored in the deep sea.

It will help the state-owned corporation to save around Tk800 crore annually that it now spends for unloading fuel with lighterage ships.

The normal depth of trench digging in the offshore industry is 1.5-3 metre, but in the given project around 100km pipeline was buried 11.9 metre beneath the seabed to avoid the commercial and naval waterways, reports Global Times.

The pipeline project, however, missed the deadline for the third time as the other part of it – 74km pipeline onshore – has not been completed yet.

Currently, the authorities aim to complete the project by June next year, but it was scheduled to be done by June this year after extending its implementation period twice.

Md Sharif Hasnat, project director of SPM with double pipeline, told The Business Standard, "Out of 220 metre pipelines, around 214km has already been laid out.

Now, we are trying to complete the project by June next year."

SPM with double pipeline is a key oil transportation and storage project that will facilitate BPC to bring large ships above 100,000 deadweight tonnage (DWT).

The project is expected to have an annual unloading capacity of nine million tonnes of fuel whereas the country's current demand for fuel is around 6.3 million tonnes annually.

At present, large ships with crude and finished oil cannot anchor at the country's main seaport in Chattogram due to low navigability of a channel.

Large vessels carrying fuel come in the bay and anchor in the deep sea for unloading through lighterage ships.

Currently, BPC can import a maximum 32,000-35,000 tonne fuel in each ship, though the ships have higher capacity.

In order to ensure fuel supply security and to reduce the import cost and time, BPC launched this project in 2015.

As per the initial design, the project was supposed to be completed during November 2015 to December 2018.

With the latest extension, the cost of the project has been escalated by 33% to Tk6,568 crore from that of initial Tk4,936 crore.

146km undersea pipeline installation completed for oil transportation project

The pipeline project missed the deadline for the third time as the other part of it – 74 km pipeline onshore – has not been completed yet

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Build a factory here in Bangladesh that would weld and paint bodies of cars with up to 2,500cc capacity and enjoy the benefits of no value-added tax (VAT), no supplementary duties, no advance tax on imports, and no corporate tax till June of 2030 – the government offered to the world's carmakers on Thursday in a bid to transform Bangladesh a regional car-making hub by the end of the decade.

The fiscal benefits offered in line with the Automobile Industry Development Policy 2021 is set to drastically reduce the total burden of tax and duties on the import value of a completely knocked down (CKD) car to less than 45% till 2025, if car assemblers start with only painting imported body and parts and assemble the car at a modern facility in the country.

Up to 2025, companies may import chassis and body parts with primary quoting of paints by the original manufacturer. After 2025, if the paint-only assembler does not invest in a body welding shop, they have to pay 5% VAT till 2030.

And, if a company welds and completely paints car bodies and other parts locally, the total tax and duty burden will be less than 35%.

To enjoy the benefits, companies need to have their local modern facilities and an agreement to train sufficient local workers to transfer technology alongside having their manufacturing registration with local authorities, according to a statutory regulatory order (SRO) of the National Board of Revenue's (NBR) published on Thursday.

The investors would enjoy a huge duty benefit that would give them a price edge in the market, as imported completely built units (CBU) of gasoline engine cars are subject to at least 127% tax and duties, which is at least 90% for CBU hybrid cars and locally assembled gasoline cars, said car industry people.

Tax and duty burden is set to be halved for existing car assemblers, such as Mitsubishi 2000 cc sports utility vehicle (SUV) Outlander assembler Rangs Limited.

Investing in a modern paint shop, assembly line, testing, quality control, and pre-delivery inspection facilities, as required by the NBR SRO, the price of a Mitsubishi Outlander could reduce by more than 15% in less than a year, if the car industry's costs at every level stop soaring, said Rancon Group Executive Director Mustafizur Rashid Bhuiyan.

With gradual investments for local body building, the unit price reduction would be much higher, he added.

"The government is going to replicate the two-wheelerr industry localisation success story in cars," said Abdul Matlub Ahmad, president of the Bangladesh Automobile Assemblers and Manufacturers Association (BAAMA).

Counting on the market potential, companies are already investing in local car assembly plants and the policy is likely to turn them into manufacturers in a few years, said Matlub, who is the chairman of Nitol Niloy Group – the local partner of India's Tata commercial vehicles and Hero two-wheelers.

His company has built a car assembly plant in Ishwardi, Pabna after a collaboration agreement with Tata and the first car from the plant would hit the roads by a year.

Zakir Hossain, managing director of Bangla Cars Ltd which is assembling and painting cars at Narayanganj, is happy to expect the reduced tariff in the coming months as his company has already invested for the required painting, assembling and testing facilities at the plant.

The positive impact of the duty cut on unit prices might be less visible in the short term because cars have already got costlier due to a surge in source prices, freight charges globally, and local challenges including depreciation of taka, and very high margin in the letters of credit to import car parts.

Rangs' Bhuiyan is confused if the government offered the policy benefits only for green factories or if the already existing ones would be entitled.

Uttara Motors, distributor of compact car king Suzuki, is investing over Tk500 crore at Bangabandhu Sheikh Mujib Shilpa Nagar at Chattogram for car making, while another local company, Bangladesh Auto Industries Ltd, is investing for local manufacturing of electric cars in collaboration with several international technology partners.

Fair Group, local manufacturing partner of Samsung, Hyundai, is building its car assembly plant at Gazipur for Hyundai cars.

Existing car assemblers' list include Proton cars assembler PHP Automobiles, state-owned Pragati that assembles Mitsubishi SUVs and other vehicles, and China's DFSK car assembler Ma Enterprise.

BAAMA President Matlub believes a number of companies will enter the industry in the next few years, in collaboration with their global technology partners, technically called principals.

Budget cars by Tata and Suzuki would see a big jump in sales as soon as the local plants bring unit prices down to below Tk10 lakh from over Tk15 lakh, he added.

With the trigger for localisation, the Bangladesh car market awaits the beginning of a new journey, believes Matlub Ahmad.

The government must encourage locally-made cars through facilitating finances and reducing other costs to let the market grow big, he added, without which emerging as a manufacturing hub would not be possible.

In Bangladesh, 15,000-30,000 imported cars are sold annually despite a very high duty structure, while industry players believe, with the increasing purchasing power of the people, the market has the potential to grow manifolds.

A big vroom for carmakers

If a company welds and completely paints car bodies and other parts locally, the total tax and duty burden will be less than 35%

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[Isa Khan]

Foreign direct investment (FDI) in Bangladesh rose by 12.9% to $2.9 billion – around the pre-pandemic level – in the last calendar year (2021).

In the same year, the number of international project finance deals in Bangladesh tripled to 14, reaching $4.7 billion.

The largest project was the construction of a container terminal in Ananda Bazar in Halishahar, Chattogram for $2 billion, according to the World Investment Report 2022 prepared by the United Nations Conference on Trade and Development (Unctad) released on Thursday.

Meanwhile, outward FDI from Bangladesh rose nearly seven times to $92 million in 2021.

In 2017, outflow of FDI was the highest – $142 million – since 1990.

Despite successive waves of Covid-19, FDI flows to the developing countries in Asia grew for the third consecutive year, with developing economies in Asia receiving 40% of global foreign investment inflows, said the report.

FDI flows to developing countries in Asia rose by 19% to an all-time high of $619 billion in 2021.

This marked the third consecutive year that investment flows to developing Asia grew despite the Covid-19 pandemic, which led to a 35% plunge in global FDI in 2020.

"FDI flows to developing economies in Asia during the pandemic have bucked the global trend and underscored the resilience of developing economies in Asia," said James Zhan, director of Unctad's investment and enterprise division.

In 2021, FDI in least developed countries (LDCs) increased by 13% to $26 billion and flows remained concentrated, with the top five recipients (Mozambique, Ethiopia, Cambodia, Bangladesh and Senegal, in that order) accounting for 69% of total FDI in the group.

Investing in Sustainable Development Goals

After taking a significant hit in the first year of the pandemic, international Sustainable Development Goals (SDG) investment jumped by 70% last year. But most of the recovery growth came in renewable energy and energy efficiency, where project values reached more than three times the pre-pandemic level.

In 2021, the Association of Southeast Asian Nations (ASEAN), China, Japan and Malaysia launched or revised their sustainable finance taxonomies on sustainable finance. Together with Bangladesh and the European Union (EU), six of the 35 economies in the Unctad sustainable finance regulation database have developed a taxonomy.

A number of countries have started incorporating social development into their taxonomies.

The Bangladesh taxonomy pursues both climate and social development objectives, and covers cottage, micro and SME development and socially responsible investment, said the report.

Bangladesh along with China, Colombia, Nigeria and Turkey have developed guidelines for sustainable banking with the aim of directing more investment into key sustainable development areas, including SME development, job creation, social infrastructure and agriculture.

"While the 2021 recovery in value terms is positive, investment activity in most SDG-related sectors in developing economies, as measured by project numbers, remained below pre-pandemic levels," the report said.

"Across developing Asia, investment in sectors relevant for the SDGs rose significantly," the report said. "International project finance values in these sectors increased by 74% to $121 billion, primarily because of strong interest in renewable energy."

FDI in South Asia fell by 26% to $52 billion

South Asia was the only sub region in Asia to suffer a drop in FDI inflows in 2021 as the $28 billion merger and acquisitions registered in the previous year were not repeated.

Flows to India declined by 30% from its record level in 2020 to $45 billion in 2021.

Despite the slowdown, India jumped one position to seventh recipient of global FDI.

However, a flurry of 108 new international project finance deals were announced in the country, compared with an average of 20 in the last 10 years. The largest number of projects – 23 – was in renewables.

Major projects in India include the construction of a $13.5 billion steel and cement plant by Arcelormittal Nippon Steel and the construction of a $2.4 billion car manufacturing facility by Suzuki Motor. Both companies are based in Japan.

FDI inflow was the highest in the USA in 2021. The country attracted foreign investments of $367 billion, a 143% jump from 2020.

China and Hong Kong received $181 billion and $141 billion claiming the second and the third-highest amount of FDI.

FDI in Bangladesh jumped 13% after two years: Unctad

Last year, the number of international project finance deals in Bangladesh tripled compared to the previous year

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Physical work on Bangladesh's first underground metro rail, formerly known as Mass Rapid Transit Line-1, or MRT-1, will begin within September this year, said MAN Siddique, managing director at Dhaka Mass Transit Company Ltd, said on Wednesday.

The 31.24km MRT Line-1 will start from Shahjalal International Airport and will end at Kamalapur via Natun Bazar, he said at a seminar at Bangabandhu International Convention Centre in Dhaka after receiving the MRT-1 licence from Road Transport and Highways Division Secretary Amin Ullah Nuri.

The MRT Line-1 will have two parts – around 19.87km from Hazrat Shahjalal International Airport to Kamalapur with 16.4km underground lines and around 11.37km elevated lines from Natun Bazar to Purbachal.

The line will have 21 stations – 12 underground and nine elevated. Besides, 25 trains will operate daily on the line. It will take only 24 minutes and 30 seconds to go from Dhaka airport to Kamalapur, 20 minutes and 35 seconds from Natun Bazar to Purbachal, and 40 minutes from Kamalapur to Purbachal.

A passenger will be able to catch a train every 2 and a half minutes on the Dhaka airport-Kamalapur route, while the wait time between trains on the Natun Bazar-Purbachal route will be 4 minutes and 35 seconds.

The project, which is expected to be completed in 2026, will cost around Tk 52,000 crore.

MAN Siddique said they have sought Jica's permission to start the main work on the underground metro rail depot. That can be in the first quarter (July-September) of the next fiscal year, subject to the approval. The prime minister will then inaugurate the construction.

First underground metro rail work to begin in September

Physical work on Bangladesh's first underground metro rail, formerly known as Mass Rapid Transit Line-1, or MRT-1, will begin within September this year, said MAN Siddique, managing director at Dhaka Mass Transit Company Ltd, said on Wednesday. The 31.24km MRT Line-1 will start from Shahjalal...

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[Isa Khan]

Checkpoint Systems Bangladesh Ltd-Unit 2, a Netherlands-based company, will invest $10.52 million to establish a garment accessories manufacturing factory at the economic zone of the Bangladesh Export Processing Zones Authority (Bepza).The firm signed an agreement with the Bepza to this end yesterday, a press release said.

Ali Reza Mazid, member for investment promotion at the Bepza, and Kumudu Athuruliya, general manager for South Asia at Checkpoint Systems, inked the deal at the Bepza Complex in Dhaka. The company has set a target to produce 1,319 million units of hang tags, tickets, stickers and labels annually.

Some 274 Bangladeshi nationals will get jobs at the factory, according to the press release.

Checkpoint Systems Bangladesh Ltd-Unit 2 is the second factory of the Netherlands-based company in the industrial zones operated by the Bepza.

The first one, Checkpoint Systems Bangladesh Ltd, has been operating in the Adamjee Export Processing Zone since 2009. It, however, started its operation in the Dhaka Export Processing Zone 15 years ago.

Major General Abul Kalam Mohammad Ziaur Rahman, executive chairman of the Bepza, Mohammad Faruque Alam, member (engineering), Nafisa Banu, member (finance), Nazma Binte Alamgir, executive director for public relations, Md Tanvir Hossain, executive director for investment promotion, and Md Khorshid Alam, executive director for enterprise services, were present during the signing ceremony, the press release added.

Dutch firm to invest $10.52m in Bepza EZ

Checkpoint Systems Bangladesh Ltd-Unit 2, a Netherlands-based company, will invest $10.52 million to establish a garment accessories manufacturing factory at the economic zone of the Bangladesh Export Processing Zones Authority (Bepza).

www.thedailystar.net

Global off-grid energy distributor SHV Energy has officially entered the LPG market in Bangladesh through the purchase of one of the biggest local distributors in this sector, Petromax LPG and Petromax Cylinders.

The purchase agreement has been signed and the closing is expected in the next few months, said a press release on Wednesday.

In the meantime, Petromax will continue to operate out of Dhaka with the current team maintaining the high levels of operational excellence and customer support.

SHV Energy chief executive officer, Bram Graber, said, ‘We are excited to be entering the Bangladesh market and look forward to contributing to the further development of Petromax and the LPG industry as a whole.’

‘Bangladesh will be a key market for SHV Energy, with a growing population and an important opportunity to help in the transition to LPG as a cleaner energy alternative than the more polluting fuels that are still widely in use,’ he added.

Petromax managing director, Faridul Alam said ‘Carrying the proud legacy of our forty-year-old family business, we entered the LPG sector to explore business opportunities in the untapped market of Bangladesh.’

‘We proudly built and scaled an LPG downstream and cylinder production business from the ground up, establishing a foothold in this competitive space within a short timeframe of only four years. I am excited to see SHV Energy grow our vision further to new,’ he said.

SHV Energy enters Bangladesh’s LPG market

Global off-grid energy distributor SHV Energy has officially entered the LPG market in Bangladesh through the purchase of one of the biggest local distributors in this sector, Petromax LPG and Petromax Cylinders.

www.newagebd.net

 

[Isa Khan]

The government has backtracked on its decision to set up a $10 billion Sovereign Wealth Fund in five years from foreign exchange reserves to finance large projects.

The Cabinet on Monday scrapped the draft law to set up the fund.

When the initiative was taken five years ago, the country's foreign exchange reserves stood at more than $32 billion, most of which were deposited by the Bangladesh Bank in foreign banks at nominal interest rates. The government had planned to ensure foreign exchange financing for mega projects like the Padma Bridge and metrorail by setting up a fund to get additional benefits by considering the reserve as "idle money".

But, as Bangladesh's remittances have been declining over the past few months and import costs have risen sharply compared to export earnings, the size of the reserves has been declining from $48 billion. Since the Ukraine-Russia war began last February reserves have dropped to $41 billion and the dollar crisis has intensified in the currency market.

Under the circumstances, to keep the foreign exchange reserve at a satisfactory level, the government has announced measures to control the import of luxury goods, suspend the implementation of less important projects and bring back the money laundered abroad.

A separate fund was initially set up under the Ministry of Finance with $2 billion in reserves, and the Department of Finance planned to increase the size of the fund to $10 billion over the next five years.

Although the Sovereign Wealth Fund has not been set up, another was set up in March 2021 by the Bangladesh Infrastructure Development Fund (BIDF) to spend the reserve money on infrastructure development, which the government has decided to use for power and port development. The fund has an annual investment target of $2 billion.

After Monday's decision to revoke the cabinet's initial approval to form a Sovereign Wealth Fund, Cabinet Secretary Khandaker Anwarul Islam said that since the BIDF was managing such a fund, there was no need to raise a new one.

Terming the government's decision logical, former chief economist of the World Bank Zahid Hossain told The Business Standard that during the current foreign currency crisis, no more money should be spent on reserves from BIDF.

The Payra Port Authority initially received a loan from BIDF funds. Sonali Bank is lending Tk 5,430 crore from the fund for a period of 10 years for the excavation of Ramnabad channel. However, some economists think that the decision to spend money on development projects from the reserve money during the current dollar crisis was not reasonable.

Finance Ministry officials said that after the Awami League government came to power in 2009, the idea of releasing sovereign bonds was initially considered for rapid infrastructure development. Abul Maal Abdul Muhith, the then finance minister, thought of releasing such bonds after Sri Lanka received a huge response doing the same.

After the World Bank withdrew from financing the Padma Bridge in 2012, the Finance Division initiated the creation of a Sovereign Wealth Fund without Sovereign Bonds to ensure the availability of foreign exchange in the implementation of mega projects including this bridge.

As the foreign exchange reserves of Bangladesh continued to increase in the following years, instead of issuing sovereign bonds for the development of the country's infrastructure, an initiative was taken to set up a separate fund under the Ministry of Finance with money from the reserves. The draft law was drafted by the Finance Division and later approved in principle in February 2017.

The then Cabinet secretary Mohammad Shafiul Alam said at the time that many countries in the world have sovereign wealth funds. The government will be able to use this fund in any sector in public interest.

The then finance secretary Mahbub Ahmed told The Business Standard on Monday that the initiative was taken to set up a Sovereign Wealth Fund without Sovereign Bonds and with the idle money of the reserves. Later the government formed such a fund under a different name. Therefore, the cabinet has scrapped the initial approval to form the fund.

Govt scraps Sovereign Wealth Fund for mega projects

The government has backtracked on its decision to set up a $10 billion Sovereign Wealth Fund in five years from foreign exchange reserves to finance large projects. The Cabinet on Monday scrapped the draft law to set up the fund. When the initiative was taken five years ago, the country's...

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Summit Corporation Limited, one of the largest business conglomerates in the country, is planning to build a 40MW-50MW floating solar plant on the lands of the Barapukuria Coal Mine Company Limited, now underwater.

In an expression of interest sent to the Power Division, Petrobangla, and Barapukuria Coal Mine Company, on 26 May, Summit proposed four models for implementing the project – through a joint venture with Barapukuria Coal Mine, under a land lease agreement, as a lead member with revenue sharing of the project, or any other arrangement suggested by the power, energy and mineral resources ministry.

It also offered to deliver the project in Dinajpur, around 350km northwest of Dhaka, in the shortest possible time, using the world's most efficient technologies.

Engineer Md Kamruzzaman Khan, managing director at BCMCL, told The Business Standard that, alongside Summit's proposal, they also received four more proposals from Chinese firms.

"These all are very initial proposals and we are interested in taking up a project in the lakes. However, the Energy Division and Power Development Board will decide on the right model or structure of the project," he added.

Sources at BCMCL said there are around 300 acres of land at the Barapukuria that have turned into a big lake after coal extraction in the underground method of mining.

For the last few years, the submerged lands have remained as wetlands which used to be cultivated before being acquired by BCMCL for mining.

Sustainable and Renewable Development Authority (Sreda), a state-owned agency responsible for promoting renewable energy, in cooperation with the Asian Development Bank, conducted a feasibility study last year to determine scope for a floating solar plant on the submerged lands.

The study found that a 50MW floating solar is feasible there, said Sreda officials.

Before submitting their proposal to the ministry, Summit Corporation Limited on its own initiative also visited the submerged BCMCL lands in order to see and understand the site conditions.

Based on the available data, the leading private power generation and energy logistics company proposed implementing the project, either as a lead member, or in participation with the Barapukuria Coal Mine Company.

In the proposal, highlighting its financial strength, Summit said it maintains a AAA credit rating and has total equity of $800 million and debt financing of over $1.4 billion.

At present, Summit owns and operates a floating storage and regasification unit (FSRU) terminal capable of degasifying 500mmcfd and storing 138,000 cubic metres of LNG at Maheshkhali.

The conglomerate also has a 125,000 ton oil storage terminal and a fleet of 30 vessels for furnace oil logistics.

The company alone has a total power generation capacity of 1,941MW, while the combined production capacity of all private producers is 11,108MW.

As of now, Bangladesh has a capacity to generate 788MW of renewable energy, while the country's total power generation capacity is above 22GW (excluding captive power).

Of total renewable capacity, solar energy accounts for 554.17MW, while a single hydro facility is in second position with 230MW of generation capacity.

Summit plans 50MW floating solar plant on Barapukuria submerged lands

Summit Corporation Limited, one of the largest business conglomerates in the country, is planning to build a 40MW-50MW floating solar plant on the lands of the Barapukuria Coal Mine Company Limited, now underwater. In an expression of interest sent to the Power Division, Petrobangla, and...

www.tbsnews.net

This is a dream bridge which will not only establish the long-awaited direct road and rail communications between the capital and south-western parts of Bangladesh but also contribute to greater connectivity and trade among Asian countries.

The Padma Bridge will have significant economic impacts by cutting the travel time as well as freight costs, and thus bring prosperity for 21 districts in particular and the nation in general.

It will also work as a key component of the Asian Highway-1, boosting economic growth of Asia and improving the country's standing in the continent.

In August 2009, Bangladesh joined the network conceived by the United Nations with a view to setting up regional connectivity among Asian countries via a highway system of over 145,000km roads passing through 32 countries.

Bangladesh is connected with three Asian Highway routes named AH-1, AH-2 and AH-41 with a total length of 1,771km.

The AH-1, connecting Assam with West Bengal of India via Sylhet-Dhaka-Narail-Jashore, had two missing links: one is the Padma Bridge and another Kalna Bridge in Narail.

Of the two, the 690m bridge construction in Kalna was comparatively easier, but the 6.150km bridge over the mighty Padma was always a massive task in terms of the magnitude of the work.

With the opening of Padma Bridge tomorrow and Kalna Bridge's expected inauguration by September, those two missing links will disappear.

The Padma Bridge, longest in Bangladesh, will also pave the way for putting in place a new route for the Trans-Asian Railway (TAR) network, another UN initiative aimed at creating an integrated railway network across Asia.

It would be the fourth and the shortest TAR route, which would link India and Myanmar via the country and ultimately become a part of a network comprising 125,500km of railway lines serving 28 countries.

Apart from contributing to poverty reduction for the south-western region, the opening of Padma Bridge will help turn Kuakata into a major tourist destination.

The nation will also be able to make the most of Mongla port and under-construction Payra seaport, taking the burden off the Chattogram port, which often struggles to serve the fast-growing economy owing to inadequate facilities.

AH-1 & PADMA BRIDGE​

The UN Economic and Social Commission for Asia and the Pacific (UNESCAP) conceived the Asian Highway project and adopted an Intergovernmental Agreement on the Asian Highway Network in November 2003.

The aim was to establish regional cooperation among the mainland countries of Asia, based on road transport linkages, according to the Road Transport and Highway Division's documents.

A cabinet meeting chaired by Prime Minister Sheikh Hasina approved the accession of Bangladesh to the Asian Highway network on June 15, 2009. The government signed the Instrument of Accession on July 5 the same year.

The route of AH-1 is Guwahati in Assam-Tamabil-Sylhet-Shaistaganj- Narsingdi-Kanchpur-Dhaka-Mawa-Charjanajat-Bhanga-Bhatiapara-Kalna Ferry Ghat-Narail-Jashore-Benapole-Petrapole in West Bengal. Its length is 492km.

The route of AH-2 is Guwahati-Tamabil-Sylhet-Narsingdi-Dhaka South (Jatrabari)-Dhaka North (Banani Rail Crossing)-Joydevpur-Elenga-Hatikamrul-Bogra-Rangpur-Panchagarh-Banglabandha-Fulbari in West Bengal. Its length is 517km, excluding the 294km common part of AH-1 and AH-2.

The route of AH-41 -- Teknaf-Cox's Bazar-Feni-Moinamoti-Dhaka-Joydevpur-Hatikamrul-Banpara-Dasuria-Kushtia-Jhenaidah-Jashore-Khulna-Mongla -- is limited within the country for now. Its length is 762km, excluding the 162km common part of AH2 and AH-41.

"With the opening of Padma Bridge and Kalna Bridge by September, there would be no missing links and thus an uninterrupted connectivity would be established [on AH-1 route], which is a significant development," Shishir Kanti Routh, an additional chief engineer of Roads and Highways Department (RHD).

The most portion of the AH-1 route is two-lane and also it has four-lane stretches in urban areas and market places.

The RHD is implementing two projects involving Tk 20,500 crore to turn Kanchpur-Sylhet and Sylhet-Tamabil portions into four-lane keeping two additional lanes for slow-moving vehicles.

The physical work of the projects is expected to start this year.

Of the route, the portion from Kanchpur to Dhaka is now an eight-lane highway and Dhaka-Mawa-Bhanga a four-lane expressway.

The RHD is going to take up a project to turn the 135km road from Bhanga to Benapole via Kalna, Narail and Jashore into a four-lane highway with Indian lines of credit.

Meanwhile, the department has almost completed construction of the 690m bridge over the Madhumati river at Kalna point with a cost of Tk 959 crore.

"Once all the projects are completed, the entire AH-1 route would be elevated to either primary [access-controlled motorway] or Class-I (four or more lanes highway)," said Shishir Kanti, also a member of RHD's Thematic Group on Regional Connectivity.

NEW TAR ROUTE​

The TAR network is aimed at enhancing the efficiency and development of the railway infrastructure in Asia, according to the UNESCAP website.

An intergovernmental agreement on the TAR network was adopted in April 2006. Signed by Bangladesh in 2007, it came into force in June 2009.

At the beginning, three routes of TAR had passed through Bangladesh.

The route of TAR-1 is Gede in West Bengal-Darshana-Ishwardi-Bangabandhu Bridge-Joydevepur-Tongi-Akhaura-Chattogram-Cox's Bazar-Ghundhum-Myanmar.

It has two sub-routes -- Tongi-Dhaka and Akhaura-Kulaura-Shahbazpur-Mahisasan of India.

The route of TAR-2 runs through Singabad in West Bengal-Rohanpur-Abdulpur-Ishwardi to meet TAR-1.

The route of TAR-3 runs through Radhikapur in West Bengal-Birol-Dinajpur-Parbatipur-Abdulpur to meet TAR-1.

With the building of a double-decker bridge -- roadway on the top and railway on the bottom -- over the Padma river, the country enters a new era of railway connectivity.

Bangladesh Railway has already undertaken a project titled "Padma Bridge Rail Link Project (PBRLP)" to connect the capital and Jashore with a 169km rail line via the Padma Bridge at the cost of Tk 39,246 crore.

And, following BR's request, UNESCAP agreed to incorporate the Dhaka-Bhanga-Jashore track as a fourth route of the TAR network in Bangladesh.

The route would run through Petrapole-Benapole-Jashore-Narail-Bhanga-Mawa-Narayanganj-Dhaka-Tongi before meeting TAR-1.

Transport expert Prof Hadiuzzaman said the Padma Bridge has opened a new route for Trans Asian Railway, through which the railway would be connected with a big network.

"This will open a new window for Bangladesh Railway," he told this correspondent recently, adding that the BR has to do a lot of things, including gauge conversions, to establish effective connectivity with TAR.

Padma Bridge: A leap for Asian connectivity

This is a dream bridge which will not only establish the long-awaited direct road and rail communications between the capital and south-western parts of Bangladesh but also contribute to greater connectivity and trade among Asian countries.

www.thedailystar.net

 

[Isa Khan]

Inner Containment (IC) dome metal structures have been installed in the reactor building of Power Unit 2 of the Rooppur NPP recently.

The upper portion of the dome 35.7 m in diameter and weighing 194 tonnes was placed in its design position at an elevation of 51.7 m; the construction height has now reached 60.5 m, reads a press release.

"IC dome installation is one of the 2022 milestones. We performed similar works at Power Unit 1 last year. Thanks to that, this time the dome pre-assembling activities required only 151 days, which is less than 56 days. Once both IC portions have been welded together, the dome concreting will take place," said Alexey Deriy, Vice President of ASE and Director of the Rooppur NPP Construction Project.

Installation of the IC dome was performed in two stages. The lower portion of the dome of 42.8 m in diameter and weighing 195 tonnes was placed in its design position a week earlier, on 20 June.

Assembly and installation work for the IC dome is carried out by specialists of the Branch Office of TrestRosSEM LLC, part of the Rosatom Engineering Division.

The Liebherr LR11350 crane (with a lifting capacity of 1350 tonnes) was used to lift the upper portion of the dome and it took 4 hours. There was particular difficulty in the process since it was required to place both dome portions in the design position with maximum accuracy.

The inner containment is one of the main components of the nuclear power plant safety system. It not only protects the reactor compartment but also supports the polar crane used to service the nuclear reactor.

The Rooppur NPP will host two Russian VVER-1200 reactors and a total capacity of 2400 MW. These reactors belonging to generation 3+ are fully consistent with the international safety requirements. Russia's Rostam State Corporation Engineering Division is the general designer and general contractor of the project.

Rooppur NPP: Inner containment dome installed at Unit-2

Inner Containment (IC) dome metal structures have been installed in the reactor building of Power Unit 2 of the Rooppur NPP recently. The upper portion of the dome 35.7 m in diameter and weighing 194 tonnes was placed in its design position at an elevation of 51.7 m; the construction height has...

www.tbsnews.net

Bangladeshi company Texas Clothing Ltd is going to establish a garments factory in Uttara Export Processing Zone (EPZ) in the northwest district Nilphamari by investing $8.5 million.

Bangladesh Export Processing Zones Authority (Bepza) and Texas Clothing signed an agreement in this regard at Bepza Complex in Dhaka today.

Ali Reza Mazid, member for investment promotion at Bepza, and Md Forhad Hossan, managing director of Texas Clothing, inked a deal in this regard.

BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman was present.

The company will produce annually 70 lakh pieces of different garment items like woven shirt, denim pant, twill pant, jacket and woven bottom. The factory is expected to create employment opportunity for 1,450 Bangladeshi nationals, the Bepza said in a statement.

Bangladeshi company to invest $8.5 million in Uttara EPZ

Bangladeshi company Texas Clothing Ltd is going to establish a garments factory in Uttara Export Processing Zone (EPZ) in the northwest district Nilphamari by investing $8.5 million.

www.thedailystar.net

The government is setting up 17 economic zones in southwestern districts to bring about an industrial revolution in the largely non-industrialised region as it looks to accelerate economic growth of Bangladesh.

And the Bangladesh Economic Zones Authority (Beza) is upbeat that the road connectivity established between Dhaka and the region on Saturday following the inauguration of the Padma Bridge will attract investment in the industrial sector and create jobs for thousands of people.

The 6.15km bridge will also connect Bangladesh with the Asian Highway, paving the way for an industrial revolution to take place in 21 southwestern districts in particular and in the country in general, said the investment promotion agency in a statement.

The zones are part of the governmental goal of setting up 100 economic zones across the country, with a view to creating one crore jobs and exporting $40 billion worth of goods and services from the enclaves.

The Mongla Economic Zone (MEZ) is being developed on 205 acres of land near the Mongla Port and it has already constructed the administrative building, boundary walls, connecting bridge and roads, power sub-stations, and water lines.

Powerpack Economic Zone Ltd is developing the MEZ under the public-private partnership (PPP) model. A land-lease deal has been inked to set up three industrial units there.

"The establishment of industries at the MEZ will create jobs for a few thousand people and contribute to the overall development of the region," said Shaikh Yusuf Harun, executive chairman of the Beza, in a statement.

Development of another economic zone on 105 acres of land near the MEZ is underway as well. A developer, appointed by the Indian government, is preparing the economic enclave.

It is expected that the setting up of industries in the two economic zones in Mongla will begin soon.

The Beza plans to set up an ecotourism park on 1,546 acres of land near the Sundarbans in Bagerhat.

It has approved the proposal of setting up two economic zones in Shariatpur: one on 525 acres of land in Jajira upazila and another on 686 acres of land in Goshairhat upazila.

The agency has agreed in principle to build an economic zone on 1,125 acres of land in the Rajoir upazila in Madaripur.

The government has decided to set up an economic zone on 888 acres of land in the sadar upazila under Faridpur. Moreover, a feasibility study has already been carried out for another zone on 200 acres of land in Kotalipara of Gopalganj.

It has taken up a project to conduct the feasibility study for an economic zone in Khulna's Botiaghata. The governing body of the Beza has also chosen Terokhada upazila to set up a zone.

The work to perform the feasibility study to construct an economic zone in Sreepur upazila under Magura and another in Satkhira sadar upazila has been initiated.

The feasibility study for setting up an economic zone at Agailjhara in Barishal has been completed and the Beza has approved the proposal of developing an economic zone in Hizla of the district.

The Beza plans to develop an economic zone in Bhola sadar upazila. It has acquired 382 acres of land to set up a similar zone at Bheramara of Kushtia. The feasibility study is underway.

Moreover, another economic zone, located over 800 acres of land, would be set up in Dhaka's Nawabganj.

However, only setting up economic zones and establishing a globally standard connectivity thanks to the Padma Bridge will not be sufficient, said M Masrur Reaz, chairman of the Policy Exchange of Bangladesh, a private think-tank.

"The government and the private sector need to do homework to attract investments from home and abroad."

He pointed out that investors can immediately make investments in three sectors -- agriculture, IT and logistics -- in the southwestern region.

This is because the region is an agricultural hub and Bangladesh can easily export IT products from Jashore to India thanks to the geographical proximity, he said, adding that the business process outsourcing sector can grow in the region.

17 economic zones getting ready for south-west

The government is setting up 17 economic zones in southwestern districts to bring about an industrial revolution in the largely non-industrialised region as it looks to accelerate economic growth of Bangladesh.

www.thedailystar.net

 

[Isa Khan]

The Executive Committee of the National Economic Council (Ecnec) on Tuesday approved 10 development projects with the total estimated cost of Tk2,217 crore, the planning minister said.

Among the projects is the Tk1,092 crore Cox's Bazar-Teknaf Marine Drive aimed at developing tourism industry in the region along the Bay of Bengal.

The approval came from the Ecnec meeting held at the NEC Conference Room. Prime Minister Sheikh Hasina, who is also the chairperson of Ecnec, presided over the meeting through video conferencing from her official residence Ganobhaban.

"Today, the meeting approved 10 projects and the total cost of the projects is Tk2,216.75 crore," said Planning Minister MA Mannan at a press briefing.

Of the cost, the government will finance Tk1,875.57 crore and the rest Tk341.18 crore will come from foreign sources, he said adding that the 10 projects also included four revised ones.

Talking about the premier's directives given in the meeting, Mannan said she asked to construct elevated roads, bridges or culverts instead of reconstructing the flood-affected roads at the points where these were damaged or cut to flush out flood water in Sylhet region.

The PM emphasised on construction of bridges and culverts instead of roads in Haor and flood-prone areas to prevent the water stagnation.

Special projects will be undertaken for rehabilitation of the flood victims of the Sylhet region, said Mannan.

The PM, he said, also asked the authorities concerned to find out the places where the construction of underpass and overpass is needed.

According to the project factsheet, "Cox's Bazar-Teknaf Marine Drive Road Widening (1.60th KM-32th KM) Project" will be implemented at the cost of Tk1092.35 crore from July 2022 to June 2025.

The main objectives of the road project are to establish a safe communication system, develop the tourism industry and improve the socio-economic condition of the local people through widening some 30 kilometres of the marine drive road and construction of a two-lane 305-metre bridge over Reju Khal.

The major project operations include acquisition of some 113.25 acres of lands, 7.24 lakh cubic meter of earth-filing, installation of 608 CCTV cameras and straightening 0.32 km flexible pavement bend.

The five fresh projects are Sustainable Agriculture Extension in Jashore Region with Tk171.33 crore; Expansion of Advanced Varieties and Technology of Spices with Tk119.50 crore; A Railway Overpass Construction at Railbazar located at 81th KM of Kushtia (Trimohoni)-Meherpur-Chuadanga-Jhenaidah Regional Highway Project with Tk75 crore; Construction of PC Girder Bridges and RCC Box Culverts in places of Dilapidated, Narrow Bailey Bridges on the Pirojpur part of Chakhali-Tushkhali-Mathbaria-Patharghata Highway Project with Tk332.91 crore; Extension of Physical Infrastructural Facilities of MES (Military Engineering Services) in Dhaka Cantonment Project with Tk98.50 crore;

A Railway Overpass Construction at Gatepar area in Jamalpur Town (1st revised) Project with additional cost of Tk132 crore (raising the cost to Tk423.70 crore); Chief Judicial Magistrate Court Bhaban Construction at 64 District Headquarters of Bangladesh-1st Phase (3rd revised) Project with the cost of Tk204 crore less than the previous estimated cost of Tk2464.60 crore; Emergency Assistance in Water Supply and Sanitation in Ukhia and Teknaf upazilas of Cox's Bazar district (1st revised) with the additional cost of Tk307 crore (raising the cost to Tk892 crore) and Cox's Bazar-Teknaf Road (N-1) Development (2nd revised) Project with the extra cost of Tk92 crore (raising the cost to Tk590.28 crore).

Ecnec clears a Tk1,092cr project to widen Cox’s Bazar Marine Drive

The Executive Committee of the National Economic Council (Ecnec) on Tuesday approved 10 development projects with the total estimated cost of Tk2,217 crore, the planning minister said. Among the projects is the Tk1,092 crore Cox's Bazar-Teknaf Marine Drive aimed at developing tourism industry in...

www.tbsnews.net

 

[Isa Khan]

For the first time, Bangladesh's export earnings crossed $52.08 billion in the outgoing fiscal year 2021-22 on the back of a record shipment by the readymade garments sector.

Besides, other emerging sectors such as home textiles, leather and leather goods and agricultural products also performed better in the export outlook.

This year's export earnings target from goods shipment was $43.5 billion, which was reached within 10 months. At the end of the fiscal year, the total earnings grew by $8.58$ billion, which is more than the target, according to the provisional data of the Export Promotion Bureau (EPB) released on Sunday.

However, jute and jute goods, once regarded as golden fiber, lost its glory as the sector recorded a 2.91% negative growth to $1.12 billion which was $1.16 billion in FY 21.

AHM Ahsan, vice-chairman of EPB, told The Business Standard that if they take $8 billion worth of services exports into account, the exports will reach $60 billion at the end of this fiscal year.

He also mentioned that the exports will continue to grow until next October.

In June, the exports hit the $4.90 billion mark for the highest in a single month in this fiscal year, and June growth was over 37% year-on-year.

In July-June, the country's apparel shipments alone accounted for more than 81% worth $43.34 billion, according to sources at the EPB.

Knitwear and woven apparel exports reached $23.21billion and 19.19 billion respectively.

According to the EPB data, the home textile sector earned $1.62 billion, leather and leather goods earned $1.24 billion in the outgoing fiscal, while agricultural products and jute and jute goods recorded $1.16 billion and $1.12 billion shipment in FY 22.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Vice President Fazlee Shamim Ehsan said apparel shipment was doing well for three reasons - raw materials price hike reflected on price, more orders came to Bangladesh due to proper Covid-19 management and global geo-politics created more scopes for Bangladesh.

He said a number of countries, including the USA, is looking for another reliable sourcing destination besides China.

Fazlee Shamim Ehsan also said the global record high inflation was affecting apparel orders.

"My factory is facing 16% lower orders for the coming months," he said, adding that there was a fear of recession, which affected apparel global demand.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan told TBS that apparel exports saw a good growth even during the Russia-Ukraine war, as huge orders were booked with the trend expected to continue in the next two months.

He, however, said next year would be tough due to global inflation and recession as some buyers with good inventory would be careful in placing new orders.

The BGMEA president also hoped that such positive growth would be maintained next year.

"Definitely the industry will try to maintain a double-digit growth," he added.

Export earnings hit record high $52.08B in FY22

For the first time, Bangladesh's export earnings crossed $52.08 billion in the outgoing fiscal year 2021-22 on the back of a record shipment by the readymade garments sector. Besides, other emerging sectors such as home textiles, leather and leather goods and agricultural products also performed...

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Bangladesh Submarine Cable Company (BSCCL), the state-run bandwidth importer, is going to spend $3.2 million to enhance the capacity by 3,800 gigabits per second (Gbps)

In a posting on the Dhaka Stock Exchange, the company informed that the board of directors approved the agreement of $3.2 million between the SEA-ME-WE 4 submarine cable consortium and a supplier.

Bangladesh is a member of the South East Asia–Middle East–Western Europe 4 (SEA-ME-WE 4) consortium.

The total bandwidth capacity of the company will be 4,600 GBPS after successful completion of the upgradation process, said the filing.

BSCCL is the lone entity permitted to connect the country with the rest of the world through undersea cables.

The move from BSCCL comes as the bandwidth consumption witnessed a remarkable rise during the coronavirus pandemic as people turned to the internet to work, study and find entertainment at home.

The bandwidth use surged to 3,440 Gbps in March this year, up from 1,000 Gbps before the pandemic, according to the Bangladesh Telecommunication Regulatory Commission.

About 650 Gbps is supplied by BSCCL through the SEA-ME-WE 4 consortium, the first undersea cable with which Bangladesh was connected with in 2006.

BSCCL supplies another 1,400 Gbps through the country's second submarine cable, SEA-ME-WE 5.

The connection was established in 2017.

The rest comes from India through seven international terrestrial cable service providers, with private firms Summit Communications bringing in 700 Gbps and Fiber@home 300 Gbps.

Bangladesh Submarine Cable to add 3,800 Gbps by 2023

The total bandwidth capacity of the company will be 4,600 GBPS after successful completion of the upgradation process

www.dhakatribune.com

Highlights

• The plants will be set up in Dhaka and in North Bengal
• Those will produce medical gases such as O₂, N2, N₂O and CO2
• It will take the plants two years to go into production
• Will be built under World Bank's Covid-19 preparedness project

---

Bangladesh – currently dependent on private companies and a neighbouring country for medical oxygen – plans to build two plants to be self-sufficient in all types of medical gas production.

The country's healthcare fell into dire straits as demand for oxygen jumped during the Covid-19 pandemic and India stopped exporting the life-saving gas.

In light of such experience, the government will set up the medical gas plants at a cost of around Tk1,000crore under the World Bank's Covid-19 Emergency Response and Pandemic Preparedness (ERPP) project.

The plants will produce all types of medical gases such as oxygen, nitrogen, nitrous oxide and carbon dioxide.

ERPP Project Director Dr Shah Golam Nabi Tuhin told The Business Standard that health services can be provided with oxygen from private companies during normal times, but the government now has nothing to do in cases of emergency.

That is why the government is thinking of constructing two medical gas plants at a cost of Tk800-1,000 crore, he added.

"The feasibility study for setting up medical gas plants was completed in May and will be deliberated on within the next two weeks; then the DPP will be revised and work will start this fiscal year. It will take two years to go into production," said the project director.

"Hospitals in Dhaka need 50%-60% of the oxygen required in the country. That is why one medical gas plant will be set up in the vicinity of Dhaka and another in North Bengal. However, the places have not been selected yet," he added.

Sources said there is a possibility of medical gas plants being set up in Narayanganj or Munshiganj near Dhaka and Sirajganj in North Bengal.

Prior to the Covid-19 outbreak, the country had a daily demand of 100 tonnes of medical-grade oxygen. As the number of Covid patients increased, the demand for high-flow nasal cannula, ventilators and intensive care units (ICUs) increased unusually, driving up demand for oxygen.

According to the health ministry, the demand for oxygen per day was 300-500 tonnes due to an increase in coronavirus infections in the country.

Linde Bangladesh Limited and Spectra Oxygen Limited supply the most medical oxygen in the country. During the pandemic, the two companies supplied about 120 tonnes of oxygen, with the rest needing to be imported from India.

But Delhi stopped exporting oxygen for two and a half months from 22 April 2020 due to a rise in Covid-19 infections in India.

At the time, the oxygen crisis in the hospitals here became acute due to a rapid increase in Covid-19 infections. Patients died in Satkhira and Bogura due to a shortage of life-saving gas.

Now the government plans to produce oxygen under its own management given the experience of the dire situation during the pandemic.

Professor Dr Meerjady Sabrina Flora, head of the Technical Committee on Medical Gas Plant Installation and additional director general of the Directorate General of Health Services, told TBS, "For medical gas, we were dependent on the private sector and other countries."

"Now we want to build our own capacity. A feasibility study has been completed and now we are in the final stages of planning. Work will begin very soon after funding is obtained," she added.

Govt to build two medical gas plants at Tk1,000cr

The plants will produce all types of medical gases as it will take two years to go into production

www.tbsnews.net

The government has decided to designate development projects under the Annual Development Programme of FY 2022-23 in A, B and C categories to reduce expenditures and conserve resources.

According to a circular issued by Budget-11 branch under finance ministry Sunday (3 July), category A projects will get higher priority and continue as before.

Category B projects must conserve 25% of the government expense and spend no more than 75%.

Fund release for category C projects, for the time being, will be suspended. However, concerned ministries, departments and other government agencies may redirect the fund to category A projects as per the approval from the planning commission and finance department.

Govt to categorise development projects to reduce expenses

The government has decided to designate development projects under the Annual Development Programme of FY 2022-23 in A, B and C categories to reduce expenditures and conserve resources. According to a circular issued by Budget-11 branch under finance ministry Sunday (3 July), category A...

www.tbsnews.net

 

[Isa Khan]

Prime Minister Sheikh Hasina on Wednesday inaugurated the country's first university campus-based IT business incubator at Chittagong University of Engineering and Technology (Cuet) as part of building "Smart Bangladesh".

The premier opened it naming after Father of the Nation Bangabandhu Sheikh Mujibur Rahman's eldest son "Sheikh Kamal IT Business Incubator" at a ceremony at Cuet campus this morning.

She joined the function virtually from her official residence Ganabhaban in the capital.

Following the occasion, Cuet campus took a festive look as colourful lights were lit up all over the university while banners, festoons and balloons of different colours were also displayed.

Faculty members and students of the university expressed their enthusiasm hoping that this incubator will create a bridge between industry and academia.

The incubator aims to develop IT entrepreneurs and expand knowledge-based economy for building the "Smart Bangladesh" by 2041 as the country has already materialised the "Digital Bangladesh" campaign.

The business incubator, which has a complete innovative eco-system for start ups and businesses, will provide some 220 entrepreneurs, trainees, freelancers and potential startups with financial and logistical services, alongside mentorships.

Industry insiders opined that the IT Business Incubator will be one of the keys in implementing "Smart Bangladesh" as it will be a centre of materialising new ideas to be explored by the university students and graduates as well as evolution hub of talents, intellects and knowledge of the next generations towards building the "Sonar Bangla" as dreamt by Bangabandhu.

The incubator also focuses on providing assistance to university graduates to develop themselves as entrepreneurs, establish effective links between universities and the IT industry, as well as create opportunities of research and innovation activities for the faculty and students of the university.

Constructed on 4.7 acres on the Cuet campus involving Tk113 crore, this will be the new cap to transform the country into "Smart Bangladesh" from the Digital Bangladesh campaign, first unveiled in the election manifesto of the present government in 2008.

In the incubator, there is high speed internet connection through BTCL. This unique project, implemented from July 2017 to June 2022, includes an oval incubation building up to 10-storey with 50,000 square feet (sft) space as each floor has 5,000 sft.

Besides, the prime minister also opened two separate four-storey dormitories for male and female named after Sheikh Jamal and Rosie Jamal respectively. The total area of the two buildings is 40,000 sft and each dormitory has 40 rooms.

In addition, there is a six-storey multipurpose training building with a total floor area of 36,000 sft and each floor has 6,000sft.

The incubation building has a startup zone, innovation zone, industry-academic zone, brainstorming zone, an exhibition centre, an e-library zone, a data centre, research lab, video conferencing room and a conference room.

There will also be separate corners for banks and IT firms, cyber cafes, food courts, cafeterias, recreation zones, display zones and media rooms.

Additionally, the multipurpose training building houses a state-of-the-art auditorium with a capacity of 250 people, and four computer/seminar rooms with a capacity of 50 people.

An Artificial Intelligence (AI) lab, a machine learning lab, an optical fibre backbone, a substation and a solar panel are also being set up.

PM Hasina opens country's first campus-based IT business incubator

Prime Minister Sheikh Hasina on Wednesday inaugurated the country's first university campus-based IT business incubator at Chittagong University of Engineering and Technology (Cuet) as part of building "Smart Bangladesh". The premier opened it naming after Father of the Nation Bangabandhu Sheikh...

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Two Quayside Gantry Cranes (QGC) and three Rubber Tyred Gantry (RTG) cranes have been added to the fleet of Chattogram port, the main seaport of the country, for fast and safe handling of containers.

From Shanghai port, a ship named XIN CHEN HAI YANG carrying the equipment arrived at the port on Monday, Omar Faruk, secretary to Chattogram Port Authority (CPA) confirmed.

With the addition of these state-of-the-art gears, the container handling capacity of the seaport is expected to increase significantly, he told The Business Standard.

The ship has taken berthing at New Mooring Container Terminal (NCT)-5 jetty of the port.

Earlier, two QGCs and three RTG cranes had joined the fleet on 7 May.

CPA sources said the number of gantry cranes at two terminals of the Chattogram port is now 18 including the two new ones.

The new cranes will be installed at the terminals in the next two weeks.

With those, 14 gantry cranes will be in operation at New Mooring Container Terminal while four others at the Chattogram Container Terminal of the port.

Chattogram port gets 2 new gantry cranes

With the addition of these gears, the container handling capacity of the seaport is expected to increase

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[Isa Khan]

A contract has been signed between two Russian companies for manufacturing and supplying the hi-tech equipment to handle the liquid radioactive waste at Rooppur Nuclear Power Plant (RNPP) project.

According to Rosatom, the Russian contractor of the RNPP, Atomstroyexport as the General Contractor has entered into a contract with Russian company Sverdniikhimmash (SCERI JSC) for this purpose.

Under the contract, SCERI will design, manufacture and supply three drain water treatment plants, three deep evaporation plants, two cementation plants, two conditioning plants, two intermediary storage plants, WIR (waste ion resins) loading and unloading units, the container for WIR transportation.

The equipment will be supplied to the Rooppur NPP site by the third quarter of 2023. The SCERI experts will also support pre-commissioning works of the equipment.

"We know SCERI as a safe partner that develops high-quality equipment", said Aleksey Deriy, vice-president of ASE and director of the Rooppur NPP Construction Project.

At present, the construction of Rooppur NPP is at its active stage – buildings are erected and the installation of the main equipment in two power units is performed.

For sure, this contract will facilitate fulfillment of our obligations to the Customer of Rooppur NPP – manufacture and installation of the equipment will be done exactly in time," he added.

"It is a large-scale and very critical order for SCERI and choosing our institute as a designer and supplier of the process equipment for liquid radioactive waste handling is absolutely justified," said Aleksandr Cheperanov, director-general of SCERI.

For many years, SCERI has been specialising in designing and manufacturing of efficient and safe equipment for nuclear waste handling, he mentioned adding, "Equipment, designed by our engineers is functioning in many Russian nuclear power plants with excellence"

The SCERI is a concern of Atomenergomash, the machine-building division of Rosatom.

In 2019 SCERI signed a contract for designing, manufacturing, and supply of a package of equipment for handling materials and components not subject to subsequent use, for unit-1 of Rooppur NPP.

The first lot of process equipment is now being prepared for shipment to Bangladesh.

According to Bangladesh Atomic Energy Commission, the implementation authority of the RNPP, the first unit of the plant was scheduled to start operation in 2022 and second unit in 2024.

But recently the first unit's operation was rescheduled to 2024 and the second unit to 2025.

Deal signed for liquid radioactive waste management at Rooppur NPP

A contract has been signed between two Russian companies for manufacturing and supplying the hi-tech equipment to handle the liquid radioactive waste at Rooppur Nuclear Power Plant (RNPP) project. According to Rosatom, the Russian contractor of the RNPP, Atomstroyexport as the General Contractor...

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Bangladesh Railway is going to build a two-tier road-cum-rail bridge across the River Karnaphuli at Kalughat point, starting next year, to replace a rundown old bridge at the place.

Korean company Yooshin Engineering Corporation, conducting a fresh feasibility study, has prepared a preliminary design for a two-tier double-track rail-cum-two-lane road bridge across the Karnaphuli, like Padma Bridge.

According to the design, the multipurpose bridge will have a lower level for rail, and an upper level for road transportation.

The total cost of the bridge will now increase to Tk6,341 crore due to adding 12.2 metres to the height of the bridge, as proposed by the Bangladesh Inland Water Transport Authority (BIWTA).

As per the revised development project proposal (DPP), the bridge will be completed within four years from the time construction work begins.

Chattogram-8 MP, Moslem Uddin Ahmed, said the Korean construction firm held a final meeting with officials of the railway east zone at the Central Railway Building (CRB) in Chattogram on Wednesday.

He, who also attended the meeting, said "The firm will submit a final report of a fresh feasibility study next month in August."

According to railway east zone authorities, once the project is approved by the Executive Committee of the National Economic Council (Ecnec), the highest economic policymaking body, the proposed bridge should hopefully be completed by 2027.

Railway east zone General Manager Jahangir Hossain said the length of the bridge is to be 780 metres, the viaduct 5.62 metres, with a span of 100 metres. The height of the bridge will be 12.2 metres, the number of pillars will be eight.

"The tender will be floated after submission of the final feasibility study report. It will take about six to eight months to complete the process," said Jahangir Hossain.

Project Director Golam Mostafa told The Business Standard (TBS), "The new bridge will be 70 metres upstream from the existing age-old bridge and the alignment of the new bridge will be from Jane Ali Hat to Gomdandi Rail Station."

The roads and highways division will construct the roads, connecting to the bridge.

Project Director Gulam Mustafa said, "The Economic Development Cooperation Fund (EDCF) of South Korea has agreed to fully fund the project as a soft loan to the Bangladesh government."

"The total costing of the bridge will now increase to Tk6,341 crore due to a major change in design and the addition of height as per proposal of the BIWTA" he said, regarding the increase in project cost.

The engineering department of Bangladesh Railway had earlier prepared a design for the bridge with a 9 metre height and an estimated cost of Tk1,200 crore.

Railway east zone Chief Engineer Md Sabuktagin said there was a misunderstanding whether there would be a separate railway bridge or rail and road together. Later, as per the PM's directive, the design was made for a two-tier bridge after conducting a fresh feasibility study.

On the road bridge, there will be pavements on both sides for crossing the bridge on foot, he added.

Moslem Uddin Ahmed MP said, "As per the proposal placed earlier with the Ecnec, there would be two separate bridges – one for rail and the other for vehicles. When placed to the Prime Minister, she said there will be only one bridge consisting of both railways and vehicular road transport."

The new Kalurghat Bridge will ensure smooth communications with Cox's Bazar from the capital Dhaka and the port city of Chattogram, he added.

Construction of two-tier road-rail bridge over Karnaphuli starts next year

The tender will be floated once a final feasibility study report is submitted in August

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[Isa Khan]

Concreting of the inner containment dome of Unit 1 has been completed at the Rooppur Nuclear Power Plant recently.

Over 3200 cubic meters of concrete was laid in the structure of more than 17.6 meters high with diameter of 42.8 meters at the base. The works were performed by RosSEM Trust , part of Rosatom Engineering Division, said a press release.

"Concreting of inner containment dome is the final stage of construction of the passive safety system. Next stage works include CPS strands tensioning and the containment testing", said Alexey Deriy, the vice president of ASE and director of Rooppur Nuclear Power Plant construction project.

The inner containment is one of the main elements of the NPP safety system. It not only protects the reactor compartment but also provides support to the pipelines penetrations and the polar crane, which is used for servicing the reactor, the press release added.

Rooppur NPP with two generation 3+ VVER-1200 reactors is being constructed under the Russian design.

General designer and the general contractor of the project is the Rosatom State Corporation Engineering Division. The plant will have total capacity of 2400 MW.

Rooppur NPP: Concreting of the inner containment dome completed at Unit 1

“Concreting of inner containment dome is the final stage of construction of the passive safety system. Next stage works include CPS strands tensioning and the containment testing”, said Alexey Deriy, the vice president of ASE and director of Rooppur Nuclear Power Plant construction project

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Twenty-eight companies, including Walton, have got the nod from the authorities concerned to invest a total of $1.3 billion in Bangabandhu Sheikh Mujib Industrial City, Jamalpur Economic Zone, and Sabrang Tourism Park.

The Bangladesh Economic Zone Authority (Beza) on Thursday also allotted 363.53 acres of land to these firms.

Beza said the approved investment by the 28 companies would create 36,000 jobs.

Beza Executive Chairman Sheikh Yusuf Harun said land lease agreements would be signed with these companies soon.

The proposed investments would help diversify the country's export basket, he expected, adding that this would also help the country achieve sustainable development goals (SDGs) alongside increasing the living standards of the people.

According to sources, among the approved companies, Walton Hitech Industries Limited, RHPL Health of India, Abdul Monem Economic Zone Limited, Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), KIAM Metal Industries Ltd, Healthcare Pharmaceuticals Ltd, Fakir Knitwear Ltd, and Israq Spinning Mills Ltd will invest in Bangbandhu Industrial City.

Of them, the electronic giant Walton alone will invest $640 million as it has been allotted 100 acres of land.

The company will manufacture electronics products, including refrigerators, televisions, and air conditioners, at the plant, officials said.

An official of Walton told The Business Standard that the company has taken up an initiative to set up a factory in Mirsarai Economic Zone to facilitate the delivery of goods to Chattogram port for export.

Seven companies are going to invest in Sabran Tourism Park and among them Dird Group and Ifad Group will invest in the hotel and tourism sector.

Akij Textile Mills Ltd and Fervent Multiboard Industries Ltd, a subsidiary of Walton Group, are among the six investment proposals in the Jamalpur Economic Zone.

28 firms set to invest $1.3b in three economic zones

Twenty-eight companies, including Walton, have got the nod from the authorities concerned to invest a total of $1.3 billion in Bangabandhu Sheikh Mujib Industrial City, Jamalpur Economic Zone, and Sabrang Tourism Park. The Bangladesh Economic Zone Authority (Beza) on Thursday also allotted...

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[Isa Khan]

Hydraulic testing of half bodies of Passive Core Flooding System (PCFS) Hydro-accumulators begins at Petrozavodsk Branch of AEM-Technologies, Russia.

These are intended for Power Unit - 2 of Rooppur Nuclear Power Plant. Eight PCFS Hydro-accumulators will be installed in each unit.

According to Rosatom, the Russian contractor of the Rooppur NPP, hydraulic test is one of the most important final inspections of the equipment.

PCFS Hydro-accumulator is filled with specially treated thermally enriched water and the pressure in the vessel is raised up to 4.4 MPa and held for 10 min minimum.

After the pressure is released, the outer surface is inspected visually for any leaks and permanent deformations.

Hydro-accumulators each having a capacity of 120 cubic meters are manufactured from stainless steel.

It comprises three shells and two heads. Ladders and maintenance platforms as well as other internals are installed within the body.

PCFS refers to the second level of NPP passive safety systems. It is intended for the removal of the coolant residual heat of the reactor primary circuit.

An aqueous boric acid solution heated to a temperature of approximately 60 degrees is stored in the Hydro-accumulator during operations of the plant.

If for any reason the pressure in the primary circuit falls below a certain level, the fluid is automatically fed into the reactor and the active core is cooled down.

Rooppur NPP is designed and being constructed by the Engineering Division of the Rosatom State Corporation.

AEM-Technologies has been producing main reactor room equipment for both the units of the power plant.

According to Bangladesh Atomic Energy Commission, the implementing authority of the RNPP, the first unit of the power plant was scheduled to start operation in 2022 and second one in 2024.

But recently the first unit's operation was rescheduled to 2024 and second unit to 2025.

Rooppur NPP: Hydro-accumulators’ testing begins in Russia

According to Rosatom, the Russian contractor of the Rooppur NPP, hydraulic test is one of the most important final inspections of the equipment

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The newly-built Patenga Container Terminal will go into a trial operation with a bulk carrier docking at it on 21 July.

Necessary preparations have been taken for cargo vessels to moor at the new terminal, Md Omor Faruque, secretary of the Chattogram Port Authority (CPA), told The Business Standard.

More ships will gradually be docked there, which will take the increasing cargo handling pressure off Chattogram port to some extent, he noted.

However, the date of the terminal's formal opening will be finalised later on, he added.

According to CPA sources, ships that have crane facilities will get priority at this terminal for now. Until a deal with a foreign firm is finalised, the container terminal will run under CPA management.

About 92% of the country's import and export goods pass through Chattogram port. Currently, the port has 19 jetties at three terminals: General Cargo Berth, Chattogram Container Terminal, and New Mooring Container Terminal.

After the opening of the Patenga terminal – 15 years after the new mooring terminal was constructed in 2007 – the number of jetties will increase to 23.

The port can currently accommodate ships with a maximum 9.5 metres of draught and 190 metres of length. The Patenga terminal will be able to accommodate ships with 10.5 metres of draught and 200 metres of length.

The Patenga Container Terminal, built on a 32-acre site at a cost of Tk1,229 crore, will be able to handle about 4.5 lakh twenty-foot equivalent units (TEUs) of containers a year.

The terminal, with three container jetties and an oil unloading (dolphin) jetty, will be able to load and unload containers from four cargo vessels simultaneously.

To reach the main jetty of Chattogram port, ships need to cross a river route of around 14 kilometres from the estuary of the River Karnaphuli. As such, owing to the Patenga terminal's proximity to the estuary, unloading of goods from ships will take less time.

The CPA has already apprised organisations concerned, including Chattogram customs, of the launch of the new container terminal. CPA Chairman Rear Admiral M Shahjahan visited the terminal area on July 13.

On Thursday, it was observed that construction of the main jetty and the internal yard at the terminal has been completed. Work on various other infrastructure and a container freight station is nearing completion.

Nur Nabi Haque Raju, supervisor at MN Enterprise, a subcontractor for the Patenga terminal construction, said, "We will complete our work by 18 July."

Initially, it was decided that the CPA will manage the Patenga terminal, but the authorities decided that foreign operators will operate it under public-private partnership. Finally, it was again decided that if no foreign operator is hired by July 2022, the port authority will start running the terminal.

Five foreign companies have come forward with proposals for investing in and managing the Patenga terminal. The companies are AP Moller – Maersk of Denmark, Red Sea Gateway Terminal (RSGT) of Saudi Arabia, Dubai Port World (DP World) of UAE, Adani Port and Special Economic Zone Ltd of India and PSA International Singapore.

The port authority is currently negotiating with AP Moller – Maersk, RSGT and DP World, according to a source at Chattogram port.

Chattogram port handles more than 30 lakh TEUs of containers per year. In 2021, the port handled 32.14 lakh TEUs of containers.

After the Patenga container terminal project was approved on 13 June 2017, it was supposed to have been completed in December 2019, but by that time a mere 45% of it had been completed.

In the second phase, the CPA proposed an extension of the project till June 2021. But by that date, no more than 70% of the work had been completed. Consequently, the project was extended by one more year till June 2022.

The Bangladesh Army was attached to the "delegated procurement" of the project located near the estuary of River Karnaphuli. The construction includes a 583-metre main jetty with three berths, a 204-metre-long dolphin jetty, 80,000 metres of roller-compacted concrete pavement, a 1.20 km four-lane road and other infrastructures.

Chattogram Chamber of Commerce and Industry President Mahbubul Alam said, "The Patenga terminal must be made fully operational through hiring an operator very quickly. Otherwise, we will lose out on the terminal's benefits."

Patenga Container Terminal: Trial docking of cargo ship on 21 July

The newly-built Patenga Container Terminal will go into a trial operation with a bulk carrier docking at it on 21 July. Necessary preparations have been taken for cargo vessels to moor at the new terminal, Md Omor Faruque, secretary of the Chattogram Port Authority (CPA), told The Business...

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Padma Bridge project authority will start the process of handing over the structure to the railway authority tomorrow so that the latter can start installing rail track on the lower deck of the bridge.

Now both authorities will carry out a joint survey and it may take up to one week to complete the handing over process. The railway authority is expected to start installing rail track within two weeks, officials said.

The development came as officials of Bangladesh Railway (BR), Bangladesh Bridge Authority, and Padma Bridge project officials held a meeting at Mawa Service Area in Munshiganj today (July 16, 2022), they said.

Md Kamruzzaman, deputy project director (technical) of Padma Multipurpose Bridge Project, said that they will hand over the relevant part of the bridge to railway authorities tomorrow.

"It may take up to one week to complete the handing over process," he told The Daily Star today.

Afzal Hossain, project director of Padma Bridge Rail Link Project, said they will start a joint survey as part of receiving the structure and it may take up to two weeks to start installation of the track.

BR is implementing the rail link project to build the 169km rail line from Dhaka to Jashore through the Padma Bridge at a cost of around Tk 40,000 crore.

The two-level bridge – road on the top and rail line on the bottom – was opened to traffic last month.

"We will try to complete the installation of rail line on around 7km length of the bridge and its connecting part within December this year," Afzal said.

Bangladesh Railway had a plan to launch train operations along with road operations on Mawa-Bhanga section but later changed the decision as the bridge authority declined to hand over the bridge before opening due to "technical reasons".

Visiting the project site yesterday, Railways Minister Nurul Islam Sujan hoped that the train operation from Dhaka to Bhanga via the bridge can be started by June next year.

Installation of rail track on lower deck of Padma Bridge may start in 2 weeks

Padma Bridge project authority will start the process of handing over the structure to the railway authority tomorrow so that the latter can start installing rail track on the lower deck of the bridge.

www.thedailystar.net

Railway Minister Nurul Islam Sujan said that the overall progress of the Dhaka-Bhanga rail link project is at 61% and the project is scheduled to be completed by 30 June 2024.

To implement the project on time, the whole project has been divided into three sections.

Dhaka-Mawa portion of the project has progressed 64.08%, Mawa-Bhanga portion has progressed 80.02% while 91% of the rail link's Bhanga-Jashore portion has been completed.

"There are plans to make the railway line from Dhaka to Bhanga functional by June 2023 via the Padma bridge. We are working towards that goal", said the rail minister after visiting the Padma Bridge Rail Link Project at Munshiganj on Friday afternoon.

He also said that the construction work, which was halted due to various hurdles like restrictions on working on top of the bridge, will hopefully resume by the end of this month.

Meanwhile, Major General FM Zahid Hossain, chief coordinator of the construction supervision consultant of the Padma Multipurpose Bridge and rail link project, said that once construction is started it will take six months to complete the work of the Padma bridge rail link project.

"We will monitor whether there is any impact of vibration [from traffic on the road], for which we have appointed an expert panel. According to the bridge authority, there will be no effect of vibration as per the design. By testing we will see if there is actually any effect or not", he added.

When asked if there will be any ban on traffic during these six months, FM Zahid Hossain declined saying there can be a few options if vibrations are high like decreasing the speed limit of cars or stopping traffic for a short time.

This will be determined after discussing with the consultation team, he added.

Railways DG Dhirendra Nath Majumder, Chief Convener Major General FM Zahid Hossain, Project Director Mohammad Afzal Hossain, Brig Gen ABL Kalam Azad among others were present during the railway minister's visit.

61% of Dhaka-Bhanga railway connection project completed: Railways minister

Railway Minister Nurul Islam Sujan said that the overall progress of the Dhaka-Bhanga rail link project is at 61% and the project is scheduled to be completed by 30 June 2024. To implement the project on time, the whole project has been divided into three sections. Dhaka-Mawa portion of the...

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[Isa Khan]

When the country is reeling from load shedding and production cuts in industries due to short supply of imported fuel, there is a small but significant development in the country: the national grid is likely to get an additional 60 megawatts of green power in December this year as the country's maiden large-scale wind-powered power plant is set to go into production in that month.

This is not the first wind power project of the country. The Bangladesh Power Development Board constructed a 0.9MW wind-based power plant near the dam along the River Muhuri in Sonagazi upazila under Feni district in 2005. Three years later, a 1MW wind power plant was constructed in Kutubdia, Cox's Bazar. Both the plants are now out of operation due to a lack of supervision and interest of the power development board.

This time, this power plant being built in Cox's Bazar will have an impact with its 60 megawatt capacity. The biggest advantage for Bangladesh from this green power project would be that it would not have to depend on any imported fossil fuel but only year-round natural wind to generate this power.

The 724km long coastal region of the country is suitable for wind power generation as there is significant wind power generation potential, according to a report of energytrackerasia, a renewable energy advocacy group. Bangladesh has vast potential to exploit this renewable energy source, which still remains untapped.

The $116.51 million wind power project was inaugurated on 31 March this year. US-DK Green Energy BD Ltd, a private company, is implementing the project with funding from the Chinese company SPIC Wuiling Power Corporation.

With 40% of the work already completed, the project is now awaiting installations of wind turbines in Khurushkul, PM Khali, Chowfaldandi, and Pokkhali unions of Cox's Bazar near the sea coast, said project sources. Two sets of turbines along with other necessary equipment reached the country Friday last, they added.

The firm that is developing the project will sell the electricity generated from the plant to the government under an 18-year management contract.

Richard Xie, CEO of US-DK Green Energy, told The Business Standard, "Work on installing the towers is going on. Foundation connections of six out of the 22 wind turbines have been completed, while that of four others are 70% done."

At present, the work is a bit slow due to the monsoon, he mentioned, adding that it will take about 45 days to finish the foundation connection work of the four turbines.

And then, the foundation connection work of the remaining 12 turbines will start, he continued.

He also said they are working to complete the project work within the stipulated time frame so that the power plant can go into production this December.

The government has laid emphasis on wind power generation as part of endeavour to raise the contribution of renewable energies to the country's total power supply to 10% by 2025.

The Power Division says the government will set up a dozen wind power plants in the country which are expected to add more than 500MW of electricity to the national grid.

This is only one of the first 9 such wind power projects that are expected to begin operation one after another.

Apart from the 60MW one in Cox's Bazar, three more wind power projects with a cumulative power generation capacity of 102MW are underway in Sirajganj, Bagerhat, and Chuadanga districts that will be completed next year.

Besides, contractor selection for a 50MW wind power project in Chandpur Sadar and a 30MW plant in Sonagazi of Feni are in the pipeline.

Moreover, the Power Division has planned to implement six more wind power projects with a total capacity of 272MW.

Cox's Bazar project progressing steadily

A total of 22 wind turbines – set on 110 metres tall towers– will turn wind energy into electricity using the aerodynamic force from the rotor blades, which work like an aeroplane wing or helicopter rotor blade, people associated with the 60MW wind power project in Cox's Bazar told The Business Standard.

On Friday last, a third shipment arrived at Chattogram from China with 900 tonnes of equipment including two sets of turbines.
Previous two shipments, one in December last and the other in May this year, brought in necessary equipment including foundation connection bolts.

Project Manager Engineer Mukit Alam Khan told TBS that a wind speed of three metres per second is required for generating electricity from wind. And the full capacity of a wind power plant can be utilised only when the wind speed is nine metres per second or above.

The average wind speed is 5.5 metres per second at the project site, but wind speed is slightly lower in winter, he added.

Green energy targets far from being met

The government, in its Renewable Energy Policy, had set a target to generate 5% of the total electricity supply from renewable energy resources by 2015 and 10% by 2020.

But the targets remain unfulfilled.

Now the government targets raising the contribution of renewable energies to the country's total power supply to 10% by 2025.

Currently, less than 4% of electricity comes from renewable sources.

According to data provided by the power and energy ministry, total electricity generation capacity in the country including captive and renewable energies currently stands at 25,235MW.

Md Alauddin, former chairman of the Sustainable and Renewable Energy Development Authority, told TBS the initiatives to build wind-power power plants can be deemed as the beginning of a new chapter in diversifying the country's energy mix.

Country’s first big leap in wind energy from December

When the country is reeling from load shedding and production cuts in industries due to short supply of imported fuel, there is a small but significant development in the country: the national grid is likely to get an additional 60 megawatts of green power in December this year as the country's...

www.tbsnews.net

Locally manufactured electric products, namely transformers and accumulators, are gaining popularity abroad as the industry's annual export earnings touched a record-high of $100 million in the just concluded fiscal year.

The last time export proceeds from electric goods even came close to the current level was back in fiscal 2014-15, when outbound shipments fetched a total of $90 million.

The industry's annual foreign earnings had fallen to around $65 million the following fiscal and despite a slight recovery in the year after, export receipts continued on a downward trend, hitting a low point of around $39 million in FY20.

Exports then ballooned by about 71 per cent in fiscal 2019-21 before going on to hit $67 million in fiscal 2020-21, according to the Export Promotion Bureau (EPB).

Industry insiders say the growth in exports was possible thanks to an increase in skilled manpower, production quality, branding, and acceptance in international markets.

Humayun Rashid, managing director and chief executive officer of Energypac Power Generation, said exports have risen as they are producing products of international standard.

"Efficiency is increasing and for this reason, the market is expanding," he added.

Rashid went on to say that it took a lot of effort for the industry to reach its current milestone as local manufacturers and exporters are tirelessly working to grab a bigger share of the global market.

Energypac currently exports electric goods to India and Nepal while the company previously shipped some products to Sudan, Ghana and the Philippines.

Rashid then explained that the industry could do even better with the help of government support in regards to building confidence on local products in the international market.

In addition, if the industry was given priority similar to the garment sector, then it could be possible to export up to $1 billion worth of electric goods in the next four or five years.

"We are mainly exporting transformers, switchgear, isolators and transformers," he said, adding that they now want to compete with China in supplying electric goods.

Other electric goods exported from Bangladesh include, but are not limited to, cables, distribution boards, tube lights, insulators, fans, heat and speed control systems, magnetic contractors and switches.

Sohel Rana, chief business officer of electrical appliances at Walton Hi-Tech Industries, said they are capable of producing products that meet international standards.

Bangladesh is now able to produce more quality products at a lower price because the country has more skilled manpower than before.

"We have exported fan, LED lights and switch sockets to Nepal, Bhutan, India, Uganda, East Timor, Mali, Yemen and Sri Lanka. We are working on expanding in the global market," he said.

According to Rana, Walton exported about 10,000 fans, switch sockets and LED lights between January and July this year.

"Our exports will open up new horizons in Europe, the Americas and Africa because necessary measures have been taken to export goods to these regions," he added.

KMG Kibria, assistant general manager of Minister Hi-Tech Park, said they are preparing for exports, which may begin next year.

"Electric products have great potential in both local and international markets. Other than China, those who are in this market are not doing very well and so, Bangladesh has a big opportunity in this regard," he added.

"Our primary target is to export to the Middle East, Nepal, Bhutan and some parts of India and Africa."

Exports of electric goods surge to $100m

Locally manufactured electric products, namely transformers and accumulators, are gaining popularity abroad as the industry’s annual export earnings touched a record-high of $100 million in the just concluded fiscal year.

www.thedailystar.net

Shipping cost at Chattogram port is going to come down by about 40% as a fully dredged Karnaphuli River will allow 10-metre draught vessels to berth at the port from next month, which will speed up handling of containers.

At present, ships with a maximum draught of 9.5m can anchor at the port, carrying around 1,500-2,000 containers at one go, according to people concerned.

But, once a project to dredge a four-kilometre stretch of the Karnaphuli near the port, which has achieved 93% progress so far, is complete, 10-metre-draught vessels, capable of carrying around 2,500-3,000 containers each at a time, will be able to berth at the port, they added.

Syed Iqbal Shimul, senior vice-president of the Bangladesh Shipping Agents Association, said, "The container volume will double if ships with a draught of 10 metres and a length of 200 metres arrive at the port.

"As a result, the transportation cost of a 40-foot container will drop to $5,000 from $8,000. And the cost of a 20-foot container will come down to $2,500 from $4,000."

This will reduce import-export costs, he observed.

Omar Farooq, secretary of Chattogram Port Authority, said, "A British consulting firm is working on these issues. Ships with a draught of 10 metres will be allowed to enter the jetty after their reports are received next month."

So far, 46 lakh cubic metres of waste, of which 50% is plastic and polythene, have been removed from the four-kilometre area by using special dredging machines.

The dredging project was undertaken in 2011 to increase the navigability of the river. The project cost was initially estimated at Tk229 crore.

According to sources, initially, the dredging work was conducted by the Malaysian Maritime and Dredging Corporation (MMDC). But the company left the country without finishing the work.


The authorities then cancelled the agreement with the company in 2014 and were involved in a legal battle with the company for five years. In 2018, the project was undertaken anew with E-Engineering, a sister concern of Saif Powertech.

The project cost was also increased to Tk321 crore with a target of extracting 51 lakh cubic metres of waste from Sadarghat to Bakliar Char areas of the river.

Md Saiful Islam, project manager of E-Engineering, told The Business Standard, "The work was very challenging. At first, the dredgers were not working because the pile of waste was solid. There was everything in the base of the Karnaphuli – plastic, polythene, cloth, wood, tree bark, iron, etc."

"We used 20-25 bulk carriers and more than 10 graft dredgers for this work. After removing the waste, we excavated the soil with dredgers. The soil has been dumped in different places, including Bakliar Char, Bastuhara, Firingibazar, Chaktaikhal, and on the north side of Shah Amanat Bridge.

"Siltation of the river posed another challenge. After we extracted the soil of a place, it was being filled with the soil from the surrounding area. Due to this, dredging has had to be done several times in the same place."

Dredging will continue as part of regular maintenance until 2025, he further said.

Commander M Arifur Rahman, director of Capital Dredging Project and chief hydrographer of Chattogram Port Authority, said, "The traditional dredging method did not work here as there was a layer of waste on top of the soil and sand. After consulting with Buet experts, we first determined where the piles of dirt were. We used an echo finder device and other methods to determine the depth of the layer of the waste."

"Out of the total 51 lakh cubic metres of waste, 25-27 lakh cubic metres were solid waste, including plastic, polythene, rubber. Around 85%-90% of the waste was lifted from the front section of Chaktai-Rajakhali canal. The capital dredging work will be completed this month. After that, maintenance dredging work will continue till 2025," he added.

Currently, this city of about 70 lakh people generates about 40 crore litres of sewage and three lakh litres of domestic waste daily which go to the river through 51 canals.

Apart from this, several hundred tonnes of industrial waste also go into the river. Moreover, during the rainy season, about 10 lakh tonnes of silt fall into this river every day with rainwater.

Meanwhile, Dr Md Shafiqul Islam, professor of the Institute of Marine Sciences, Chattogram University, told TBS that the dredging project has damaged some species, especially slow-moving animals such as annelids, snails, etc, living in the Karnaphuli.

"There are also endangered dolphins in the river. We suggested the authorities keep the mouths of different channels open as dolphins collect food from these places."

People concerned said Chattogram port has three terminals – New Mooring Container Terminal (NCT), Chattogram Container Terminal (CCT), and General Cargo Berth (GCB). Among them, ships with 10 metres draught will go to NCT and CCT following the completion of the dredging work.

Besides, the construction of Patenga Container Terminal with four berths has also been completed. The trial operation of this terminal will begin on 21 July, they said.

Karnaphuli dredging to cut shipping cost at Ctg port by 40% from Aug

So far, 46 lakh cubic metres of waste, of which 50% are plastics and polythene, have been removed from the four-kilometre area of the river adjacent to the port

www.tbsnews.net

 

[Isa Khan]

Highlights:

• Eight silos are being built in the country to strengthen the country's food security and agriculture sector
• The Patenga silo will store 1,14,300 MT of food grains for three years
• It will ensure safe storage against the effects of climate change including floods and cyclones

---

Construction of the country's biggest steel silo begins in Chattogram's Patenga today.

Built with cutting-edge technology, this silo will have a food grain storage capacity of 1,14,300 tonnes for several years.

A total of eight silos are being built across the country to strengthen the country's food security and agriculture sector, according to officials of the Directorate General of Food.

Food Minister Sadhan Chandra Majumder, scheduled to lay the foundation stone for the silo construction, told The Business Standard (TBS), "Eight steel silos, the largest one being in Chattogram, are being built throughout the country under the World Bank's Modern Food Storage Facilities Project (MFSP)."

Project Director Md Rezaul Karim Sheikh told TBS that six acres of land in Patenga have already been developed to implement the project.

"The silo will have a total of nine bins, each with a storage capacity of 12,700 metric tonnes. Even when food grains are stored for three consecutive years, the quality will not deteriorate," he said, adding that the project will cost Tk537 crore, and is expected to be completed within the next three years.

Regional Food Controller of Chattogram Md Zahirul Islam Khan told TBS, "The Patenga silo will be able to store 1,14,300 tonnes of wheat. There will be no more crisis in meeting the country's flour needs."

"Currently, the country has the capacity of storing 22 lakh tonnes of food grains, of which, 4.5 lakh tonnes is wheat," he said.

"The effects of climate change including floods and cyclones are having a negative impact on food production. This steel silo will play an important role in ensuring the safe storage of food grains during natural calamities in the country while keeping the quality and nutritional value intact," Zahirul Islam added.

The existing food warehouses in Chattogram are old. A lot of food grains have already gone to waste in some places including Dewanhat CSD due to a number of issues, including a damp environment and insect infestation, according to food officials.

Fani Bhushan Devnath, a sub-divisional engineer of the Chattogram Regional Controller of Food Office, told TBS, "Wheat imported from abroad will be stored directly from the ship to the Patenga silo bin through a special pipe with no chance of exposure to air."

Everything will be controlled by automatic digital machines starting from food storage and distribution to vitamin mixing in these steel silos, he added.

Three lakh families in disaster-prone areas will get home silos

"Besides in Chattogram, silos are being built in Dhaka, Narayanganj, Mymensingh, Barishal, Ashuganj, Maheswarpasha and Madhupur. Six of the silos are for rice and two for wheat storage. Once completed, the food grain storage capacity of the country will increase by 5,36,000 metric tonnes," said Project Director Rezaul Karim.

Moreover, on the occasion of Bangabandhu's birth centenary, small portable silos, with a capacity of storing 70 litres of water and 55 kilograms of rice, will be distributed to three lakh underprivileged families in disaster-prone areas of the country under this project, he said.

In 2013, the World Bank funded the Directorate of Food to build eight steel silos with an estimated expenditure of Tk1,916 crores. The project was scheduled to be completed in June 2020.

When the work started in 2017, the cost had increased a lot and the project got delayed further. Later, in coordination with the World Bank, a project cost of Tk3,538 crore was determined.

Country’s largest steel silo construction begins in Ctg

Highlights: Eight silos are being built in the country to strengthen the country's food security and agriculture sector The Patenga silo will store 1,14,300 MT of food grains for three years It will ensure safe storage against the effects of climate change including floods and cyclones...

www.tbsnews.net

Country’s First 6-Lane Arch Bridge

Workers are busy at the construction site of Kalna Bridge, the country’s first six-lane arch bridge, over the Madhumati River in Kashiani upazila of Gopalganj. The 690-metre-long bridge will reduce the Dhaka-Benapole distance by more than 100km and travel time by four hours. The bridge is expected to open to traffic in September. The photo was taken on Thursday.

 

[Isa Khan]

The government has taken steps to develop the iron ore mine discovered for the first time at Hakimpur upazila in Dinajpur district, report BSS.

As part of the process, German company-DMT Consulting Limited will soon start preliminary study for the development of the Iron Ore Deposit.

Barapukuria Coal Mining Company Limited (BCMCL), a concern of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), signed a memorandum of understanding (MoU) with DMT Consulting Limited Monday, said a press release.

BCMCL secretary Umme Tajmeri Selina Akhter and DMT Consulting Limited Managing Director Dr Vassilis Roubos signed the MoU at a function at Petrobangla boardroom in the city.

Petrobangla Chairman Nazmul Ahsan presided over the function while BCMCL Managing Director Md Shaiful Islam Sarkar and other senior officials concerned were present.

Under the MoU, a feasibility study will be conducted on a 6 square kilometer area. Based on this study report, a detailed feasibility study will be conducted later for mining if the iron ore reserves are found sufficient and economically viable.

Earlier, the Geological Survey of Bangladesh (GSB) discovered the iron-rich rock mine at Alihat area of Hakimpur upazila in Dinajpur, assuming that the mine covering 5 square kilometer area is primarily a home to reserves of 625 million tons of iron ore.

The depth of the iron ore-rich rocks found in the mine is 426 to 548 meters while percentage of iron ore in the rock layer is 50 percent. The average thick of these rock layers is 68 meter.

Govt takes steps to develop Dinajpur iron ore mine

The government has taken steps to develop the iron ore mine discovered for the first time at Hakimpur upazila in Dinajpur district.

en.prothomalo.com

A 3 MW hybrid power plant with solar panels, diesel generators, and a battery storage system is being set up to supply electricity to Bhola's Monpura island which is isolated from the mainland.

The West Zone Power Distribution Company Limited (WZPDCL) and Western Monpura Solar Power Limited (WMSPL) will jointly implement the power plant project.

Nirod Chandra Mondal, joint secretary at the Power Division, Md Alamgir Kabir, secretary of WZPDCL, and Bashir Ahmed, managing director of WMSPL, signed an agreement on behalf of their respective organisations in this regard at Bidyut Bhaban on Monday.

According to the agreement, the West Zone Power Distribution Company will purchase electricity from this power plant at Tk21.86 per unit and sell it to customers at a rate set by the government for 20 years after its construction is completed.

Currently, the average price per unit of electricity at the consumer level as determined by the Bangladesh Energy Regulatory Commission is Tk7.13.

Under the project, a 10 MW solar panel, and a 20 MW lithium-ion battery energy storage system will be set up.

There will also be two 1,25 MVA diesel generators as backup to ensure uninterrupted power supply to the island during natural calamities or on cloudy days.

At least 30,000 kilowatt hours of electricity will be available from the power plant every day.

Around 20,483 consumers of Monpura island will get electricity from the power plant at the Energy Regulatory Commission's rate. As a result, the people's quality of life will improve with the development of employment, industrialisation, and tourism on the island.

Monpura island at the Meghna estuary is about 18 km from the mainland and around 96 km from a national electricity grid substation.

Currently, 2,303 customers on the island are getting electricity from three mini grids with a capacity of 675kWp, 853 customers from a 1.66 MVA diesel generator, and other customers from a solar power system. However, these infrastructures cannot supply electricity to all consumers on the island at the government rate throughout the day.

All consumers on the island can be supplied with electricity at the government price once the new power plant is set up, said Md Matiur Rahman, the project director.

In his speech as chief guest at the contract signing ceremony, Power Division Secretary Md Habibur Rahman said the energy of the future is renewable energy. The government's commitment to transitioning to green energy is also encouraging the expansion of renewable energy.

Regarding the current energy crisis, the Power Division secretary said it would be easier to deal with the current situation if the country could produce more electricity from renewable sources.

3 MW hybrid power plant for Monpura island

The West Zone Power Distribution Company will buy electricity from the power plant for Tk21.86 per unit and sell it to customers at a rate set by the government for 20 years

www.tbsnews.net

 

[Isa Khan]

Seven more companies have come forward to invest over $94 million in Sabrang Tourism Park – the country's first exclusive tourism park – under construction in Cox's Bazar.

The businesses will build luxury hotels, resorts and cottages in the tourist centre, located about 450km from Dhaka. The new investments are expected to generate around 2,000 jobs.

According to the Bangladesh Economic Zone Authority (Beza), the Prime Minister's Office approved the investment proposals last week.

Ifad Group will invest heavily in building various tourist facilities, such as a five-star hotel. Ifad Autos, a sister concern of the group, will invest $31.69 million in building a hotel on a six-acre site, which will generate employment for 350 people.

Ifad Motors Limited, another company belonging to Ifad Group, wants to invest $16.20 million on a one-acre plot of the 1027-acre park located in Sabrang union of Teknaf Upazila.

In addition, DIRD Composite Textiles Ltd, Patwary Enterprise, East West Travels and Tours (Pvt) Ltd, DIPTA Garments Ltd, and DIRD Garments Ltd will build hotels, cottages and restaurants in the park, located about 82km from Cox's Bazar district town.

Iftekhar Ahmed Tipu, chairman of IFAD Group, told The Business Standard, "We will start talks with international chain hotels from next month to build a five-star hotel on six acres of land. We will also construct a resort and a small amusement park on another acre of land. There will be speedboats too there."

"We are keeping in mind that the people of our country can also use it. We are giving importance to the fact that the cost should be low despite providing international standard services," he added.

According to BEZA, DIRD Composite Textiles Ltd has obtained two acres of land where it will build a resort hotel. This investment of $17.29 million will provide employment to 315 people.

In addition, the company has proposed building cottages and resorts with an investment of $6.67 million on an acre of land.

DIPTA Garments Ltd will build a resort hotel on two acres of land with an investment of $4.25 million. It expects at least 300 people to be employed.

A 5km long and 15-foot high embankment has been constructed to protect the Sabrang tourist area from storms and high tides. BEZA has already inaugurated an iconic photo corner at Sabrang Tourism Park.

Beza Executive Chairman Sheikh Yusuf Harun said, "Land lease agreements will be signed with these companies soon. BEZA is working on creating an investment-friendly environment."

"The land development work of Sabrang Tourism Park has been 50% completed. The installation of a super dike, administrative building, and power connection has been completed. The construction of the boundary wall is ongoing," he added.

He mentioned that the remaining infrastructure construction will be completed soon. "Investors can begin their investment activities right away," he added.

Earlier, 120 acres of land had been given to 11 companies. BEZA has also entered into land lease agreements with them. These institutions will invest $202 million, which is expected to create more than 9,000 jobs.

Sabrang is an amazing hill and sea beach territory, multifaceted in diversity and remarkably beautiful. The purest air, lofty hill, sea and lagoon create perfect conditions for the development of all types of tourism and entertainment.

The park will have various entertainment facilities such as eco-tourism, marine aquarium and sea-cruise, special reserved area for foreign tourists, special arrangements for travel to St Martin's Island, floating jetty, children's park, eco-cottage, oceanarium, underwater and floating restaurants.

The authorities expect that, once this tourist centre is implemented, 39,000 domestic and foreign tourists will be able to enjoy it every day. It will create 11,000 jobs.

Mohiuddin Helal, founder and chief executive officer (CEO) of River and Green Tours, has admired the natural beauty of Cox's Bazar, the longest beach in the world.

"There are ancient traditions and places to visit along the 120km beach. Despite that, foreign tourists do not come to Bangladesh," he said in disappointment.

Mohiuddin Helal said the lack of a separate area for them is among the drawbacks there. Now a planned tourist centre is being developed which will attract more foreign tourists.

"And if local companies invest here, foreign international chain hotels will also be more interested in coming to Bangladesh," he added.

7 cos to invest $94m in Sabrang Tourism Park

Ifad Group will construct a five-star hotel at the country’s first exclusive tourism park

www.tbsnews.net

Matarbari development project