Bangladesh News Bangladesh Economy & Development Thread

[Isa Khan]

The Switzerland-based construction chemical manufacturer Sika Bangladesh Limited has begun setting up a factory in the Meghna Industrial Economic Zone (MIEZ) with an investment of $6 million.

The groundbreaking ceremony of the factory was held on Thursday at the MIEZ in Sonargaon upazila of Narayanganj.

Speaking as the chief guest at the programme, Bangladesh Economic Zones Authority (BEZA) Executive Chairman Shaikh Yusuf Harun said the company will start production in the third quarter of next year.

He said, "I want to mention how proud we are to be a part of a venture as big as yours. Sika has been operating in 101 countries, with a global turnover of $9.38 billion in 2021 alone. This is nothing but good news for us.

"I would like to take this opportunity to assure you that your venture will have all-out support from us in every step of your way."

Swiss Ambassador to Bangladesh Nathalie Chuard said, "Bangladesh is transitioning from the list of least developed countries (LDC) to the status of a developing country. Foreign direct investment (FDI) is very important for Bangladesh. We want to be a cooperative partner in the development of Bangladesh."

Director of Meghna Group of Industries (MGI) Tanjima Binthe Mostafa said, "The decision to create an economic zone is a significant step of the Bangladesh government. As a result, foreigners are becoming interested in investing here. This is developing the country's industrial sector."

Since 1910, Sika has been a reliable partner in construction projects in almost every part of the world and has gained an enviable reputation for quality products and system solutions backed by unrivaled technical expertise and support.

Sources at Sika said the firm will produce chemicals required for various dry mortars in Bangladesh. It will improve the quality of the mixture, making infrastructure sustainable.

Country Head of Sika Bangladesh Sanjiban Roy Nandi told TBS, "We are building the factory in a 10,000 square metre area, where the initial investment will be $6 million. It will employ around 100 people."

"The factory will produce construction chemical admixture and grout chemicals. There is a heavy demand for this chemical in Bangladesh as the country is going through large scale infrastructural development. The market size of these products is around Tk800-900 crore in the country."

Sanjiban Roy Nandi also said the company has applied for one more plot in the economic zone.

"We started our operations in Bangladesh in 2017. Currently, we bring the finished products and sell them through local distributors. We have supplied our products to the mega projects that are going on in Bangladesh. Here we can easily deliver the product when it is ready," said Sanjiban Roy Nandi.

BEZA Executive Member Abdul Azim Chowdhury and Regional Target Market Manager Concrete Asia and Pacific and Area Manager South Asia Yumi Kan were also present at the ceremony.

Swiss co Sika starts factory construction in Meghna Industrial EZ investing $6m

The market size of construction chemicals is around Tk800-900 crore in Bangladesh

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The government is creating master plans for all upazilas to provide better civic amenities to people and the documents would guide future development activities at the upazilas for planned urbanisation.

The master plans include development of urban and rural infrastructures for best land use and protecting the environment.

Out of the 495 upazilas, master plans have already been prepared for 14 and the preparation of master plans for eight other upazilas are in the final stage.

The creation of the master plans is part of the government's strategy for turning Bangladesh into a developed nation by 2041.

Separate master plans for all upazilas will be formulated by 2030.

In addition to the upazila headquarters, the entire upazila will be incorporated into an upazila master plan design. There will be designated sites for housing, hospitals, markets, schools and colleges, playgrounds, agricultural farms, and industrial facilities.

The Local Government Engineering Department (LGED) is implementing the upazila-based master plan formulation under the "Technical Assistance Project for My Village-My Town". The ruling Awami League's election manifesto of 2018 pledged for planned urbanisation and increasing civic amenities across the country through the implementation of the "My Village- My Town" mega plan.

Monzur Sadeque, director of the technical assistance project, stressed the need for formulating separate master plans for all upazilas saying, "The master plan will guide future development activities. There is no alternative to the formulation and implementation of upazila master plans if we want to ensure planned development of urban and rural areas at the upazila level."

LGED officials told TBS that the development of rural economy, creation of employment opportunities, reduction of inequality, and poverty reduction through proper planning and development work is one of the main objectives of the formulation of upazila master plan.

Proper implementation of the master plan will ensure the best utilisation of land resources of the upazilas, while the increasing demand for accommodation and urban civic amenities can be met through public-private partnership. Besides, it will be possible to preserve agricultural land, reservoirs, natural canals, water flows, open spaces, playgrounds, parks, etc.

Expressing similar views, Akter Mahmud, professor of urban and regional planning at Jahangirnagar University, said agricultural land, and wetlands are being destroyed due to unplanned construction across the country.

"But nature, agricultural land, and wetlands need to be conserved for the sake of future generations. So, it has become necessary to prepare development master plans for all the upazilas of the country."

Dr Md Musleh Uddin Hasan, professor of Urban and Regional Planning at Bangladesh University of Engineering and Technology, said preparing a master plan is the first step toward planned development.

"Once prepared, the master plan should be made into a compulsory document. Therefore, in the second phase, the master plan should be made into a government gazette. An institution must be made responsible for ensuring that everyone follows this. At the same time, the institution should be equipped with adequate manpower and necessary logistics."

"After that, government agencies at the upazila level will build the infrastructure according to their respective responsibilities. For example, those who will be responsible for the construction of schools will set them up at designated places. They will not be required to look for a site to set up a school."

Akter Mahmud of Jahangirnagar University, however, said upazila master plans are local level plans. There should be another plan at the national level – the national physical master plan – which will guide development strategies for the entire country by preserving the rivers, canals, banks, hills, forests, and plain lands.

The national-level plan will include strategies for all kinds of development activities, including how a specific region of the country will be developed, what kind of industry will be in any area, and where economic zones will be set up, he suggested, adding upazila master plans should be prepared in light of this plan.

Formulation of the national physical plan and upazila master plans at the same time will be beneficial, he said.

Dr Salauddin M Aminuzzaman, a local government specialist, ‍and professor of the Department of Public Administration at Dhaka University, told TBS that even if the LGED formulates the upazila master plans, it must take opinions from elected public representatives to local government.

"Infrastructure development activities should now be spread to the union level from the upazila level. The LGED will understand well where the roads will be, where the hospital or school will be, and where the markets will be. They have that technical skill. However, if the LGED does this work alone, then the local government is undermined.

"Ideas about which roads will pass through which areas should come from the local government. Especially, in the development of infrastructure up to the rural level, if the opinions of the chairman and members of the union and upazila parishads are not taken, then the development work may face obstacles at the implementation stage."

Progress so far

The feasibility study for the formulation of upazila-specific master plans under LGED's "Technical Assistance Project for My Village-My Town" has been completed.

Based on the survey report, a separate project will be taken up for the formulation of the master plans. The average cost of preparing a master plan design for each upazila is estimated at Tk11 crore. As such, more than Tk5,000 crore will be spent on preparing master plans for all upazilas.

Project Director Monzur Sadeque said the LGED completed the preparation of master plans for 256 municipalities in the country between 2005 and 2020. In the next stage, an initiative has been taken to formulate the upazila master plans, he said, adding that the municipal master plans will be updated during the preparation of the upazila master plans.

LGED officials said the department has set a target to prepare a project proposal for the formulation of upazila master plans, get it approved, and start implementing it within the next one year.

They also said that the Asian Development Bank (ADB) has already agreed preliminarily to finance the project. The Japan International Cooperation Agency (Jica) has also expressed interest in financing such projects.

According to officials, the Urban Development Directorate prepared master plans for 14 upazilas in 2014. These upazilas are Dohar and Nawabganj in Dhaka, Shibchar in Madaripur, Raipur in Lakshipur, Shibpur in Narsingdi, Ishwarganj in Mymensingh, Faridpur Sadar, Bagmara in Rajshahi, Gangni in Meherpur, Saghata in Gaibandha, Sonatala and Sariakandi in Bogura, Ramu in Cox's Bazar, and Rangunia in Chattogram.

Besides, the LGED is working on the preparation of master plans for12 other upazilas, which include reviewing and updating four upazila master plans that were prepared in 2014. The eight new upazilas include Manoharganj in Narsingdi, Lalmai in Cumilla, Fakirhat in Netrokona, Kaliganj in Satkhira, and Dumki in Patuakhali.

The work is scheduled to be completed by December 2023.

Although master plans have been prepared for several upazilas, none have entered the implementation phase.

According to urban planners, if the master plans are to be implemented, urban planners should be appointed up to the upazila levels. At the same time, necessary logistic support should be provided and institutional capacity should be strengthened.

What the plan contains

The development plan prepared for Nawabganj upazila in Dhaka includes guidelines for controlled use of land for roads, houses, industries, open spaces, schools and hospitals, protecting as much land as possible for agriculture.

The plan, though scheduled for 2013-2033 period, was submitted to the housing ministry's Urban Development Directorate in June 2018.

It has five tiers of development works to be done in 5, 10 and 20 years both in urban and rural areas.

In its land use zoning, the plan keeps the highest share of land (56.8%) for agriculture, followed by nearly 20% for residential purpose, 15.6% for water bodies, and 1.6% for transportation, earmarking around 0.5% land for manufacturing and processing, economic zone, health services, and educational institutions.

It also reflects people's wish list, setting improved healthcare, transportation, and education among development priorities at the union level. The plan short-listed nine projects to be implemented in two five-year phases till 2023 at an estimated cost of Tk46.68 crore.

As upazila parishad does not have its own revenue source, it will need more grants from the government or development partners to finance such projects, consultants for the plan suggest.

Though it is more than four years since the plan was submitted to the Urban Development Directorate, local officials know little about the extensive 226-page plan with detailed area maps.

Matiur Rahman, chief executive officer of Nawabganj upazila, ‍said he does not have any idea about the upazila master plan.

Shibchar Upazila Nirbahi Officer (UNO) Md Razibul Islam also said he does not know about the master plans as he has joined the upazila very recently.

Long way to go

The planned township and integrated rural development will require infrastructure and service facilities that can be done by the proper utilisation of such urban and rural area plans. This in turn will make a positive impact on economic growth, social progress, and environmental sustainability in the whole region, says the project document.

In a report launched on 29 September in Dhaka, the World Bank also stressed the need for the development of a second tier of urbanisation to create jobs outside the two major cities – Dhaka and Chattogram.

The report, "Bangladesh Country Economic Memorandum: Change of fabric", calls for getting urbanisation right as it finds the benefits of urbanisation have slowed in Bangladesh due to high concentration on two major cities and poor development of secondary cities.

It feels the need for developing transport routes and digital connectivity to attract firms and people to small and medium-sized cities and create tradable activities in all types of towns.

But the plan is too big to reach the stage of physical implementation as the master plans for all the upazilas will take a few more years to get in shape.

The LGED's feasibility study report has proposed the preparation of master plans for upazilas in different phases. Master plans for 90 upazilas will be formulated in each phase.

The report also said that it has been proposed to prepare master plans in different phases due to the lack of institutions capable of preparing city-centric master plans.

Massive plan for upazila urbanisation

Each upazila will have a separate master plan with controlled use of land in urban and rural areas

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The Meghna Group has set its footprints in the international plastic raw material market, with an export worth Tk150 crore in just three months of launching its petrochemical factory, the first of its kind in the country.

"Aside from exporting, we have sold plastic raw materials worth Tk150 crore in the local market within this period," Suman Bhowmik, senior deputy general manager of Meghna Group of Industries, told The Business Standard (TBS).

He said there is a huge demand for plastic raw materials in the country, which previously depended totally on imports, and in the international market.

"The demand for PET resin in the country is two lakh tonnes per annum, while we have a production capacity of one lakh tonnes," he said.

"PVC resin production has just started in the country. Some of our products have already been sold and used for manufacturing plastic pipes. Demand for PVC resin in the country is above four lakh tonnes per year while we have a production capacity of 1.5 lakh tonnes," he added.

The local business conglomerate invested $400 million to set up the plant in Meghna Economic Zone (MEZ) in Sonargaon, Narayanganj. Construction of the petrochemical plant on an area of 97,205.491 square metre in MEZ took about five years.

The Meghna Group started producing Polyvinyl Chloride (PVC) resin on 14 September and Polyethylene Terephthalate (PET) resin three months ago.

PVC is used in a variety of applications in the building and construction, health care, electronics, automobile and other sectors, in products ranging from piping and siding, blood bags and tubing, to wire and cable insulation, windshield system components and more.

PET is used in fibres for clothing, containers for liquids and foods, and thermoforming for manufacturing, and in combination with glass fibre for engineering resins.

Apart from selling products in the local market, the company has already exported PET resin to India, Italy and Dubai, said sources at the company.

The plant is equipped to produce three different grades of PVC resin: K57 – used for Injection moulded fittings, K67 – used for rigid PVC pipes, profiles and films, and K70 – used for packaging films, calendered films, and cables.

Suman Bhowmik said, "This is the largest investment in the private sector here. Our factory employs about 1,900 people."

"The Barmag Huitong Technology used by Meghna PET produces better quality PET compared to other Technologies. Also, Meghna PET uses a liquid heating system and vapor in production which results in low heat consumption. High class technology and Solid state Polycondensation plant from UOP-SINCO, Italy makes Meghna PET the best in the market," Said Suman Bhowmik.

The Meghna Group's petrochemical factory has not been using its full capacity for production, said sources at the company.

Suman Bhowmik said, "The PET Resin plant is operating at 90% capacity. There is an order of 500 tonnes of PVC resin from India. Soon we will go to our maximum production."

Plastic consumption increasing

According to Bangladesh Plastics Market Outlook 2019-2025, published by the Business Wire, factors such as low-cost manufacturing, sustainability, large scale availability of raw material, and durability are driving the Bangladesh plastic market at a Compound Annual Growth Rate (CAGR) of 8%.

The current per capita plastic consumption in Bangladesh is 7 kg per year as compared to around 23 kg per year in India and over 100 kg per year in other developed countries like the US and Singapore. Hence there exists a huge potential in this market which is poised to grow to $6.5 Billion by 2024-25, said report.

Shamim Ahmed, president of Bangladesh Plastic Goods Manufacturers and Exporters Association, told TBS, "We need many types of raw materials. We are heavily dependent on imports for PET Resin and PVC resin. I have bought PVC Resin at $1,150-$1,200 per tonne as its price fluctuates in the international market.

"If this raw material is produced in the country it will benefit our business heavily. We will be able to manufacture and export various products made with these locally produced raw materials. It is the opening of a new horizon for the country."

Bangladesh Economic Zones Authority (BEZA) Executive Chairman Shaikh Yusuf Harun told TBS, "The Meghna Group has opened its petrochemicals plant, which is its biggest project. The raw materials produced here will advance other industries in the country."

Meghna Group sets foot in global plastic raw materials market

Apart from selling products in the local market, the company has already exported plastic raw materials to India, Italy and Dubai

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[Isa Khan]

A water treatment plant set up near the Patenga silo jetty was inaugurated yesterday to purify 3 million gallons daily from the Karnaphuli river and meet shortages at 148 factories in Chattogram Export Processing Zone (CEPZ).

"From the beginning of the establishment of Chattogram EPZ, there was a shortage of drinking water in this region," said Bangladesh Export Processing Zone Authority (Bepza) Chairman Maj Gen AKM Ziaur Rahman on opening the facility.

"This problem was worsening day by day," he said.

Despite having a demand of 8 million gallons per day, very little was available from Chattogram Water and Sewerage Authority (Wasa), he said.

For this, factories were allowed to set up deep tube wells despite it being known that those were harming the environment, said the Bepza chairman.

The CEPZ officials explained that Chattogram Wasa provides 2,00,000 gallons, 112 deep tube wells 3 million gallons and Karnaphuli EPZ 28,00,000 gallons.

Rahman expressed hope that the new plant would solve all problems once operational.

"Karnaphuli Water", a company of Dhaka-based Sigma Group, implemented the project.

Surface water from the Karnaphuli river will be used during low tide to avoid salinity, Sigma Group General Manager (Project) Engineer Tajul Islam told The Daily Star.

Syed A Reza, chairman of Sigma Group, gave a presentation while CEPZ Executive Director Mashiuddin Bin Mejbah was present among others.

Treatment plant opens to end CEPZ water crisis

A water treatment plant set up near the Patenga silo jetty was inaugurated yesterday to purify 3 million gallons daily from the Karnaphuli river and meet shortages at 148 factories in Chattogram Export Processing Zone (CEPZ).

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The first unit of the Matarbari Coal-Powered Plant in Cox's Bazar will go into commercial production in January 2024, the project director told the parliamentary standing committee on environment, forest and climate change.

The unit, part of the first phase of the project, has a capacity of generating 1200MW, according to the website of Coal Power Generation Company Bangladesh Ltd, which is implementing the project.

On Thursday, members of the parliamentary committee, led by lawmaker Saber Hossain Chowdhury, visited the power plant to see its progress and the steps it has taken to tackle the projected pollution from the coal-fired plant.

In a meeting later that day between the parliamentary committee members and project authorities, Abul Kalam, director of the project, said measures to contain pollution, like using Ultra Super Critical Technology, have been taken.

In the meeting, the project director said the power production from this plant will begin in January 2024, and 82 percent of the structural work has been done.

Saber underscored the need to ensure that there was no waterlogging due to the construction of the power plant in the project area.

Local lawmaker Ashek Ullah Rafique said there were payments to labourers and locals pending and urged the chairman of the standing committee to look into the matter.

Matarbari power plant: 2 units to start production in January 2024

The first unit of the Matarbari Coal-Powered Plant in Cox’s Bazar will go into commercial production in January 2024, the project director told the parliamentary standing committee on environment, forest and climate change.

www.thedailystar.net

 

[Isa Khan]

Prime Minister Sheikh Hasina has inaugurated the country's first-ever six-lane Modhumoti Bridge in Narail and the 3rd Shitalakhya Bridge in Narayanganj.

She declared the two long-awaited bridges open for public use virtually from the Prime Minister's Office in Dhaka on Monday noon.

The premier, while addressing the inauguration event said, "The six-lane Modhumoti Bridge will connect with the Trans-Asian Highway. Communication with Mongla Port, Benapole, Bhomra and Kushtia will be improved which will facilitate trade.

"The two bridges will effectively improve the country's road connectivity and will bring economic development and cut down travel time."

Road Transport and Bridges Minister Obaidul Quader spoke at the function while PM's Principal Secretary Dr Ahmad Kaikaus moderated it.

Ambassador of Japan to Bangladesh ITO Naoki and Ambassador of Saudi Arabia to Bangladesh Essa Youssef Essa Al Duhailan also spoke on the occasion.

Secretary of the Road Transport and Highways Division A B M Amin Ullah Nuri gave a brief description of the bridges.

A video documentary on the bridge projects was also screened.

The 690-metre-long Modhumoti Bridge, which is locally called Kalna Bridge, is built on River Modhumoti at a cost of Tk960 crore with the funding of Japan International Cooperation Agency (Jica).

It connects Narail, Gopalganj, Khulna, Magura, Satkhira, Chuadanga, Jashore, and Jhenidah districts.

Once opened, the people of the southwestern region will enjoy faster road communication as the bridge will reduce over 100km distance from Kalnaghat to the capital Dhaka, according to project officials.

People of at least 10 southwestern districts will be able to travel to different areas in lesser time. It will also reduce travel time from the country's largest land port Benapole and Jashore to Dhaka, as the distance will only be 130km.

Prime Minister Sheikh Hasina laid the foundation stone of Modhumoti Bridge on 24 January, 2015, between Kashiani upazila under Gopalganj district and Lohagara upazila under Narail district.

The people of the region now use the Dhaka-Jashore-Benapole highway via the Paturia-Daulatdia ferry ghat meaning they travel 100km more to reach Dhaka from Jashore.

According to project officials, the bridge will be a part of the Asian Highway which will connect the capital with the country's south-western zone including the country's biggest Benapole Land Port.

The 27.1-metre wide bridge would have six lanes including four high-speed lanes and two service lanes with 4.30km approach road.

The economic activities of Benapole Land Port, Mongla Sea Port and Noapara River Port will increase manifold.

The residents of the region can come back to their homes after finishing their jobs in Dhaka within a day.

Some commuters said their longstanding sufferings via Kalna Ferry Ghat would come to an end through the opening of the bridge.

The 3rd Shitalakhya Bridge, which is named after valiant Freedom Fighter AKM Nasim Osman, will connect Narayanganj city with Bandar upazila, boosting the economy, and easing the communication between Chattogram and southwestern districts via Padma Bridge.

The 1.29km bridge will enable Chattogram region-bound vehicles from the southwestern region and vice-versa to bypass Narayanganj city to avoid traffic congestion and save time.

The bridge construction is estimated at a cost of Tk608.56 crore as Tk263.36 crore came from the Bangladesh government fund and Tk345.20 crore from Saudi Fund for Development (SFD).

The bridge with walkways has 38 spans - five in the river and 33 in the east and west ends. The width of the bridge along with walkways is 22.15 meters.

The Shitalakhya River separates the Bandar upazila and Sonargoan upazila from the district headquarter.

These two upazilas are not directly connected to the district headquarters by road. Kanchpur Bridge (Shitalakhya-1 Bridge) has to be used to go to the district headquarters from the two upazilas which requires nearly 30km of travelling by road to cross just 3-5km distance through the river by boat.

Several thousands of people living in Bandar upazila cross the river Shitalakhya by boat every day for work in Narayanganj and Munshiganj. Similarly, people from Narayanganj and Munshiganj also cross the river Shitalakhya by boat to come to Bandar or Sonargoan upazila. The 3rd Shitalakhya Bridge at Bandar upazila, Narayanganj will establish direct road communication between Bandar upazila and the district headquarter.

The country's economy will get boosted significantly as it will reduce the travel time of vehicles bound to and from the southwestern part of the country.

The bridge will connect Madanganaj of Bandar upazila to the east with Syedpur of Narayanganj Sadar upazila to the west. Now motor-run boats are a key communication mode for the people on both sides of the river and other areas to cross it.

Now, vehicles from the southwestern region use the Jatrabari route in Dhaka via Postogola Bridge to go to the Chattogram region or use Chashara and Signboard route to reach their destinations.

After the opening of the Shitalakhya Bridge, vehicles will not have to face severe traffic congestion in Panchabati BSCIC industrial area, Panchabati intersection, Chashara intersection, Signboard, Chattogram road in Narayanganj or Postogola and Shanir Akhra route in Dhaka.

Another big push for south: PM opens first-ever 6-lane Modhumoti, 3rd Shitalakhya bridges

The premier virtually inaugurated the two long-awaited bridges from the Prime Minister's Office (PMO) in Dhaka on Monday noon

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M/s Jinqiu Global Textile Bangladesh Ltd, a China-Bangladesh joint venture company, is going to establish a garments accessories manufacturing industry in Ishwardi Export Processing Zone (IEPZ) with an investment of $15.63 million.

To this effect, Bangladesh Export Processing Zones Authority (Bepza) and M/s Jinqiu Global Textile Bangladesh Ltd signed an agreement at Bepza Complex, Dhaka on Thursday, said a press release.

This joint venture company will manufacture 250 million metres and 2 million cones of different types of garments and accessories products. This company will create employment opportunities for 981 Bangladeshi nationals.

Member (Investment Promotion) of Bepza Ali Reza Mazid and Managing Director of Jinqiu Global Textile Josim Uddin Ahmed inked the agreement in presence of the Executive Chairman of Bepza Major General Abul Kalam Mohammad Ziaur Rahman.

Ishwardi Export Processing Zone is one of the eight EPZs of Bepza located at Paksey, Pabna.

Since inception in 2001, 22 enterprises are now running and 16 others are in under implementation stages in this EPZ. Around 17,000 Bangladeshi nationals are working here.

Member (Engineering) Mohammad Faruque Alam, Executive Director (Public Relations) Nazma Binte Alamgir, Executive Director (Investment Promotion) Md Tanvir Hossain, Executive Director (Enterprise Services) Md Khorshid Alam and Director of Jinqiu Global Textile He Ping along with other representatives were also present at the signing ceremony.

Sino-Bangla joint venture to invest $15.63m in Ishwardi EPZ

This company will create employment opportunity for 981 Bangladeshi nationals

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Hazrat Shahjalal International Airport will get a separate terminal for very very important persons (VVIPs), which was originally included in the ongoing third terminal project design but discarded later.

The Civil Aviation Authority of Bangladesh (Caab) decided to re-include the terminal under the project after some careful consideration of VVIP safety and hassle-free movements of ordinary passengers.

According to Caab sources, the VVIP terminal will now be built on the western side of the airport runway at an estimated cost of Tk283 crore ($29 million), which will be drawn from the leftover fund of the airport's third terminal project involving a whopping Tk21,399 crore.

"The decision to construct a separate terminal has been reconsidered to ensure 24-hour service for VVIPs. Besides, it will ease movements of ordinary passengers at the airport, reducing pressure on other terminals," said Md Mahbub Ali, state minister for civil aviation and tourism.

"We do not need additional funds to build the terminal as Tk800 crore ($82 million) have already been saved in the third terminal project," he told The Business Standard.

The government approved the third terminal project in late 2017 at an estimated cost of Tk13,610 crore. Two years later, the project cost was revised up to Tk21,399 crore.

The construction of the third terminal of Hazrat Shahjalal International Airport is progressing in full swing. Officials say the soft launch of the much-awaited terminal is expected by the end of next year.

A plan for the construction of a separate VVIP terminal on the Nikunja side of the airport was included in the initial design of the project, which was later scrapped considering that the security of VVIPs can be compromised. Instead, Caab decided to provide services for VVIPs from inside the third terminal.

The authorities, however, changed their decision again as they think providing services to VVIPs at general terminals will disrupt the round-the-clock operations of the airport.

The Ministry of Civil Aviation and Tourism on 19 September sent a letter to the Planning Commission, saying Tk1,889 crore ($201 million) is needed for the construction of the VVIP terminal and boarding bridges' pier extension work.

Of the amount, $172 million will be required for pier extension and $29 million for construction of the VVIP terminal, said the letter.

The letter also mentioned that after the revision of the project with the cost of two additional items, it will be sent to the Planning Commission for forwarding to the National Economic Council Executive Committee (Ecnec) meeting.

The third terminal area will increase from 2,30,000 square metres to 2,60,000 square metres if the proposed two infrastructures are implemented, according to Caab sources.

Japan's Mitsubishi Corporation and Fujita Corporation and Korean Samsung Company are implementing the development project.

Dhaka airport to get separate terminal for VVIPs

Hazrat Shahjalal International Airport will get a separate terminal for very very important persons (VVIPs), which was originally included in the ongoing third terminal project design but discarded later. The Civil Aviation Authority of Bangladesh (Caab) decided to re-include the terminal under...

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[Isa Khan]

The government has taken a massive move to upgrade the country's railway network as the sector is considered as the safest, comfortable, affordable and environment-friendly means for transporting passengers and goods.

According to an official document, considering the importance of the railway sector the government wants to implement several projects "to ensure a balanced and integrated development".

All these activities will be done under the 8th Five Year Plan (2021-2025), which targets to achieve 8.51% GDP growth with yearly 8% growth on average in the next five years. The plan also envisages reducing the poverty rate to 15.6% at the end of the deadline.

Under the 8th Five-Year Plan, comprehensive steps will be taken for construction of 798.09km new railway lines, 897km of dual gauge/double railway lines parallel to existing railway lines and renovation of 846.51km of railway network.

It also includes construction of nine important railway bridges and other infrastructural development schemes including level crossing gates, construction of domestic container depos, building and modernization of repair and maintenance outlets.

The document says that under the 8th Five-Year Plan there will be procurement of 160 locomotives, 1,704 passenger coaches, modern maintenance equipment, improvement of signaling system at 222 stations and strengthening of railway management.

Meanwhile, the government is implementing the 30-year revised Master Plan (2016-2045) of the Bangladesh Railway.

According to the plan, steps have been taken for connecting Dhaka with Cox's Bazar, Mongla Seaport, Tungipara, Barishal, Chittagong Hill Tracts and other parts of the country under the railway network.

The initiatives included in the plan are: establishing Trans-Asian Railway and Regional Railway Network and connecting important cities with nearest suburbs by introducing modern commuter train service.

The Trans-Asian Railway network, which was initiated in the 1960s, comprises 114,000km of rail routes of international importance. It aims to offer efficient rail transport services for goods and passengers within the ESCAP (Economic and Social Commission for Asia and the Pacific) region and between Asia and Europe.

Under this master plan, 230 projects will be implemented in 6 phases at a cost of Tk5,50,000 crore.

The document said that the overall progress of Padma Multipurpose Rail Link Project is 58% while the overall progress of construction work of the double track dual gauge railway bridge on the river Jamuna is 40%.

It also says 71% construction work of the single line dual gauge track from Dohazari to Cox's Bazar via Ramu and from Ramu to Gundum, near Myanmar border, has been completed.

In addition, approximately 90% work of the Khulna-Mongla railway project has been completed.

Construction work of Rupsha Rail Bridge is nearly completed, it says.

The government has also taken initiatives to build railway line from Bhanga in Faridpur to Payra port via Barishal and Patuakhali to connect Payra Port with Padma Rail Link.

The approval of the revised manpower structure of 47,703 posts is in the process, which will enhance the quality of service of railways, according to the document.

Massive Bangladesh Railway overhaul schemes in the offing

Under this master plan, 230 projects will be implemented in 6 phases at a cost of Tk5,50,000 crore.

www.dhakatribune.com

The Scientific Research Institute of Technical Physics and Automation (NIITFA) of Russia will supply required equipment to replace one of the existing gamma irradiation facilities at Savar in Dhaka, designed for treatment of food (spices and pet food) and medical products and also for research purposes.

After the completion of works, Bangladesh will have an upgraded gamma installation with a nominal activity of 400 kCi.

The NIITFA is a part of the Rusatom Healthcare Division under Rosatom of Russia. It will be Rosatom’s first-ever non-energy project in Bangladesh.

Rosatom will perform all necessary work, including design, manufacture, supply, installation supervision, testing, and commissioning of gamma installation equipment.

In addition to NIITFA, other entities of the Rusatom Healthcare division will also be involved in the job. In particular, Co-60 (cobalt-60) radioactive isotopes will be supplied by Isotope JSC.

Rosatom recently signed the contract after winning an international tender floated by the Institute of Radiation and Polymer Technology (IRPT) of the Bangladesh Atomic Energy Commission (BAEC). Apart from Rosatom, companies from China and Germany also took part in the tender. Following the comparative evaluation of technical and commercial proposals, Rosatom was elected as the winner. Rosatom South Asia, the regional center of Rosatom extended necessary support to the Rosatom Healthcare Division.

"The implementation of the project in the People's Republic of Bangladesh will allow the developing and strengthening of competencies in the field of manufacture of equipment used for gamma irradiation of products. We are confident that the efficient work of the division will further strengthen the international reputation of Rusatom Healthcare and Rosatom as reliable suppliers of irradiation technology solutions," said Igor Obrubov, CEO of Rusatom Healthcare Division.

Andrey Shevlyakov, CEO of Rosatom South Asia said "Until now, Rosatom was known in Bangladesh only for its large-capacity nuclear power plants and the implementation of the Rooppur NPP joint project. However, we actually have expertise in a wide range of high-tech industries. We believe that the supply of gamma irradiation equipment will not only be Rosatom's first non-energy project in Bangladesh, but also a good example of our strengthening cooperation with the Bangladesh Atomic Energy Commission (BAEC).”

Gamma treatment of food items enables an increase in the shelf life of products several times. In addition, it is the only method that allows achieving a degree of purity of products 10-6. Ionizing gamma irradiation breaks the chemical bonds of harmful microorganisms and leaves no residual traces. Such sterilization ensures the death of pathogenic forms of microorganisms in the form of spores and non-pathogenic microorganisms inside a material.

Due to the penetrating ability of ionizing radiation, it is possible to treat products while maintaining the integrity and tightness of the packaging. Another advantage of this method is the absence of a "degassing" process in the technology — this means that the products are ready for use immediately after treatment. The safety of this method has been confirmed by the FAO (Food and Agricultural Organization of the United Nations) and the IAEA (International Atomic Energy Agency). All this ensures a growing worldwide demand for "cold" sterilization with ionizing radiation.

Rusatom Healthcare Division, which makes part of Rosatom, among other things, implements projects to create multifunctional centers for treating products with gamma irradiation in Russia and overseas.

The Scientific Research Institute of Technical Physics and Automation has developed process installations using the Co-60 (cobalt-60) isotope. The gamma installation has a deeper penetrating capacity and is suitable for medium- and high-density materials. NIITFA developed industrial gamma installations for the Era gamma treatment center, Karpov Institute of Physical Chemistry, and other companies within Rosatom's circuit.

Gamma irradiation facility to be replaced

The Scientific Research Institute of Technical Physics and Automation (NIITFA) of Russia will supply required equipment to replace one of the existing gamma irradiation facilities at Savar in Dhaka, designed for treatment of food (spices and pet food) and medical products and also for research purpo

bangladeshpost.net

RNPP.

 

[Isa Khan]

For airlines, it is looking more like 2019 again.

A travel bonanza is exceeding expectations helping airlines earn profits again and brightening the outlook for the rest of the year. It is also a welcome relief for the local airlines to dust off the expansion plan they had to shelve for two years during the Covid induced gloom.

Local private airlines US-Bangla, Novoair and Air-Astra are in talks to bring in 13 aircraft – such as Airbus 330, Dash 300 and Airbus 900 – to their fleet late-2022, which now has 22 planes.

The move for expansion is encouraged by the third terminal opening of the Hazrat Shahjalal International Airport next year and better aviation infrastructure across Bangladesh, said officials.

Currently, the private airlines carry 5,000 passengers per day, according to Captain Lutfor Rahman, CEO of the US Bangla Airlines, and the number of per day air travellers will be at least 7,000 next year.

"A major chunk of the air traffic will be outbound. Therefore, we are going to operate more flights to Sharjah and Singapore," he told The Business Standard.

Alongside the current 11 international routes, the US-Bangla CEO said they will introduce the Dhaka-Delhi route next winter as the new aircraft will ramp up the capacity to the gulf countries – a key manpower exporting hub for Bangladesh.

With the expansion plan in place, aviation sources said that US-Bangla, Novoair and Air-Astra altogether will have 30 planes in the first quarter of 2023 and 33 in the second quarter next year.

Novoair, which now operates on domestic routes and only the Dhaka-Kolkata international route, approached Airbus recently for the Airbus 320, a narrowbody jet airliner. Novoair, according to the sources, also is in expansion mode.

The third local aviation company Air-Astra says it will add four aircraft to its fleet by November this year to begin initial operations on domestic routes.

"We will operate flights on all domestic routes except Barishal if we get all four planes this year," Air-Astra CEO Imran Asif told The Business Standard.

He said they would try to manage a hangar at Dhaka airport. If they fail, they would use Sylhet airport for aircraft parking.

A turbulent time

As airlines emerge from the pandemic, they have been facing critical labour shortages, elevated fuel prices, a chaotic global economic situation and a looming recession on top. But the aviation prospects are bright as they defy all the economic challenges.

Against a backdrop of slowing economic growth, the recovery in global air travel continues to support forecasts of a return to 2019 levels of traffic in 2024 at the aggregate level, the International Air Transport Association (IATA) forecasted in September.

The Airports Council International (ACI) World also says full recovery of the aviation sector will take 2024.

Earlier in June, the International Air Transport Association noted that air cargo volumes are expected to set a record high of 68.4 million tonnes in 2022.

The association said airlines have emerged "leaner, tougher and nimble," having defied predictions for widespread bankruptcies and failures.

The IATA bottom line was, "Efficiency gains and improving yields amid ongoing strong recovery in international traffic will help airlines to reduce losses."

"The price of jet fuel was Tk64.50 per litre last year as it is now Tk101.75," Mofizur Rahman, managing director of Novoair, told The Business Standard.

He said the fuel shock forced them to raise airfares on all domestic routes.

Usually, fuel accounts for around 33% of the total expenditure of airlines. But for the last one year, fuel spending stands for 50% of costs in the local aviation sector, say insiders.

Mofizur Rahman, who is also the secretary general of the Aviation Operators Association of Bangladesh, also pointed to the current tax structure weighing on them.

"The government imposed 15% VAT in the current fiscal year for import of aircraft spare parts. Besides, we have to pay 5% custom duty for aircraft import, 5% advance tax and 5% advance income taxes for parts, and 5% advance tax for engines. But there are no such duties and taxes in India, Singapore or Malaysia," he added.

Wait for third terminal opening

When the third terminal of the Hazrat Shahjalal International Airport will be completed in October next year, it will triple the airport's annual passenger and cargo handling capacity, according to the Civil Aviation Authority of Bangladesh (CAAB).

Currently, Dhaka airport handles 70-80 lakh passengers each year. After the opening of the third terminal, the airport will be able to provide services to around 2.20 crore passengers every year.

It will be able to handle 5 lakh tonnes of cargo, more than double the current capacity of 2 lakh tonnes.

At present, 28 foreign airlines are operating international flights to Bangladesh. Of them, Qatar Airways, Emirates, Saudi Airlines, FlyDubai and Air Arabia dominate the market.

Apart from the local companies, aviation sources said foreign airlines also want to ramp up their flight frequency. But the aviation authorities are not approving them for accommodation issues.

Kazi Wahidul Alam, an aviation expert and also the editor of travel magazine Bangladesh Monitor, said, "Qatar Airways used to operate three flights daily, it's now up to four per day. As far as I know, many airlines including Emirates and IndiGo want to increase their flight frequency and expand routes. They will do so as soon as they get the permission."

National flag carrier Biman Bangladesh Airlines also looks to expand the business, as Biman Managing Director Zahid Hossain told The Business Standard that they will hold a press conference within a week on the details of the plan.

At a press briefing in August after assuming office, Zahid Hossain said they will make the optimum use of Biman's existing fleet of 21 aircraft.

"Biman will expand its routes in different new destinations including the USA. We will also increase the number of flights on different lucrative routes," he told the press.

Biman now posts a $700 million annual turnover, which the new MD wants to expand to $1 billion.

A fast-spinning chopper market

The demand for hiring helicopters has increased significantly in recent years thanks to the growing and rapidly changing economic and business environment. More and more people are making trips by helicopter for business, recreation, and medical emergencies.

Responding to the growing market, nine firms are now offering helicopter services with 32 choppers, according to the Civil Aviation Authority. Besides, one company is in the pipeline, said insiders.

Currently, the helicopter operating companies are Square Air, South Asian Aviation, Meghna Aviation, BRB Air, ATL Aviation, Partex Aviation, R&R Aviation, Bangla International Airlines, Bashundhara Airways and BCL Aviation.

"There were only three choppers for hire even in 2005," Captain Md Gulzar, managing director of chartered airline South Asian Airlines said. He added the sector had five helicopters on average per year.

In 2030, there will be more than 600 flights per month where the flight number is now 350, he predicted.

As travellers return, local airlines go for expansion

Local airlines see profit on the horizon as aviation forecasts outshine economic downturn gloom

www.tbsnews.net

Singer Bangladesh Ltd has started the construction of its state-of-the-art manufacturing plant at the Bangladesh Special Economic Zone at Araihazar, Narayanganj.

The multinational electronics and home appliance firm looks to production at the $78 million (around Tk800 crore) green factory by the end of 2023, primarily targeting the fast growing local market alongside exploring export opportunities from the plant, said top officials at Singer and representatives of its parent company Arçelik - a Turkey-based global industry giant.

Arçelik is one of the world's leading consumer durables companies with 12 brands. It has 45,000 employees worldwide and has subsidiaries in 52 countries. Arçelik's 29 research and development (R&D) and design centres and offices across the globe are home to over 2,300 researchers.

Arçelik, the flagship company of the Koç Group, acquired the holding company of Singer Bangladesh in 2019.

Speaking at a press conference in the capital after the factory groundbreaking on Monday, Dr Fatih Kemal Ebiçlioğlu, president of Durable Goods Companies at Koç Holding - parent company of Arçelik and the only Turkish company represented in the Fortune 500 global list, said, "With the initiation of a new manufacturing plant, sustainable and smart in-house production processes of the highest quality will be started at Singer."

With Arçelik's R&D strengths, Singer Bangladesh is introducing state-of-the-art energy-saving electronics and home appliances, and it will be accelerated in coming days.

Arçelik's Chief Commercial Officer Cemal Can Dinçer said Singer aims to locally manufacture 90% of its products, up from the present rate of 52%. The company would also help develop local suppliers for the electronics and home appliances industry.

The initial capacity of the factory, on the 1.35 lakh square metre industrial plot, would be to manufacture 15 lakh units of refrigerators, televisions, washing machines, air conditioners and other major appliances annually, which will strengthen Singer's position in the market, said Arçelik's Chief Technology Officer Nihat Bayız.

The new factory will also create jobs for around 4,000 people.

Arçelik is globally committed to become net-zero by 2050 to tackle the climate crisis, and Singer is also moving ahead in line with that.

Singer Bangladesh's Managing Director and Chief Executive Officer (CEO) MHM Fairoz said, "Singer's new state-of-the-art manufacturing facility will be built according to the gold standards of LEED -- a green building certificate that is recognised all over the world."

With the support of Arcelik, Singer will bring the know-how on energy efficient products and production technologies in Bangladesh that will help the country's transition to a low-carbon economy, the CEO said.

The factory will be designed to maximise natural daylight with the use of skylight roof surfaces for sustainable energy management that would save 50% energy and the solar panels on the roof of the factory would prevent up to 60% of carbon emissions, according to Fairoz.

Rainwater will also be harvested and stored for use in plumbing as well as for landscaping irrigation. Energy monitoring systems will be used for sustainability and quality targets. Local and recycled building materials will be used during construction, he added.

Singer, which started with its flagship product sewing machine, has been present in this land for more than 117 years, and it is a household name in the local market of white goods.

Its shares, having a face value of Tk10 each, closed at Tk151.9 at the Dhaka Stock Exchange on Monday.

Singer’s $78m green factory aims at growing local electronics market

The factory hopes to go into production by the end of 2023

www.tbsnews.net

Oil-rich Saudi Arabia's Red Sea Gateway Terminal Company has shown interest to invest in Bangladesh for the operation, maintenance and modernisation of the country's Patenga container terminal in Chattogram.

Vice-Chairman of the Red Sea Gateway Terminal Board of Directors, Aamer A Alireza, made the proposal during a meeting with State Minister of Shipping Khalid Mahmud Chowdhury in Jeddah on Tuesday.

Red Sea Gateway Terminal (RSGT) is the newest flagship container terminal at Jeddah Islamic Port, a world-class terminal spearheaded by the Saudi Industrial Services group SISCO, as well as the first privately funded BOT (Build, Operate and Transfer) development project in Saudi Arabia with investment of $1.7 billion up to 2050.

The Saudi company is an international terminal operator representing a partnership between the Red Sea Gateway Terminal of Saudi Arabia and the Malaysian Mining Company (MMC).

Earlier, a delegation led by the state minister visited the head office and operations of the Red Sea Gateway Terminal Company, said the Bangladesh embassy in Riyadh in a media release on Wednesday.

The company's CEO Jens O Floeand other senior officials of the company presented their plans and investment proposals for the modernisation of Patenga Container Terminal.

After the meeting, the state minister inspected the container handling operations at Jeddah Islamic Port.

The has expressed its interest in the modernisation, maintenance and operation of Patenga Container Terminal in Bangladesh under the Memorandum of Understanding signed last year between Saudi Arabia and Bangladesh on Public-Private Partnership.

Chittagong Port Authority Chairman Rear Admiral M Shahjahan and Ambassador of Bangladesh to Saudi Arabia Mohammad Javed Patwari were present.

During his visit to Saudi Arabia, the state minister is scheduled to hold a bilateral meeting with the Minister of Communications of Saudi Arabia.

Earlier, Ambassador of the Kingdom of Saudi Arabia (KSA) to Bangladesh Essa bin Yousef Al Duhailan said Saudi companies have expressed their eagerness to invest in Bangladesh in various sectors because of peace, political stability, favourable laws and good incentives.

Saudi company keen to invest at Patenga container terminal

Oil-rich Saudi Arabia's Red Sea Gateway Terminal Company has shown interest to invest in Bangladesh for the operation, maintenance and modernisation of the country's Patenga container terminal in Chattogram. Vice-Chairman of the Red Sea Gateway Terminal Board of Directors, Aamer A Alireza, made...

www.tbsnews.net

 

[Isa Khan]

Prime Minister Sheikh Hasina today inaugurated the installation of the reactor pressure vessel (RPV) at Unit-2 of the 2400MW Rooppur Nuclear Power Plant (RNPP), enabling Bangladesh to reach nearer to produce electricity from nuclear.

Last Minute Work on Karnaphuli Tunnel

The construction of the Bangabandhu Sheikh Mujibur Rahman Tunnel under the River Karnaphuli in Chattogram is in the final stage. Some last-minute works are underway before the country’s first underwater expressway tunnel is inaugurated by the end of this year. The photo was taken from the tunnel entrance on the Patenga side of the river recently.

Photo: Mohammad Minhaj Uddin/TBS

 

[Isa Khan]

The Chattogram Port Authority (CPA) has inked an agreement with three consulting firms for the channel dredging and breakwater construction works of the Bay Terminal Construction Project at Tk51.30 crore.

The joint venture of Sellhorn Ingenieurgesellschaft mbH, Germany; AQUA Consultant & Associates Ltd and KS Consultants Ltd, Bangladesh signed the agreement at the Bandar Bhaban on Wednesday, said a press release of the CPA.

Under the agreement, the consulting firms will work on "the selection of International Consultancy Firm for a detailed Engineering Design of Breakwater for Bay Terminal and assess the actual volume of Capital Dredging including necessary studies following latest International Standard."

Under the agreement, the consulting firms will prepare design, drawing, estimate and tender documents for the breakwater and access channel dredging work within the next six months.

CPA Chairman Rear Admiral M Shahjahan, all members of CPA, Sellhorn Ingenieurgesellschaft mbH's representative Manfred Voss, KS Consultants Ltd Managing Director Md Hafizur Rahman and department heads of CPA were present at the signing ceremony.

According to information from Chattogram Port, the Cabinet Committee on Economic Affairs, in a meeting held on 31 August, approved the appointment of consultants.

As a part of this, members of the technical committee of the World Bank visited Chattogram port on 4 September. The global lender will provide a loan of Tk4,000 crore to the Chattogram port for the breakwater and access channel dredging.

According to Chattogram Port sources, a total of three terminals will be constructed under the Bay Terminal project. Chattogram port will finance the construction of one of those. The remaining two will be built with foreign investments.

The port previously appointed Indian firm "Ernst and Young" as transaction advisor for the two terminals to be constructed under the public private partnership (PPP) and government to government (G2G).

The Indian firm is working with DP World and PSA Singapore on a business model to operate the two terminals.

Ctg port hires consulting firms for Bay Terminal works

They will prepare design, estimate and tender for breakwater and channel dredging of the Bay Terminal in six months

www.tbsnews.net

Rosatom Director General (DG) Alexey Likhachev today said Bangladesh will be given high powered nuclear reactor for Rooppur Nuclear Power Plant (RNPP) for optimum electricity generation as he paid a courtesy call to Prime Minister Sheikh Hasina.

Fresh nuclear fuel will come to Bangladesh in October next year for the RNPP as well, he said.

Likhachev met the prime minister at her official residence Ganabhaban here.

Prime Minister's Press Secretary Ihsanul Karim briefed the newsmen after the meeting.

The Rosatom DG told the premier that they want to celebrate the arrival of fresh nuclear fuel in Bangladesh with the participation of the International Atomic Energy Agency (IAEA) director general and concerned persons.

Mentioning that they are training up the Bangladeshi people for the RNPP, he said Russia is also interested to conduct research on nuclear science and technology in Bangladesh.

Russia is also providing assistance in building infrastructure for nuclear governance in Bangladesh, he added.

At the outset of the meeting, Likhachev briefed and explained to the Bangladesh premier the development and progress of the work of the RNPP.

Prime Minister Sheikh Hasina extended her thanks to Russia, particularly Rosatom DG for providing support and continuing full-swing construction during the Covid-19 pandemic.

She also appreciated Russia for its assistance in the power and energy sector since Bangladesh became independent.

Sheikh Hasina said Russian stakeholders may give emphasis on manpower development of RNPP so that Bangladeshi people could become capable in operating and maintaining the RNPP independently.

She also laid emphasis on the security aspects of the nuclear power plant.

Ambassador-at-large Mohammad Ziauddin, Prime Minister's Principal Secretary Dr Ahmad Kaikaus, Senior Secretary of the Ministry of Science and Technology Ziaul Hasan, Bangladesh Ambassador to Russia Kamrul Ahsan and Ambassador of Russia in Dhaka Alexander Mantytskiy, among others, were present.

Bangladesh will get high powered reactor for Rooppur Nuclear Power Plant: Rosatom DG

Rosatom Director General (DG) Alexey Likhachev today said Bangladesh will be given high powered nuclear reactor for Rooppur Nuclear Power Plant (RNPP) for optimum electricity generation as he paid a courtesy call to Prime Minister Sheikh Hasina. Fresh nuclear fuel will come to Bangladesh in...

www.tbsnews.net

 

[Isa Khan]

The Dhaka Mass Rapid Transit Company Ltd on Sunday signed a deal with an eight-company consortium to supervise the construction of the country's first underground metro rail, which will begin December this year.

As per the deal, the consortium led by Japanese Nippon Koei Co Limited will be supervising the construction of the 31.24 km underground rail project – or MRT Line-1 – in the capital.

The consortium includes Oriental Consultants Global, SYSTRA SA, Delhi Metro Rail Corporation Limited, Nippon Koei India Private Limited, Katahira and Engineers International, Development Design Consultants Limited and Nippon Koei Bangladesh Limited.

MAN Siddique, managing director of the Dhaka Mass Rapid Transit Company, and Naoki Kudo, managing director of Nippon Koei Bangladesh Ltd, signed the agreement on behalf of their respective sides.

As the chief guest of the programme, Road Transport and Bridges Minister Obaidul Quader said the next goal of the government is to build a smarter Bangladesh, which requires a smart transportation system.

With the 2028 deadline, the cost of the underground metro project has been estimated at Tk52,561 crore.

The MRT Line-1 will have two parts – a 19.87km part from Hazrat Shahjalal International Airport to Kamalapur (Airport route) which will be underground and an around 11.37km elevated line from Natun Bazar to Purbachal (Purbachal route).

"The government is progressing well to establish the network," noting so, Quader said that a total of six metro rail routes will be developed in the capital by 2030.

The Dhaka Mass Rapid Transit Company, the implementing agency of the underground metro rail, is now implementing the MRT-6 or Uttara-Motijheel metro rail works.

The company is going to begin the underground metro works by starting the underground rail depot construction in Purbachal in December – even before completing the ongoing Uttara-Motijheel metro rail project by December 2023.

The Executive Committee of the National Economic Council (Ecnec) approved the MRT line-1 project at Tk52,561 crore in 2019. Of the amount, the government will provide Tk13,111 crore and Japan Tk39,450 crore.

However, the construction faced multiple delays after the Ecnec approval thanks to Covid pandemic.

At the deal signing event, the officials said underground metro construction will be implemented dividing all project components into 12 packages.

After signing the consultancy contract in November, the first package, which comprises land development of deport areas, will begin in early-December this year.

The line will have 21 stations – 12 underground and nine elevated. Besides, 25 sets of trains having eight coaches each will operate daily on the line. The maximum capacity of a train will be 3,088 persons.

According to the officials, it will take only 34 minutes to commute from Dhaka airport to Kamalapur, 20 minutes from Natun Bazar to Purbachal, and 35 minutes from Kamalapur to Purbachal.

The trains will be controlled remotely from the "Operation Control Center". Elevators, stairs and escalators will be installed in underground and alleviated stations for the passengers to access rail platforms easily.

According to officials, around 8 lakh passengers will be able to travel every day by the underground metro after the inauguration in 2028. With all the six metro rails in operation by 2030, more than 50 lakh passengers will be able to commute daily using the modern transport system.

At the deal signing programme, Dhaka Mass Rapid Transit Company Managing Director thanked Japan International Cooperation Agency (Jica) for financing three metro rail projects and asked for further support to conduct the feasibility study of MRT line-2 and MRT line-4 to connect Dhaka with Narayangonj through metro rail.

Japanese Ambassador to Bangladesh Ito Naoki said the contract signing ceremony is a milestone for Bangladesh's infrastructural development.

He said the project will help save commuting time in Dhaka and protect the environment of the capital.

Ichiguchi Tomohide, chief representative of Jica Bangladesh Office, was also present at the programme.

Dhaka’s first underground metro work begins in December

Japanese firm-led consortium will oversee the construction of the 31km Airport-Kamalapur-Purbachal metro line slated to be completed by 2028

www.tbsnews.net

Prime Minister Sheikh Hasina will inaugurate some development projects at Payra Seaport on Thursday to equip it with better facilities for smooth operations.

The development projects include—capital dredging of the port, inauguration of eight ships and vessels, inauguration of the first terminal and construction of a six-lane approach road and a bridge.

The disclosure came at a preparatory meeting of the Payra Seaport Authority in Patuakhali. State Minister for Shipping Khalid Mahmud Chowdhury chaired the meeting.

"PM Sheikh Hasina has built the Payra Seaport to develop the long-neglected southern region of Bangladesh. I'm already witnessing a surge in economic activities in this region brought about by this seaport," Khalid said.

Through the capital dredging of the seaport's Rabnabad channel, a 75km-long, 100-125meter-wide and 10.5meter-deep channel will be created.

Once operational, a total of 40,000 tons of cargo or 3000 container-laden ships will be able to dock. The channel will cost an estimated Tk 5,000 crore and will be built by Belgian dredging company--Jan De Nul.

Among the eight vessels to be inaugurated on Thursday, two are pilot vessels, two are heavy duty speedboats, one is a buoy laying vessel, one is a survey boat and two are tugboats. These ships and vessels will help the port authority to monitor the arrival and departure of foreign ships and maintain the channel.

Once the construction of the first terminal, the six-lane highway and the bridge is completed, a total of three foreign ships carrying containers or bulk cargos will be able to dock simultaneously at the Payra Seaport. The terminal will cost Tk 4,500 crore and will be opened for operation in December, 2023.

The 6.35km-long, six-lane approach road is being built by the Roads and Highways Department (RHD). Spectra Engineers Limited has been given the responsibility of the construction at a cost of Tk 655 crore. The road will also be opened to traffic in December, 2023.

A 1,180 meter-long bridge is being built over the Andharmanik river to transport goods of the Payra Seaport. The bridge will cost Tk 780 crore and will be constructed over a period of two and a half years.


Muhibur Rahman Muhib, Member of Parliament (MP) from Patuakhali-4 constituency and Rear Admiral M Sohael, Chairman of Payra Port Authority, among others, were present at the meeting.

The Prime Minister inaugurated the Payra Seaport on November 19, 2013.

PM to open development schemes at Payra Seaport on Thursday

Prime Minister Sheikh Hasina will inaugurate some development projects at Payra Seaport on Thursday to equip it with better facilities for smooth operations. The development projects include—capital dredging of the port, inauguration of eight ships and vessels, inauguration of the first terminal...

www.tbsnews.net

Roads and Highways Department (RHD) yesterday appointed two China-Bangladesh joint ventures, comprising three firms, for the Dhaka-Sylhet highway expansion project, as physical work is expected to start in December.

The two ventures have been selected for one of the six packages under the Tk 16,918.59-crore project for turning the 210-km highway into a four-lane one, with service lanes on both sides, say officials.

RHD signed separate contracts with the joint ventures at a city hotel yesterday.

A joint venture of Longjian Road and Bridge Company Ltd of China and Max Infrastructure Ltd of Bangladesh will work on an 18-km part of the highway, which stretches from Kanchpur intersection to Chanpara Bus Stand.

It will get Tk 925.36 crore to complete physical work within four years, according to the contract.

Another joint venture of China's Zhengzhou City Highway Engineering Corporation Ltd and Max Infrastructure Ltd will carry out work on a 17-km, from Chanpara to Narsingdi BSCIC area, at a cost of Tk 1,394.66 crore. This will be funded by Asian Development Bank (ADB). It will have to finish physical work in four years.

In February last year, the Executive Committee of the National Economic Council (Ecnec) approved the project, setting December 2026 as the deadline.

The authorities decided to implement the project under six packages and hire 13 contractors for quick implementation.

The Cabinet Committee on Government Purchase on September 14 approved proposals for appointing two contractors for the first package.

Road Transport and Highways Division Secretary ABM Amin Ullah Nuri; Edimon Ginting, ADB country director; Project Director AK Mohammad Fazlul Karim, among others, spoke at the programme, while RHD Chief Engineer AKM Manir Hossain Pathan as in the chair.

Dhaka-Sylhet Highway: Two joint ventures selected for expansion project

Roads and Highways Department (RHD) yesterday appointed two China-Bangladesh joint ventures, comprising three firms, for the Dhaka-Sylhet highway expansion project, as physical work is expected to start in December.

www.thedailystar.net

Partex Petro Ltd, an oil refinery, has started production and marketing of aviation fuel, becoming the first company in Bangladesh to manufacture the finished product for the growing air transport market.

Partex Group has invested Tk 1,400 crore to set up the facility, which, at its peak, will produce 14,000 barrels of petrol, octane, and diesel per day, including 2,800 barrels of jet fuel.

"We are able to meet one-third of the demand for jet fuel in the country and save $300 million in foreign currencies," said Rubel Aziz, managing director of Partex Group.

Bangladesh needs more than 9,000 barrels of jet fuel a day.

According to Aziz, Partex Petro's value addition is around $50 per barrel as it imports base oil.

"If the government imports finished oil, it has to spend $159 per barrel. We are helping the government mitigate the dollar crisis."

Partex Petro, which started commercial production in May, delivered its first consignment of jet fuel of 10 lakh litres to Padma Oil on October 22.

Domestic and international airlines, which operate flights in Bangladesh, as well as private helicopter operators, Bangladesh Air Force, and Bangladesh Army use jet fuel.

Bangladesh Petroleum Corporation (BPC) sold nearly 238,000 tonnes of jet fuel in the fiscal year of 2020-21, down from 345,000 tonnes a year earlier as the coronavirus pandemic hit hard the air travel industry, at home and abroad.

Partex Group has set up the country's largest condensate refinery plant over 40 bighas of land on the bank of the Karnaphuli river in Anwara of Chattogram.

Of the Tk 1,400 crore investment, nine banks and non-banking financial institutions together provided Tk 980 crore under a syndicated loan arranged by Trust Bank Ltd. The rest Tk 420 crore came as equity.

According to Subir Kumar Ghose, chief executive officer of Partex Petro, the plant is able to cater to the country's need for energy.

"Our refineries are strategically located in the south of Bangladesh, offering the benefits of low transportation costs for raw materials and proximity to high-growth markets," he said.

"We realised that it is a potential project. The business will be viable, help the government raise revenue and contribute to the economy," said Humaira Azam, managing director of Trust Bank.

Partex Petro recently started supplying aviation fuel to Padma Oil, said

Numan Ahmed Taffader, general manager for marketing of the state-owned petroleum distribution company and also the sole distributor of aviation fuel in the country.

Now all domestic and foreign airlines purchase jet fuel from Padma Oil, which has refuelling stations at Hazrat Shahjalal International Airport of Dhaka, Shah Amanat International Airport in Chattogram, and the Osmani International Airport in Sylhet.

Partex Petro began producing aviation fuel at a time when airlines are increasing the number of flights to carry the growing number of travellers.

Twenty-nine foreign and three local carriers, including state-owned Biman Bangladesh Airlines, operate in Bangladesh and they transported half a million travellers in 2019 before the coronavirus pandemic hit the industry.

Air travel has rebounded this year and the number of passengers is expected to exceed the pre-pandemic levels.

First jet fuel plant goes into operation

Partex Petro Ltd, an oil refinery, has started production and marketing of aviation fuel, becoming the first company in Bangladesh to manufacture the finished product for the growing air transport market.

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[Isa Khan]

The International Monetary Fund (IMF) team, since its arrival in Dhaka to discuss $4.5 billion loans sought by Bangladesh, has extensively visited government offices and held a series of meetings to take stock of the country's macroeconomic situation, its internal and external finance and fiscal policies. It inquired about Bangladesh's preparation for LDC graduation, measures to check wastage in government expenditure, and plans to phase out subsidies in energy.

Apart from hundreds of questions put forward to nearly a dozen government offices and regulatory bodies, there was a common query: Why is Bangladesh asking for loans despite its impressive economic performance over the years?

As the IMF team is ending its two-week visit with a final meeting with Finance Minister AHM Mustafa Kamal today, officials of the Ministry of Finance are hopeful of getting the loan – even if it comes with strict conditions.

They said the loan would be made available at the same rate for three fiscal years, including this one and the next two.

Of all the queries from the IMF, the most were reserved for the National Board of Revenue (NBR), who got 38 questions. The global lender asked the board a range of questions, from the VAT (value-added tax) system, VAT exemptions, how tax holidays are given and how capital losses are treated.

In an earlier meeting, the IMF asked the Bangladesh Energy Regulatory Commission (BERC) about its model of determining bulk and retail tariff gas and electricity prices in the country, how often it revised or adjusted tariff in a certain year and whether the commission has the freedom to set prices independently, said a source at the BERC. It also inquired about the energy regulator's role in expediting gas exploration in the country.

In a discussion with the Bangladesh Bureau of Statistics (BBS), the multilateral lender also wanted to know the reason behind the delay in publishing recent inflation data. It further sought estimates of Bangladesh's debt servicing over the next few years. While meeting the Economic Relations Divisions, the IMF wanted to know how the increases in the secured overnight financing rate (SOFR) and the London Inter-bank Offered Rate have affected loan repayments. Besides, it asked about Bangladesh's possible signing of free trade agreements with some countries and regions, and its future plans on utilising foreign loans in the pipeline. The global money lender also wanted to know what reforms were planned to attract more foreign direct investment.

When it sat with the central bank, the delegation asked about the default loan ratio. In another meeting, the IMF delegation asked the Bangladesh Investment Development Authority (Bida) about the investment environment, situation of investment sectors and future plans of Bangladesh.

After holding a wrap-up meeting with the Bangladesh Bank on Tuesday afternoon to finalise the terms and conditions of the loan, the IMF also held another meeting.

The various conditions given by the global financial agency were already informed to the prime minister on Sunday and the secretaries of the ministries concerned and the central bank governor have taken her consent.

The officials of the ministry are expecting to receive the first instalment of the loan by next January after the approval in the next board meeting of the organisation.

An official of the Finance Division said the IMF team suggested reducing the huge wastage in government expenditure, which was identified as a major failure in budget management.

It also criticised the subsidies given to institutions like the Bangladesh Road Transport Corporation and the Bangladesh Sugar and Food Industries Corporation.

It also asked for increasing the use of fintech to prevent corruption in the distribution of allocations under the social safety net and reduction of subsidies by increasing the prices of fertilisers, electricity and gas.

It further suggested cancelling tax holidays and exemptions to increase revenue.

The delegation, led by Rahul Anand, head of IMF's Asia and Pacific region, also recommended reserve calculation in accordance with international rules, leaving the dollar rate to the market, withdrawing the interest rate cap, marking as a defaulter if instalments are not paid in three months instead of six, and reducing the defaulted loans of the banks.

In order to make appropriate decisions on the basis of updated information on the country's economy, the IMF advised the Bangladesh Bureau of Statistics to publish quarterly GDP data, announce monetary policy every three months and ensure transparency in information management.

Besides, it discussed diversification of products by reducing reliance on ready-made garments to mitigate export risk.

IMF reserves most questions for NBR

In a meeting with the NBR last week, the IMF delegation suggested increasing the revenue contribution to Bangladesh's GDP (tax to GDP ratio) to 9%.

As of the last fiscal year 2021-22, the tax to GDP ratio was 7.6%.

NBR officials said the average revenue growth in the last five years is around 15%. At this rate of growth, the tax to GDP ratio could be 8.5% in the next four years. Achieving a 9% ratio would require 17-18% annual growth in tax revenue.

NBR officials said the NBR has already started the work of reducing tax exemption.

In the last financial year, VAT exemptions have been cancelled or reduced in some cases in the manufacturing stage of ready-made infrastructure, meditation services, railway services, mobile phone trading stage and refrigerators. This will continue next year as well.

A month before the visit to Bangladesh, the IMF had sent hundreds of questions to various organisations.

Bangladesh had prepared answers to these questions in advance and provided them during the tour.

Of the questions, the IMF had sent 38 questions to the NBR alone.

In the four-page written questionnaire given to NBR, the IMF said, "We understand that there is a reduced VAT rate [5%] on electricity distribution. Is this correct?

"We understand that effective July 1, 2019, Bangladesh requires non-resident vendors of digital services to consumers in Bangladesh to register for and collect VAT if the annual taxable sales exceed Tk30 million. Was this rule implemented? If yes, could you please provide the annual revenue for 2021?"

Regarding corporate income tax, the IMF mission asked the NBR to clarify whether companies that benefit from a tax holiday are still required to file an income tax return and sought information on the procedures for approving tax incentives and tax holidays as well as related laws.

It asked if there was close collaboration between pertinent agencies that serve to promote tax incentives and whether this collaboration was structured and mandated, or informal.

The IMF sought data on corporate income tax incentives, exemptions, special regimes granted for at least the last three years, income taxed under the corporate income tax and income exempted from the corporate income tax, regime etc.

"Are capital gains realised by corporations taxed at 15%? How are capital losses treated?" it asked.

The questionnaire was prepared by the IMF based on the international Bureau of Fiscal Documentation.

The IMF also sought data compiled on total personal income tax reliefs and tax deductions by categories for the last three years.

It held several separate meetings with various wings of the Finance Divisions and important departments of the Bangladesh Bank.

Besides, the global lender met the government's power and energy agencies including PDB, Petrobangla and BPC.

For electricity-fuel price fixing, it held a separate meeting with the Bangladesh Energy Regulatory Commission.

The IMF also had separate discussions with the Economic Relations Division, the Ministry of Planning, the Ministry of Commerce, the Bangladesh Securities and Exchange Commission and many others.

It discussed 54 agendas in talks with the Bangladesh Bank. In five meetings with the Ministry of Commerce and the Banking and Financial Institutions Divisions, dozens of issues, including changes in bank provisioning methods and the government's capital support given to state-owned banks gained importance.

Bangladesh sent a formal loan proposal to the IMF after a decade seeking a loan of $4.5 billion to overcome the ongoing foreign exchange reserve crisis.

The two parties held informal discussions in this regard four months prior.

Before coming to Dhaka on October 26 to hold formal talks, the organisation said they would discuss reforms and policies in Bangladesh's economy and financial sector.

When Bangladesh last received budget support from the IMF in 2012, it enacted a new VAT law to comply with the terms.

The law had a provision of 15% VAT in all cases, later under pressure, the government reduced the rate in various sectors.

Due to pressure from traders, the government implemented the law from the financial year 2019-20.

All the IMF's questions

The International Monetary Fund (IMF) team, since its arrival in Dhaka to discuss $4.5 billion loans sought by Bangladesh, has extensively visited government offices and held a series of meetings to take stock of the country's macroeconomic situation, its internal and external finance and fiscal...

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The International Monetary Fund (IMF) and the Bangladesh government have reached an agreement for a $4.5 billion loan to Bangladesh, pending the approval of its board.

"We are getting the loan just the way we wanted. A total of $4.5 billion will be lent to Bangladesh," Finance Minister AHM Mustafa Kamal told the media during a briefing in Dhaka on Wednesday afternoon.

"The amount will be disbursed in seven instalments till December 2026. The first instalment of $447.78 million will be cleared in February next year. The rest will be $659.18 million each.

"The interest rate of the loan will depend on the market rate at the time of maturity. The finance ministry has calculated that the rate would be around 2.2%."

He also said the IMF had advised reducing non-performing loans and increasing revenue collection.

The international money lender, however, did not say anything regarding government subsidies, Kamal added.

An IMF press release on Wednesday said, "The IMF staff and the Bangladesh authorities have reached a staff-level agreement to support Bangladesh's economic policies with a 42-month arrangement of about $3.2 billion under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) as well as of about $1.3 billion under the Resilience and Sustainability Facility (RSF).

"The objectives of Bangladesh's new fund-supported programme are to preserve macroeconomic stability and support strong, inclusive, and green growth, while protecting the vulnerable. The RSF is expected to provide affordable, long-term financing to support Bangladesh's climate investment needs, catalyze climate financing, and reduce balance of payment pressures from import-intensive climate investment."

Government revenue collection will be increased by strengthening the reform of the revenue system and enhancing the efficiency of tax administration, said the minister.

"We have taken the initiative to set up EFD machines for VAT collection. So far 6,732 machines have been installed," he added.

He said 60,000 more machines will be installed next year and 2,40,000 machines will be installed in the next four years; fuel oil prices will be adjusted from time to time in line with the international market price; the task of determining the exchange rate would be left to the market; the issue of climate change risk would shape the government's development plan, the annual development programme and development projects will be undertaken with that in mind; a disaster risk financing should be planned, including disaster relief and more.

Addressing the development, Rahul Anand, who is leading the IMF delegation visiting Bangladesh, said, "To successfully graduate from Least Developed Country status and achieve middle-income status by 2031, it is important to build on past successes and address structural issues to accelerate growth, attract private investment, enhance productivity, and build climate resilience.

"Against this backdrop, and following initial measures to maintain macroeconomic stability, the authorities have put together a programme – supported by the IMF – that is expected to bolster its external position, reduce vulnerabilities, and prepare the ground for a robust and inclusive growth pick-up by scaling up much-needed social, development and climate spending.

The 5 keys

The IMF said there would be five key elements in the programme.

The first is to create additional fiscal space, which would need higher revenue mobilisation and rationalisation of expenditures with the impact on the vulnerable mitigated by higher social spending and better targeted social safety net programmes.

The second is to contain inflation and modernise the monetary policy framework, where the monetary stance would be guided by the inflation outlook.

Another area would be strengthening the financial sector by reducing vulnerabilities, strengthening oversight, enhancing governance and the regulatory framework, and developing capital markets.

The fourth is to boost growth potential by creating a conducive environment to expand trade and foreign direct investment, developing human capital, and improving governance.

And the fifth agenda is to build climate resilience by strengthening institutions and creating an enabling environment, support large-scale climate investments, and help mobilise additional climate financing.

During its visit, the IMF team held meetings with Finance Minister AHM Mustafa Kamal, Bangladesh Bank Governor Abdur Rouf Talukder, Finance Secretary Fatima Yasmin, and other senior government and Bangladesh Bank officials.

It also met with representatives from the private sector, bilateral donors, think tanks, and development partners.

The Bangladesh government had sought the loan as it grappled with the impact of the Russia-Ukraine war that depleted reserves, stoked inflation and pushed the country towards the brink of a dollar shortage.

No tough conditions

Finance Minister AHM Mustafa Kamal said while many thought Bangladesh wouldn't get the loan or that it would come with stringent conditions, it wasn't like that.

"The IMF has given the conditions such as working on reducing bank defaults and increasing revenue collection of the NBR. We have already taken the initiative to set up an asset management company to reduce defaulted loans," he added.

The finance minister also said if the IMF said everything was fine, then no country in the world could disagree.

On not giving tax exemptions, he said it wasn't discussed but it was explained that such exemptions would be necessary for daily necessities, otherwise the lower income groups would find it difficult to survive.

The IMF had noted that Bangladesh has been very late in implementing the VAT Act of 2012.

About inflation, the finance minister said it was increasing all over the world, an observation echoed by the IMF.

Regarding lifting the cap on interest rate of bank loans, the minister said if it is lifted then the interest rate will be 18-20% as before, which was not desired.

Regarding the reason for adding EDF debt to the reserve, the finance minister said it was transferred from one account of the government, so it was shown in the reserve. But the IMF has asked to exclude it and calculate reserves, he added.

He said the reserve would be calculated showing how much was spent on different sectors and how much was in the net reserve.

"We will disclose everything, hide nothing," he said.

Bangladesh Bank Governor Abdur Rauf Talukder said the IMF loan assistance was being taken keeping four objectives in mind: stabilising the external sector, stabilising the financial sector, achieving the target of graduation of LDCs and promotion to developed countries by 2041.

About the condition of defaulted loans, he said the IMF has given conditions to limit the rate of defaulted loans to 10%. Non-performing loans in the banking sector are below 10%.

Regarding the foreign exchange reserve calculation, the governor said, "We show the total reserve. The IMF asked to show net reserves. We talked about showing both. We have no problem going through due process."

On EDF, he said it could be liquidated in 120 days if needed.

Regarding the initiative to increase remittances, the governor said the exchange houses have said they will not charge any fee, while the houses will also remain open during holidays.

He said currently the country's reserves are $34.3 billion. Of this, loans to EDF and Sri Lanka are about $8 billion, which leaves a net reserve of about $26 billion.

Former lead economist of the World Bank, Dhaka Office, Zahid Hossain told The Business Standard that neither the finance ministry nor the IMF had said anything about what needs to be done before receiving the first instalment in February or what had to be implemented before disbursing the remaining ones.

He said nothing was discussed about when and what kind of programme will be implemented under the IMF's programme to deal with the stress that is going on and increasing in the macroeconomy.

It is difficult to comment without knowing these things, he added.

Zahid also said the loan amount wasn't big enough in the current context, but it would be helpful.

"$1-1.5 billion has been guaranteed from the IMF to cover a deficit of $5-6 billion in balance of payments every year," he said.

Ahsan H Mansoor, a former IMF official and executive director of Policy Research Institute, said it is good that the government took steps to prevent the crisis before it started and got a timely loan guarantee from the IMF.

"This will reduce our economic tension. But without knowing what conditions the government will fulfil under this programme, it cannot be said at this point whether the tension will be completely reduced or not.

"GDP may decrease this year, but if the IMF programme is properly implemented, inflationary pressure and dollar volatility will be slightly reduced."

'Bangladesh has never defaulted on loans'

The IMF expressed confidence in Bangladesh's ability to repay its loans and said one of the priorities of the programme was to safeguard reserves.

Speaking at a press conference at the Finance Division, Rahul Anand, mission chief to Bangladesh, IMF, said the global money lender had expected Bangladesh's reserves to go down.

"During the pandemic, reserves went up, but it was a one-off. Because the formal channel was the only way to remit money and exports rebounded quickly because of the stimulus package. Exports also got a boost as there was a lot of trade diversion [in other countries]. Imports were also low. So, this led to an artificial build up of the reserve," he said.

Rahul said after the war, while Bangladesh -- which imports almost every item -- increased import quantities, the price of everything had also shot up, resulting in depleting reserves.

He, however, said there were no worries about the loan to Bangladesh.

"Bangladesh has always been a very good partner with the IMF. Bangladesh has never defaulted on any loan and we don't expect the election cycle will change anything on this front," he said, adding every country in the world was going through a similar crisis in terms of inflation and reserve pressure.

On the creation of the Economic Development Fund and its impact on reserves, he said, "The IMF has a manual on how we compute things -- the Balance of Payment Manual. It guides us on which items have to be in the gross international reserves. And there are certain criteria…the bottom line is reserve should be available and be unencumbered. It should be available to use when the time comes. From our perspective, the EDF does not count for gross international reserves."

On the question of whether Bangladesh's current reserves being good for three months of payments was enough or not, Rahul said it depended on the situation, the economy and several other factors. In times of such uncertainty, it was hard to say, he added.

On the comparisons with Sri Lanka, he again pointed out Bangladesh's debt to GDP ratio, saying it was not on the way to becoming unsustainable.

Rahul stressed that there were no additional conditions being imposed and the IMF worked as a trusted advisor of the government.

"Let me be very clear: this is a programme of the authorities. They own the programme, with the support of the IMF. So the ownership of the programme lies with the authority.

"We are not on any fact finding mission. We have had close engagement over the years."

The IMF programme is to help authorities stabilise the macro situation in the near term, relax financial constraints and prepare the groundwork for longer structural reforms to successful graduation from Least Developing Country status and reach the Middle Income Status.

On the air of secrecy shrouding the meetings, he said the discussions were bound by confidentiality.

Asked how the IMF would monitor the programme, the IMF mission head said there would be six-monthly reviews, adding, "We look at some critical numbers and see whether targets are met on specific numbers. Everything cannot be quantified and some reforms cannot be quantified. So we also look at those. Ultimately, it is the authorities' programme."

At the end, he clarified that the loan was not finalised yet and would have to be approved by the IMF's management team and the executive directors.

IMF agrees to $4.5b loan, first instalment in Feb

The International Monetary Fund (IMF) and the Bangladesh government have reached an agreement for a $4.5 billion loan to Bangladesh, pending the approval of its board. "We are getting the loan just the way we wanted. A total of $4.5 billion will be lent to Bangladesh," Finance Minister AHM...

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[Isa Khan]

State Minister for the Ministry of Power, Energy, and Mineral Resources Nasrul Hamid said the construction of a transmission line to connect the Rooppur Nuclear Power Plant with the national grid is going on with coordinated efforts.

"The work of the nuclear power plant transmission line has been delayed due to Covid-19 and the Ukraine war," said the minister after a meeting with Science and Technology Minister Yeafesh Osman at Bidyut Bhaban yesterday.

He said now the construction work is going in full swing to complete the transmission line for connecting the Rooppur Power Plant with the national grid within the stipulated time frame.

Meanwhile, Science and Technology Minister Yeafesh Osman said the Power Division and his ministry are working together to complete the transmission line construction on time.

"Safety is of our utmost importance and all the work is satisfactory. But there are many challenges ahead including an unusual increase in dollar price. However, with the combined efforts of all, the work is expected to be completed on time," he said.

After the joint meeting, journalists were informed that the progress of the construction of the power transmission line from the nuclear power plant in Rooppur is satisfactory.

Replying to a question, Nasrul Hamid said the project was delayed due to Covid-19 pandemic and Russia-Ukraine war.

"Now efforts are being made to expedite the project implementation", he said.

"We hope we can complete the transmission line before completion of the Rooppur Nuclear Power Plant project," said the state minister.

The government has been constructing a 2,400MW Rooppur Nuclear Power Plant project having two units. As per the project plan, the first unit of the nuclear power plant will supply 1,200MW in 2023 and the same amount of electricity will be available from the second unit in 2024.

The Rooppur project is being implemented by the Bangladesh Atomic Energy Commission with the technical and financial support of Russia.

Nuclear scientist and Rooppur plant Project Director Dr Md Shaukat Akbar recently said the project has seen around 53 % financial progress and 55% physical progress. However, the overall progress of the first unit is 70%.

Transmission line being built to connect Rooppur with national grid: Nasrul

State Minister for the Ministry of Power, Energy, and Mineral Resources Nasrul Hamid said the construction of a transmission line to connect the Rooppur Nuclear Power Plant with the national grid is going on with coordinated efforts. "The work of the nuclear power plant transmission line has...

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Road Transport and Bridges Minister Obaidul Quader said the Bangabandhu Sheikh Mujibur Rahman Tunnel, being constructed beneath the Karnaphuli River, will be opened partially this month.

"I think opening of 100 bridges simultaneously across the country did not happen before in South Asia. The Padma Bridge is an outcome of Prime Minister Sheikh Hasina's bold decision," he said while exchanging views with journalists at his Secretariat office here.

Quader, also the Awami League General Secretary, said a total of 11 sub-committees have been formed to hold the AL national council.

"The council of Awami League that will be held on December 24 next would not be a luxurious one since the global crisis is going on. The councils of the AL local units across the country will be completed before the national conference," he said.

The AL general secretary said Bangladesh does not have such crisis that many other countries have been facing right now.

"We are in a better position than many others, and better means we are in a comfortable position. If the cost of living goes up, the commoners will suffer. As a government, we are not denying that. We are realising it. We are trying our best," he said.

Replying to a question, Quader said democracy is a continuous process. "We have efforts, we have mistakes and we have efforts to correct our mistakes too".

Claiming that the present Election Commission (EC) is not an Aziz-like one, he said the Commission will work as per laws.

"Where is the BNP's objection to participating in the elections under this Commission?" the AL general secretary questioned.

He said a big economic crisis is coming and the government is trying to deal with it.

"Bangladesh is still in a relaxed position compared to many other countries. The prime minister is repeatedly mentioning this because there are signs of crisis," he added.

Bangabandhu Tunnel under Karnaphuli to open partially this month: Quader

Road Transport and Bridges Minister Obaidul Quader said the Bangabandhu Sheikh Mujibur Rahman Tunnel, being constructed beneath the Karnaphuli River, will be opened partially this month. "I think opening of 100 bridges simultaneously across the country did not happen before in South Asia.

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Almost 95 percent work of metro rail between Uttara and Agargaon line has been completed and is expected to be finished by December, said MAN Siddique, managing director of Dhaka Mass Transit Company Limited (DMTCL).

The system integration is expected to be completed by November. After that the authority will run blank operation, he said while talking to reporters at his office.

"We'll provide updated report to the prime minister," he said adding that prime minister will give a decision as to when it will be opened for public.

‘95% work of metro rail’s Uttara-Agargaon section complete’

Almost 95 percent work of metro rail between Uttara and Agargaon line has been completed and is expected to be finished by December, said MAN Siddique, managing director of Dhaka Mass Transit Company Limited (DMTCL).

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The government is going to undertake a major project to set up five jetties and necessary infrastructure in the economic zones in the country's south-eastern part to ensure the comfortable and safe movement of people and landing facilities and boost tourism.

The shipping ministry has taken up the project, which may be placed at a meeting of the Executive Committee of the National Economic Council today.

The Bangladesh Inland Water Transport Authority (BIWTA) will implement the project, in cooperation with the Bangladesh Economic Zones Authority.

The project will be completed by June 2024.

The government will provide the fund and the BIWTA will have to acquire 25.86 acres, according to documents of the planning ministry.

The Bureau of Research, Testing and Consultation, an expert team of the Bangladesh University of Engineering and Technology, has prepared the designs of the jetties and carried out a feasibility study.

The main objective of the project is to set up five jetties and other facilities in the south-eastern part, including Mirsarai and Sandwip parts of Chattogram and Sonadia and Teknaf (Sabrang and Jaliar island) parts of Cox's Bazar.

The jetties will provide infrastructure to carry the increasing volume of products and items for the local residents in Chattogram and Cox's Bazar and contribute to economic development, said Commodore Golam Sadeq, chairman of the BIWTA.

"The jetties will help boost tourism and attract foreign and domestic tourists via modern landing facilities," he said, adding that the jetties will support the Bangabandhu Sheikh Mujib Shilpa Nagar.

The industrial city consists of three economic zones: Mirsarai, Feni, and Sitakundu.

Md Mohidul Islam, chief engineer (civil) of the BIWTA, said: "If the project is okayed, we will try to complete it within the deadline."

According to the planning ministry's document, a jetty will be built in the Jaliar Dwip Island, which is located in the middle of the Naf river where the Naf Tourism Park is currently being built. The park will have all the modern tourist facilities.

The jetty will ensure the landing facilities for travellers as well, it said.

Sonadia, which is 7 kilometres far from Cox's Bazar, is a popular place for making dried fish. A jetty with landing facilities is needed to ensure smooth communication for prospective travellers, said the documents.

The Mirsarai Economic Zone, which is located on the bank of Sandwip channel, will be the industrial hub where hundreds of thousands of workers will be employed.

Local farmers and small businessmen will be able to transport their products within a short time and at lower costs, it said.

Under the project, the BIWTA will dredge 3.95 lakh cubic metres of area for the safe berthing of water vessels.

It will also construct 75,481 square feet in jetty spaces, 8,485 square metres of parking yards, 24,000 square metres of the access road, and 3,830 square metres of the embankment to save the river banks.

The BIWTA will build a 23,488-square-metre port complex as well.

Govt to shell out Tk 1,914cr to set up 5 jetties

The government is going to undertake a major project to set up five jetties and necessary infrastructure in the economic zones in the country’s south-eastern part to ensure the comfortable and safe movement of people and landing facilities and boost tourism.

www.thedailystar.net

 

[Isa Khan]

Four new ships of the Meghna Group are joining the fleet of Bangladeshi-flagged seagoing vessels.

The bulk carrier ship Meghna Victory, first of the four, will take to the seas with goods on 18 or 20 November, taking the total number of Bangladesh-flagged vessels to 91, said Md Abu Taher, chief engineer of Mercantile Shipping, a concern of Meghna Group.

Meghna Group invested $35 million in Meghna Victory, which is now the largest privately-owned bulk carrier with a capacity of 66,000 tonnes.

Md Abu Taher said preparation for the newly-built bulk carrier ship to start operation is at the final stage.

"Three more ships: Meghna Prestige, Meghna Hope and Meghna Progress, which are being made in China, will gradually join the fleet of Meghna Group," he said, adding the expected dates are January, March and May of 2023.

Meghna Group invested a total of $105 million for the four ships, which will create employment for 100 Bangladeshi sailors.

The four new vessels will take Meghna Group's total number of ships to 22 at an investment of $550 million, making the group the owner of the second largest fleet in the country after KSRM, which owns 23 vessels.

Meghna Group Chairman Mostafa Kamal told The Business Standard, "These four new ships will carry the flag of Bangladesh in various ports around the world. It is undoubtedly a milestone for our country. Besides, they will earn foreign currency by transporting goods which is positive for the country's economy."

He also said the sailors will be paid in the same category as foreign seamen.

"In addition, 50 people will be employed for each of the vessels on the shore," he added.

Meghna Group has been involved in operating ships on international sea routes since 2010. Of the total capacity of the ships, 60% is used for the company's own goods and 40% for others.

Mercantile Marine Office Principal Officer Captain Md Giashuddin Ahmed told TBS that in the last three years, the highest number of ships have been added to the domestic fleet.

"The Mercantile Marine Office is working to fully implement the Bangladesh Flag Vessels (Protection) Ordinance to encourage entrepreneurs to invest in this sector," he said.

He called on private companies to invest in the shipping sector, pointing out that currently approximately 20% of Bangladesh's import and export goods are transported by domestically-owned ships.

At one time the number of Bangladeshi flagged sea going ships was 72 which dropped to 35 in 2012.

It then took six years for another vessel to be added to the fleet.

Meghna Group adding 4 vessels to its fleet

Meghna Victory, the largest privately-owned bulk carrier, has a carrying capacity of 66,000 tonnes

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Royal Sewing (BD) Ltd, a Bangladeshi company, is going to establish a garments industry in Ishwardi Export Processing Zone (IEPZ) with an investment of $5.5 million.

In presence of the Executive Chairman of Bangladesh Export Processing Zones Authority (BEPZA) Major General Abul Kalam Mohammad Ziaur Rahman, BEPZA and Royal Sewing signed an agreement to this effect on Tuesday (15 November) at the BEPZA Complex, Dhaka, said a press release.

Member (Investment Promotion) of BEPZA Ali Reza Mazid and Chairman of Royal Sewing (BD) Kabir Ahmed inked the agreement on behalf of their respective organisations.

According to the media release, Royal Sewing (BD) Ltd will manufacture annually 2.7 million pieces of different types of RMG products, home textile, pillow, blanket, cushion etc. This company will create employment opportunity for 1070 Bangladeshi nationals.

Among others, Member (Engineering) Mohammad Faruque Alam, Member (Finance) Nafisa Banu, Executive Director (Administration) Md Zakir Hossain Chowdhury, Executive Director (Investment Promotion) Md Tanvir Hossain and Additional Executive Director (Public Relations) Anwar Parvez along with representatives of the enterprise were present at the signing ceremony.

Bangladeshi company to invest $5.5M in Ishwardi EPZ

Royal Sewing (BD) Ltd, a Bangladeshi company, is going to establish a garments industry in Ishwardi Export Processing Zone (IEPZ) with an investment of $5.5 million. In presence of the Executive Chairman of Bangladesh Export Processing Zones Authority (BEPZA) Major General Abul Kalam Mohammad...

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[Isa Khan]

Prime Minister Sheikh Hasina on Saturday inaugurated the construction work of the long-awaited Dhaka-Ashulia Expressway.

The premier took take part in the programme virtually from Ganobhaban around 10:30am.

She said, "Development works have been conducted with money taken from the forex reserve. Whatever we have done, we have done it with our own money.

"We want to keep our heads always high in the international arena. Our infrastructural progress has boosted connectivity. We are moving forward as a nation."

The 24km elevated expressway, once completed, will connect Hazrat Shahjalal International Airport in Dhaka to the Nabinagar intersection via Abdullahpur-Ashulia-Bypass and Chandra Junction via EPZ.

The Dhaka-Ashulia Elevated Expressway project in the Asian Highway Alignment will be linked to the Dhaka Elevated Expressway.

The aim of the Ashulia Expressway is to reduce traffic congestion on the Abdullahpur-Ashulia-Bypail-Chandra road connecting 30 districts with Dhaka.

The project will have an 11km ramp. There will be a 14.28km four-lane connecting road on both sides of the flyover.

According to an estimate of the Bridges Division, the elevated expressway will make a 0.2% contribution to the gross domestic product (GDP) by facilitating the transportation of exports of goods.

The Executive Committee of the National Economic Council (Ecnec) in 2017 approved the project which was originally scheduled to be completed in June 2022.

But, the construction of the Dhaka-Ashulia Elevated Expressway has not progressed in the last five years due to the complexity of the loan agreement with China.

The government and Exim Bank of China signed a $1.1 billion loan agreement for the construction of the Dhaka-Ashulia Elevated Expressway in October 2021.

Though China was initially supposed to bear the entire cost of the project, due to the change in the country's debt policy, it is now providing 85% of the total expenditure.

In June this year, the Ecnec meeting approved the amendment proposal of the project with the time extension to June 2026. Now the project cost has increased by Tk652 crore to Tk17,553 crore.

PM Hasina inaugurates construction of Dhaka-Ashulia Elevated Expressway

The 24km elevated expressway, once completed, will connect Dhaka airport to the Nabinagar intersection via Abdullahpur-Ashulia-Bypass and Chandra Junction via EPZ

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Bangladesh's gateway to foreign trade, Chattogram seaport, has received a boost as the Patenga Container Terminal has come into operation on a trial basis with the unloading of rice imported from Myanmar.

The vessel MCL-19 carrying some 2,650 tonnes of atap rice docked at the newly built terminal on Tuesday, marking the introduction of a new terminal at the country's main seaport after 15 years.

Earlier, the Newmooring Container Terminal was built back in 2007 while the construction of the new terminal was completed earlier this year.

A ship has to cross a distance of some 14km from the estuary of the River Karnaphuli to reach the main jetty of the port. But the distance to the new terminal is just 6km.

In the fiscal 2005-06, container handling at the Chattogram port was 8.27 lakh twenty-foot equivalent units (TEUs), which increased to 32.55 lakh TEUs in FY22.

In other words, container handling at Chattogram port has increased by 393% in the past 15 years, but no new jetty has been added to the port. Therefore, to increase the capacity of the port, businessmen had been demanding the construction of a new jetty for a long time.

Chattogram Port Secretary Omar Farooq told The Business Standard that until the new terminal is fully operational, relatively small ships which do not have their own cranes and carry government-imported rice will be handled here.

"The new terminal may take some time to have various processes completed, including the installation of equipment and hiring of operators. After this, container vessel handling will go on in full swing," he added.

Earlier, the terminal had been scheduled for inauguration on a trial basis in July. But the date was later rescheduled.

The local agent of the vessel MCL-19 is Seven Seas Shipping Lines Limited, while the stevedore is Messrs AW Khan.

Even though the ship berthed on Tuesday, the stevedoring company started unloading goods this morning. The rice is unloaded from the ship and sent to Halishahar and Dewanhat container scanning divisions in the city.

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 (GCB), Chattogram Container Terminal (CCT) and New Mooring Container Terminal (NCT).

After the opening of the Patenga terminal, the number of jetties has risen to 23.

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

The new terminal, built on a 32-acre site, will be able to handle about 4.5 lakh TEUs of containers per year. The terminal has three containers and an oil unloading (dolphin) jetty. Four ships can be docked at a time there.

Tk1,229 has been spent on the construction of the new terminal, according to Mizanur Rahman, director of the Patenga Container Terminal project.

Initially, it was decided that the Patenga Container Terminal will be managed by the Chattogram Port Authority. Later it was decided to administer the terminal through a foreign operator under Public Private Partnership (PPP). But since the PPP was not finalised, the port authority has started operating the terminal on its own.

So far five foreign companies – AP Moller – Maersk of Denmark, Red Sea Gateway Terminal (RSGT) of Saudi Arabia, Dubai Port World (DP World) of the United Arab Emirates, Adani Port and Special Economic Zone Limited APSEZ of India and PSA International Singapore - have come forward with proposals to invest and operate the Patenga terminal.

Mahbubul Alam, president of the Chattogram Chamber of Commerce and Industry (CCCI), said, "The launch of the Patenga terminal is undoubtedly positive news for the country's import and export trade."

"However, if the operator recruitment process for the terminal gets delayed, we will not be able to reap its benefits. Therefore, the authorities must launch the terminal at 100% of its capacity as soon as possible," he added.

Ctg port gets new terminal after 15 years

Bangladesh's gateway to foreign trade, Chattogram seaport, has received a boost as the Patenga Container Terminal has come into operation on a trial basis with the unloading of rice imported from Myanmar. The vessel MCL-19 carrying some 2,650 tonnes of atap rice docked at the newly built...

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H&M has a big plan for sourcing for Bangladesh although the price will increase by up to 12 per cent following the country's graduation from the grouping of the least-developed countries in 2026, said a senior official of the Swedish retail giant yesterday.

After becoming a developing nation, Bangladesh will lose its preferential market access and face 10 to 12 per cent duty on its exports. However, it will enjoy the duty preference in the European Union up to 2029 as the trade bloc has extended a three-year grace period.

"We are committed to our suppliers. And Bangladesh is the safest sourcing destination among all 19 sourcing destinations of H&M," said Ziaur Rahman, regional country manager for production at H&M for Bangladesh, Pakistan and Ethiopia.

"We will be staying here."

Rahman was speaking as one of the panellists at a discussion on "Bangladesh's LDC graduation-Impediments and Way Forward" at the Made in Bangladesh Week at the International Convention City, Bashundhara in Dhaka.

H&M is the single largest foreign clothing buyer in Bangladesh, sourcing more than $3.50 billion worth of apparel last year. The Swedish clothing retailer sources 20 per cent of its products from the country.

The comment from Rahman comes as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a target to raise the nation's share in the global apparel market to double-digit in three years and earn $100 billion by 2030.

The country, which raked in $42.61 billion in garment exports in the last financial year that ended in June despite economic slowdown across the world, has a 6.8 per cent market share in the global apparel supply chain.

Rahman, however, noted that 18 per cent to 20 per cent of products that his company sources from Bangladesh would be affected by the duty imposition after graduation.

He suggested Bangladesh improve product diversity as more than 75 per cent of exported garment items are confined to the top five products although the country is the second-largest apparel supplier in the world.

"Improvement of efficiency and making more garments from the manmade fibre can help overcome the challenges of the duty imposition after the LDC graduation," he said.

In another assurance, Rahman said if the wages of garment workers in Bangladesh go up, H&M would also increase the prices of products sourced from the country to help manufacturers compensate for additional expenses.

Bangladesh is the largest sourcing destination for British multinational retailer Marks and Spencer Group. And its regional head for Bangladesh and India Shwapna Bhowmick said local manufacturers need to use more manmade fibre (MMF) to increase garment exports.

Globally, the use of artificial fibre is rising.

MMF apparel items accounted for $222 billion of the $440 billion global garments market last year when cotton-based products contributed $190 billion.

Apparel exports from Bangladesh will cross $95 billion by 2030 if the country can expand its share in the global market for MMF to 12 per cent from less than 5 per cent at present, according to a recent study.

Worldwide, almost half of all apparel exports are of MMF products while 42 per cent are cotton-based garment items. In Bangladesh, 72 per cent of the garment exports are cotton-based apparel and just 24 per cent are MMF.

Speaking at the event, Sharifa Khan, secretary of the Economic Relations Division, also suggested local manufacturers ship more garment items produced from MMF to secure better prices.

She said Bangladesh has already secured five years as the transition period when it comes to duty benefits instead of three years supposed to be granted.

Another review is going on at the United Nations Conference on Trade and Development for further extension of the transition period. But she said Bangladesh is not expecting any further extension.

"Bangladesh has always been a resilient economy and we will need to stand on our own feet."

She suggested aligning the Generalised System of Preferences with the Sustainable Development Goals so that all the LDCs benefit.

The ERD secretary also alleged that international retailers and brands always put pressure on increasing conditions for local suppliers.

For instance, previously it was said that Bangladesh would have to comply with 27 international conventions to obtain the GSP Plus status in the EU market. Now, the number of conventions has been raised to 32 conventions, said Khan.

Ahmad Kaikaus, principal secretary of the prime minister, said Bangladesh is the largest denim supplier to the United States despite a 16.50 per cent duty.

"This indicates that the export of garments will not be affected after the LDC graduation."

Kaikaus also said a team from the International Monetary Fund (IMF) that visited the country recently did not come to rescue Bangladesh by providing loans.

Rather it was a regular visit and they wanted to know about the government's preparation for the LDC graduation, he said.

The IMF has agreed to provide $4.5 billion in loans to Bangladesh.

The IMF team also did not attach any condition to the loan except for enquiring about the situation of the Export Development Fund (EDF), according to Kaikaus.

The IMF has long been prescribing Bangladesh calculate and regularly publish the net foreign currency reserves.

The central bank currently shows gross foreign currency reserves by including $7 billion of the EDF.

"LDC graduation is a challenge but it is possible to overcome it and grow," Kaikaus said.

Nazneen Ahmed, the country economist of the UNDP, said if Bangladesh can continue its manufacturing growth even after the LDC graduation, it will not fall into the middle-income trap.

"The conventional country branding will not do. Branding should include all of the potential sectors," said Riaz Hamidullah, Bangladesh's ambassador to the Netherlands.

He called for using technology, innovation and design in products.

Asif Ibrahim, a director of the BGMEA, demanded signing trade deals with major trading partners to avail more market access after graduation.

In another session styled "Responsible Business Needs Global Alliance on Due Diligence - the Perspective of Manufacturers & the Western Buyers", Senior Commerce Secretary Tapan Kanti Ghosh said Bangladesh signed the Global Sustainability Compact a long ago that called for shared responsibility. But it is not discussed with importance, he said.

The senior secretary said Bangladesh has improved a lot in line with EU due diligence over the past decade.

He is worried that the EU due diligence may be used as a non-tariff barrier.

The BGMEA and the Bangladesh Apparel Expo jointly organised the Made in Bangladesh Week, which ends tomorrow.

H&M has big sourcing plan for Bangladesh

H&M has a big plan for sourcing for Bangladesh although the price will increase by up to 12 per cent following the country’s graduation from the grouping of the least-developed countries in 2026, said a senior official of the Swedish retail giant yesterday.

www.thedailystar.net

Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) has discovered fresh gas reserves in the abandoned well-1 of Beanibazar gas field in Sylhet from which 7-8 million cubic feet of gas can be extracted per day.

Petrobangla chairman Nazmul Ahsan confirmed the news to Kaler Kantho on Thursday.

Sources from Sylhet Gas Fields Ltd (SGFL) said that some 35 billion cubic feet of gas was extracted from this well which remained abandoned since 2016.

BAPEX started workover (re-drilling) on the well on September 10 this year.

SGFL managing director Engr Md Shahinur Islam said, “Experimental activities started in the Beanibazar well-1 today. Gas has been traced by testing the well from a depth of 3,454 metres. Under experimental conditions, the gas flow has been measured at 10 million cubic feet while the gas pressure is 3,100 pH”.

“The well will be tested for the next three days. After the test, it will be decided how much gas can be extracted from the well. For now, it seems that 7-8 million cubic feet of gas and around 100 barrels of condensate can be supplied from here per day,” he added.

Gas reserves found in Beanibazar's abandoned well | Kaler Kantho

Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) has discovered fresh gas reserves in the abandoned well-1 of Beanibazar gas field in Sylhet from which 7-8 million cubic feet of gas can be extracted per day. Petrobangla chairman Nazmul Ahsan confirmed the news to Kaler Kantho on

www.kalerkantho.com

 

[Isa Khan]

The Outer Ring Road in Chattogram from Foujdarhat to Patenga will be opened to public in full swing next month.

A total of 98% construction work of the 15.2 kilometer-road with four lanes from Patenga to Sagarika on the existing coastal embankment protecting Chattogram port city under the project, increasing the existing height of embankment from 20-23 feet to 30-33 feet has already been completed this month.

M Zahirul Alam Dobhas, chairman of Chattogram Development Authority (CDA), said limited traffic has been introduced considering the suffering of the people, though the construction of City Outer Ring Road has not been completed yet.

"More than 98% construction work has been completed. It may take more time to complete the work on the connecting roads," he added.

Hasan Bin Shams, project director of city outer ring road said the pavement construction of the road has been completed and the main road has already been opened for traffic in limited scale.

He said, "Besides, 98% of the substructure works and 79% of the superstructure of the flyover under construction on the ring road adjacent to the Sagarika Cricket Stadium have been completed. Meanwhile, construction work of feeder road is going on."

Hasan Bin Shams said the overall construction work and beautification work of the road has been completed. The road is built about 32 feet above from sea level. A total of 12 bridges and sluice gates have been constructed on the project.

He said, "The construction work had been postponed for about three months due to the coronavirus. Otherwise, the road would have been built long ago. The carpeting works is almost over."

CDA has taken initiative to build an 'outer ring road cum embankment' to reduce traffic congestion in the port city and facilitate the movement of goods vehicles from the Chattogram port in 2011.

Donor agency JICA provided funding after a feasibility study on the road from Patenga beach to Faujdarhat. The main construction works of Outer Ring Road started in July 2016. Initially, the cost of the project was estimated at Tk865 crore, but after two amendments, it now stands at around Tk26,75.96 crore.

Ctg Outer Ring Road to open next month

The Outer Ring Road in Chattogram from Foujdarhat to Patenga will be opened to public in full swing next month. A total of 98% construction work of the 15.2 kilometer-road with four lanes from Patenga to Sagarika on the existing coastal embankment protecting Chattogram port city under the...

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The authorities have completed all preparations to inaugurate the much-awaited Karnaphuli tunnel under the River Karnaphuli in January.

Construction works on the south tube of the tunnel were also completed, and the authorities organised a celebration on Saturday to mark the occasion.

Prime minister Sheikh Hasina will address the programme virtually, said project officials.

The first-ever tunnel in Bangladesh under the Karnaphuli river was named after the country’s founding president, Sheikh Mujibur Rahman.

China Communication Construction Company Ltd is working as the contractor for the project.

As of November 25, project officials stated that 94 per cent of the total work for the tunnel project had been completed.

‘Ninety-four per cent of construction works on the Karnaphuli tunnel project were completed by November 25. The construction works are underway in full swing with a target of completing the works within January 2023,’ project director Harunur Rashid Chowdhury told New Age.

‘Two tubes were constructed with an 11-metre gap so that heavy vehicles could move easily through the tunnel,’ the project director said.

According to project officials, the length of the under-construction tunnel will be 3.40 kilometres with an approach road of 5.35 kilometres alongside 727 metres of a bridge linking the main city, port, and western side of the river with its eastern side.

The tunnel will connect the proposed Asian Highway to the Dhaka-Chattogram-Cox’s Bazar Highway and reduce the distance from Chattogram to Cox’s Bazar by 40 km.

Vehicles in this tunnel will run at a speed of 80 km per hour.

On June 9, 2014, during prime minister Sheikh Hasina’s visit to China, a memorandum of understanding was signed between Bangladesh and China on the construction of the tunnel.

But they could not start the construction works, as the Chinese Exim Bank, with which a loan deal was signed, did not release the funds.

The road transport and bridges ministry inked a deal in June 2015 with the Chinese firm on a G-to-G basis for the construction of a two-lane tunnel.

In September 2015, the cabinet committee on economic affairs approved China Communications Construction Company Limited for the work of the Tk 8,446.64-crore project.

The project was supposed to be completed by 2020. However, in 2018, the duration of the project was extended until December 2022, and the cost of the project was revised to Tk 10,374 crore.

The Exim Bank of China is giving a term loan of Tk 5,913 crore with a two per cent interest rate for the project. The Bangladesh government is funding the rest.

The project director told New Age that they had sent a proposal to the ministry for extending the project duration for one more year after construction works.

Karnaphuli tunnel set for inauguration in January

The authorities have completed all preparations to inaugurate the much-awaited Karnaphuli tunnel under the River Karnaphuli in January. Construction works on the south tube of the tunnel were also completed, and the authorities organised...

www.newagebd.net

 

[Isa Khan]

Saudi Arabia's ACWA Power has signed a non-binding Memorandum of Understanding with the Bangladesh Power Development Board (BPDB) to set up a 1 gigawatt solar power plant in Bangladesh.

As per the MoU, ACWA Power will provide technological and financial support while the BPDB will extend administrative support for the 1,000MW (megawatt) solar power project.

The BPDB is the state-owned single buyer of electricity from public and private producers, while ACWA Power is a global leader in water desalination and power generation.

At the MoU signing event at Bidyut Bhaban in the city on Monday, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said the investment and technology of the ACWA will help Bangladesh achieve its clean energy goal of 2041.

He said Bangladesh has been supporting renewable energy in different ways.

"The government has been working in a coordinated manner to promote renewable energy. The state-owned Sustainable and Renewable Energy Development Authority [Sreda] is providing necessary technological support and consultations," he said.

Nasrul said the application of modern technology is essential to overcome problems related to land scarcity.

At present, Bangladesh has developed a capacity to generate 714.87MW solar power. Of this, 358.63MW is connected to the grid and the rest of the capacity has been developed in off-grid isolated areas.

With the grid connected solar power, the country's total on-grid electricity generation capacity now stands at 22,512MW.

Earlier in October 2019, ACWA Power had signed another MoU with the BPDB for a land-based LNG power plant and terminal in Bangladesh.

As per the agreement, ACWA Power was supposed to develop a 3,600MW gas-fired independent power plant representing an investment of approximately $2.5 billion, reads the company's digital portfolio.

However, the plan has not yet materialised.

BPDB Board Secretary Mohammad Selim Reza and ACWA Power business development department's Executive Director Ayad Al Amri signed the MoU on behalf of their respective sides.

With BPDB Chairman Md Mahbubur Rahman in the chair, the function was also addressed by Power Secretary Habuibur Rahman and Saudi Arabia's Ambassador to Bangladesh Essa Bin Yousef Al Duhailan.

Saudi firm signs MoU to set up 1GW solar plant in Bangladesh

Earlier in 2019, the company also signed similar deal to set up a 3,600 MW gas-fired plants, but it did not materialise

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Fifty-one percent of the construction work of the third terminal at the Hazrat Shahjalal International Airport has been completed so far with the iconic terminal set to be partially open for operation in October next year.

Civil Aviation Authority of Bangladesh Chairman Air Vice Marshal M Mafidur Rahman disclosed the latest progress of the third terminal on Sunday.

While talking with the newly elected executive body of Aviation and Tourism Journalists' Forum of Bangladesh (ATJFB) at his office at city's Kurmitola, the CAAB chief said, Prime Minister Sheikh Hasina will inaugurate the partial operation of the third terminal, read a press release of ATJFB.

He also informed that the third terminal will be fully functional by the end of 2024.

ATJFB President Tanzim Anwar led the delegation on behalf of the organisation.

Prime Minister Sheikh Hasina in December 2019 inaugurated the construction works of terminal 3 which will cost Tk21,399 crore. When the project was first conceived, its outlay was projected at Tk13,610 crore.

About the progress of the construction work of the terminal, the CAAB boss said, from now on, the pace of the work will become faster in the next one year.

"Different types of equipment are going to be installed at the terminal. Later calibration and adjustment of those equipment will have to be ensured which will take time," he added.

Explaining about the delay in starting second phase work of Third Terminal, the CAAB chairman said, they have added some additional works including construction of the VVIP terminal with the third terminal for which approval from the donor organisation—Jica was needed.

"Getting approval from Jica in this regard was delayed. Besides, we will have to change the Development Project Proposal (DPP) and need the government's nod to this end," he also said.

"That's why it's getting delayed to start the additional works of the Third Terminal," added the CAAB chief.

The three-storeyed terminal building, which will be 2.30 lakh square metres, will be built by Mitsubishi and Fujita of Japan and Samsung of Korea.

It will have 115 check-in counters, 64 departure and 64 arrival immigration desks, 27 baggage scanning machines, 40 scanning machines, 12 boarding bridges, 16 carousels and 11 body scanners.

There will also be a new car parking facility for 1,230 vehicles, a new 63,000 square metre import and export cargo complex, a 5.42 lakh square metre apron for 37 aircrafts, among others, according to civil aviation ministry officials.

Around two crore passengers will be able to use the HSIA following construction of the third terminal, 70% of the funding for which is coming from the Japan International Cooperation Agency (Jica).

In its current form, HSIA can handle eight million passengers a year. But the number of passengers is expected to reach 14 million by 2025 and 24.8 million by 2035, so the timing of terminal 3 could not be more crucial.

Dhaka Airport 3rd terminal 51% complete: CAAB Chairman

Fifty-one percent of the construction work of the third terminal at the Hazrat Shahjalal International Airport has been completed so far with the iconic terminal set to be partially open for operation in October next year. Civil Aviation Authority of Bangladesh Chairman Air Vice Marshal M...

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[Isa Khan]

Bangladesh retook the second position in the global clothing export market in 2021 after it had trailed back in third position by Vietnam in 2020.

World Trade Statistical Review 2022, released by the World Trade Organization (WTO) on Wednesday, showed that Vietnam’s share in global ready-made garment (RMG) exports dropped to 5.80 per cent in 2021 from 6.40 per cent in 2020.

The share of Bangladesh in the global RMG market, however, increased to 6.40 per cent in the last year from 6.30 per cent in 2020. The ratio was 6.80 per cent in 2019 and 6.40 per cent in 2018.

WTO statistical review also showed that RMG exports from Bangladesh rebounded strongly in the last year, recording 24 per cent annual growth.

In 2020, the exports faced a big setback and declined by 17 per cent against 7 per cent growth of Vietnam’s RMG exports.

The share of Bangladesh in the global clothing export market was 4.20 per cent in 2010, when the share of Vietnam was 2.90 per cent.

China retained that first position by increasing its share to 32.80 per cent of the global clothing export market in the last year from 31.60 per cent in 2020.

European Union (EU), according to the WTO publication, is the second largest global exporter of RMG. So, technically, Bangladesh is the third largest global RMG exporter, and Vietnam is the fourth largest.

If EU’s combined export figure were disaggregated country-wise, Bangladesh and Vietnam would be the second and third top exporters.

Türkiye (Turkey) and India remained in the fifth and sixth positions, followed by Malaysia, Indonesia, Hong Kong, and Pakistan.

WTO statistics also showed that the annual export value of the top 10 exporters of clothing stood at $460 billion, a big jump from $378 billion in 2020. The value was recorded at $411.0 billion in 2019.

Bangladesh again surpasses Vietnam in global RMG exports

Bangladesh retook the second position in the global clothing export market in 2021 after it had trailed back in third position by Vietnam in 2020. World Trade Statistical Review 2022, released by the World Trade Organization (WTO) on Wednesday, showed that Vietnam’s share in global ready-mad

thefinancialexpress.com.bd

The growth of apparel shipments from Bangladesh to the European Union (EU) not only surpassed that of China, but also all other major suppliers in the world between January and August this year, according to the latest data from Eurostat.

Eurostat, a directorate general of the European Commission based in Luxembourg, mainly provides statistical information to various institutions of the EU.

Bangladesh's apparel exports to the EU rose 45.26 per cent year-on-year to about $15.37 billion during the January-August period, when the trade bloc imported some $67.18 billion worth of clothing items from all over the globe.

As such, Bangladesh remains the second largest apparel import source for the EU with a roughly 23 per cent share.

China, the EU's top apparel import source having 28 per cent share, shipped $18.85 billion worth of clothing items to the trade bloc during the same period, registering growth of 26.59 per cent year-on-year.

Turkey, the EU's third largest sourcing destination for apparels, posted around 20 per cent growth compared to the same period the previous year. Similarly, shipments from India rose 28.85 per cent year-on-year to reach $3.56 billion.

Other sourcing countries that registered high growth in apparel exports to the EU include Cambodia with 42.21 per cent, Pakistan with 31.34 per cent and Indonesia with 35.41 per cent.

The EU played a massive role in Bangladesh becoming the second largest garment exporter in the world over the past four-and-a-half decades.

Just after gaining independence in 1971, Bangladesh started enjoying trade benefits under the EU's Everything but Arms initiative, which eventually elevated the country to its current position.

So, local suppliers are still upbeat about their potential exports once the country loses much of these benefits following its graduation from the UN's grouping of least developed countries (LDC) in 2026.

SM Khaled, managing director of Snowtex, which exported 50 per cent of its more than $300 million worth of garment shipments between January and August to the EU, is hopeful they may perform even better after the country's LDC graduation.

The competitive price, quality and recent developments in safety and compliance have brightened the sector's image. Besides, Bangladesh is now a global champion in the green garment category.

Moreover, the country is capable of catering large quantities of goods as local investors have poured a lot of money into the sector over the years, Khaled said.

MA Jabbar, managing director of DBL Group, another leading garment exporter, said a lot of work orders are shifting to Bangladesh from China because of the recent trade war between China and the US. This includes an embargo by western clothing retailers and brands on using Chinese cotton for their products.

"However, the price is still low," said Jabbar, who ships 90 per cent of his garment items to the EU.

Bangladesh already surpassed China in denim and T-shirt exports to the EU almost four years ago and in the future, local suppliers may overtake those of China in many other categories, said a major garment exporter seeking anonymity.

"However, China's overall export volume is too high as they ship goods all over the world in bulk while Bangladesh's exports are still confined to certain destinations like the EU and US," he added.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said the country has been receiving higher prices for two particular reasons over the last two or three years.

First, buyers are paying more to adjust with the abnormal price of raw materials and second, the country is exporting value-added garment items.

For instance, Bangladesh now exports garment items worth up to $35 as the production base has been upgraded from basic to more high-end.

But Bangladesh's growth in exports to the EU will slow down a bit this winter because of the energy crisis in Europe, he said.

"In the near future, Bangladesh will become the number one in all product categories in Europe," Hassan added.

Growth in Apparel Exports to the EU: Bangladesh surpasses China

The growth of apparel shipments from Bangladesh to the European Union (EU) not only surpassed that of China, but also all other major suppliers in the world between January and August this year, according to the latest data from Eurostat.

www.thedailystar.net

 

[Isa Khan]

Walton Digi-Tech Industries Ltd, a concern of Walton Group, has launched Bangladesh's maiden electric bike in the market, jumping on the bandwagon of a global shift towards eco-friendly transportation.

The electronics conglomerate received approval from the Bangladesh Road Transport Authority (BRTA) on November 22 to market the electric bike under the brand name of Takyon.

Thus, it became the first company in the country to launch the two-wheelers in Bangladesh.

"Takyon-branded electric bikes have hit the market," said Liakat Ali, deputy managing director of Walton Digi-Tech Industries.

"This bike will cost riders only 10-15 paisa per kilometre."

The bike comes in three colours -- red, blue and grey -- and is priced at Tk 127,750. Apart from Walton's showrooms, Takyon bikes can be purchased through its website.

With the new bike, Walton made re-entry into the vast motorbike segment, which posted Tk 5,000 crore sales annually before the coronavirus pandemic.

In the past, it manufactured conventional motorcycles in the range of 80cc to 100cc. But the company was compelled to shut the manufacturing plant after failing to sustain in the highly competitive market.

It comes at a time when the demand for eco-friendly bikes is going up across the world.

According to a report published by Next Move Strategy Consulting, an American firm, the global electric bike market generated $45.75 billion in 2021 and is estimated to generate $109.53 billion by 2030, posting an annual growth of 10.21 per cent in the current decade.

In Bangladesh, between 4 lakh and 5 lakh units of conventional bikes were sold annually on average in the last few years.

Walton says it is developing and marketing electric bikes to protect the environment and ensure safe transportation at a lower cost by cutting the use of fossil fuels.

It has an annual manufacturing capacity of 2.5 lakh units.

Ali said that like conventional petrol and octane-run bikes, Walton's e-bikes can be registered with the BRTA for two or 10 years. The registration cost for electric bikes is lower than that of gasoline-operated bikes.

The electric bike has a powerful brushless DC motor with a maximum capacity of 1.5 kilowatts and it would cost Tk 10 per full charge, said Tauhidur Rahman Raad, chief business officer of Walton Digi-Tech Industries Limited.

"The bike will help riders travel up to 70km on a single charge. The maximum speed limit of the bike is 50km per hour."

The bike has a portable charger and can be charged at the household level.

Buyers will get free aftersales service for two years from Walton's designated service points, according to the company.

Walton makes Bangladesh’s maiden electric bike

Walton Digi-Tech Industries Ltd, a concern of Walton Group, has launched Bangladesh’s maiden electric bike in the market, jumping on the bandwagon of a global shift towards eco-friendly transportation.

www.thedailystar.net

Srihatta Economic Zone has become active as a door and window manufacturing company started production in the special area in Moulvibazar's Sherpur.

Double Glazing Industries Limited—a company run by a woman entrepreneur from the UK—began production in November this year in the 352-acre economic zone developed by the Bangladesh Economic Zones Authority under the supervision of the Prime Minister's Office.

"Srihatta Economic Zone located in the middle of Sylhet division has been equipped with all the facilities that an industry needs to flourish," Moulvibazar Deputy Commissioner Mir Nahid Ahsan told The Daily Star.

The zone is expected to create employment opportunities for 45,000 people, which will be a milestone for trade and commerce in the region, he said.

The economic zone will not only be beneficial for people in Moulvibazar, but also for the ones in Habiganj and Sylhet districts, he said.

The authorities believe the local economy will become stronger when all industrial establishments in the region, including Moulvibazar, will start production, Ahsan said.

Of the six companies which have been given land allotment in the 352-acre zone, infrastructure development work of four domestic companies is going on.

Double Glazing Limited run by Monojaha Polly Islam, also an English immigration lawyer, has so far invested Tk 10 crore in Srihatta Economic Zone.

"We plan to invest Tk 100 crore more in the days to come. Our company has 300 employees at present and we hope we will be able to provide jobs to 1,000 people in future," Polly Islam said.

Double Glazing will market heat-insulating and environment-friendly products throughout the country, she said.

"The thought of becoming a businessman has been in my mind since childhood. The reason for this is that my father was a restaurant businessman in England."

"We are manufacturing foreign doors and windows from imported raw materials with the help of machines and artisans," said Moinul Islam, managing director of Double Glazing.

"We will sell our products all over the country at affordable prices."

Prime Minister Sheikh Hasina laid the foundation stone of the Srihatta Economic Zone in February 2016.

On November 20 this year, the premier virtually inaugurated 50 industrial units, projects and facilities in economic zones around the country.

During the opening ceremony, Mahtab Mia, director of British-Bangladesh Chamber of Commerce, told The Daily Star: "We expatriate businessmen want to become investment warriors from remittance fighters."

He also demanded introduction of one-stop services to reduce bureaucratic tangles which businesses have to face at the time of making new investments.

First factory in Srihatta economic zone starts journey

Srihatta Economic Zone has become active as a door and window manufacturing company started production in the special area in Moulvibazar’s Sherpur.

www.thedailystar.net

 

[Isa Khan]

Prime Minister Sheikh Hasina on Wednesday inaugurated 29 development projects and laid the foundation stones of four others in Cox's Bazar.

The total cost of the 29 projects which were inaugurated is about Tk1,392.37 crore.

The development schemesopened by the Prime Minister include Bakkhali River flood control, drainage, irrigation and dredging Project (1st Phase), dam reconstruction and protection work in the sea dike section at Shah Porirdwip, rehabilitation project of damaged polders in Cox's Bazar district, upgradation of link road-Laboni intersection road to a four-lane, improvement of Ramu-Fatekharkul-Maricha National Highway, and reconstruction and widening of Shah Porirdwip section from Hariyakhali.

Other development projects include 399-metre long MP & Ambassador Osman Sarwar Alam Chowdhury Bridge over Bakkhali River on Ramu Kalghar Bazar-Rajarkul UP road, six union land office buildings in the district and four upazila parishad complex buildings.

The prime minister also laid the foundation stones of four development projects worth Tk571.49 crore that include the construction of Bangladesh Oceanographic Research Institute (2nd Phase), 153.25-metre jetty at Dhurung Ghat and 153.25-metre jetty at Akbar Boli Ghat on Dhurung GC Mirakhali Road under Kutubdia Upazila, jetty at Maheshkhali Gorakghata Ghat under Maheshkhali Upazila and rehabilitation Project of Polders along Naf River in Ukhia and Teknaf Upazilas to improve Bangladesh-Myanmar border security.

PM opens 29 development projects, lays foundation stones of 4 others

Prime Minister Sheikh Hasina on Wednesday inaugurated 29 development projects and laid the foundation stones of four others in Cox's Bazar. The total cost of the 29 projects which were inaugurated is about Tk1,392.37 crore. The development schemesopened by the Prime Minister include Bakkhali...

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Bangladesh has mandated the Asian Development Bank's Office of Public–Private Partnership (OPPP) to provide transaction advice on the Joydebpur-Mymensingh Road (N3) project to be built along one of the country's busiest economic corridors.

The scope of the mandate agreed with Bangladesh's Public–Private Partnership Authority covers project feasibility, transaction due diligence and structuring, bidder procurement, and negotiation to reach commercial and financial closure, said a press release from the Asian Development Bank (ADB) Thursday (8 December).

The Roads and Highways Department of the road transport and bridges ministry is the project's implementing agency.

"This project builds on OPPP's successful track record in supporting the Government of Bangladesh in the road sector," said OPPP Head F Cleo Kawawaki.

"This expressway will further demonstrate how the private sector's innovation, efficiency, and capital can be leveraged to build climate resilient adaptable infrastructure. OPPP is focused on providing advice that assesses options to decarbonise the expressway and plan for future interventions like electric vehicle charging and innovative climate mitigation and adaptations," he added.

The project is expected to cut road congestion and improve road safety.

In addition to advising on the project, OPPP's mandate will encompass capacity augmentation to identify a robust pipeline of new opportunities and monitor two other road PPP projects in Bangladesh – the Dhaka Bypass Road PPP project which achieved financial close in April 2021, and Rampura Amulia Demra PPP project which reached commercial close in January 2022. These two projects are estimated to mobilise over $600 million of private sector capital.

The project will convert the existing national highway-3, an 87-kilometer road connecting Joydebpur city at the outskirts of Dhaka to the northern district of Mymensingh, to a four-lane access-controlled expressway with service lanes on each side for local traffic.

Estimated initial capital expenditure of the project is over $400 million. Project costs, construction and concession duration will be assessed as part of feasibility study. Construction should cause minimal disruption given the need to use the existing highway, which is expected to see a sharp increase in heavy vehicle traffic when the 10 economic zones connecting to it are operational.

The ADB's advice will help ensure the project maximise gains in connectivity and logistics while helping rebalance regional disparities. It will also explore private sector innovations and efficiencies to reduce congestion, improve traffic flow and safety, and deliver climate resilient and future-proofed infrastructure that accommodates electric vehicles, conserves rainwater, and reduces greenhouse gasses.

The project is aligned with the ADB's country partnership strategy for Bangladesh, 2021–2025 which prioritises road transport, urban and water, and health for targeted PPP-related support.

Bangladesh mandates ADB to advise on expressway connecting 10 economic zones

The ADB’s advice will help ensure the project maximise gains in connectivity and logistics while helping rebalance regional disparities

www.tbsnews.net

 

[Isa Khan]

The experts started flushing of systems with the open reactor at Unit-1 of the Rooppur Nuclear Power Plant (NPP) as part of pre-commission on 8 December. This will be followed by a special Post-installation Cleaning (PIC).

At this stage, chemically demineralised water is supplied to the reactor vessel through the connection pipeline and primary circuit pipelines to remove impurities left after the installation of the equipment and the pipelines.

"Flushing of active and passive safety systems with the open reactor is one of the most important pre-commissioning operations. This is the first of a whole series of inspections of equipment and process systems. It is the result of long-term work of assemblers, adjusters and other specialists involved in the construction of the first ever nuclear power plant in Bangladesh," said Alexey Deriy, vice president of ASE and director of Rooppur Nuclear Power Plant Construction Project.

The flushing makes sure that everything has been installed correctly and is ready for operation. Besides, it checks the operability of pump units of the safety systems and normal operation systems.

The Engineering Division of Russia's Rosatom State Corporation is implementing the Rooppur project as the general designer and contractor. The project will host two nuclear power units each with 1,200 Mw capacities. Latest generation 3+ Russian VVER 1200 reactor will be used for power generation, which complies with all international safety requirements.

Rooppur NPP: Unit-1 gets ready for commissioning

The experts started flushing of systems with the open reactor at Unit-1 of the Rooppur Nuclear Power Plant (NPP) as part of pre-commission on 8 December. This will be followed by a special Post-installation Cleaning (PIC). At this stage, chemically demineralised water is supplied to the reactor...

www.tbsnews.net

 

[Isa Khan]

Workers at the Chattogram Seaport on Sunday unloaded 15 bogies of a train and other equipment imported from China for Padma Bridge Rail Project, an official said.

Of the 15 bogies, eight were unloaded on Saturday while the rest were unloaded on Sunday at No-12 jetty of the port, said Omar Faruque, secretary of the Chattogram Port Authority.

Another 85 bogies will reach the port from China over next few months, he said.

The first consignment of the wagons for Padma Bridge Rail project reached by a ship – Toyo World – on Thursday, and the process to unload the bogies began on Saturday, Faruque said.

The cost of the Padma Bridge Rail Link Project has been estimated at Tk39,246 crore.

Bogies, other equipment for Padma Bridge Rail Project unloaded at Ctg port

Workers at the Chattogram Seaport on Sunday unloaded 15 bogies of a train and other equipment imported from China for Padma Bridge Rail Project, an official said. Of the 15 bogies, eight were unloaded on Saturday while the rest were unloaded on Sunday at No-12 jetty of the port, said Omar...

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[Isa Khan]

After Afghanistan, Chattogram-based Albion Laboratories Ltd, a company of the Albion Group, is set to export medicines to Myanmar and Cambodia.

The company is scheduled to ship $30,000 worth of medicines to Myanmar later this month, while another shipment of eight types of medicines worth $23,000 to Cambodia is on the cards next month.

Albion Laboratories Ltd has so far made two shipments to Afghanistan – worth $55,000 and $65,000 respectively. Their first shipment to the country was on 9 June last year. Currently, the company is preparing to ship $1,29,000 worth of medicines to the country, where it is exporting 35 different types of products.

The Chattogram-based company is in the process of exporting medicines to Bhutan, Sri Lanka and Yemen.

Raisul Uddin Saikat, chairman of Albion Group, said that the raw materials of medicines produced in the country have to be imported from abroad.

"We pay a duty of 10-40% to import these raw materials. In exporting the medicines, we compete with India, which makes medicines using their own raw materials. As a result, we are lagging behind in the competition in prices," he said, calling on the government to provide duty-free import of raw materials to increase exports.

He also said that the pharmaceutical sector is currently a growing sector after the ready-made garments.

"The domestic market of this sector is Tk28,000 crores. The government collects a duty of at least Tk8,000 crores on the import of raw materials for these medicines," he added.

According to the Bangladesh Export Promotion Bureau (EPB) data, $169 million or Tk1,436 crore worth of medicines were exported from Bangladesh to 123 countries in the 2020-21 fiscal year. The largest export has been to neighbouring Myanmar followed by Sri Lanka.

According to the Directorate General of Drug Administration (DGDA) data, the share of Bangladeshi medicines in Sri Lanka's drug market is 7.4% while it is 4.53% in Myanmar.

Albion Laboratories obtained the Good Manufacturing Practice (GMP) certificate on 13 January 13 last year.

Medicines manufactured by Albion are marketed under generic names as well as branded names abroad. The company is manufacturing various types of complex and international quality medicines including tablets, capsules, injections. With increasing export demand, the company is increasing investment in its Sitakunda plant.

Officials of the company say, their next export targets include Sri Lanka, Vietnam and the Philippines. In the next phase they want to export to the African countries of Sudan, Ghana, Somalia, Cameroon and Nigeria. They are also targeting Malaysia, which is focusing on reducing China's influence in the Malaysian drug market.

Under the leadership of Md Nezam Uddin, Albion Laboratories Limited started producing 15 types of drugs on a small scale with 100 workers in 1991.

In 2006, Nezam Uddin's son Raisul Uddin Saikat finished his studies in Australia and took the helm of Albion. In 2007, the company expanded its production operations at a 50,000 square feet plant in Barabkunda, Sitakunda.

At present, Albion Group has started its pharmaceutical manufacturing operations on an area of 1,40,000 square feet. Employment will reach 3,000 as the Albion Specialized Pharma Limited goes into production.

Albion currently has 377 products in the market with the approval for more than 450 drugs.

Chattogram’s Albion now set to export meds to Myanmar, Cambodia

After Afghanistan, Chattogram-based Albion Laboratories Ltd, a company of the Albion Group, is set to export medicines to Myanmar and Cambodia. The company is scheduled to ship $30,000 worth of medicines to Myanmar later this month, while another shipment of eight types of medicines worth...

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