Bangladesh News Bangladesh Economy & Development

[Isa Khan]

At least eight companies from Europe and the USA, who used to buy home textile products from Pakistan and China, have started doing business with Bangladeshi exporters in the last six months.

This moving away by the international buyers from Bangladesh's competing countries is being considered a sign of new hope for the country's home textile industry.

According to business insiders, Bangladeshi exporters have attracted these buyers with quality products at a competing price and on-time delivery.

Quality, price bring home textile buyers to Bangladesh

Bangladesh shares only 1% of $104 billion global home textiles market

www.tbsnews.net

Shipment of 3rd and 4th metro train set arrived at Mongla port on 20th July.

https://www.facebook.com/DMTCL/posts/2168609626614454

 

[Isa Khan]

Even though the Covid-19 pandemic is showing no sign of stopping, there has been remarkable progress in the Rooppur Nuclear Power Plant project, with nearly 40 percent of its construction work being completed.

A reactor is likely to be set up in the first unit building by September 16, Yafes Osman, minister of Science and Technology, told The Daily Star.

During the pandemic over the last one year, the power plant project has seen a remarkable progress as per the schedule, the minister said while visiting the site recently.

Alongside the first unit, work on the second unit is also progressing smoothly, the minister said.

The reactor pressure vessel, complete with a nuclear reactor and steam generator -- the key components of the first unit of Rooppur Nuclear Power Plant -- had arrived on October 20 last year.

"Since the start of the pandemic, Rooppur nuke plant's work has been running following health guidelines… We have taken steps to bring all of the employees of the project under vaccination programme," said Yafes Osman.

The Russians working at the project are getting Russian vaccine "Sputnik V" while its Bangladeshi officials and engineers are also getting the same vaccine with the help of Russia, the minister said.

Talking to this newspaper, Dr Shawkat Akber, project director of Rooppur nuclear power plant, said over 30,000 workers -- including over 25,000 locals -- are working for the project everyday. The project authority is strictly following hygiene rules for all of them.

"For workers' safety, we have opened observation and isolation centres at the project site," said the project director.

"We are regularly monitoring every worker's health twice a day. If anybody is infected or found with any symptom, they and those around them are taken to the centres. They are also provided with necessary medical support," he added.

Dr Shawkat said they are not pausing the project even as the pandemic worsens. "We have already completed 38 to 40 percent of the country's biggest development project and are expecting to complete the work as per schedule."

Two units of 1,200 MWe VVER each are to be built at Rooppur under the Russian design, giving priority to the highest safety measures. Unit-1 is scheduled to be commissioned in 2023 while commissioning of the second unit is slated for 2024 to produce 2,400mw of electricity from the two units.

In February, 2011, Rosatom, the state atomic energy corporation of Russian Federation, signed an agreement with the Bangladesh government to build the nuke plant at Rooppur in Pabna's Ishwardi. It will be the country's first nuclear power plant.

The initial contract for the project worth of $12.65 billion was inked in December, 2015.

40pc of Rooppur Nuke Power Plant project completed

Even though the Covid-19 pandemic is showing no sign of stopping, there has been remarkable progress in the Rooppur Nuclear Power Plant project, with nearly 40 percent of its construction work being completed.

www.thedailystar.net

Bogra Motors Private Limited, a company producing engine filters for more than three decades, is planning to export its products again.

In 2007, the company started exporting filters to Canada after getting the ISO certificate in 2004.

It later stopped exports to focus only on the domestic market as the demand for its products grew significantly inside the country.

However, it is again eyeing the international market as it has enhanced its production capacity.


At present, Bogra Motors is running production in its factory with around 200 workers amid the Covid-19 pandemic.

The company produces about 400 types of filters which are used for different types of engines, including motorcycles and compressor engines.

The purpose of the engine filter is to prevent dust, dirt and other environmental contaminants from getting into the engine.

Filter prices range from Tk60 to Tk20,000 based on the size and quality of the engines.

The filters for motorcycles, buses, trucks, cars and microbuses have the highest demand in the market. These are sold for Tk300 to Tk2,000.

In 1965, Bogra Motors acquired about two bighas of land in the Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial area of Bogrua. It started with repairing old motor vehicles, especially the crankshaft.

It imported crankshaft equipment from Germany to give customers the best service. However, later, the market was filled with equipment imported from China.

As a result, the demand for the services of Bogra Motors started to decline.

In 1989, the company changed its business and set up a factory to produce engine filters.

Bogra Motors captured the market exactly four years after starting production. Most of their products are sold in Dhaka and Chattogram.

Bogura is another big market for them. A senior BSCIC officer said no company sells more engine filters in the country than Bogra Motors.

The company has a production capacity of two lakh pieces of filters per month. Currently, it produces 50,000 to 60,000 pieces.

World-class raw materials

The main raw materials of an engine filter are filter paper and glue. At present, most of the filter papers are imported from Korea, but they used to be imported from Germany.

Bogra Motors imports filter papers directly through the Chattogram Port. The company imports glue from North Korea.

According to company officials, Thai glue is also very good. They imported glue from India twice. But they did not do so anymore due to poor quality.

Casing is a very important element to make a filter better. The company imports casings from North Korea.

It does not import plain sheets and buys them from other companies in the country. Rubber and plastic granules are also procured from local companies.

Two friends started the journey

Aminul Islam and Ahmed Rezaur Rahman became friends while studying at Bogura District School. After finishing their studies, they became first-class contractors.

Then they first set up a car repairing company and after that, a motor parts shop. In 1977, they started an engineering workshop. The journey of making engine filters started in 1989.

At first, they found it difficult to sell their products in the market. But later, they started making filters of international quality.

Now there are five directors of Bogra Motors - Aminul Islam's wife Jebunnesa Islam, and two sons Tahmidul Islam and Sirajul Islam. The two other directors are Ahmed Rezaur Rahman and his only son Sibbir Ahmed.

Bogra Motors Production Manager (special filter section) Mahbub Morshed Siddique has been working here for almost a decade.

He said, "These filters are usually used in engines. We produce different types of car filters, generator filters, agricultural machinery filters, etc. We produce world-class filters."

Md Nurul Islam, manager of Bogra Motors, said a Bangladeshi individual living in Canada was the first to export this filter there.

"Later, he gave us more orders. But then the demand in the country started to grow. It was no longer possible for us to export filters to the international market."

He further said, "We also got orders from the UAE. We rejected those for the same reason. But now we are thinking of exporting filters again. Hopefully, our products will be exported to the world market soon."

Dr Tahmidul Islam Chandan, one of the directors of Bogra Motors, said every filter produced here has "Made in Bangladesh" written on it.

"But the problem is car owners go to shops and want foreign products. Many fake companies in the country put 'Made in Japan' stickers on their products. Customers get easily deceived by them. These issues should be investigated by the government," he said.

He said Bogra Motors makes filters for all Japanese cars and that is why they had decided to export their filters to Nepal, Bhutan, Canada or London.

But there are some problems on the Indian border, he noted.

"For example, the cost is high. If we can solve the problem with India, we will be able to capture a huge market in Nepal and Bhutan," he said.

He further said production costs had increased.

"For example, we have to pay huge taxes to the government to import raw materials. The government should consider this issue. If the tax is reduced, we will be able to provide more revenue to the government by exporting our products."

Tahmidul added, "Our partner Sibbir is in London now. We are looking for importers there."

AKM Mahfuzur Rahman, deputy general manager of BSCIC, said there is a huge demand for this product in the world.

"The filters produced here are world-class. There is no doubt about it. It is an ISO certified company. There is a market for the products of this company across the country. Even the Bangladesh Army has used these filters," he said.

"Such a company needs to be further developed. A new industrial city will be built in Bogura where it will be given more space with special consideration," he added.

Bogra Motors wants to export world-class engine filters again

The company has a production capacity of two lakh pieces of filters per month and currently produces 50,000-60,000 pieces

www.tbsnews.net

 

[Isa Khan]

Startup Bangladesh Limited, Bangladesh's flagship venture capital fund under the ICT Ministry recently launched its inaugural campaign "ShotoBorshe Shoto Asha-Century of Million Dreams" with a commitment to invest Tk100 Crore in 50 startups this year.

The VC firm announced its first series of investments on 31st March to seven startups - Chaldal, Pathao, Sheba XYZ, Dhaka Cast, Moner Bondhu, Eduhive and Intelligent Machines, said a press release.

50 startups to get Tk100 crore under “Shotoborshe Shotoasha” campaign

Startup Bangladesh Limited, Bangladesh's flagship venture capital fund under the ICT Ministry recently launched its inaugural campaign "ShotoBorshe Shoto Asha-Century of Million Dreams" with a commitment to invest Tk100 Crore in 50 startups this year. The VC firm announced its first series of...

www.tbsnews.net

Beximco Pharmaceuticals Limited, one of the leading medicine manufacturers and exporters in the country, has received US Food and Drug Administration (FDA) approval for Baclofen (10 and 20 mg tablets), a muscle relaxant drug indicated for the treatment of muscle pain, spasms, and stiffness in people with multiple sclerosis or spinal cord injury or disease.

This is Beximco Pharma's ninth Abbreviated New Drug Application (ANDA) fully developed in-house and successfully approved for the US market since the company's oral solid dosage facility was approved by the US FDA in June 2015, reads a press release.

Beximco Pharma receives US FDA approval for muscle relaxant drug Baclofen

The company has continued successful expansion of the company's product portfolio for the US market

www.tbsnews.net

 

[Isa Khan]

Nearly half of the American fashion brands and buyers are eager to source more from Bangladesh over the next two years they discover costs in the nation lower than worldwide normal prices.

According to a recent survey by the United States Fashion Industry Association (USFIA), the unit price of apparel products in Bangladesh was $2.5 in July-May this year against the global average of $2.6, reports Fibre2Fashion.com.

More US fashion buyers eager to source from Bangladesh

Almost all the top ten most-utilised apparel sourcing destinations in 2021 are Asia-based, led by China (93%), Vietnam (87%), India (77%), and Bangladesh (73%), it showed.

www.tbsnews.net

Shikho, a Bangladesh-based edtech startup aiming to make high-quality education accessible and affordable, today announced the completion of a USD 1.3 million seed round of financing. This is the largest round raised by a Bangladeshi edtech startup yet.

Shikho secures $1.3 million, largest round raised by a Bangladeshi edtech startup

Shikho, a Bangladesh-based edtech startup aiming to make high-quality education accessible and affordable, today announced the completion of a USD 1.3 million seed round of financing. This is the largest round raised by a Bangladeshi edtech startup yet.

www.thedailystar.net

Bangladesh's long wait for its first-ever metro rail is going to be over by December 2022 as work on the project has gained momentum despite disruptions by coronavirus pandemic, said MAN Siddique, managing director at Dhaka Mass Transit Company Ltd.

Four train sets -each comprising six air-conditioned coaches- have already reached Bangladesh from Japan and five more sets are scheduled to arrive by next September, Siddique told UNB.

There will be a total of 144 coaches for the 24 train sets that will run on 21km-route from Uttara to Kamalapur railway station via Agargaon, Farmgate, Dhaka University campus and Motijheel. There will be a total of 17 stations, according to project documents.

Dhaka’s first-ever metro rail set to start by December 2022, says project chief

There will be a total of 144 coaches for the 24 train sets that will run on 21km-route from Uttara to Kamalapur railway station via Agargaon, Farmgate, Dhaka University campus and Motijheel. There will be a total of 17 stations, according to project documents

www.tbsnews.net

 

[Isa Khan]

British American Tobacco (BAT) Bangladesh is ready to invest Tk322.20 crore to set up a factory in Savar to grab the growing opportunities in export markets, according to the Dhaka Stock Exchange website.

In a board meeting on Wednesday, the multinational tobacco giant approved the decision.

Early on 17 February this year, it had decided to invest Tk192.50 crore to set up a new factory in Savar for boosting cigarette exports.

British American Tobacco to invest Tk322 crore to grab export opportunities

In a board meeting on Wednesday, the multinational tobacco giant approved the decision

www.tbsnews.net

The general conference of the World Trade Organization (WTO) Wednesday did not make any decision on preferential trade facilities, service waiver and Trade-Related Aspects of Intellectual Property Rights (TRIPS) for Bangladesh after its graduation from the least developed status.

However, there were talks on submissions by the least developed countries (LDCs) seeking the preferential trade facilities, said Md Hafizur Rahman, director general at WTO Cell, Ministry of Commerce.

No decision on Dhaka’s plea on trade at WTO talks

Dhaka wants its preferential trade agenda including TRIPS facility after LDC graduation to carry on to WTO ministerial talks

www.tbsnews.net

Multinational conglomerate Facebook has filed a Value Added Tax (VAT) return of around Tk 2.44 crore to Bangladesh in June.

PwC Bangladesh filed the VAT returns on behalf of Facebook, Promila Sarkar, additional commissioner at Dhaka South Custom, Excise and Vat Commissionerate, confirmed the news to The Business Standard today.

Of the amount, Facebook Ireland Limited paid Tk2,43,27,599, Facebook Payments International Limited Tk 24,070 and Facebook Technologies Ireland Limited paid Tk25,006 in VAT.

Facebook pays Tk2.44 crore VAT to Bangladesh

This is the first time that the VAT department has received a VAT return from a registered non-resident organisation doing business in Bangladesh

www.tbsnews.net

https://www.facebook.com/cablgram/posts/841053573218860

 

[Isa Khan]

https://www.facebook.com/madeinrussianfederation/posts/1994958767324469

https://www.facebook.com/mofadhaka/posts/1033228627417711

 

[Isa Khan]

Bangladesh Economic Zones Authority (BEZA) has received investment proposals amounting to around US$20.13 billion from 153 investors for the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Chattogram for setting up their factories.

The zones authority has already allocated over 6,000 acres of land among the investors.

In BSMSN, BEZA has already allocated a total of 6,131 acres of land among the investors, including Bangladesh Export Processing Zone Authority (BEPZA) Economic Zone, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Garments Village and Public-Private Partnership (PPP) Zone, as per an official of BEZA.

The official informed that China based Zhuzhou Jinyuan Chemical Industry Company Limited, Japan based world renowned Nippon Steel and Bangladeshi MacDonald Steel Building Product Limited (Joint Venture), Indian Asian Paints BD Limited, Mango Teleservices Limited and Modern Syntex Limited are setting up their factories in the industrial park.

| theindependentbd.com

m.theindependentbd.com

Already short on capacity compared to the burgeoning trade by sea, Chattogram port struggles with thousands of containers stacked at its yards, thanks to the Eid holidays and a 14-day virus-induced countrywide lockdown.

As of Wednesday morning, there were 42,674 TEUs (twenty-foot equivalent units) of all types of containers lying at the port yards, which was around 87% of the port's total capacity of storing 49,018 TEUs.

The port has to keep 15% of its total capacity free for smooth operations.

Growing trade calls for Ctg port’s increased capacity

Container congestion at the seaport and 17 ICDs may worsen further if import delivery does not improve

www.tbsnews.net

With urbanisation, the market demand for powdered and processed spices of different brands is growing day by day.

Talking to producers of powdered spices, The Business Standard (TBS) has learnt that the country's spice market is worth about Tk4,500-Tk5,000 crore, and the market for packaged spices alone is around Tk1,300 crore.

The rising demand for brand spices

With the change in people’s lifestyles, increasing demand for packaged spices has resulted in a double-digit market growth in the demand for ready to use, packaged, spice brands

www.tbsnews.net

Bangladesh has restarted the export of crabs to China, its biggest market, after a pause of nine months amid the ongoing coronavirus pandemic.​

Exports resumed on Jun 2 after the country fulfilled some conditions set by China over quality control and the use of false certificates, said Niaz Uddin, deputy director of the Department of Fisheries. China enlisted five new companies for trade and already 34 consignments of crab and Asian swamp eels have been exported, he said.

Bangladesh resumes crab exports to China after 9-month pandemic hiatus

Bangladesh has restarted the export of crabs to China, its biggest market, after a pause of nine months amid the ongoing coronavirus pandemic.

bdnews24.com

 

[Isa Khan]

Bangladesh and Vietnam have benefited most due to the shifting of apparel and footwear exports from China, according to the latest analysis.

It also found that in 2019, both the countries' combined share of apparel and footwear exports to the US and the European Union (EU) equalled half of China's share.

Bangladesh, Vietnam benefit most from RMG, footwear shift from China

Bangladesh and Vietnam have benefited most due to the shifting of apparel and footwear exports from China, according to the latest analysis. It also found that in 2019, both the countries' combined share of apparel and footwear exports to the US and the European Union (EU) equalled half of...

www.thefinancialexpress.com.bd

Tax collection bounced back in Bangladesh in the last fiscal year to grow at the sharpest pace in 10 years, riding on increased imports and an uptick in receipts of value-added tax.

The National Board of Revenue (NBR) collected around Tk 260,000 crore in 2020-21, up more than 20 per cent from Tk 216,540 crore year-on-year, provisional data showed.

This is the highest growth rate since fiscal 2011-12.

Tax receipts rebound

Tax collection bounced back in Bangladesh in the last fiscal year to grow at the sharpest pace in 10 years, riding on increased imports and an uptick in receipts of value-added tax.

www.thedailystar.net

The market for noodles – a very popular snack item – has expanded rapidly in Bangladesh in the last few years due to rapid growth and urbanisation. Also with restaurants closed under Covid-19 restrictions, entrepreneurs both here and abroad are keen to explore the market potential for noodles.

The noodle market in Bangladesh is worth around Tk1,000 crore, and it has shown an annual growth rate of about 10% in the last few years. But the growth jumped to around 16% during the pandemic with many people staying home, for the most part, industry insiders told The Business Standard.

Noodles market growing rapidly amid urbanisation, pandemic

Busy work / life changes have greatly raised the market demand for noodles, prompting many local and foreign conglomerates to invest in this sector

www.tbsnews.net

Bangabandhu Bridge has set a new record in transport movement and toll collection of over Tk5.39 crore from vehicles in two days.

The highest number of vehicles – 82,797 – crossed the bridge from Saturday to Monday morning, according to bridge authority.

Record Tk5.39 crore toll collection from Bangabandhu Bridge in 2 days

The highest number of vehicles – 82,797 – crossed the bridge from Saturday to Monday morning

www.tbsnews.net

Bangladesh's overall trade deficit may cross US$26 billion by this fiscal yearend as trading sector faces unprecedented headwind while a healthy balance-of-payments position continues for lesser import spending.

A latest central-bank projection portrays such a macroeconomic scenario, saying that the country's deficit in trade with the rest of the world is expected to rise from $22.80 billion in the just-concluded FY 2020-21 to $26.07 billion in FY'22.

Talking to the FE, a senior official of the Bangladesh Bank (BB) said the growth in foreign trade, covering both export and import, is likely to fall in the current fiscal year compared with the previous one because of 'base effect'.

"But the amount of export earnings and import payments will increase significantly in FY'22," the central banker says explaining the overall outlook of external trade that undergoes severe adversities for the ongoing corona pandemic that upended the planet.

Bangladesh's trade deficit may exceed $26b

Bangladesh's overall trade deficit may cross US$26 billion by this fiscal yearend as trading sector faces unprecedented headwind while a healthy balance-of-payments position continues for lesser import spending. A latest central-bank projection portrays such a macroeconomic scenario, saying that t

thefinancialexpress.com.bd

Apparel shipments suddenly slowed down in the last week of July due to the combined impacts of Eid vacation, lockdown and container congestion at the Chattogram port, resulting in a 16% slump in export earnings in the month, relative to the same period last year.

Apparel exports, however, had shown a remarkable 37% growth in the first three weeks of July, increasing earnings to $2.22 bilion until 19 July from $1.66 billion of the same period last year, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)

RMG exports see 16% negative growth in July

Apparel exports, however, had shown a remarkable 37% growth in the first three weeks of July, increasing earnings to $2.22 bilion until 19 July from $1.66 billion of the same period last year

www.tbsnews.net

Bangladesh has lost its crown as the second largest clothing exporter to Vietnam, according to the latest data from the World Trade Organization.​

Vietnam sold $29 billion worth of apparel merchandise to the world in 2020, while Bangladesh’s garment exports were valued at $28 billion, the latest World Trade Statistical Review shows. Consequently, Bangladesh’s share in global garment exports slipped to 6.3 percent in 2020 from 6.8 percent a year earlier. On the other hand, Vietnam’s share improved to 6.4 percent from 6.2 percent.

Vietnam surpasses Bangladesh as second biggest garment exporter

Bangladesh has lost its crown as the second largest clothing exporter to Vietnam, according to the latest data from the World Trade Organization.

bdnews24.com

 

[Isa Khan]

In a bid to boost regional trade, the government is emphasising railway communication infrastructure by taking up a long-term project to upgrade all rail lines in Bangladesh to dual gauge.​

As part of the plan, the existing meter gauge line in the country's south-eastern regions will be overhauled first. For this, the railway line from Dhaka to Dohazari in Cox's Bazar will be converted into dual gauge to accommodate both broad and meter gauge trains. The line will also create a direct link between Dhaka and the deep seaport in Cox's Bazar's Matarbari.

After that, initiatives are being taken to increase connectivity and trade with countries in the region, including Myanmar, India, China, Thailand, Malaysia and Singapore, through Ghumdhum via Ramu.

In the meantime, a feasibility study for the implementation of the Dhaka-Chattogram-Cox's Bazar railway project is being carried out at a cost of Tk 2.12 billion, with financial assistance from the Asian Development Bank or ADB.

The project, which started in 2015, was scheduled to be completed this year. But due to the ongoing COVID-19 pandemic, a proposal has been sent to the Planning Commission to finish it next year, railway ministry officials said.

Addressing the project, Railway Minister Nurul Islam Sujan said, “We'll take up an umbrella project with four to five initiatives. As there's now a single line of meter gauge from Chattogram to Dohazari, a project will be undertaken to turn it into dual line and broad gauge."

"The 135-km railway line from Laksham to Chattogram is currently in meter gauge. A separate project will be pursued to turn it into broad and dual gauge. There will be a package from Tongi to Akhaura and another from Tongi to Bhairab Bridge. In this way, the entire railway line from Dhaka to Cox's Bazar will be converted to dual and broad gauge. ”

"Neighbouring Myanmar, India, China, Thailand, Malaysia, Singapore and many more countries will be connected to it and discussions are ongoing to increase greater regional connectivity and trade. We'll implement these projects in a planned manner as part of our own preparations to build internal infrastructure with trade in mind.”

Work is already underway to construct a dual gauge over the Jamuna River and a broad gauge over the Padma, according to Sujan. "Basically, we're converting all our railways to broad gauge. ”

On Jun 15, a virtual discussion was held on the project's feasibility study. According to the summary of the meeting, a total of 12 railway bridges will have to be constructed from Tongi to Dohazari under the project.

These railway bridges will be constructed over Tongi canal, Balu, Shitalakhya, Arial Khan, Old Brahmaputra, Meghna, Chhoto Feni, Muhuri, Feni, Karnaphuli, Matamuhuri and Old Matamuhuri rivers.

Under the initiative, rail tracks will be laid at the proposed power plants at Maheshkhali and Matarbari. It will also facilitate the movement of cars and wagons and have fuel supply and rolling stock depots as well as several offices for railway services.

An official at the railway ministry said the project to establish direct rail links between Dhaka and Matarbari is likely to cost around Tk 700 billion.

Addressing the matter, SM Salimullah Bahar, chief planning officer of Bangladesh Railway, said: “The figure is based on a preliminary estimate of the expenditures.

However, nothing has been finalised yet. Negotiations are underway with the Asian Development Bank for financing. Then, the final cost will be known."

"In fact, our target is to convert all the railway lines across the country to broad gauge. Once this project is implemented, the meter gauge will remain on Dhaka-Mymensingh, Dhaka-Jamalpur and Dhaka-Sylhet rail lines. If the finances are available, the ministry aims to convert these railways to broad gauge between 2035 and 2040. ”

The route from Dhaka to Cox's Bazar via Tongi, Bhairab Bazar and Cox's Bazar will span around 470 km. However, if a direct line from Dhaka's Kamalapur to the south-facing Cumilla cord line is established, it would be possible to reduce the distance by 94 km and save about two hours of travel time.

In the past, Britain had a vision of developing railways in Bengal centred on Assam and Kolkata, according to BUET's Prof Shamsul Haque, a communication specialist.

He said after independence, the capital-based Dhaka-Chattogram line would become a commercial corridor. “Making it economically profitable and reliable is a great way to transport passengers and goods faster. With that in mind, the cord line in Cumilla was proposed in the 80s.”

“Of all the projects currently underway in the country, (this project) would have been the most promising. But for some unknown reason, it seems that this project is not being pursued on a priority basis.”

How Bangladesh is planning to overhaul railway infrastructure to boost regional trade

In a bid to boost regional trade, the government is emphasising railway communication infrastructure by taking up a long-term project to upgrade all rail lines in Bangladesh to dual gauge.

bdnews24.com

 

[Isa Khan]

• Guess sourced 27% of its apparel, jewelry and accessories from China in fiscal year 2021, according to its latest sustainability report, a sharp drop from 42% in fiscal year 2020 as the company continues reducing its reliance on China to avoid tariff risk.
• Suppliers from Bangladesh and India made up a larger share of the apparel company's purchases in fiscal year 2021, at about 23.5% and 18%, respectively. In fiscal year 2020, both were at less than 15%.
• Guess said in the report the changes occurred to diversify its sourcing and "as a result of changing economic conditions and purchasing strategy," noting it has reduced volume from countries outside its top sourcing regions to consolidate its supply chain.

Guess sources more from India, Bangladesh to avoid tariff risks in China

The retailer is leaning more on suppliers from Bangladesh and India as tensions between the U.S. and China linger and tariffs persist.

www.retaildive.com

Summit Oil and Shipping Co. Ltd. ("SOSCL"), the private sector importer and supplier of fuel oil to Bangladesh, has signed a Memorandum of Understanding (MOU) with Commonwealth LNG to collaborate in the supply of LNG to Asia, including Bangladesh.

The SOSCL is part of the Summit Group, Bangladesh's largest infrastructure conglomerate.

According to Summit Group, the signing ceremony took place at the Bangabandhu Auditorium of the Embassy of Bangladesh in Washington, DC in the presence of Dr Tawfiq-e-Elahi Chowdhury, Energy Advisor to the Prime Minister.

Summit signs MoU with Commonwealth LNG to help supply fuel to Bangladesh

According to Summit Group, the signing ceremony took place at the Bangabandhu Auditorium of the Embassy of Bangladesh in Washington, DC in the presence of DrTawfiq-e-Elahi Chowdhury, Energy Advisor to the Prime Minister

www.tbsnews.net

The government is counting a monthly loss of Tk130 crore due to the delay in laying a high-priority transmission line that would take electricity from the Payra power plant to Dhaka across the Padma River.

According to official sources, the amount is being paid as “capacity payment” to the 1,320MW Payra power plant, a Bangladesh-China joint venture project, which is now ready to supply electricity to the national grid for distribution in Dhaka adjoining areas.

In this case, the capacity payment means the government’s commitment to purchase power generated at the plant at an agreed-upon rate. The government still has to pay the plant for its generation (capacity) even if it is unable to buy electricity from it.

The government is not ready to purchase electricity from the plant as it has failed to complete work on the 164.6 km 400 kV double-circuit transmission line that would supply power from Mongla to Dhaka’s Aminbazar via Mawa connected by the national grid.

The project has hit some hurdles in crossing the mighty river, where a multipurpose bridge is being built to connect Dhaka with the country’s southwestern region.

Govt fails to take power from Payra plant, counts huge loss in capacity payment

The project has hit some hurdles in crossing the mighty Padma river

www.dhakatribune.com

https://www.facebook.com/dailystarnews/posts/3765447283555113

 

[Isa Khan]

SHAREit Group, the global internet technology company, mainly dedicated to mobile internet application development and digital services, is set to strengthen business in the Bangladesh market to fulfill the diverse demands of the people of the country, says a।press release.

The number of internet users in Bangladesh increased by 7.7 million (+19%) between 2020 and 2021. In January 2021, there were 47.61 million internet users and the Internet penetration in the country stood at 28.8%. A recent report has shown that the number of internet users in Bangladesh expanded by 3.3 crore between 2010 and 2019, bringing another 20 per cent of the population online.

Compared to the vast increasing number of internet users in Bangladesh, the development of internet channels and resources is fairly slow. A rapid and reliable internet application is highly required in the country. With a corporate value of making digital content equally accessible by everyone, the company sets its sights firmly on this market.

Currently, SHAREit Group has its offices in various countries and regions of the world, including Singapore, Indonesia, the Philippines, the United Arab Emirates, etc. And now, they are eyeing Bangladesh for their next destination as it is an emerging market and boasts a large base of users.

SHAREit Group has built a diversified suite of applications, which has been installed by nearly 2.4 billion users worldwide including the core app SHAREit. Taking this large number of users into account, SHAREit group has mapped out plans to strengthen business in Bangladesh to cater for the digital entertainment, brand marketing, and advertising solution needs of the country. The SHAREit Group has reached users in over 150 countries and the app is available in 45 different languages.

According to AppsFlyer Performance Index for H1, 2020, SHAREit was named as the fastest-growing media publisher globally.

As Karam Malhotra, Partner and Global Vice - President of SHAREit, shared, “From starting as a simple file transfer app, SHAREit has now branched out into other ventures such as brand marketing, digital advertising, entertainment solutions, etc. Over the years, our growth as a platform for marketing and entertainment as well as the meteoric rise of total users, has been phenomenal. Now that we have a large number of users in Bangladesh, we want to strengthen our business in this country to partner with local and global apps and serve our users in more enhanced ways.”

This renewed journey of SHAREit Group in Bangladesh is expected to benefit the users in multi-faceted ways as it comes as an alternative channel for brand marketing as well. Apart from high-quality digital services, SHAREit Group will offer in-depth, customized, and locally-tailored advertising and branding solutions riding on its capabilities and billions of global users to the local brands and marketers.

SHAREit Group to strengthen business in Bangladesh market

SHAREit Group, the global internet technology company, mainly dedicated to mobile internet application development and digital services, is set to strengthen business in the Bangladesh market to fulfill the diverse demands of the people of the country, says a।press release. The number of...

www.theindependentbd.com

A total of 10 companies from the large taxpayers unit (LTU) were responsible for depositing the most value added tax (VAT) to the state coffers in fiscal year 2020-21, in the line of Tk38,111 crore.

Total VAT and supplementary duty (SD) paid in FY21 was Tk97,509 crore, of which the 10 companies paid about 40% of that.

The LTUs paid Tk49,252 crore in VAT of the total. Calculated, the 10 companies contributed to more than 77% of that amount.

According to the latest figures from the National Board of Revenue (NBR), the highest VAT payers were tobacco manufacturers, telecom operators and pharmaceutical companies.

Overall, the tobacco companies paid Tk27,000 crore, the telecom operators Tk8,466 crore and the pharmaceuticals companies Tk3,133 crore.

10 companies responsible for 40% of total VAT in FY21

Tobacco manufacturers, telecom operators among the top VAT payers, dishing out Tk38,111 crore in total

www.dhakatribune.com

 

[Isa Khan]

At a time when Bangladesh's single-product export base is struggling to cope with the global market vulnerability amid the pandemic, studies show a ray of hope that the country could earn $22 billion more annually if liberal market access could be utilized with diversified items.

Europe, the Americas, Japan and China are among the potential markets for the additional amount, which is more than half of the country's current export earnings.

The Economic Relations Division (ERD), in a study, finds that $18.34 billion worth of export potentials remain unexplored in the top ten export destinations, while another study of the Research and Policy Integration for Development (RAPID) says there is a scope of at least $4 billion in export earnings from China alone.

Experts say every country except for the US is offering duty-free access for Bangladeshi products to its market, but Bangladesh cannot cash in on it in the absence of necessary initiatives of the government and the private sector.

Besides, the country is losing its competitive edge in global trade because of an overdependence on a single product and inadequate measures to ensure standards certification, they add.

The LDC graduation might put Bangladesh in a more vulnerable position following a loss of duty-free benefits, they also say.

Exporters and economists identify two main reasons for the country's failure to tap the unexplored potentials in top export destinations. The first one is the non-diversification of the country's export basket, and secondly, an inability to maintain the quality of products. A lower inflow of foreign direct investment is also hurting its trade potential.

They also say the readymade garment sector apart, other sectors are not getting the kind of attention they need. As a result, the country cannot exploit the potential of exporting leather products, plastics, jute products, agricultural products, home textiles, frozen fish and many more.

In the last fiscal, no sectors other than agriculture, home textiles and jute goods alongside the major contributor, the RMG sector, hit the 1$ billion mark in export earnings.

According to the ERD report, only six export sectors - RMG, leather, pharmaceuticals, plastics, footwear and shrimp have the potential to bag $18.34 billion more, while their current export earnings stand at $31.21 billion.

On the other hand, apparel exporters claimed that the RMG sector has the potential to add another $20 billion to its current contribution through producing human-made fibre-based products for the current buyers and existing markets.

They are working with the government to set up an innovation centre to diversify products, they added.

The government has also offered a tax holiday facility for bringing in investment in the human-made fibre industry from FY21.

Besides, the International Finance Corporation (IFC), a member of the World Bank Group, has also been working with the government and leather, plastics and light engineering sector entrepreneurs to diversify the export basket and enhance their competitiveness in the export market.

Leather sector entrepreneurs say they will not be able to explore the global market without the Leather Working Group (LWG) certification for the Savar leather industrial park.

The ERD study styled "In the shadow of the pandemic: Implication and required action" has found that Bangladesh has failed to grab the potentials of the top ten export destinations, even though in some markets, half of the opportunity has remained untapped.

The estimations carried out by Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD), indicates that Bangladesh has significant untapped potentials both in terms of markets and products.

The study also mentioned that towards sustainable graduation, both domestic measures and international support will be required to realise these potentials.

According to the Export Promotion Bureau (EPB), only the apparel sector has been contributing about 81% to export earnings although Bangladesh exports a total of 31 types of products to over 200 countries across the world.

According to the study, Bangladesh has a scope to export an additional $3.2 billion worth of goods to the US market beside the current $6.3 billion.

Exporters said exports to the market are not growing mainly because of some tariff barriers.

The data also indicates that in key markets, Bangladesh's competitive edge is being gradually eroded even in the particular case of its dominant apparel sector.

For example, China in the US market is being increasingly taken over by Bangladesh's competitors such as Vietnam and Cambodia, the report said.

The ERD study also mentioned that Bangladesh has the scope to increase its export volume by another $3.6 billion to Germany, $2.2 billion to the UK, $1.7 billion to Spain, $1.9 billion to France, $1.2 billion to Poland, $1.3 billion to Italy, $1.6 billion to the Netherlands, $500 million to Canada and $800 million to Japan.

Evaluating trade gap data, the study also said within the existing top six export items, apparel products have the potential to export over $17 billion more.

Besides, footwear, plastics, pharmaceuticals, leather and shrimp sectors are yet to exploit $1.29 billion of export potential.

The country is on the path of returning to normalcy after a pandemic-hit period, with its exports raking in $38.75 billion in FY21, recording a growth rate of 15.10%. The growth is riding on RMG export recovery, which earned $31.45 billion showing a 12.55% growth, according to the EPB.

Dr M Masrur Reaz, chairman of the Policy Exchange Bangladesh and former senior economist at World Bank Group, said, "We cannot supply products as per the global market demands. Our earnings from other sectors apart from the RMG sector is very low. We could export footwear items to Japan, but we do not have quality products."

There is a huge potential for agricultural products, but the sector's contribution is only about 2.5%, he said adding, "We are unable to capitalise on the potential because of low food and phytosanitary standards."

The country needs to acquire sample certification from Singapore. Many countries have a mutual recognition agreement to facilitate this, but Bangladesh has no such deal with any country, he also said.

The global market for halal food amounts to $2.4 trillion. "Our exports to this market are almost zero as we do not have a halal certification system. Similarly, we are not able to export light engineering products as per the standards of European and US markets," Masrur said.

"We cannot sell products at competitive prices because our productivity is relatively low and inland logistics cost is high, which eats up a big part of the whole. Bangladesh is one of the worst performers in providing logistics support."

Raw materials meant for many products are import-dependent. Raw materials for readymade garments can be imported without paying duty under the bond facility. But other products are deprived of such an advantage, he said.

"We need to sign Free Trade Agreement and Preferential Trade Agreement with different countries, but we do not have any such deal with anyone except Bhutan," he added.

The country could get an advantage in lead time too in a huge market like China. But there is not much attention to it, he pointed out.

World's top exporting country China imports more than $2.5 trillion worth of goods a year. Although Bangladesh's bilateral trade with China is more than $14 billion in the 2020-21 fiscal year, according to Chinese customs data, also mentioned by the Chinese ambassador, Bangladesh exported only $680 million worth of goods to the country, of which 40% was readymade garments.

However, China has been providing duty-free access to most of Bangladesh's products under LDC since 2011. And from 1 July last year, this zero tariff facility has been extended to a total of 8,256 products.

Research conducted recently by a team of three researchers headed by Dr MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), showed that Bangladesh's exports to China should be at least $4 billion. It also showed that Bangladesh could not harness even 30% of its export potential in the Chinese market.

Exporters and experts say the kind of public-private initiative needed to capture the Chinese market is simply not there. The BKMEA attended a fair in China in 2005, but there was no more participation after that.

Citing the example of one of his own buyers, BKMEA First Vice President Mohammad Hatem said the buyer had spoken to him about an order for a garment made of a combination of nylon and polyester, but he could not take it because they did not make that type of garment.

Munshi Faiz Ahmad, Bangladesh's former ambassador to China and former chairman of the Bangladesh Institute of International and Strategic Studies (BIISS), told The Business Standard that China has given Bangladesh many opportunities. "But if we can't make what they need, then exports can't be increased. We also do not have an organised study on how to increase exports to China."

He also said, "The spare parts of the products that China is making are being made in other countries. We are not looking there."

Echoing Faiz, Dr Ahsan H Mansur, executive director of the Policy Research Institute, said, "All our export products are basically finished goods. We are not able to take advantage of the possibility of exporting such parts as intermediate goods. China imports spare parts for many products from abroad and Bangladesh could be part of that supply chain."

Besides, the obligation to add 40% value to local products for exports to the Chinese market is one of the obstacles to increasing exports to the country, said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD).

Apart from this, the gradual reduction in tariffs for other exporters to China under MFN (Most Favoured Nations) has created more competition for Bangladesh, said Dr Mostafa Abid Khan, an international trade expert and former member of the Tariff Commission.

In 2011 when most of Bangladesh's products enjoyed duty-free access to the Chinese market, other countries had to pay 16% duty. But under the MFN, China has gradually reduced tariffs for those countries to about 6% in 2018, which means Bangladesh's preference margin in the Chinese market has decreased, exposing the country to stiff competition, he observed.

Bangladesh yet to tap $22bn export potentials

The LDC graduation might put Bangladesh in a more vulnerable position following a loss of duty-free benefits

www.tbsnews.net

 

[Isa Khan]

Leading big tech and popular search engine Google has paid Tk2.3 crore in value-added tax (VAT) to the National Board of Revenue (NBR).

This makes them the second big tech after Facebook to pay VAT in Bangladesh, after the social networking giant paid Tk2.44 crore on July 29 earlier, both of which are registered with the Dhaka South VAT Commissionerate.

According to the Dhaka South VAT Commissionerate, a VAT of Tk55.78 lakh against the returns of last May has been filed by the foreign institution, and another Tk1.74 crore for June.

The company deposited the money to the government treasury on Thursday from the Citibank NA branch in Singapore.

Google pays 2.3C in VAT

This makes them the second big tech after Facebook to pay VAT in Bangladesh

www.dhakatribune.com

Bangladesh’s economy has remained resilient and maintained a strong growth momentum despite disruptions created by the Covid-19 pandemic as consumption propelled growth in the country, according to HSBC.

The global bank made the observation on Wednesday at a webinar titled “Bangladesh Market Insights 2021: Consumption Propelling Growth.”

Devendra Joshi, equity strategist of ASEAN and Frontier Markets of HSBC Global Research, said in his keynote presentation that the resilient growth witnessed by Bangladesh has been driven by investment and consumption.

“The Bangladeshi stock market deserves more attention as it holds opportunities for investors looking for diversification and hidden gems,” he said.

He added that as the global growth forecast has been raised this year, Bangladesh has to rebuild its inventories to meet the demand.

Joshi further said that as oil prices are expected to rise, so will remittances. He also pointed out that the Bangladeshi taka has been quite stable against the US dollar.

Comparing Bangladesh to Vietnam, Joshi noted that both countries are geared towards domestic consumption.

“Bangladesh is on a similar growth trajectory to Vietnam. In fact, its stock market is where this ASEAN nation was five years ago, and it is well placed to start closing the gap,” Joshi explained.

“We think the country is on the cusp of an industrial revolution as incomes rise and technology plays an ever-increasing role in the economy. Urbanization, smaller households, and more women at work are powerful consumption drivers that support high levels of growth,” Joshi added.

He also said that Bangladesh’s economy is much larger than Vietnam and is growing at a much faster rate.

In his presentation, Joshi also pointed out that Bangladesh has a sound macro position and a robust external balance sheet with low external debt and high foreign exchange reserve coverage.

Its foreign direct investments (FDI) remain low but are expected to improve as it moves up the value-added ladder fast.

While Bangladesh is one of the cheapest places to manufacture goods in Asia, it will need to diversify away from garments.

In terms of ease of doing business, Bangladesh still lags behind Vietnam but is making efforts to improve, the HSBC strategist also said.

Speaking as the guest of honour at the webinar, Sandeep Uppal, global co-head of International Subsidiary Banking of HSBC Asia-Pacific, said that intra-Asia trade has significantly risen in recent years.

But he noted that although the Asian region accounts for 60% of the global population, it accounts for only 40% of the global GDP.

Dr Ahmad Kaikaus, principal secretary to Prime Minister Sheikh Hasina, also spoke at the event as the chief guest.

“The economy of Bangladesh is seeing continuous growth because of the entrepreneurial spirit of its people, strategic location, and support from the financial sector,” Dr Kaikaus said.

“We are energized to do better and showcase our success stories through increased public-private partnerships and reach Bangladesh’s competitiveness globally,” he added.

HSBC Bangladesh CEO Md Mahbub ur Rahman said that in its past 50 years, Bangladesh’s trajectory of economic growth has been a testament of the people’s insatiable desire and effort to do better.

“Continued digitalization and upgrade of technology, consistent rise in per capita income leading to incremental consumptions, and demographic dividend have been opening up a world of opportunities for Bangladesh,” he added.

“Historically, the private sector has always been resilient during challenging times and HSBC will continue to play its part through unparalleled international network and connectivity,” Rahman further said.

Kevin Green, country head of Wholesale Banking at HSBC Bangladesh, also spoke at the event alongside key members of the business community, regulatory bodies and representatives from state-owned enterprises.

Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) and vice-chairman of Bengal Group of Industries, attended the webinar as the special guest.

HSBC: Consumption propelling growth in Bangladesh

‘We think the country is on the cusp of an industrial revolution as incomes rise and technology plays an ever-increasing role in the economy’

www.dhakatribune.com

 

[Isa Khan]

Another privately built jetty has come to the aid of the Chattogram port as it allowed the country's largest seaport to use the facility to berth bulk vessels carrying heavy items.

Karnaphuli Ship Builders Ltd completed the construction of the jetty for the ship repairing works of its sister concern, Karnaphuli Dry Dock, in Anwara upazila last month.

A bulk vessel, Giulia-1, carrying 23,000 tonnes of scrap, imported by steel manufacturer BSRM Group, berthed at the jetty on July 28 and started unloading goods.

This was the second jetty of the private dry dock after it built the first one in March this year. The CPA has been using it since March 30.

CPA Chairman M Shahjahan said it gave the permission to Karnaphuli Dry Dock to build the jetties on condition that the port would use them when they were vacant.

"We are now using both jetties. As a result, we have been able to accommodate two additional vessels."

Ships, particularly bulk vessels arriving with scraps for steel industries, have to wait for days at the outer anchorage due to a lack of jetties.

In most cases, ships laden with scraps have to unload all of their cargoes at the outer anchorage with the help of lighter vessels. As a result, importers have to bear additional costs to hire the smaller vessels. The unloading also takes time.

"The two jetties have come as a relief since they are helping us accommodate two bulk vessels with scraps simultaneously," said CPA Director (Traffic) Enamul Karim.

Currently, the CPA can allocate a maximum of seven jetties of its general cargo berths (GCBs) to accommodate six bulk vessels. The rest 12 jetties are dedicated to handling container vessels.

The CPA is even unwilling to allow the bulk vessels transporting heavy items to use the GCB jetties as they have become old. It has not allowed scrap-carrying ships to berth at the port since July 1.

So far, eight vessels have berthed at the first jetty of Karnaphuli Dry Dock since March 30. Around 1.50 lakh tonnes of scraps have so far been unloaded.

Both jetties can accommodate two ships with a length of up to 180 metres each, said M Abdur Rashid, managing director of Karnaphuli Ship Builders.

"The port can now reduce vessels' waiting time and generate revenues using our jetties," he said.

He said the link road from the jetties to Chaturi, Anwara via Chittagong Urea Fertilizer Ltd needed to be widened and renovated to allow trucks to ply while carrying imported goods.

Giulia-1, with 33,000 tonnes of scrap, arrived at the outer anchorage in the middle of July. After unloading around 10,000 tonnes of goods to smaller lighter vessels there, it got berthed at the second jetty of Karnaphuli Dry Dock.

The unloading from the vessel would be complete by August 8, said Asif Iftekhar Hossain, director of Everett Bangladesh (Pvt) Ltd, the local agent of the ship.

Another privately built jetty comes to Ctg port’s aid

Another privately built jetty has come to the aid of the Chattogram port as it allowed the country’s largest seaport to use the facility to berth bulk vessels carrying heavy items.

www.thedailystar.net

BRAC, the largest microcredit provider in Bangladesh, has received approval from Microcredit Regulatory Authority (MRA) to issue zero-coupon bonds valued BDT 1,350 crore through private placement. Issuance of zero coupon bond by a non-governmental organisation is the first of its kind in microcredit history of Bangladesh.

BRAC's Tk 1,350 crore bond gets MRA approval

BRAC, the largest microcredit provider in Bangladesh, has received approval from Microcredit Regulatory Authority (MRA) to issue zero-coupon bonds val...

www.brac.net

https://www.facebook.com/tbsnews.net/posts/4257114411003142

 

[Isa Khan]

The pharmaceutical industry of the country is going to make a giant stride as local companies are setting up factories in a dedicated park near Dhaka to produce active pharmaceutical ingredients (APIs) to reduce dependence on import for key raw materials for drugs.

At least five companies including Acme, Healthcare, UniHealth and Ibn Sina have started setting up factories in Munshiganj's Gazaria API Park and a dozen more companies including Square, Beximco, and Opsonin are going to do the same soon. Some of the companies said they would start production from the beginning of next year.

API Industrial Park Project Director Syed Shahidul Islam told The Business Standard that 27 companies have taken allotment of plots with an expected investment of Tk3,000 crore. Acme and Healthcare have made considerable progress on their API facilities and they plan to start production in 2022.

Creation of specialised zones, 10-year tax holiday offer and formation of a national API policy are among the supports the industry finds encouraging for local production of key drug ingredients.

Experts say that the innovative production of API by the local pharmas would help keep this booming Tk27,000 crore sector on track in future.

According to the Bangladesh Association of Pharmaceutical Industries (Bapi), at present, local companies can produce only 3% of the total demand for central ingredients of drugs and import the remaining 97% from various countries.

Active pharmaceutical ingredients (API) are the main components of medicines. Inventors of such ingredients usually patent them to retain intellectual property rights. Any drug manufacturer that wants to produce medicines using that API must pay a royalty fee to the inventor.

Bangladesh does not have to pay any royalty or fee for the use of foreign patents in medicine production as the World Trade Organisation's Trade Intellectual Property (TRIPS) Agreement gives the country the right to do so as a least developed nation.

Experts say that after five years, when Bangladesh leaves the LDC title in 2026, the TRIPS facility will no longer be applicable. As a result, the pharmaceutical industry of Bangladesh will enter a new phase of paying royalties or fees for patents that will increase the cost of medicines.

However, sector insiders are hopeful that the country will go for innovation in medicine ingredients before that.

SM Shafiuzzaman, secretary general of Bapi, said, "We are moving towards becoming self-sufficient in raw material production. One or two factories will be able to start production in the industrial park from next year. By 2030, all the factories there will be able to go into API production."

Infrastructures completed by the government

The decision of the API Industrial Park was taken in 2008 to expand the domestic pharmaceutical industry, diversify products to create a competitive market, conduct research on improving the quality of medicines and produce the required raw materials. The Executive Committee of the National Economic Council (Ecnec) approved the project in December of the same year.

The government has already completed the construction of the 200-acre project in Munshiganj's Gazaria including plot development, land filling, roads, drainage system, electricity and water lines etc.

Twenty-seven companies including big names like Square, Beximco, Incepta and Acme have already made places there. A company can take a maximum of 10 acres and a minimum of 5 acres of land. Several companies have already started construction of buildings. The government has initially decided to charge Tk2 crore per acre of land.

Project Director Shahidul Islam said, "Work on a section of the Central Waste Treatment Plant (CEPT) would be completed by this year. Companies will be able to start production from next January."

The preparation of the companies

Acme Laboratories Limited is at the forefront of setting up factories in API Industrial Park. The company has already completed the construction of the fourth floor of their building at a cost of Tk60 crore. The company hopes to start production in June 2022.

Mizanur Rahman Sinha, managing director of ACME Laboratories Ltd, said, "The construction of our building will be completed by December this year. It will take some more time to complete other preparations including capital machinery. However, we will be able to start production in June 2022."

Besides, Healthcare, UniHealth, Ibn Sina Pharmaceuticals have started construction of buildings in the industrial park.

Square Pharma, the country's leading pharmaceutical company, is conducting a feasibility study to set up a factory in the industrial park where they have three plots. They will start construction of their building there early next year.

Zahangir Alam, CFO of Square Pharmaceutical Ltd, said, "We have completed the initial feasibility study to invest in the API. Our construction work will start there soon. However, being a listed company in the capital market, we cannot disclose our investment."

Another top company Opsonin Pharma has taken two plots in the park. The company is also planning to invest from the beginning of next year.

Abdur Rouf Khan, managing director of Opsonin Pharmaceutical Ltd, said, "We put utmost importance on API production. However, as the company's existing factory renovation work is underway, we are not able to invest in API Park right now. We will do it next year."

Like Square and Opsonin, almost all companies, including Beximco, are planning to set up factories next year.

Syed Shahidul Islam, project director of the API, said, "The construction work of the factories of Healthcare and ACI Limited has progressed considerably. Next year almost everyone will start working on their factories."

Tax holiday facility in API production

The National Board of Revenue (NBR) has allowed a 10-year tax holiday to the API Industrial Park for setting up factories to produce medicine raw materials. This facility is being provided in the light of the National Active Pharmaceutical Ingredients (API) policy.

A company will get this facility for 10 years after starting production. Under this, the producers of raw materials in the pharmaceutical industry will enjoy 100% corporate tax exemption and other tax benefits.

Pharmaceutical industry market

The pharmaceutical industry has developed considerably in Bangladesh. In the post-independence period, Bangladesh was almost 100% dependent on foreign medicines. But now Bangladeshi medicines are even being exported to 180 countries of the world.

Local companies are now meeting 98% of the demands of the domestic market. They are now developing and producing a variety of complex and international standard medicines including vaccines, medicines for heart and cancer diseases and insulin.

According to IQVIA, an American multinational company serving the pharma industry, the country's pharmaceutical market has surpassed Tk27,000 crore in 2020 with an annual growth of more than 10%. Bangladeshi companies also export medicines worth around Tk1500 crore per year. However, the top 10 companies in the country sell about 71% of the country's total medicines.

According to the Export Promotion Bureau, the revenue from drug exports in the 2020-21 fiscal year was Tk1,433 crore. In that year, the income growth in this sector was 24.50%. In 2019-20, medicines worth Tk1,153 crore were exported from Bangladesh.

Industries are expecting a brighter day for medicine export once the API is completed. But experts think API is not the only solution for patent rights.

Dr Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, said after setting up the API industrial park, innovation in generic medicine and patent rights should get importance. It needs foreign investment or joint ventures for new innovation in an API park.

Secondly, the Ministry of Commerce will have to negotiate to get the benefit of patent exemption until 2033, after LDC graduation in 2026.

Pharmas eye strong local base for key ingredients

Some companies hope to start production at API park next year

www.tbsnews.net

The government is working to export cashew nuts worth billions of dollars to the global market by increasing the capacity of the local processing industry, encouraging new investments and increasing local production.

According to the Ministry of Agriculture, the local production of cashew nuts is very low at present and so raw cashew nuts will be imported in large quantities at the initial stage and re-exported after processing. Work on exporting cashew nuts from this year is going on.

According to the Ministry of Agriculture, Department of Agricultural Extension and cashew nut processing industry insiders, the local cashew nut orchards are currently producing about 1,500 tonnes of fruits, among which 260-320 tonnes of cashew nuts are produced through processing in the country per year.

Currently, only locally produced cashew nuts are being processed in the domestic industry. Meanwhile, about 700 tonnes of processed cashew nuts are being imported by the country in a year.

According to the Ministry of Agriculture, the import of processed cashew nuts in the country has increased more than 32 times in the last four years.

Demand for cashew nuts is growing globally at the rate of 4.5%, while in Bangladesh it is increasing at 15-20%, according to industry insiders.

Current production situation

The hilly region is suitable for cashew nut cultivation, so it has started extensively in Bandarban, Khagrachhari and Rangamati. Currently more than 2,000 people are involved in cultivating cashew nuts here.

Rening Mro, a farmer in Bandarban, has planted 3,000 cashew nut trees on 5 acres of land. The Department of Agricultural Extension has provided all the trees. Last year, he sold 90 maunds of cashew fruits (also known as cashew apple) grown on these trees at Tk2,000 per maund.

He told The Business Standard, "There is not much cost once the orchard is created. After the flowers come, you just have to clean the garden. As a result of this, there is a lot of profit in cultivating cashew."

Another farmer, Nasrang Tripura, has planted cashew on 3.25 acres of land. He has been gardening for 16 years and trying to find a high yielding variety of cashew by collecting good quality seeds himself.

Agriculture officials said a cashew nut tree lives for 30-40 years and yields fruit from the age of three. They plan to increase the production of cashew from 1,500 tonnes to 10,000-12,000 tonnes by 2024. To this end, they have been distributing free saplings among the farmers. Last year they distributed 1.65 lakh saplings and this year they plan to distribute 3 lakh saplings.

A project involving Tk211 crore has been taken up for the production and development of cashew nuts in the country. The Department of Agricultural Extension (DoE) and the Bangladesh Agricultural Research Institute (Bari) are implementing the project, known as "Research, Development and Expansion of Cashew Nuts and Coffee." Bari is especially working on innovating new varieties of cashew nuts.

Under the project, work is underway to expand cashew nut and coffee cultivation in hilly areas in 66 upazilas of 19 districts in seven divisions.

The Ministry of Agriculture said at least 5 lakh hectares of land in the three hilly districts – Rangamati, Khagrachhari and Bandarban – are lying uncultivated. If cashew nut trees are planted on 2 lakh hectares of land, it is possible to earn more than $1 billion (around Tk9,000 crore) a year.

Shahidul Islam, director of the project, told TBS, "Our target is to plant cashew nuts on at least 2 lakh hectares of land. For this, the DoE is working to distribute free saplings, encourage orchard expansion and develop new varieties, so that it becomes possible to increase the yield quickly."'

Status of processing sector

A total of 12 factories have been set up in the country for processing cashew nuts. These factories process about 300 tonnes of cashew nuts every year.

People involved in the sector said the cost of setting up a factory made with manual machinery is low, but it is necessary to invest much more to set up a factory with automated machinery. If one wants to start a manual factory on a small scale, one would need to invest around Tk0.5 crore. On the other hand, one has to invest Tk3.5-4 crore at the initial stage if one wants to set up a factory with automated machinery.

They also said so far only local raw materials are being used in the cashew processing industry as they cannot import raw materials from abroad due to high costs.

Md Ibnul Arifuzzaman, managing director of Jackpot Cashew Nut Industries Limited in Nilphamari, started the factory with an investment of Tk35 lakh. At present, the amount of his investment is more than Tk1 crore. This factory produces seven tonnes of processed cashew nuts every month.

He told TBS, "The size of the native cashew nuts is a bit small. There is demand for it in the local market, but there is very low demand for it in the world market. If we want to capture the world market, we have to import and process raw cashew nuts, but due to high costs of import, we are not able to do it."

However, the agriculture ministry said the import duty on cashew nuts has recently been reduced from 90% to 5% so that industries can easily import it as raw material.

But the entrepreneurs said despite decreasing the import duty to 5%, currently one has to spend 37.5% of the total price on various VAT and taxes to import raw cashew nuts. The cost of importing processed cashew nuts is lower than the cost of importing raw cashew nuts and marketing them after processing.

Arifuzzaman said, "We demand that the government lift all kinds of tariff on the import of raw materials. This is very important for developing the industry."

Sources said exporting cashew nuts from Bangladesh has not started yet. Entrepreneurs are discussing complexities regarding tariff with the Ministry of Agriculture. Only if the government assures them of cooperation will the entrepreneurs start importing raw materials and export the nuts after processing.

Entrepreneurs also said the lack of bank loans is a bigger problem than importing raw materials. Once these problems are resolved, the entrepreneurs will invest here and success in exports will come.

"New entrepreneurs will not be encouraged if the government does not cooperate in removing the complexities in obtaining bank loans," said Arifuzzaman.

Shahidul Islam, director of Research, Development and Expansion of Cashew Nuts and Coffee project, said, "The processing sector is developing at the private level. We are working to make it easier for them to get bank loans and to help ease the complexity of importing raw materials."

World market for cashew nuts

Currently, the global production of cashew nuts is more than 35 lakh tonnes. India alone is producing 7.5 lakh tonnes of cashew nuts, Vietnam is producing 4 lakh tonnes and four to five countries in Africa are producing 12 lakh tonnes of cashew nuts every year.

The global market for cashew nuts is worth $9.8 billion. Vietnam alone is exporting cashew nuts worth $3.5 billion to the global market. The market for cashew nuts is growing at a rate of 4.5% per year worldwide, according to the industry insiders.

The top three cashew nut exporting countries are Vietnam, India and the Netherlands. Germany, Brazil, the United Arab Emirates, Ivory Coast, Indonesia, Belgium and the United States are also exporting significant quantities of cashew nuts.

Challenges faced in Bangladesh

The main challenges in cashew nut cultivation in the hills are: increasing the productivity of existing varieties, ensuring fair prices for farmers, training farmers in modern production techniques, management, and marketing, producing quality cashew nut following good agricultural practices and increasing the number of processing plants.

Agriculture Minister Dr Md Abdur Razzaque told TBS, "In order to make agriculture profitable, it is necessary to cultivate unconventional cash crops, including cashew nuts, coffee and black pepper."

"There is a huge demand for these not only in the country, but also in the international market, and their prices are high too. That is why the cultivation and processing of these crops should be increased," he said.

"There is a huge potential for cultivating these crops in large areas of the hills. We are emphasising increasing cashew production as well as innovating improved varieties and technologies. Doing so will revolutionise the economy of the Chattogram Hill Tracts." He continued, "We are working on the kind of benefits that need to be provided to attract investment in the processing industry, because our latest target is to earn foreign exchange through exports," he added.

Bangladesh moves to enter global cashew nut market

Work on exporting cashew nuts from this year is going on

www.tbsnews.net

The Tk540 crore steel rice silo being constructed along the River Meghna in Ashuganj upazila of Brahmanbaria was supposed to be completed in April last year, but due to the slow pace of work amid the Covid-19 pandemic, construction has not been completed yet.

At present, construction is being carried out with a small number of workers in a limited range, but the necessary materials are not being imported from abroad. As a result, the contractor is not able to start work in full swing.

However, the project director said the silo could be fully operational from April or May next year after the trial run is completed by December this year.

Covid-19 slows down Ashuganj silo construction

Most of the construction materials have to be imported, but the pandemic has delayed the process

www.tbsnews.net

 

[Isa Khan]

Bangladesh Petroleum Exploration and Production Company (Bapex) has discovered a new gas field in Zakiganj upazila of the country's gas-rich Sylhet region.

The 28th national gas field of the country is said to have reserves of about one crore cubic feet of natural gas, State Minister for Power, Energy and Mineral Resources Nasrul Hamid made the announcement today on the occasion of National Energy Security Day 2021.

Reportedly, gas can be extracted from the newfound field for next 10-12 years.

Another gas field found with 68bcf reserve

The 28th national gas field of the country is said to have reserves of 68 BCF natural gas

www.tbsnews.net

https://www.facebook.com/tbsnews.net/posts/4263127930401790

 

[Isa Khan]

The Executive Committee of the National Economic Council on Tuesday approved a Tk 2,204.39 crore project to expand Teletalk mobile phone network at village level and also to modernize the existing network to provide 5G services.

The approval came from a meeting of the ECNEC held with its chairperson and prime minister Sheikh Hasina in the chair.

The PM joined the meeting from her official Ganobhaban residence while ministers, state ministers, Planning Commission members and secretaries concerned joined the meeting from the NEC Conference Room in the city’s Sher-e-Bangla Nagar area.

Briefing reporters after the meeting, planning minister MA Mannan said that a total of 10 projects were approved today involving an overall estimated cost of Tk 7,985.51 crore.

‘Of the total project cost, Tk 6,660.29 crore will come from the government of Bangladesh, Tk 137.09 crore from the concerned organization’s own fund and the rest Tk 1,188.13 crore as project assistance,’ he added.

State minister for planning M Shamsul Alam, Planning Commission members and secretaries concerned also joined the briefing.

Of the approved 10 projects, nine are new while one is a revised project.

The planning minister said Teletalk Bangladesh Limited under the Post and Telecommunication Division will implement the project on expansion of Teletalk network by November 2023.

He said the main project objectives include improving the qualitative of the existing Teletalk network to provide modern 4G based services to the rural people at an affordable price side by side modernizing the existing core and transmission network of Teletalk suitable for providing 5G technology based services.

The main project operations include creating some 3,000 BTS sites, increasing the retention capacity of the machineries of some 2,000 BTS sites compatible to 3G and 4G, modernization of sites by replacing existing 200 mobile BTS, incorporating 4G BTS in the existing 1,000 mobile BTS sites, installing 5,000 Fixed Wireless Access (FWA) devices, installing long haul and short haul microwave link, expanding core IP backbone network, and expansion of charging, billing, value added service and other sub systems.

Commenting on the project, Mannan said a huge investment of Tk 2,204 crore will be made in Teletalk through this project to further expand its network in the rural areas and also to strengthen the necessary infrastructures to cope with the 5G network coverage.

Answering to a question, State Minister for Planning Dr Shamsul Alam said that Teletalk has been running its operations since its inception as a government tool or arms since no other network except Teletalk could hardly reach the CHT and char land areas.

He said Bangladesh is a welfare oriented country for which the government always has to look into the wellbeing of people.

It was also informed in the briefing that the Planning Commission has already received a project to initiate 5G coverage in selected areas of Dhaka city which is under process.

Referring to the approval of replacing existing bailey and other risky bridges at dilapidated, narrow and important points (Rangpur Zone) with a cost Tk 861.39 crore, Mannan said the prime minister asked the authorities concerned to find out such dilapidated bridges across the country and for replacing those.

Regarding the approval of upgrading Bagerhat-Rampal-Mongla district highway to due standard and width with Tk 467.76 crore, the Planning Minister said it is the decision of the government to widen and strengthen the existing roads in phases as well as building necessary overpasses and underpasses.

Turning to the approval of enhancing capacity of Bangladesh Film Archives and collection, conservation of audio-visuals of the War of Liberation from local and foreign sources with Tk 62.68 crore, the Premier asked the authorities concerned to collect and conserve all the War of Liberation related mementos from various countries especially from Eastern Europe.

About the project for developing important roads under Keraniganj upazila in Dhaka district with Tk 1,090 crore, Mannan said the prime minister has noted that Keraniganj has become a part of the metro Dhaka and thus its facilities should have to be enhanced.

The Planning Minister said the day’s meeting approved another project titled Madarganj 100MW Solar Power Plant at Solar Park, Jamalpur with Tk 1,511.79 crore.

Mannan said the ECNEC had earlier proposed to name this plant after the name of the prime minister since it would be the country’s largest and iconic solar power plant, but the premier opposed to label the plant after her name.

The prime minister also asked the authorities concerned to ensure necessary dredging of the Dudhkumar River while giving approval to the Dudhkumar River management and development in Kurigram District project with Tk 692.68 crore.

Replying to another question, the Planning Minister said the prime minister earlier in a meeting had said that tolls are being realized since the government has to make huge expenses for maintaining the countrywide roads, highways and bridges.

Mannan hinted that tolls would be in place in various points in future.

Replying to another question about the final GDP growth of 3.51 per cent in FY20 down from the provisional estimation of 5.24 percent, Dr Shamsul Alam said that Bangladesh had performed much better in the global context despite the pandemic.

He said that Bangladesh was in top of South Asia considering GDP growth attainment while countries like China and India also witnessed much less growth rate during that time.

Statistics and Informatics Division Secretary Muhammad Yamin Chowdhury said that the provisional growth rate of 5.24 per cent was estimated based on the available data of nine months in the FY20.

He said that the GDP growth rate of Bangladesh was positive during that fiscal although many countries had witnessed negative growth.

The other projects approved in the meeting are Char Development and Settlement Project 4, additional financing, LGED portion with Tk 106.85 crore, Palli Jibikayon Project, 3rd phase with Tk 928.88 crore and Integrated Livestock Development at coastal char areas, 1st revised, with an additional cost of Tk 59.09 crore.

ECNEC approves Tk 2,204cr project to expand, modernise Teletalk network

The Executive Committee of the National Economic Council on Tuesday approved a Tk 2,204.39 crore project to expand Teletalk mobile phone network at village level...

www.newagebd.net

 

[Isa Khan]

Beacon Pharmaceuticals Limited has received a good manufacturing practice (GMP) certificate from the Syrian Arab Republic for the purpose of registering the company for medicine exports.

Now, the company will be able to register its products for exporting to that country.

Company Secretary Khalilur Rahman said, "Recently, a Syrian technical team has visited our factory in this regard."

Beacon Pharmaceuticals wants to export drugs for Covid, cancer, and general treatment to the Syrian Arab Republic through the private sector, he added.

Khalilur Rahman said, "We expect that they will take medicines worth $10 million yearly. But how many items will be exported to the Syrian Arab Republic has not been finalised yet."

Currently, the company is exporting drugs to 116 countries, he added.

Earlier, he said the sales of the antiviral drug Remdesivir have increased significantly. It has been in high demand since the spread of Covid-19 around the world.

The company introduced two items for Covid-19 patients – Remdesivir and Favipiravir.

Beacon Pharmaceuticals launched the generic drug Remdesivir as "Pandovir 100" in August 2020. The company also launched Favipira the same year, used to treat Covid-19 patients.

Favipiravir is the generic name for Favipira, which is known as Avigan in Japan. Beacon Pharma brought it to Bangladesh in April 2020.

Favipiravir is a patented drug in Japan, but Bangladesh as a least developed country can make and market the medicine till 2033.

In the January-March period of fiscal 2020-21, the company's net profit was Tk46.35 crore.

In the first nine months of fiscal 2020-21, the company's earnings per share (EPS) was Tk3.71.

The company, incorporated on 12 September 2001, is engaged in manufacturing and marketing pharmaceutical finished formulation products and lifesaving intravenous (IV) fluids, active pharmaceuticals ingredients (APLs), bio-tech products, and genetic engineering products, which the company sells locally, as well as in international markets.

The company also provides contract manufacturing and tool manufacturing services.

The company was listed on stock exchanges in 2010 and its current paid-up capital is Tk231 crore.

The last trading share price at the Dhaka Stock Exchange was Tk213.90 on Thursday.

As of 30 April this year, sponsors and directors jointly held 30%, institutions 35.14% and general investors 34.86% shares of the company.

Beacon to export drugs to Syria

It wants to export drugs for Covid, cancer and general treatment to the Arab country

www.tbsnews.net

Following Google and Facebook's steps, American multinational tech company Amazon has recently paid Tk52.97 lakh in value added tax (VAT) to Bangladesh for the first time.

"Amazon paid the VAT against its web services worth Tk3.52 crore," said Pramila Sarker, additional commissioner of Dhaka South VAT Commissionerate, on Thursday night.

Earlier on 29 July, social media platform Facebook paid Tk2.44 crore and search engine giant Google, on 5 August, submitted Tk2.29 crore in VAT to Bangladesh.

Amazon pays Tk52.97 lakh in VAT to Bangladesh

Following Google and Facebook's steps, American multinational tech company Amazon has recently paid Tk52.97 lakh in value added tax (VAT) to Bangladesh for the first time. "Amazon paid the VAT against its web services worth Tk3.52 crore," said Pramila Sarker, additional commissioner of Dhaka...

www.tbsnews.net

 

[Isa Khan]

The rod and steel manufacturing industry may save Tk1.6 lakh crore in raw material import costs if resources from the country's first magnetite (iron ore) field in Dinajpur's Hakimpur upazila can be used.

The industry spends around Tk5,000 crore annually on importing raw material from the UK, the US, Australia, and Canada, and the spending is increasing as fast as the country's infrastructure sector is growing.

The Hakimpur field has a reserve of 62.5 crore tonnes of iron ore, Nasrul Hamid, state minister for power, energy, and mineral resources, told a programme on Wednesday.

Considering a 25% recoverable reserve and the current annual demand for raw material (50 lakh tonnes), the Hakimpur field can supply raw material for 30 years and its economic value will be Tk1.6 lakh crore, said the Geological Survey of Bangladesh (GSB).


But production at the recently discovered field largely depends on the results of a detailed feasibility study, which would take time to complete.

Nasrul Hamid said the discovery of the field would play a key role in sustainable development.

He called on the GSB to create a field for research on extracting mineral resources in Bangladesh.

In June 2019, the GSB, a national organisation to find out mineral resources, announced the discovery of the field in Hakimpur's Isabpur village.

It found iron ore while digging a well on 50 decimals of land in the village, 11 kilometres from the Hakimpur upazila office, in search of mineral resources.

The primary exploration data shows the reserve was found in different layers under the ground in 5 square-kilometres of area in Hakimpur. But layers under 1,300-1,500 feet were found to contain the most important reserve.

In a report in December last year, the GSB said the field's recoverable reserve is around 15.6 crore (156 million) tonnes considering 25% of the total probable reserve.

It said the economic value of the reserve would be around Tk1.6 lakh crore based on the current import statistics of iron raw materials.

At present, the cost of per tonne iron raw material is around $119, said industry sources.

Dr Mohd Sher Ali, director general (additional charge) at the GSB, said their job is to find out mineral resources in the country's territory.

"We discovered the Hakimpur field while doing our job. Now the Energy Division will take the next course of action to develop it," he said.

He also said a detailed feasibility study was needed to have more accurate data on the reserve and develop the field.

Experts said the primary exploration report has a 50% positive reflection on the reserve, but a detailed feasibility study can yield real data.

Apart from this study, extracting iron ore from such depths is another challenge.

But GSB officials said Sweden's Kiruna iron ore mine is the deepest one in the world at present. In 2008, Sweden extracted iron ore from a depth of 4,478 feet.

Md Anisur Rahman, senior secretary at the Energy and Mineral Resources Division, said they would conduct a study in coordination with Petrobangla to get more accurate information about the reserve, but it would take time due to fund management.

The demand for steel has been rising gradually in the country due to growing government infrastructure development projects and private construction work. But the industry is fully import-dependent for raw materials.

At present, steel rerolling factories import around 50 lakh tonnes of raw material annually, said Shekhar Ranjan Kar, group chief financial officer and company secretary at the BSRM.

He said local sources of raw material would be a big relief for the industry.

He, however, is not sure whether iron ore found in Hakimpur is the one factories need.

He said it would also depend on the cost at which it would be supplied to the industry.

Dinajpur iron ore field may help save Tk1.6 lakh crore in import costs

Considering a 25% recoverable reserve and the current demand, the field can supply raw materials for 30 years

www.tbsnews.net

The government is planning to build circular waterways around Dhaka by increasing the navigability of major rivers and a canal through dredging and digging to reduce road traffic.

An estimated cost of $2.9 billion has been drawn up to restore navigation of the Buriganga, Turag, Balu and Shitalakkhya rivers surrounding Dhaka, and the Tongi canal, demarcate the shoreline of the rivers, set up treatment plants to improve water quality, and construct a sewage treatment plant.

The government has set a target to complete the work by 2030 under the 100-year Delta Plan, the longest climate compatible development plan in the country's history, approved in 2018.

Since Dhaka city has insufficient road spaces for its rising population, vehicles move at a pace close to the walking speed, according to a research done by the World Bank and the Bangladesh Institute of Engineering and Technology (Buet).


Traffic congestion in the capital costs $3-5 billion a year, according to an estimate by the World Bank and Buet, while the government estimates a loss of $7.05 billion that is equivalent to 2% of the country's Gross Domestic Product.

Experts have been suggesting alternate transport systems around Dhaka to bring down the loss.

The city's economic contribution accounts for nearly 35% of the total GDP. The per capita income in Dhaka is $4,242 whereas the national figure is $2,448. By 2035, Dhaka's population will reach 2.5 crore from 1.8 crore now, and per capita income $8,000.

If the shores and navigability of the rivers can be protected and a river transport network established to lower the cost of business, the economy will see further growth and per capita income of Dhaka residents would climb to $9,200 by 2035, according to the World Bank.

But it fears that the city will not be able to reap the benefits of urbanisation if there is a lack of clear vision, careful planning and implementation.

In the first phase of establishing the river routes, $636 million – equivalent to Tk5,400 crore – will be spent.

The government has already sought $600 million in aid from the World Bank and the Asian Infrastructure Investment Bank.

The Economic Relations Division has received primary approval of its aid proposals sent to the two agencies.

The World Bank has prepared a concept paper on funding of the project. It, however, expressed concern over waste management in Dhaka, allocation for the job, water quality of the rivers and the government's limited allocation for water management.

Where to spend $636 million

The project implementation document of the World Bank, updated until April, says the money will be spent in four components of the project. Of the fund, $295 million is set aside for reclaiming rivers and canals.

This part of the project will cover restoring natural drainage function of rivers and canals, demarcation of their boundaries; showcasing a pilot for hazardous waste and plastic management; and land reclamation.

Once water flow is reestablished and rivers and canals are reconnected, water quality and navigation will improve.

Another $330 million will be allocated for wastewater collection and treatment. To improve the water quality of rivers and canals, domestic sewage treatment plants, sewer networks, and other on-site sanitation facilities in informal residential areas will be built.

And $10 million would be allocated for institutional strengthening and project management.

World Bank on water pollution in Dhaka

The only sewage treatment plant in Dhaka purifies only 3-4 crore litres of water a day while 125 crore litres of wastewater from households end up in rivers, the global lender said in the concept paper.

Referring to a 2008 report, it said industries around Dhaka had released 125 crore litres of wastewater into rivers back then. The quantity of wastewater being released into the water bodies must have increased over the years but only 20% of the factories have effluent treatment plants.

Health, social and economic damage done by the release of untreated water into the rivers are costing $150-170 million a year.

A two-decade old initiative

The first initiative to build circular waterways around the capital and launch water bus services was taken in 2000. Two waterbuses were inaugurated on the Ashulia-Sadarghat route in 2004, but the services were suspended within a short time.

The route was reopened with two waterbuses in 2010. The government has tried to revive the route four times but the effort did not succeed.

A 30-kilometre route from Sadarghat to Ashulia was established at Tk40 crore. In the second phase, a 40km Tongi-Rajakhali-Demra-Kanchpur route was built at Tk54 crore.

Experts think if an effective communication network is built around Dhaka city, the transport scenario here will have a turn around.

Architect Iqbal Habib said many such initiatives had been taken, but nothing positive came out of those because of the absence of coordination. Before opening up water routes, a transport system has to be designed that will make the routes commercially viable, he added.

In the past, shipping was introduced on several river routes, but people showed little interest in boating as there was no road or other means of communication from jetties.

If water communication around Dhaka can be aligned with roads, rail, metrorail and elevated expressways, passengers travelling from north to south will not move into the city's centre. Passengers from east to west will also avoid the city's thoroughfares, said Iqbal Habib.

Measures to establish road and rail communication

To connect the circular waterways with the city's roads, the government has taken a move to build inner circular roads of 91km at $2 billion.

As part of the initiative, the Water Development Board will work on 24km roads from Beribadh on the city's eastern side to the road connecting an elevated expressway. The remaining 67km will be constructed by the Roads and Highways Department.

Roads will be constructed from Teromukh of Dhaka to Demra via Dhaur-Gabtali-Sadarghat-Postagola-Chashara. The Water Development Board will build embankments and elevated roads from the River Demra to Teromukh on the city's eastern side.

Construction of 80km circular rail tracks aligned with the roads was approved by the cabinet committee on economic affairs in 2018. It will be implemented through public-private partnership. As many as 20 stations will be built by the tracks.

The project cost was estimated at $8.37 billion after a pre-feasibility study. Several companies in Japan are willing to fund the rail project through a government-to-government deal. Bangladesh received funding proposals from Korea as well.

New circular riverways plan aims to ease Dhaka traffic by 2030

In the first phase of establishing the river routes, $636 million – equivalent to Tk5,400 crore – will be spent

www.tbsnews.net

 

[Isa Khan]

All three terminals of the Bay Terminal project of Chattogram port will start operation by 2024, State Minister for Shipping Khalid Mahmud Chowdhury said today.

The minister spoke while talking to journalists after visiting the project site at Halishahar coast in the port city this afternoon.

Senior officials of the ministry and Public Private Partnership Authority Bangladesh accompanied the minister during the visit.

The terminal will be constructed on around 2,500 acres of land having a length of 6.15-kilometre area stretching from the backside of Chattogram Export Processing Zone to Rasmonighat on the bank of Bay of Bengal at Halishahar coast.

CPA took the plan around a decade ago.

In August 2016, the CPA appointed a joint venture, comprised of two German firms Sellhorn Ingenieurgesellschaft mbH and HPC Hamburg Port Consulting GmbH and KS Consultants Limited of Bangladesh for feasibility study of Bay Terminal.

In 2017, the firm submitted feasibility report and also submitted a master plan.

In its report submitted in 2017, the firm identified the project as fit economically and technically.

Bay Terminal to start operation by 2024: state minister for shipping

All three terminals of the Bay Terminal project of Chattogram port will start operation by 2024, State Minister for Shipping Khalid Mahmud Chowdhury said today.

www.thedailystar.net

The construction of the Bay Terminal, a long-awaited project of the Chittagong port, is gaining momentum after slowing down due to the coronavirus pandemic as the government looks to complete it by 2024.

Khalid Mahmud Chowdhury, state minister for shipping, said the government had set the time frame to start the operation of the terminal.

He was speaking to reporters after visiting the project site on the Halishahar coast in the port city yesterday. Senior officials of the ministry and the Public Private Partnership (PPP) Authority accompanied him.

The terminal is being constructed on around 2,500 acres of land. It will have a length of 6.15 kilometres, stretching from the backside of the Chattogram Export Processing Zone to Rasmonighat at the Halishahar coast of the Bay of Bengal.

The Chittagong Port Authority (CPA) came up with the plan a decade ago.

Talks on the Bay Terminal began in 2011 as the prospect of building a mega container terminal emerged after an 11km natural island surfaced from the seabed near the Halishahar coast, creating a natural channel for vessel movement.

In August 2016, the CPA appointed a joint venture comprised of two German firms -- Sellhorn Ingenieurgesellschaft mbH and HPC Hamburg Port Consulting GmbH -- and a Bangladeshi firm KS Consultants Limited to conduct the feasibility study.

The JV submitted the report and a master plan in 2017, describing the project economically and technically viable. Though the business community has long been demanding for the beginning of the project as part of the much-needed expansion of the country's premier seaport, it got delayed.

Chowdhury said it was initially decided that one single firm would build the whole terminal under the PPP model.

To speed up the implementation, the project has now been divided into three parts. The CPA will build one part on its own.

The CPA will construct a multi-purpose terminal, while two container terminals will be set up under the PPP model.

Five international port giants, including PSA Singapore, China Merchants Sports Holding Company Ltd, DP World of the UAE, and International Port Development Co-operation of Korea, have expressed interest in funding and constructing the mega project.

Some changes have to be brought to the original plan after the latest decision that the CPA would implement a part of the project, the state minister said.

After completing the official procedures, the CPA would commence the construction work, he said.

The acquisition of 68 acres of privately-owned land has been completed. In addition, the shipping ministry has approved the acquisition of 804 acres of government land.

"Land development activities on the acquired area are going on," Chowdhury said.

He said the project saw slower than expected progress due to a lack of experience in the construction of projects under the PPP model and also for the pandemic.

Many foreign investors earlier visited the project site and expressed interest to set up the terminal. With the resumption of global connectivity, the government has started communicating with the investors again.

"Discussion with the foreign investors is going on," said Sultana Afroz, chief executive officer of the PPP Authority.

CPA Chairman M Shahjahan said it had appointed a consultant to carry out the detailed design of the terminal it would build.

The firm will also update the 2017 feasibility study report and the master plan. After getting the report, the CPA will formulate the development project proposal and start construction accordingly.

CPA Chief Hydrographer M Arifur Rahman said vessel movement to and fro the Chittagong port through the Karnaphuli channel depended on high tides.

"But vessel operation at the proposed Bay Terminal will be possible round the clock."

According to the feasibility study, vessels with a draft up to 12 metres can be berthed. The port now allows vessels with as high as 9.5 metres of the draft to moor.

"The new island will ensure safe vessel movement in the channel," said Rahman.

Bay Terminal project to gather pace

The construction of the Bay Terminal, a long-awaited project of the Chittagong port, is gaining momentum after slowing down due to the coronavirus pandemic as the government looks to complete it by 2024.

www.thedailystar.net

City Group, one of the country's leading consumer goods processor and manufacturer, is to going to build a hi-tech park investing Tk 5,000 crore to manufacture technology products such as microprocessors, chips, circuits, mobile phones and laptops.

The 115-acre City Hi-Tech Park, which will be developed at Demra of the capital city of Dhaka, also looks to house global tech giants.

"We aim to establish a world-class high-tech park and we look forward to attracting some foreign investors," said Biswajit Saha, director for corporate and regulatory affairs.

There will be all sorts of facilities for recreation and a dormitory. This will create job opportunities for around 15,000 people, said Saha after City Group signed an agreement with Bangladesh Hi-Tech Park Authority at the Pan Pacific Sonargaon Dhaka yesterday.

Md Hasan, the park chairman, and Bikarna Kumar Ghosh, the authority managing director, signed the deal.

The park's investors will get 14 facilities and one-stop service from the authority.

City Group said it began preparing a masterplan, a feasibility study and an environmental survey on receiving permission to set up the park in May.

"This is the biggest private high-tech park in the country. And they will make all sorts of digital devices under our rules and regulations," Ghosh told The Daily Star.

There are three public high-tech parks in Gazipur, Sylhet and Rajshahi and five software technology parks and training centres under the authority, according to Ghosh.

By 2027, there will be 39 high-tech or software technology parks and 64 Sheikh Kamal IT training and incubation centres across the country.

"Some have already been completed, some under construction and some in the planning phase," said Ghosh.

City Group's move comes as part of its attempt to diversity products in line with the 4th industrial revolution, introducing artificial intelligence, robotics and the internet of things.

The group manufactures and supplies about one third of the total consumer goods of Bangladesh.

"Everything will be changed in future, so we came here as this is the future," said Saha.

It will develop all kinds of off-site and on-site facilities, conduct earth filling, and construct electricity, gas and water supply infrastructure, buildings, roads, lakes and food courts inside the park.

"City Group is a popular name in the country and abroad. Other companies in the country will also be encouraged as big companies like it are coming forward to set up high-tech parks," said NM Zeaul Alam, senior secretary to the ICT Division.

"City Group will develop the park as soon as possible to create a vibrant working environment," he said.

Hasan, the park chairman and director of City Group, said, "We will make electronics and technology products that no one could even think of making in Bangladesh."

In 2016, the authority recognised Fair Group's Fair Electronics manufacturing plant in Narsingdi, where Samsung mobile phones and other products are manufactured, as a private high-tech park.

Walton Digi-Tech Industries was announced as a private hi-tech park by the authority on September 9, 2020.

It manufacturers IT products like laptops, computers and accessories, mobile phones and motherboards.

Halima Group, an electronics goods maker, also got such recognition, according to Ghosh of the authority.

He said the recognition enables private high-tech parks to get a 10-year tax holiday, duty free import of capital machinery, tax waiver on foreign expats' salaries and duty free utility bills while foreign investors can withdraw their investments anytime.

Launched in 1972 with "CITY OIL MILLS", City Group now has about 40 sister concerns, each specialising in different products and services.

City Group to build Tk 5,000cr hi-tech park

City Group, one of the country’s leading consumer goods processor and manufacturer, is to going to build a hi-tech park investing Tk 5,000 crore to manufacture technology products such as microprocessors, chips, circuits, mobile phones and laptops.

www.thedailystar.net

Ifad Autos Limited signed a land-lease agreement with Bangladesh Economic Zones Authority (Beza) by which the company will expand its manufacturing facilities on 30 acres of land at the Bangabandhu Sheikh Mujib Shilpa Nagar.

Tanvir Ahmed, managing director of Ifad Autos and Md Ali Ahsan, executive member of Beza signed the deal on behalf of their respective organisations at a Beza headquarters event in the capital on Thursday.

According to a Beza press statement, the company Ifad will invest $51 million to set up a car assembly factory, lubricant blending plant, and light engineering industry, that will create employment for about 880 people.

Commenting on the matter, Ifad Autos Managing Director Tanvir Ahmed said they chose the Bangabandhu Sheikh Mujib Shilpa Nagar for expanding their manufacturing facilities because Beza has been providing world-class facilities to investors there, a prerequisite for a business to thrive.

The company wil start with motorcycle assembly, lubricant blending, and other light engineering factories within the shortest possible time, he added.

Ifad Autos to invest $51m in Bangabandhu Sheikh Mujib Shilpa Nagar

Ifad Autos Limited signed a land-lease agreement with Bangladesh Economic Zones Authority (Beza) by which the company will expand its manufacturing facilities on 30 acres of land at the Bangabandhu Sheikh Mujib Shilpa Nagar. Tanvir Ahmed, managing director of Ifad Autos and Md Ali Ahsan...

www.tbsnews.net

Anwar Galvanizing Ltd, a sister concern of Anwar Group, has decided to double its production by investing Tk27.37 crore.

The company is planning to increase production to expand its market share of galvanised iron-pipe fittings (GI Fittings) from existing 25% to 52%.

"The demand for the GI fittings has been increasing gradually in the recent years due to the infrastructure development in both public and private sectors," said Tauhidul Islam, company secretary of Anwar Galvanizing Ltd.

"Besides, the import of GI products from China had decreased significantly during the pandemic. As a result, the company is going to make new investments to grab the market," he added.

GI fittings are an important part of the construction and housing sector. The bulk of the local demand for these products is met by imports from China.

But, the novel coronavirus pandemic that led to a halt in export-import activities for several months has paved the way for the local manufacturers of these products to increase sales, said the people involved in this industry.

The investment plan of Anwar Galvanizing

Anwar Galvanizing Limited went into operation in the mid-1980s with the production of galvanised corrugated sheets.

The company was the country's first and leading manufacturer of GI Fittings and brake drums.

To meet the growing GI fittings demand, the company had halted producing brake drums in 2019.

Now the company is going to increase its production capacity by 2,417 metric tonnes per annum, according to the disclosure published on both stock exchanges on Tuesday.

After the implementation of the new plan, its total production capacity will be 4,725 metric tonnes per annum.

The additional 2,417 metric tonnes of GI fittings shall directly replace the products that are currently being imported to the country, said the company.

"After doubling the production, the company's market share will increase, which will impact its financials and revenue," said Tauhidul Islam.

The new expansion project shall be financed from a mix of own resources and borrowed finance.

The new investment plan is expected to be in operation by the fourth quarter of 2022.

The company said they have received a sanction letter on 23 May from the Dhaka Electric Supply Company Ltd (Desco) for an additional power supply of 1 MW that will support the expansion.

"The demand of our products increased gradually before the pandemic. After the pandemic started, the demand has grown significantly. We have been in a monopoly position in the in GI fittings products market for quite some time. In the recent times some companies came into the business but they were significant," said Tauhidul Islam.

Significant growth in revenue and profit amid pandemic

As product demand increased amid the pandemic, its revenue and profit rose significantly.

In July 2020 to March 2021, its sales rose by 11% and profit by 49% compared to the same time of the previous year.

In this period, its sales reached Tk43.77 crore and profit Tk3.24 crore, which was Tk39.43 crore and Tk2.17 crore respectively.

Earlier, in FY20 its sales grew by 23% to Tk53.42 crore and its profit jumped by 35% to Tk2.95 crore.

Its sales amounted to Tk43.34 crore and profit Tk2.19 crore in FY19.

Based on its financials, the company had paid a 10% cash and 5% stock dividends for its shareholders for FY20.

Anwar Galvanizing got listed on the Dhaka Stock Exchange in 1996. Its paid-up capital is Tk14.52 crore. Of the company's total shares, sponsors and directors hold 35.32%, institutional investors hold 23.51% and general investors hold 41.17%.

Its share price rose by Tk9.8 or 2.94% on Tuesday, closed at Tk343 each on the Dhaka Stock Exchange (DSE).

Anwar Galvanizing to expand business investing Tk27cr

The company is planning to expand its market share of galvanised iron-pipe fittings (GI Fittings) from existing 25% to 52%.

www.tbsnews.net

All economic zones in Bangladesh will have central effluent treatment plants (CETPs) as the government is concerned about environmental pollution, a top public official said.

Shaikh Yusuf Harun, executive chairman of the Bangladesh Economic Zones Authority (Beza), said, "The CETP project for Bangabandhu Shilpa Nagar in Chattogram has already been approved. The government is also installing other ETPs [effluent treatment plants] as waste treatment measures in economic zones to curb industrial pollution."

At a Memorandum of Understanding (MoU) signing programme with HSBC Bank Bangladesh at the Beza office in Dhaka in Thursday, Yusuf Harun said projects to the tune of Tk4,000 crore, including a water supply network and a CETP have been taken up for Bangabandhu Shilpa Nagar.

"The World Bank is investing in the "Bangladesh Private Investment & Digital Entrepreneurship" project. The tender will be floated soon," he added.

Apart from the central waste treatment plant, the Beza executive chairman said factories in Bangabandhu Shilpa Nagar will have to have their own ETPs as well.

Bangabandhu Shilpa Nagar – the largest economic zone of Bangladesh – is going up in Chattogram's Mirsharai, Sitakunda, and Feni's Sonagazi. As many as 120 industries have already signed deals with Beza to set up production units there. Of them, 13 industries are expected to begin commercial production by the end of this year or in mid-2022.

Under the MoU, HSBC Bank Bangladesh will plant 40,000 mangrove trees and maintain them in the industrial city as part of the bank's corporate social responsibility efforts.

Mohammad Hassan Arif, general manager of Beza, and Md Mahabubur Rahman, chief executive officer of HSBC Bank Ltd, signed the MoU.

Md Mahabubur Rahman said ecological balance is being considered seriously all over the world and HSBC Bank is proud to take part in the tree plantation programme.

Beza Executive Member Mohammad Irfan Sharif, Abdul Azim Chowdhury, Ali Ahsan, and HSBC Bangladesh Country Head of wholesale banking, Kevin Green, were also present at the programme.

All economic zones will have CETPs: Beza

Bangabandhu Shilpa Nagar factories will have to have their own ETPs over and above the CETP

www.tbsnews.net