Bangladesh News Bangladesh Economy & Development

[Isa Khan]

The Planning Commission is considering moving forward with MRT Line-2 instead of MRT Line-5 Southern Route to serve the densely populated Old Dhaka.

The MRT-5 Southern Route would link Gabtoli to Dasherkandi, while the Line-2 would link Gabtoli to Narayanganj with a branch through Old Dhaka to Sadarghat.

The new route is expected to serve a much larger urban population and thus address critical transit needs in key areas of the city.

According to planning officials, in addition to constructing MRT-2, several other proposals are under consideration.

These include the possibility of scrapping the MRT Line-5 project entirely or only implementing certain sections of the route, they said.

These proposals were developed at the directive of the planning adviser, they said, adding that the government will review them before giving any approval.

The MRT-5 is still under review by the commission, awaiting final approval, said the officials.

According to the commission, none of the current metro projects connect Old Dhaka, but MRT Line-2 would address this gap by linking Gabtoli through Old Dhaka to Narayanganj, thereby serving a densely populated area.

Besides, the Dasherkandi route of MRT-5 lacks significant commercial activity, prompting the commission to prioritise MRT Line-2 for its greater economic impact.

MRT Line-2's main route would span from Gabtoli through areas like Dhaka Uddyan, Mohammadpur, Jhigatola, Science Laboratory, New Market, Azimpur, Palashi, Dhaka Medical College, Gulistan, Motijheel, Kamalapur, Manda, Dakhingaon, Dhamripara, Signboard, Bhuighar, Jalkuri, eventually connecting to Narayanganj.

A branch line from Gulistan would extend to Sadarghat, although the feasibility study for this route is yet to be completed.

According to the Dhaka Mass Transit Company Limited (DMTCL), the construction of the 35km MRT Line-2 is estimated to cost Tk60,837 crore, with final costs to be determined after the feasibility study.

In April, the Planning Commission held a review meeting on the DPP (Development Project Proposal) regarding MRT Line-5 (Southern Route).

The 17.2km route from Gabtoli to Dasherkandi is expected to cost Tk54,618 crore, with the Asian Development Bank and South Korea agreeing to finance Tk39,138 crore. The remaining Tk15,481 crore is expected to come from the government.

One alternative proposal suggests dropping the Gabtoli to Karwan Bazar section of MRT-5 Southern Route while adding a branch line from MRT-2 to Bijoy Sarani.

Another proposal involves constructing only the Karwan Bazar to Dasherkandi portion, while another alternative suggests scrapping the entire MRT-5 Southern Route project for now and reconsidering it when economic conditions improve.

Now focus is on linking Old Dhaka with metro

MRT-2 route plan has a branch line from Gulistan extended to Sadarghat

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[Isa Khan]

Walton Digi-Tech Industries Limited and Military Institute of Science and Technology (MIST) have signed a Memorandum of Understanding (MoU) for a three-year partnership aimed at promoting research, cooperation, innovation and technological advancement.

According to an ISPR release issued today (25 September), this strategic collaboration will focus on extending the basis for friendship and cooperative exchanges between the two parties with a particular emphasis on research and innovation (R&I) projects.

It said Walton Digi-Tech and MIST will work together on various initiatives to develop and exchange ideas in areas of mutual interest under the terms of the MoU.

The partnership aims to enhance access to smart technology in educational institutions, provide cutting-edge tools along with resources as well as technical training, workshop, industrial visit and scholarships to students and researchers, which will drive future technological growth in Bangladesh, it added.

The agreement marked an important step in fostering mutual cooperation, empowering both organizations to contribute to the nation's research ecosystem and promote the widespread adoption of smart technology in education system, the release said.

MIST signs MoU with Walton for research, innovation

Walton Digi-Tech and MIST will work together on various initiatives to develop and exchange ideas in areas of mutual interest under the terms of the MoU

www.tbsnews.net

With the interim government re-evaluating several development projects, including the mega projects, the 28-kilometre Ramu-Gundum portion of the Dohazari-Cox’s Bazar rail link project is getting cancelled.

No economic benefit will come from the Ramu-Gundum railway line as Bangladesh’s relationship with Myanmar is not so good.

This is why, the Bangladesh Railway is set to prune the Ramu-Gundum portion from this project, saving the country Tk6,682 crore.

Under the 128-kilometer Dohazari-Cox’s Bazar rail link project, the construction of 100-kilometer rail line from Chattogram’s Dohazari to Ramu in Cox’s Bazar has already been finished.

The Bangladesh Railway started implementing the project in June 2010 to connect Cox’s Bazar with the rail network along with the Trans-Asian Railway corridor at a projected cost of Tk18,034 crore.

Railway sources said beyond Gundum, there is only mountainous terrain in the Myanmar part and the Southeast Asian country has no plan to construct a railway track in that region, leading the government to take fresh decision to cancel the 28-kilometre portion.

Md Hadiuzzaman, a transport expert and professor at Bangladesh University of Engineering and Technology (BUET), told the Daily Sun, “There was a significant flaw in the planning of this project. It was inflated under the guise of Trans-Asian Railway corridor with Myanmar.”

“However, for an international corridor to be established, it’s crucial to consider geopolitical strategy and the nature of the relationship with the involved country. In this case, Bangladesh’s relationship with Myanmar has been strained. This reflects the short-sightedness of railway officials, the flaws in project planning, and a failure to consider the geographical-political dynamics with Myanmar,” he added.

When asked about the reduction in additional costs, Director of Dohazari-Cox’s Bazar Railway Project Md Suboktagin told the Daily Sun, “After the new government assumed office, a directive was given to review this project. As a result, the project’s cost is decreasing by Tk6,682 crore.”

“However, this reduction is not solely due to the exclusion of the 28-kilometre railway track from Ramu to Gundum, there are many other reasons why the cost has decreased,” he stated.

On 6 July 2010, this project was initiated for the construct of a 100.8km single dual-gauge track from Dohazari to Cox’s Bazar and an additional 28.75km single line from Ramu to Gundum, near the Myanmar border.

After several time extensions, the project is now scheduled for completion by October 2025.

However, the construction work is supposed to be finished by October 2024, with the remaining year designated as the defect liability period.

In December last year, train service began on the Dohazari-Cox’s Bazar rail route. Currently, only three pairs of trains operate on this route, with two pairs running between Dhaka and Cox’s Bazar, and one pair between Chattogram and Cox’s Bazar.

However, the project proposal originally claimed that the Bangladesh Railway would serve at least 50% of all tourists traveling to Cox’s Bazar from across the country once the project is implemented.

It was estimated that passenger transport in the first year would generate revenue of Tk392 crore, with an additional Tk50 crore from freight transports.

In the project proposal, it was also outlined that 46 trains would be able to operate on this route. However, only three pairs of trains are currently operating on this route.

Commenting on this issue, Md Suboktagin told the Daily Sun, “There is not enough manpower to operate more trains on this route. A proposal has been submitted seeking additional manpower. Moreover, there is a shortage of coaches and locomotives, making it difficult to operate more trains to Cox’s Bazar, even if we wanted to.”

Government to scrap Ramu-Gundum rail link project

With the interim government re-evaluating several development projects, including the mega projects, the 28-kilometre Ramu-Gundum portion of the Dohazari-Cox’s Bazar rail link project is getting cancelled.

www.daily-sun.com

 

[Isa Khan]

Chhanamukhi, a unique and beloved sweetmeat from Brahmanbaria, has been recognised as a Geographical Indication (GI) product.

Assistant Director of the Department of Patents, Designs and Trademarks (DPDT) Md Majnu Bhuiyan today confirmed that Bangladesh is now one and only owner of the product.

Brahmanbaria's Chhanamukhi sweet has been registered under GI-75 in the Geographical Indication Registration Book since 8 April this year. The application for this recognition was submitted by the Brahmanbaria District Commissioner in April 2022, detailing the history, unique characteristics, and production method of the sweet.

According to the Brahmanbaria district administration's website, Chhanamukhi originated in Brahmanbaria during the British colonial period. The sweet is known for its labour-intensive process, with around seven to eight litres of cow's milk required to produce just one kilogramme of Chhanamukhi, which currently sells for Tk700 per kg.

The sweet has long held a special place in both local and international circles. Notably, in 1986, Pakistan's then-president General Ziaul Haque praised the delicacy after tasting it at an event at the Bangladesh Embassy in Islamabad. His compliments were widely reported in Pakistani media at the time.

The DPDT recognises and certifies GI products under the Ministry of Industry in accordance with the norms of the International Property Rights Organization (WIPO).

In 2013, the Geographical Indication Products (Registration and Protection) Act was enacted. In 2015, the DPDT called for the registration of GI products after the formulation of the Act.

It is mentionable that Jamdani saree was recognized as a GI product for the first time in Bangladesh in 2016.

Brahmanbaria's famous 'Chhanamukhi' gains GI status

Chhanamukhi, a unique and beloved sweetmeat from Brahmanbaria, has been recognised as a Geographical Indication (GI) product. Assistant Director of the Department of Patents, Designs and Trademarks (DPDT) Md Majnu Bhuiyan today confirmed that Bangladesh is now one and only owner of the product...

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The pineapples produced in Madhupur Garh region of Tangail have been recognised as a Geographical Indication (GI) product.

The Geographical Indication Unit of of the Department of Patents, Designs and Trademarks (DPDT) issued the certificate of recognition on 24 September.

"GI recognition of traditional products of the country is very important to strengthen Bangladesh's position in international trade," Madhupur UNO Mirza Jubair Hossain told the media.

According to the Department of Agriculture Extension (DAE) in Tangail, Madhupur is a key region for pineapple cultivation in the country, producing a significant quantity of pineapples valued at Tk700 crore each year.

Pineapples of Madhupur recognised as GI product

The Geographical Indication Unit issued the certificate of recognition on 24 September

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[Afif]

Sky Bees Ltd to establish drone manufacturing industry in BEPZA EZ

Bangladeshi company Sky Bees Limited is set to invest $45.95 million to establish an Unmanned Aerial Vehicle (UAV, commonly known as drone) manufacturing industry in the BEPZA Economic Zone (BEPZA EZ).

This will be the first factory to manufacture drones in the zones under BEPZA, creating employment opportunities for 55 Bangladeshi nationals.

The Bangladesh Export Processing Zones Authority (BEPZA) signed an agreement with Sky Bees Limited at the BEPZA Complex in Dhaka today (3 October), said a press release.

This company will annually produce 7,314 pieces of different kinds of UAV for agricultural pesticide spray, fire fighting, emergency rescue, delivery of products and services, cinematography, and mapping etc.

Member (Investment Promotion) of BEPZA Md Ashraful Kabir and Managing Director of Sky Bees Limited Josim Uddin Ahmed signed the agreement on behalf of their respective organisations. BEPZA Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman, BSP, ndc, psc witnessed the signing ceremony.

During the lease signing ceremony, Executive Chairman Major General Abul Kalam Mohammad Ziaur Rahman appreciated the decision of Sky Bees Limited to invest in BEPZA EZ, stating that the authority always encourages investment in diversified products within its EPZs and BEPZA EZ. He thanked the company for choosing BEPZA EZ as their investment destination for producing high-tech and diverse products, such as drones. The Executive Chairman further commended the initiative, noting that this venture marks the country's first investment in UAV production and is expected to play a crucial role in expanding Bangladesh's export basket.

Member (Engineering) Mohammad Faruque Alam, Member (Finance) A N M Foyzul Haque, Executive Director (Admin) ASM Zamshed Khondaker, Executive Director (Investment Promotion) Md Tanvir Hossain and Chairman of Sky Bees Limited Md Mashud Razzaq were present during the signing ceremony.

A total of 35 companies, including Sky Bees Limited, signed agreements with BEPZA to invest in the BEPZA EZ with a total proposed investment of $850.5 million.

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Sky Bees Ltd to establish drone manufacturing industry in BEPZA EZ

Bangladeshi company Sky Bees Limited is set to invest $45.95 million to establish an Unmanned Aerial Vehicle (UAV, commonly known as drone) manufacturing industry in the BEPZA Economic Zone (BEPZA EZ). This will be the first factory to manufacture drones in the zones under BEPZA, creating...

www.tbsnews.net

@Isa Khan @PutinBro @Flextape

 

[Isa Khan]

Khulna Deputy Commissioner Mohammad Saiful Islam inspected the near-completion of a state-of-the-art steel silo for wheat, part of the Maheshwarpasha Modern Food Preservation Project, during a site visit this morning (6 October).

Located within the Maniktala Food Warehouse along the Bhairab River, the project is designed to modernise wheat storage in Bangladesh. The deputy commissioner toured the facility and then held a meeting with Food Department officials and Max Group representatives, the contractor responsible for the construction. He inquired into the progress and expressed keen interest in ensuring the timely completion of the remaining work.

The project, with a budget of BDT 355.91 crore, is set to be completed by December 2024, with 82.2% of construction already finished.

Officials on site informed the Deputy Commissioner that the final stages are expected to be completed within the next two months.

The silo, construction of which began on January 12, 2022, is being developed through a joint venture between Bangladesh's Max Group and Turkish firm Altuntas. The Bangladesh government and the World Bank are co-funding the initiative.

Once operational, the silo will have the capacity to store 76,200 metric tons of wheat, preserving it for up to three years without degradation in quality. This will be achieved through advanced technology that eliminates human contact with the stored grain.

The facility consists of six massive storage bins, each capable of holding 12,700 metric tons of wheat.

Khulna steel silo for wheat nears completion, set to enhance food storage

Officials on site informed the Deputy Commissioner that the final stages are expected to be completed within the next two months

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The Bangladesh Railway is likely to drop its plan to construct rail tracks that would connect Bangladesh and neighbouring Myanmar, apparently in the face of non-cooperation from the other country.

Railway officials said that a proposal is now under consideration to forgo the plan to construct rail tracks to connect Ramu with Gundum (Myanmar) and the proposal is scheduled to be sent to the railways ministry within this week for next step.

The ‘Construction of Single Line Dual Gauge Track on Dohazari-Ramu-Cox’s Bazar and Ramu-Gundum (Myanmar)’ project began in July 2010, aimed at connecting with the trans-Asian railway corridor and bringing Cox’s Bazar under the rail network.

The Asian Development Bank and the government of Bangladesh are jointly funding the project at an estimated Tk 18,034.47 crore budget.

The first phase of the project has so far achieved 96 per cent overall progress.

Bangladesh Railway director general Md Quamrul Ahsan, however, said that the decision of not implementing the project’s second phase was taken two to three years ago.

‘As Myanmar did not construct any line at their part or they still don’t have any plan for that, we also will not construct the section under the second phase for now,’ he said.

He mentioned that from the very beginning Myanmar did not show any interest to construct the rail track on their portion.

Under the project, in phase one, a 102-kilometre railway line has already been built on the Dohazari–Ramu-Cox’s Bazar section.

In phase two, the project was scheduled to construct a 28.752km track on the Ramu–Gundum (Myanmar) section.

Prime minister Sheikh Hasina inaugurated the Dohazari–Cox’s Bazar section on November 11, 2023, establishing direct rail connection between the capital and the town with the world’s longest beach amid much enthusiasm from the passengers.

A copy of the second revised development project proforma/proposal for the project read that now the project office is proposing to reduce the cost from Tk 18,034.47 crore to Tk 12,713.2 crore, cutting Tk 5,321.27 crore.

As per the proposal, the loan assistance will be Tk 9,093 crore and the government fund will be Tk 3,620 crore.

Project director Md Shuboktagin told New Age on Sunday that the project cost is proposed to reduce as currently the railway is implementing only the first phase of the project.

‘Now the rail tracks from Ramu to Gundum will not be constructed,’ he said, and added that among some other reasons for reducing the project cost is low rate of the tender for the project.

The project director said that currently the proposal is at the Bangladesh Railway and then it will be sent to the railways ministry at first and then to the Planning Commission for final approval.

‘The proposal may be sent to the railways ministry within this week,’ Md Shuboktagin said, adding that if the proposal for second revision is approved, the project office would return the money to the lending agency—Asian Development Bank.

The development project proposal was approved by the Executive Committee of the National Economic Council for the first time on July 6, 2010 to be implemented by December 2013 at an estimated cost of Tk 1,852.35 crore.

Although inaugurated in April 2011, the project was delayed for lack of fund, said officials.

After a loan agreement with the Asian Development Bank in 2016 for loan assistance, the work under the project finally started that year.

In April 2016, the national economic council approved the first revised project extending the deadline till June 2022 with an estimated cost of Tk 18,034.47 crore. The cost sharing stood at—loan assistance Tk 13,115.4 crore and government funding Tk 4,919.06 crore.

Officials said that the project cost increased by a massive amount of Tk 16,182 crore for different cost factors including, construction, land acquisition, physical contingency and price adjustment.

Railway to drop construction of Ramu-Gundum tracks

The Bangladesh Railway is likely to drop its plan to construct rail tracks that would connect Bangladesh and neighbouring Myanmar, apparently in the face of...

www.newagebd.net

 

[Isa Khan]

The interim government has cancelled the contract for establishing the floating LNG terminal (FSRU-3) with Summit Group, an agreement that the Awami League government signed on 30 March of this year under a special law without a tender process.

This terminal was set to be Bangladesh's third floating LNG terminal and the second operated by Summit Group. The company's first FSRU (Floating Storage and Regasification Unit) is located in Maheshkhali.

An order signed by Petrobangla Secretary Ruchira Islam has been issued to cancel the special law agreement with Summit Group.

On 6 December 2023, the Cabinet Committee on Public Procurement had approved the draft contract for the country's third floating LNG terminal at Maheshkhali in Cox's Bazar.

As per the agreement, Summit Group was set to receive regasification charges of $3 lakh per day (equivalent to Tk3.31 crore at the exchange rate stated in the contract) for 15 years from the terminal's commissioning.

According to Summit's official statement, the group has a proven track record of developing long-term infrastructure projects in Bangladesh responsibly and transparently.

"We can confirm that Summit executed the Terminal Use Agreement (TUA) and Implementation Agreement (IA) for its second Floating Storage and Regasification Unit (FSRU) project with Petrobangla and the Government of Bangladesh on March 30, 2024, and signed the Sale and Purchase Agreement (SPA) with Petrobangla on the same date for the supply of 1.5 million tonnes of LNG per year over a 15-year period, starting in October 2026," the statement reads.

"This evening, we received a termination notice for the FSRU Terminal Use Agreement (TUA). We believe this is unjustified and will appeal for a review," it added.

Recently, Summit chairman Aziz Khan and his family members' bank accounts were frozen by the government due to allegations of various irregularities and corruption.

Govt cancels deal with Summit Group to set up third floating LNG terminal

The agreement was signed in March under a special law without a competitive bidding process

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[Isa Khan]

NEW TOWER OF DHAKA AIRPORT ON PATH TO BE OPERATIONAL | The newly constructed tower facility of Dhaka Hazrat Shah Jalal international Airport is in the process of taking over from the old tower. Limited tower functionalities are being carried out for test purposes from there and as previously reported, personnel are being trained in France by Thales and not Colombo.

The new stunning building is beside the domestic terminal offering clear view of the new ramp of the still incomplete third terminal.

© Photo: Karib Ahmed

 

[Isa Khan]

An initiative has been taken to enhance the Biman Bangladesh Airlines' Ground Service Equipment (GSE) fleet with modern equipment at Hazrat Shahjalal International Airport's third terminal.

This effort is part of a broader strategy to improve ground handling capabilities, with plans to procure equipment worth approximately Tk1,000 crore in various phases, according to a press release of Biman on Wednesday (9 October).

As part of this enhancement, several equipment has already been integrated into the aircraft fleet.

On 9 October, six brand-new belt loaders, recently imported from France, were added to the GSE fleet. These belt loaders will be utilised for loading and unloading cargoes and baggage on small and medium-sized aircraft, including Boeing 737, Airbus A320, and Dash-8.

The new generation belt loaders come equipped with modern sensors, which are expected to play a crucial role in enhancing aircraft safety, it said.

Prior to this addition, the GSE fleet included 20 belt loaders.

With the inclusion of the six new loaders, the overall capacity has increased manifold, allowing various airlines' additional demands to be met more efficiently. Currently, the GSE fleet comprises approximately 2000 motorised and non-motorised equipment.

Besides, ongoing procurement efforts include high loaders, container pallet transporters, air conditioning vans, passenger steps, water carts, flush carts, and ambulifts. Many of these equipment are expected to be added to the GSE fleet within the next few months.

The GSE department is currently handling between 160 to 170 flights daily for 32 to 40 airlines, the release said.

Furthermore, to bolster personnel for airport services, 100 Ground Service Assistants have been recruited, with additional recruitment processes currently underway, added the release.

In recognition of its improvements in ground handling services, Biman Bangladesh Airlines has received the International Air Transport Association Safety Audit for Ground Operations (ISAGO) certification.

For over 52 years, Biman Bangladesh Airlines has been providing ground-handling services in Bangladesh.

Currently, Hazrat Shahjalal International Airport faces infrastructural limitations, with entry gates, check-in counters, baggage belts, and boarding bridges proving inadequate compared to the growing demands. However, the operation of the third terminal is expected to resolve these infrastructural issues and alleviate existing limitations, the release also said.

Biman to procure Tk1,000cr worth equipment to boost its GSE fleet

On 9 October, six brand-new belt loaders, recently imported from France, were added to the GSE fleet

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For the first time, Bangladesh has bagged more than 4 crore tonnes of rice in a fiscal year (FY) thanks to increasing yields of the most grown crop, according to official data.

Local farmers have been gradually switching to high-yielding and hybrid varieties of the cereal grain, bringing the country's need for rice imports down to zero.

Estimates by the Bangladesh Bureau of Statistics (BBS) show that farmers bagged 4.06 crore tonnes of rice in FY 2023-24, up by 4.1 percent year-on-year in what was the highest growth in six years.

The largest growth in yields came from Aman paddy, which was harvested in the previous winter ahead of Boro paddy in the dry season. Boro is the principal rice crop in Bangladesh.

Farmers got about 2.10 crore tonnes of rice through the Boro harvest in the May-June period early this calendar year.

FY24 marked the fifth year of a consistent rise in rice production with Wais Kabir, a former executive chairman of the Bangladesh Agricultural Research Council, linking the spike to yield enhancement.
"One of the main factors is that farmers have shifted to cultivating modern varieties of rice. They are growing more high-yielding and hybrid varieties. The acreage has also risen over time," he said.
Jahangir Alam, an agricultural economist, said increased rice production cut import of the cereal grain.
"We did not have to import any rice [in FY24]. Besides, this did not have much of an impact on prices as it seems public and private stocks were adequate," Kabir added.

Data of the food ministry shows that Bangladesh imported 10.56 lakh tonnes of rice in FY23 compared to zero public and private imports as of October 7 this year.

Kabir also said one of the reasons behind the zero rice imports was a surge in wheat imports.
The use of wheat by bakery and food processing industries as well as animal feed has increased. This contributed to the reduced requirement for rice, he added.

Imports of wheat, the second most consumed cereal grain after rice, soared 71 percent year-on-year to 66 lakh tonnes in FY24.

M Asaduzzman, a professorial fellow at the Bangladesh Institute of Development Studies expressed doubt over the rice production estimate.

He questioned why prices have gone up if supply was indeed adequate.

"Production has not risen as much as reported. Higher prices mean there is a supply shortage," he said, adding that rice accounts for a good portion of food inflation, which was high in the previous fiscal.
The BBS said food inflation rose to 10.65 percent in FY24 from 8.71 percent the year prior.

The price of rice coarse rice, the cheapest variety, was 7 percent higher year-on-year at Tk 50 to Tk 55 per kilogramme in Dhaka yesterday.

Asaduzzman informed that recurrent floods this year have raised concerns over the cultivation of Aman.
"We will have to import rice if Aman production suffers. And that will be clear at the beginning of November. So, the government should take a decision regarding imports next month," he said.

By the end of August, the US Department of Agriculture (USDA) said Aus and Aman rice acreage and production in Bangladesh might decline because of the floods, particularly the devastating deluge in the eastern part of the country.

Estimates by the Department of Agricultural Extension show that Aman acreage declined to 57.35 lakh hectares this season from 35.5 lakh hectares previously.

Agricultural economist Alam said the overall Aman rice output may be 1.55 crore tonnes to 1.60 crore tonnes this year.

"Farmers had to transplant the seedlings late because of floods. This may cause lower yields," he said while adding that imports might not be needed as stocks of the grains are favourable.

"But the next Boro rice crop is crucial," he said. "We will not need to worry about food security of the staple grain if we can ensure production inputs, mainly fertiliser, at the doorsteps of farmers."

Kabir said the ongoing flood in the Sherpur-Netrokona districts will damage the Aman crop in the fields and it cannot be recovered.

"So, whether we will need to import or not will depend on the next Aman harvest. And the output of the upcoming Boro would depend largely on the management of fertiliser by the government."
"The interim government has to ensure proper management of fertiliser to ensure a good harvest of Boro rice," he added.

Bangladesh’s rice output crosses 4cr tonnes for the first time

For the first time, Bangladesh has bagged more than 4 crore tonnes of rice in a fiscal year (FY) thanks to increasing yields of the most grown crop, according to official data.

www.thedailystar.net

 

[Isa Khan]

Biman Bangladesh Airlines is looking to lease two new Boeing 737-800 aircraft as the lease period of its two Boeing planes has ended.

"The lease period of two of our medium capacity Boeing aircraft has ended. Those need to be returned. That is why we have already published advertisements for new aircraft leases," Boshra Islam, general manager (PR) of Biman Bangladesh Airlines, told The Business Standard today (15 October).

"With the Hajj season coming up, we are leasing new aircraft to maintain our capacity," she added.

Biman has issued a request for proposals (RfP) to dry lease two B737-800s for 72 months from early 2025.

The documents, seen by The Business Standard, indicates the state-owned carrier is looking for dual-cabin CFM International CFM56-7B-powered aircraft with winglets that are no older than 15 years and can be delivered in Biman livery, reports Ch-aviation on 15 October.

The RfP states the airline would like the first aircraft delivered by 1 February 2025, and the second by 1 April 2025.

Biman would prefer both aircraft came from the same lessor but says they will consider offers to provide one aircraft if that aircraft is suitable, adds the proposal.

Biman was on a deal with both aviation giant Boeing and Airbus to purchase new aircraft.

The negotiation on purchasing 10 aircraft from Airbus was on the table with Airbus, but the fall of Sheikh Hasina's government has changed the whole atmosphere.

Now, the process has become stagnant as per the Biman sources.

Biman currently has 21 aircraft, mainly Boeing-dominated.

Biman plans to get new Boeing jets as lease period of 2 aircrafts end

Biman has issued a request for proposals (RfP) to dry lease two B737-800s for 72 months from early 2025

www.tbsnews.net

 

[Isa Khan]

It was once beyond anyone's wildest imagination that Bangladesh would become a motorcycle manufacturing hub. Only seven years ago, the country relied on imports to meet 95 percent of its demand for motorbikes.

However, the situation has reversed completely, with the initial kick-start being provided through policy support.

Today, around 99 percent of the two-wheelers plying the roads are either manufactured or assembled locally, according to industry players.

This transformation from an importer to a local assembler and manufacturer has not only saved valuable foreign currencies but also created thousands of jobs.

However, despite this progress and the industry insiders' belief that the market would grow manifold in the next two to three years, motorcycle sales in Bangladesh hit a five-year low in 2023 due to historic inflationary pressures.

As per a market assessment by ACI Motors, motorcycle sales fell 28 percent year-on-year to 461,805 units in 2023, with the decline even exceeding the downturn during the Covid-19 pandemic.

The government gave go-ahead to numerous policies to facilitate the motorcycle manufacturing industry's development in the past, with hopes of diversifying its apparel-dominated export basket.

The turnaround truly began in 2016–17, when the import duty on completely knocked down (CKD) motorcycle units was slashed by 25 percentage points to 20 percent to encourage local assembly. The emergence of ride-sharing platforms gave further impetus to the sector.

So far, about Tk 10,000 crore has been invested in the sector, directly and indirectly creating employment opportunities for around two lakh people.

According to data from the Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA), there are 10 motorcycle factories in the country, three of which are currently not operating.

Seven firms, namely Japanese brands Honda, Suzuki, and Yamaha, Indian brands Bajaj, TVS and Hero, and local brand Runner Automobiles, are running their units fully and have made the country nearly self-sufficient in motorbike manufacturing and assembly.

Although motorcycle prices reduced significantly due to local assembly and manufacturing, those reductions have eroded over the past two years due to the depreciation of the local currency against the greenback, according to Biplob Kumar Roy, chief executive officer of TVS Auto Bangladesh Ltd (TVS ABL).

Assuming the price of a motorbike is Tk 1.30 lakh on an average, the total sales figure would stand at around Tk 5,850 crore a year, almost equivalent to the market size of passenger cars.

Local motorcycle production began in the country at the turn of the millennium, with Walton making the country's first motorcycle. However, it decided to shutter that project.

Runner Automobiles was the second company to begin manufacturing motorcycles in Bangladesh, making its foray into the market in 2012.

Hafizur Rahman Khan, chairman of Runner Automobiles and also president of the Bangladesh Motorcycle Manufacturers and Exporters Association, said the motorcycle market will grow further once the political and economic situation stabilises.

The sector also faces challenges as the use of electric motorcycles increases over time. "So, we are planning to develop battery-run motorcycles for the local market," he said.

Runner Automobiles makes almost all components except some basic parts of the engine, he said, also emphasising on developing backward linkages, which are vital to expanding capacity.

There is even the possibility that the market for low-end bikes may reduce in the future as manufacturers are updating features continuously, he said.

Subrata Ranjan Das, executive director of ACI Motors, said the mindset of the customers is changing and they are moving to high-end motorcycles.

Against this backdrop, customers have shifted to Japanese brands from Indian brands over the past two to three years. However, he said Indian brand Bajaj is still dominating the market with its high-end models.

This is because the price difference between Indian and Japanese brands is nominal. So, customers prefer Japanese bikes due to the brand image.

Another local assembler and manufacturer, TVS ABL, introduced bikes in Bangladesh in 2010 and set up a manufacturing and CKD plant in 2017 with a capacity to churn out 500 units during each eight-hour shift.

Biplob Kumar Roy, chief executive officer at TVS ABL, said sales of motorcycles declined over the past year as people's purchasing power was eroded by inflationary pressures and an unstable macroeconomic outlook.

He said the growth of the market had stagnated for the time being, but expected it to pick up in the future.

He said that customers are not only moving towards Japanese bikes but they also prefer high-end Indian bikes.

He suggested the government reduce value-added tax (VAT) at the customers' end to make the sector healthier. "Banks can also offer finance for buyers similar to auto loans," he said.

Despite the rise of Japanese brands, the market leader in the motorcycle segment remains Bajaj, holding around a 30 percent share. It manufactures 12,000 units per day at its Zirani factory in Savar.

According to officials of Uttara Motors, the sole distributor of Bajaj motorbikes, the company has sold around 25 lakh units over the past four decades.

Most models are available in Bangladesh either through manufacturing or assembly and the quality is the same as those made in India.

Another Indian company, Hero, one of the fastest-growing brands in Bangladesh, established an assembly plant in 2015 under a joint venture with the Nitol-Niloy Group.

The facility was upgraded to a manufacturing unit in 2018.

The plant manufactures 125,000 units per year against a capacity of more than 200,000. It also makes 22 components, including chassis, rims, and drive chains.

Japanese automobile giant Honda also rolled out a motorcycle manufacturing plant in November 2018.

Bangladesh Honda Private Ltd (BHL), a subsidiary of Honda Motor Co Ltd, also started export operations to contribute to both local and international markets.

The company recently exported its X-Blade model to Guatemala, first by air in January and then by sea, with plans for further exports to South America, Central America, and Africa.

Shah Muhammad Ashequr Rahman, chief marketing officer of the company, noted the team's efforts in showcasing Bangladesh's manufacturing capabilities on the global stage, reinforcing BHL's commitment to growth and innovation.

Challenges for component manufacturers​

Local companies showed courage in making motorcycle components with a view to cutting the country's reliance on imports, but recent complexities in opening letters of credit (LCs) forced many to cease operations.

At least four companies manufactured components in Bangladesh.

Among them was QVC Bangladesh, located in Sundarban Union in Dinajpur. The company would produce around 2.5 lakh drive chains every year, with a capacity of about 5 lakh.

However, it had to stop production three months ago, as banks were not cooperating in opening LCs for raw material imports.

ATM Shamsuzzaman, managing director of QVC Bangladesh, set up the facility that manufactured drive chains in 2014 after seeing the potential of the motorcycle market.

He invested around Tk 35 crore to set up the factory, which employed around 200 people.

However, Shamsuzzaman was left with little choice but to shutter the unit as banks were uninterested in opening LCs.

"The factory was my dream. I invested everything. But with the shortage of US dollars and the price increase of the greenback, my factory became ailing," he added.

A motorcycle requires more than 700 components and the local light engineering industry can make four, namely drive chains, seats, stands, and batteries.

At first glance, this may seem like a drop in the bucket, but producing components locally marks a major stride compared to a decade ago when the industry relied completely on imports.

QVC Bangladesh would supply drive chains to Grameen Motors, Runner Automobiles and state-run Atlas Bangladesh.

"I decided to sell the factory, including land, as it became a burden for me," Shamsuzzaman said.

Md Tazul Islam, president of the Automobile Components & Accessories Manufacturers Association, said Bangladesh could manufacture all motorcycle components as local vendors had all the resources.

Islam was the managing director of Run Industries, a company that manufactured motorcycle seats until recently. It has now shut down production due to a lack of necessary raw materials.

According to him, the growing demand for two-wheelers and the Motorcycle Industry Development Policy 2018 inspired local component makers.

Set up at Sibrampur in Faridpur in 2009, the company was the sole seating solutions provider for Runner Automobiles and Hero Motorcycle.

It would sell more than 2 lakh seats to Runner and Hero combined and had an annual production capacity of 18 lakh.

He alleged that the government, particularly the National Board of Revenue, did not pay attention to local vendors and has not cooperated to develop any small and medium businesses in the industry.

BHL's Ashequr Rahman added that manufacturing generated the most robust backward linkage industries through vendors across all sectors of the economy.

He noted that the expansion of the motorcycle industry may encourage the growth of the parts, components, and supporting industries and technical consulting services.

However, he said backward linkages had not been developed in Bangladesh.

Wheels of change: Bangladesh’s journey to self-sufficiency in motorcycle manufacture

It was once beyond anyone’s wildest imagination that Bangladesh would become a motorcycle manufacturing hub. Only seven years ago, the country relied on imports to meet 95 percent of its demand for motorbikes.

www.thedailystar.net

 

[Isa Khan]

• Significant amount of foreign currency sourced from local banks, reserves
• Used for importing machinery, raw materials, paying foreign workers
• Local currency borrowed thru treasury bills, bonds at 7%-8% interest
• Domestic resource mobilisation increased tax burden on public
• It raised energy prices multiple times, eventually fuelling inflation
• Huge dollar selling eroded reserves to $19.8b in October 2024

---

The foreign currency spending for the Padma Bridge construction of nearly $1.9 billion, equivalent to about Tk20,000 crore sourced from the domestic market, triggered crises in both the forex and local currency markets leading to the erosion of the country's foreign exchange reserves.

The state-owned Agrani Bank arranged the entire amount of foreign currency for the project from the local market which experts consider one of the main reasons behind the money market crisis that the country has been facing over the last two years.

The dollar expenditure was used for importing capital machinery, raw materials, and paying the salaries of foreign labourers. Of the total $1.9 billion, a $200 million payment remains pending, according to the bank.

The government had to fund this massive foreign currency requirement from its own resources after the World Bank cancelled its $1.2 billion (Tk84 billion) financing package to build Bangladesh's longest bridge, citing corruption concerns in 2012.

Soon after the cancellation of the low-cost foreign fund, then-prime minister Sheikh Hasina announced that the country would implement the 6.15km road-rail bridge project using its own resources, which came at a huge economic cost.

It is because the government had to borrow local currency through treasury bills and bonds at interest rates of 7% to 8%, compared to the maximum 1% cost of the World Bank loan.

Additionally, a significant amount of foreign currency was sourced from local banks and Bangladesh Bank's reserves, compromising investment in other sectors.

The high borrowing cost increased the tax burden on the general public through higher energy costs, which eventually fueled inflation, said experts.

Self-funding Padma bridge has cost the nation

Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD), said self-funding the bridge was a political decision with significant economic costs, as financing was mobilised from domestic sources at the expense of investment in other sectors.

Furthermore, poor governance led to cost overruns, significantly increasing the construction costs, she noted.

Involving a multinational donor agency in a mega project typically ensures better governance through checks and balances, which was lacking in the case of the Padma Bridge, resulting in cost escalations, said the economist.

The high cost of domestic borrowing at elevated interest rates further compounded the financial burden, which was ultimately passed on to the general public, she added.

For example, the toll for the Padma Bridge is high due to the elevated construction costs, she said.

Any developing country would typically seek financing from multilateral donor agencies for mega infrastructure projects to secure low-cost funding and payment flexibility, she explained.

"The Padma Bridge has been completed, which is a positive achievement, but at what cost?" she questioned.

Given the country's low tax-to-GDP ratio, the government had to mobilise resources at a higher cost, which increased the tax burden on the general population, fueling inflation, she observed.

Originally, the estimated project cost was Tk10,161.75 crore, with completion date of 30 June 2015. However, the bridge was finally opened to traffic on 25 June 2022, with the total cost rising to Tk31,105 crore.

How resource mobilisation from domestic market triggered crisis

Agrani Bank started to spend dollars for the Padma Bridge construction in 2013 with a small amount of $6.26 million when the dollar price was Tk77.50, according to the bank statement.

The foreign exchange reserve was $17 billion to $18 billion when forex spending for the project started.

However, the country did not feel the pinch until 2021, when the forex reserve crossed a record $48 billion, thanks to the suspension of foreign payments and a huge remittance inflow during the Covid-19 pandemic.

Meanwhile, the country had already spent $1.4 billion on the project by 2021, when the dollar price rose to Tk88.80.

Reality started to bite from the middle of 2022 when imports and other foreign payments resumed after the pandemic.

The banking sector experienced a severe dollar crisis due to the huge payment burden that had piled up during the pandemic causing faster devaluation of the taka.

The Bangladesh Bank began selling dollars from reserves in the second half of FY22 to mitigate depreciation pressure and exchange rate volatility. In FY22, the Bangladesh Bank sold $7.3 billion from reserves to banks, having bought $7.7 billion the previous year.

Depleting reserves, rising inflation

That was the beginning of reserve erosion, as banks ran to the Bangladesh Bank to buy dollars to settle international payments.

It had a chain effect on local liquidity, investment, and inflation.

For instance, selling dollars put pressure on local currency liquidity, as banks were buying dollars from the Bangladesh Bank in exchange for taka. When banks faced a liquidity crunch, it pushed bond rates up, making government borrowing more expensive.

The government was buying dollars through Agrani Bank, borrowing through bonds and bills at high interest rates amid low revenue income.

This high interest rate increased the debt burden for the government which ultimately passed it on to the public by raising energy prices multiple times eventually fueling inflation.

Agrani Bank spent nearly $300 million on the Padma Bridge project from 2022 to 2024 even amid the severe dollar crisis. The Bangladesh Bank had to sell $20 billion from reserves from the second half of FY22 to FY23 as the dollar price surged from Tk90 to Tk110. The depreciation pressure continued in FY24, with the dollar reaching Tk120.

The huge dollar selling eroded reserves to $19.8 billion as of 8 October 2024.

On the other hand, with this massive dollar selling, the Bangladesh Bank mopped up nearly Tk2.50 lakh crore from the market in the last two years causing a severe liquidity crisis.

In this situation, the central bank had to supply money to the government by printing Tk1 lakh crore which further fuelled the inflation.

How 'self-financing' Padma Bridge triggered money market crisis, inflation

High borrowing cost increased the tax burden on the general public through higher energy costs, which eventually fuelled inflation

www.tbsnews.net

 

[Isa Khan]

The Sylhet Gas Fields Limited (SGFL) has announced the discovery of gas while renovating an old gas well in Sylhet's Haripur.

It is initially estimated that 7 to 8 million cubic feet of gas can be extracted from this well daily, Managing Director of SGFL Mizanur Rahman said yesterday.

He said the gas was discovered at a depth of 1,200 metres in well-7, adding that earlier on 14 August, 6-7 million cubic feet of gas was found at a depth of 2,000 metres in the same well during renovation work.

Currently, 60-70 million cubic feet of gas is obtained from different gas fields of Sylhet which are then supplied to the national grid.

Mizanur said the gas from well-7 would also be connected to the grid soon.

The MD, however, said the full reserve will only be known after the necessary tests are completed in around a week.

Earlier, on May 24 of this year, 21 mmcfd gas was found in well No. 8 of Kailashtila gas field in the district after drilling to a depth of 3,440 metres in the well, reports UNB.

Before this, on January 27, a new gas structure was found in well No. 2 of Rashidpur under Sylhet gas field which has a reserve of about 157 billion cubic feet (BCF).

The gas fields operated under the SGFL have been supplying more than 100 mmcfd gas to the national grid.

The officials said they have been working to increase the production level to 150 mmcfd by completing a few more projects this year.

If all the work is completed by 2025 as per the time set by the government, it will be possible to add 250 mmcfd gas to the national grid from the fields under the SGFL alone, said a top official.

New gas reserves discovered while renovating old well in Sylhet’s Haripur

It is initially estimated that 7 to 8 million cubic feet of gas can be extracted from this well daily, Managing Director of SGFL Mizanur Rahman said today (22 October)

www.tbsnews.net

 

[Isa Khan]

Meghna Innova Rubber Company Ltd, a subsidiary of the Meghna Group, has commenced manufacturing tyres for buses and trucks with a Tk1,300 crore investment. This latest expansion positions Meghna, the country's largest bicycle exporter, to reduce reliance on imported bus and truck tyres, thereby saving valuable foreign currency.

"Since last month (October), we have started producing 15-inch to 20-inch bias tyres for trucks and buses. Our goal is to meet most of the demand for these tyres in Bangladesh within the next six months," Lutful Bari, chief operating officer of the Meghna Group, told TBS.

He added that 80% of the Tk1,300 crore investment has gone into machinery, creating employment for 300 people. By next year, total investment in bias tyres will rise to Tk2,100 crore, adding another 100 jobs.

The company's manufacturing facility spans approximately 65 bighas in Tangail's Mirzapur, with an additional 5 bighas allocated for expanding production of tyres for large vehicles.

Plans are underway to set up a new factory for radial tyres, scheduled for completion by 2026.

"In 2026, we will invest another Tk1,000 crore in the production of radial tyres for trucks and buses," Bari said, noting the focus on adopting British standards and modern technology to ensure quality.

The locally produced tyres are expected to be more affordable than imported alternatives.

Meghna Innova Rubber Co Ltd has already established itself as a producer of tyres for bicycles, motorcycles, three-wheelers and rickshaws under the MTF brand. However, almost all bus and truck tyres in the market are currently imported, according to Lutful Bari.

Other notable players in this sector include Pran-RFL Group, Apex Husain Group, Rupsha Tyres and Chemicals Ltd and Alam Tyre.

Gazi Group, a former competitor in the production of bus and truck tyres, halted operations after a series of arson attacks on its factory in August and September.

Industry insiders estimate that Bangladesh's automotive tyre market is currently valued at around Tk5,000 crore, driven by the growing sales of commercial and passenger vehicles.

Challenges in agricultural tyre manufacturing

In addition to bias tyres, Meghna Group has ventured into agricultural tyre production, producing 28-inch tyres for tractors.

However, marketing these products has been hindered by value-added tax (VAT) policies that favour imports over domestically produced tyres.

"There is no VAT on tyres used in agricultural machinery imported into Bangladesh. However, we have to pay VAT on our finished product," Bari explained.

"We demand from the government that VAT be imposed on imported tyres or, alternatively, that VAT be exempted on locally produced agricultural tyres."

Agriculture tyres, essential for tractors, currently receive VAT refunds when imported under specific HS codes.

To protect domestic industries, the Meghna Group has proposed imposing a 15% import duty and a 5% regulatory duty on imported tyres and tubes, along with an additional tax.

As the Meghna Group continues its expansion in tyre manufacturing, the company is pushing for policy reforms to ensure a level playing field for local producers.

With planned investments in radial tyre production and calls for government intervention to support domestic industries, the group aims to strengthen its position in Bangladesh's tyre market.

Meghna ventures into bus, truck tyres with Tk1,300cr investment

The company’s manufacturing facility spans approximately 65 bighas in Tangail’s Mirzapur, with an additional 5 bighas allocated for expanding production of tyres for large vehicles

www.tbsnews.net

The cost of the 17.20 km metro rail MRT-5 (Gabtoli-Dasherkandi) Southern Route project saw a sharp 15% reduction in cost following a recent review, indicating the potential of savings that can be achieved through reassessments of mega projects, initiated by the previous government.

The cost cut, equivalent to Tk6,898 crore, came after Dhaka Mass Transit Company Limited (DMTCL) re-evaluated the project on instructions from the Planning Commission, now led by interim government's Adviser Prof Wahiduddin Mahmud.

Mohammad Abdur Rouf, managing director of DMTCL, told TBS that the costs of various project components were reduced through detailed design adjustments.

The revised project proposal has been submitted to the Road Transport and Highways Division for further review which could result in additional cost cuts, he said.

Project Director Md Abdul Wohab said that the cost was cut by shortening the loan interest repayment period, cutting capital expenditures, and reducing inflated contingency estimates.

According to DMTCL officials, costs may be cut further following scrutiny by the Road Transport Division and finally by the Physical Infrastructure Division of the Planning Commission.

Initially, during the Awami League era, DMTCL had proposed a budget of Tk54,619 crore for the project. An evaluation committee at the Planning Commission reviewed the proposal in April this year but no cost adjustments were made at that time.

After the AL government was toppled, the interim government, led by Dr Yunus, decided to reassess spending on major infrastructure projects. This project was sent back to DMTCL for review leading to a revised projected cost of Tk47,721 crore.

After the initial review, DMTCL submitted the revised Development Project Proposal (DPP) to the Road Transport and Highways Division.

In a letter to Road Transport, DMTCL said the estimated cost was cut based on an analysis of costs, unit rates, foreign loan interest, and feasibility reports, along with a re-examination of the project's context and priorities.

The DPP outlines that of the total cost, Tk39,138 crore will be covered by foreign loans. The Asian Development Bank (ADB) and South Korea have initially agreed to provide the amount.

The MRT-5 southern route will connect the following areas: Gabotli, Technical, Kalyanpur, Shyamoli, College Gate, Asad Gate, Russell Square, Karwan Bazar, Hatirjheel, Tejgaon, Aftabnagar, Nasirabad, and Dasherkandi.

The metro line will run 13.10 km underground from Gabtoli to Aftabnagar and 4.10 km elevated from Aftabnagar to Dasherkandi.

How the cost was reduced

Md Abdul Wohab, project director of MRT-5, told TBS that the revised cost estimation has yet to be finalised, as it still needs approval from the Planning Division.

He said that readjusting the loan interest repayment period resulted in a significant reduction in the overall estimated cost.

"Initially, we estimated loan interest costs over a longer period, but we have now aligned the interest period with the project's duration. This adjustment saved Tk4,700 crore, reducing the total interest from Tk6,500 crore to Tk1,800 crore," he said.

"Additionally, inflated estimates were identified in contingency, which also decreased a little. Furthermore, the cost has been cut down after refining the estimated capital expenditures (Capex), based on detailed design specifics and actual market prices, leading to savings of about Tk1,500-2,000 crore," said the project director.

Abdul Wohab further said, "Typically, initial estimates include extra materials to cover any adjustments later. However, with detailed designs in hand, we now have precise requirements, allowing us to avoid overestimations."

"The cost may decrease further if the dollar rate remains stable. However, fluctuations in the dollar price could increase costs by around Tk800-1,000 crore," he added.

'Proper scrutiny needed for project approval'

Transport expert Professor Shamsul Hoque told TBS that there was a lack of proper scrutiny in approving projects by the previous government, indicating that estimations often went unquestioned.

"No one asked why certain high costs were included. This lack of questioning was partly because those approving the projects also benefited, leading to inflated project estimates," he said.

He continued, "In cases where the project authority self-initiated cost reductions, it became clear that inflated expenses still existed in various segments, especially in large-scale projects."

Urging the current interim government to thoroughly review all ongoing and upcoming projects, Shamsul said, "Over the past 15 years, a culture of inflating costs has developed, leading to our per kilometre construction costs being higher than even in Europe. This was due to a lack of accountability."

He said that to break this pattern, this government must investigate why costs are estimated so high and hold those responsible accountable.

Govt mulls alternatives to MRT-5 with focus on Old Dhaka

An official from the Planning Commission said further reviews will be conducted to assess whether the project is feasible given the current circumstances.

Although the cost of MRT-5 has been reduced, the government is reportedly considering alternatives to this project. The government wants to bring densely populated Old Dhaka under the metro network but the MRT-5 southern route excludes the area.

However, the MRT Line-2 (Gabtoli-Sadarghat-Narayanganj) includes Old Dhaka on its route and is being considered as an alternative to the MRT-5 (Southern Route).

Planning Commission officials said the MRT Line-2, if implemented, will link Gabtoli to Narayanganj via Old Dhaka.

In contrast, commercial development has been limited up to Dasherkandi, the endpoint of MRT-5. Given the economic significance, the Commission is prioritising MRT-2 as the preferred option over MRT-5.

The main route of MRT Line-2 will run from Gabtoli through Dhaka Udyan, Mohammadpur Bus Stand, Zigatla, Science Laboratory, New Market, Azimpur, Palashi, Dhaka Medical College, Gulistan, Motijheel, Kamalapur, Manda, Daksingaon, Damdipara, Signboard, Bhuighar, Jalkuri, and end at Narayanganj Zilla Sadar.

Additionally, its branch line will connect Naya Bazar to Sadarghat via Gulistan, although the feasibility study for this route is still pending.

According to DMTCL, the implementing agency, the construction of the 35 km-long MRT-2 line may cost Tk60,837 crore. However, the final cost will be estimated after the feasibility study.

In addition to the MRT-2, the Commission is considering several alternative options. For instance, the Commission is mulling to exclude the Karwan Bazar section from the MRT-5 (Southern Route). Another consideration is adding a branch line of MRT-2 to Bijay Sharani. Both projects begin from Gabtoli.

In another alternative, the Commission is thinking of constructing MRT-5 (Southern Route) only from Karwan Bazar to Dasherkandi.

A further alternative suggests scrapping the entire MRT-5 (Southern Route) project, with plans to reconsider it if the economic situation improves in the future.

Review trims MRT-5 project cost by nearly Tk7,000cr

During the Awami League era, DMTCL had proposed a budget of Tk54,619 crore for the project

www.tbsnews.net

 

[Isa Khan]

After five years of pause, leading ship builder Western Marine Shipyard Ltd has planned to export eight ships to the United Arab Emirates (UAE) by the next year.

The company signed a deal in 2023 with a UAE-based buyer Marwan Shipping Ltd for construction of four landing craft vessels, two tugboats and two oil tankers.

Out of the eight vessels, the shipbuilder has completed building a 69-metre-long landing craft, named Rayan, and will hand over it to the buyer by January, Western Marine's Managing Director Captain Sohail Hasan said at a press briefing this afternoon.

Of the rest ones, two high power tugboats -- Khalid and Ghaya -- will be exported by April, Hasan said, adding that the rest five vessels will be delivered gradually throughout 2025.

In January of 2020, the shipbuilder exported a ship to India for the last time.

MD Captain Sohail said Western Marine in 2017 exported a similar landing craft vessel to the same UAE-based buyer who returned to the builder for this new project, which is a testament to its satisfaction with Bangladeshi built ships.

The press conference was arranged on the Western Cruise ship anchored at Chattogram Boat Club.

Western Marine makes comeback; plans to export 8 ships by 2025

The company signed a deal in 2023 with a UAE-based buyer Marwan Shipping Ltd for construction of four landing craft vessels, two tugboats and two oil tankers.

www.thedailystar.net

The Asian Development Bank (ADB) has signed a $24.3 million financing package with Muktagacha Solartech Energy Limited (MSEL) to establish a grid-connected solar photovoltaic power plant in Mymensingh, according to a press release.

The financing package comprises a $15.5 million loan from the ADB and a $8.8 million loan from Leading Asia's Private Infrastructure Fund 2 (LEAP 2), administered by the ADB.

MSEL is owned by Bangladesh-based energy company Joules Power Limited (JPL).

The project will build and operate a 20-megawatt (MW) grid-connected solar photovoltaic power plant – one of the initial private sector utility-scale solar facilities in the country to secure support from international financiers.

The solar power plant will generate 37.9 gigawatt-hours of electricity annually and avoid 18,344 tonnes of carbon dioxide emissions annually, the press release reads.

"ADB's financing aims to drive progress and advance sustainable energy solutions in Bangladesh. The long-term financing will help promote private sector involvement in developing renewable energy in the country, while addressing the critical capital needs of renewable projects," said ADB Director General for Private Sector Operations Suzanne Gaboury.

"ADB is pleased to collaborate with JPL, which has demonstrated pioneering expertise and innovation in Bangladesh's renewable energy sector, to advance sustainable solutions," Suzanne added.

JPL Managing Director Nuher Latif Khan said, "We are thrilled to secure financing from ADB for our second solar project in the country."

"Collaborating with a globally respected financial institution like ADB underscores JPL's commitment to sustainability and represents a major milestone in our pursuit of sustainable growth in renewable energy initiatives," he said.

JPL was established in 2010 and is part of Expo group, a Bangladesh-based conglomerate that has a range of businesses, including renewable energy, international logistics, freight forwarding, and infrastructure development.

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB's developing member countries.

ADB, Muktagacha Solartech to build 20-MW solar plant in Mymensingh

The Asian Development Bank (ADB) has signed a $24.3 million financing package with Muktagacha Solartech Energy Limited (MSEL) to establish a grid-connected solar photovoltaic power plant in Mymensingh, according to a press release. The financing package comprises a $15.5 million loan from the...

www.tbsnews.net

 

[Isa Khan]

Summary:

• PRAN-RFL invests Tk200 crore in export-oriented plastic factory in Gazipur
• Agreement signed with China's Haitian Group for machinery installation
• Factory aims for Tk450 crore annual exports and 2,500 new jobs
• Key markets include India, US, Canada, Germany, Australia, and UAE
• American company placed a $6 million order for plastic products

---

PRAN-RFL Group has taken an initiative to build a 100% export-oriented plastic factory in Kaliganj Industrial Park of Gazipur, with an investment of over Tk200 crore to expand its footprint in the global market.

The business conglomerate will sign an agreement with China's Haitian Group today on the installation of factory equipment, said Kamruzzaman Kamal, director at Pran-RFL Group.

He said a major agreement with Haitian will facilitate the import of machinery from China for producing export-oriented household plastic products. Under the deal, machinery and infrastructure installation will be completed within three months.

"We already have export orders, so we aim to start production quickly. We expect to begin operations by June after completing the installation," added Kamruzzaman Kamal.

Officials at the PRAN-RFL Group said the new factory will enable annual exports worth Tk450 crore, create 2,500 jobs, and boost the company's export growth by over 30%.

Salah Uddin Shikder, assistant general manager (AGM) of RFL Durable Plastic, said Bangladesh's RFL products are exported primarily to India, followed by Germany, the US, Canada, Australia, Korea, Spain, the United Kingdom, and the United Arab Emirates (UAE).

"There is high demand in these countries for our household plastics, bicycles, melamine, home construction materials, polybags, hangers, non-leather footwear and plastic furniture," he added.

"Our new target markets are Europe, the US and North America, where there is demand for containers, toys, tableware and kitchenware of various designs," said Salah Uddin Shikder. "An American company has already placed a $6 million order, and we are in talks with several others."

He said per capita plastic consumption in the US is 150 kg, with China currently dominating the market. "However, the US-China trade war has created an opportunity for us, particularly in exporting disposable and PET products," said Shikder.

RFL began exporting household plastic products to India in 2007 and now exports 500 products across 30 categories to 80 countries. The company earned around $100 million in revenue during the fiscal 2023-24.

"Foreign buyers have high demands, including safety and labour compliance, which increases production costs. To support this, the government offers incentives to 100% export-oriented factories," Kamruzzaman Kamal explained.

"Our new factory is designed for this purpose, and none of its products will be sold in the local market."

He mentioned that RFL products are currently available in supermarkets such as Walmart in the US, Dollarama and Loblaws in Canada, Carrefour in France, Lidl in Germany, Target in Australia, Loksi in Korea and Woolworths and Argos in the UK.

Due to high demand, these buyers are establishing separate units, he added.

RFL to build Tk200cr factory to expand global footprint

The business conglomerate will sign an agreement with China’s Haitian Group today on the installation of factory equipment, said Kamruzzaman Kamal, director at Pran-RFL Group

www.tbsnews.net

Highlights:

• Licences of 5 govt and 5 private economic zones cancelled
• Inter-ministerial meeting to be held to approve economic zones in the future
• Investment proposals worth Tk3,100 crore announced at Bida summit

---

The government has cancelled the licences of 10 economic zones, said Ashik Chowdhury, executive chairman of the Bangladesh Investment Development Authority (Bida) and Bangladesh Economic Zones Authority (Beza).

Speaking at a press briefing at the Foreign Service Academy in Dhaka this afternoon, he said the decision was made at a meeting with the chief adviser today (13 April).

The list of cancelled economic zones include five government economic zones and five private economic zones.

The cancelled government economic zones are: Sonadia Eco Tourism Park, Cox's Bazar; Sundarban Tourism, Bagerhat; Gajaria Economic Zone, Munshiganj; Shreepur Economic Zone, Gazipur; and Mymensingh Economic Zone, Ishwarganj Mymensingh.

The cancelled private economic zones are: 'Garments Industries Park' proposed by BGMEA, Munshiganj; Chatak Economic Zone, Sunamganj; Famkam Economic Zone, Bagerhat; City Special Economic Zone, Dhaka; and Sonargaon Economic Zone, Narayanganj.

During the previous government, Beza approved to establish 97 economic zones – 68 government and 29 private – nationwide.

"I have already said earlier that there is no need for 100 economic zones. Today, the licenses of 10 economic zones have been canceled. We think that these are not needed," Ashik said.

"If economic zones are approved in the future, an inter-ministerial meeting will be held and ministries will have to commit that they will be able to properly provide their services to the economic zones. What happens now is that economic zones are approved, but investors do not get proper services year after year."

The Bida chief highlighted the success of the recently concluded Bangladesh Investment Summit 2025, noting that 415 foreign delegates from 50 countries attended the event and investment proposals worth Tk3,100 crore were announced.

He also said that while major investment commitments take time, initial groundwork has been laid.

"No one will write a cheque for Tk100 crore after attending a four-day summit. But we've taken them to visit factory sites, explained where to go and how to start operations. Investors left the summit satisfied," he added.

He further said Beza will maintain follow-up communication with attendees to ensure progress along the investment pipeline.

He also hoped that similar investment events will be organised by future governments as well.

Nahiyan Rahman Rochi, head of Business Development at Bida, shared additional statistics of the summit.

Over the course of the summit, more than 3,500 individuals participated, with 130 speakers and panelists contributing to discussions. Investment proposals worth Tk3,100 crore were received, primarily through Handa and ShopUp, and six Memorandums of Understanding (MoUs) were signed. Partner organisations also contributed to the overall event expenses.

Licences of 10 economic zones cancelled: Beza executive chairman

The decision was made at a meeting with the chief adviser today

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[Isa Khan]

Bangladesh's dream of becoming a regional transshipment hub is edging closer to reality, as the final agreement for the construction of the country's first deep-sea port in Matarbari, Cox's Bazar, is scheduled to be signed this month.

Five years after its approval, the Chattogram Port Authority (CPA) is set to sign a contract with two renowned Japanese construction and engineering firms—Penta-Ocean Ltd and TOA Corporation—on 22 April in Dhaka, according to CPA Secretary Mohammad Omar Faruk.

The project, funded by the Japan International Cooperation Agency (Jica), carries a total estimated cost of Tk24,300 crore. The first phase, valued at Tk6,197 crore, is slated for completion by 2029.

Once operational, the port will significantly enhance Bangladesh's maritime capabilities by allowing large vessels to dock directly—a function that Chattogram Port, the nation's primary seaport, currently lacks. This advancement is expected to drastically cut shipping time and costs, according to port officials.

"This marks a major step forward. The project is progressing with Jica's supervision and approval. Construction work will commence immediately after the agreement is signed, and we anticipate the port to be operational by 2029," Omar Faruk told TBS.

Expanding port capacity

Currently, Chattogram Port accommodates ships with a maximum draught of 10 metres, up to 200 metres in length, carrying 30,000 to 35,000 tonnes. In contrast, Matarbari Port's first phase will accommodate much larger vessels with a 16-metre draught.

Officials anticipate that the deep-sea port will reduce shipping costs by 57% and cut delivery times by 60% compared to Chattogram Port.

Feasibility studies and land acquisition for the second phase are already underway. Additionally, two Japanese firms have secured contracts to supply equipment, while procurement of essential vessels, such as tugboats and pilot boats, will be undertaken in the third phase.

To facilitate cargo transportation, the Roads and Highways Department plans to construct a 28-kilometer road linking the deep-sea port.

Integration with Matarbari power project

The development of the Matarbari Ultra Super Critical Coal-Fired Power Project (1,200 MW capacity) has also played a key role in supporting the deep-sea port's infrastructure. A 14.3-kilometre navigational channel was constructed to transport coal and other materials for the power plant, which is now being repurposed for port operations.

The Chattogram Port Authority reports that 161 ships have so far docked at the power plant jetty, transporting a total of 3.29 million tonnes of cargo.

Currently, transporting one Twenty-foot Equivalent Unit (TEU) container costs $3,000, with shipments to Europe taking 40-42 days. However, once the deep-sea port becomes operational, large container ships with a capacity of over 8,200 TEUs will be able to dock directly, slashing delivery times to 16-17 days and cutting costs to below $1,300.

"The port will also support feeder vessel services from Kolkata and Haldia ports in India. This transshipment framework will enable goods from India, Nepal, and Bhutan to be transported efficiently while generating significant foreign currency earnings for Bangladesh," explained Khairul Alam Sujon, Vice President of the Bangladesh Freight Forwarders Association.

A regional transshipment hub

Syed Mohammad Arif, Chairman of the Bangladesh Shipping Agents Association, stated that once the deep-sea port is operational, it will not only accommodate larger vessels but also serve as a key transshipment hub.

"Neighboring countries will be able to use the port to transport their goods. Additionally, Bangladeshi cargo bound for Europe or America will no longer require feeder vessels to transit through Singapore, Colombo, or Malaysia," he said.

Rising project costs

The Matarbari Port Project was approved by the previous Awami League government in 2020 but faced delays due to land acquisition challenges and other hurdles.

In October 2024, the Executive Committee of the National Economic Council (Ecnec) revised the project cost, increasing it from Tk17,777 crore to Tk24,381 crore — an upward adjustment of over Tk6,500 crore, attributed to the rising value of the US dollar and other financial factors.

Matarbari deep-sea port construction deal with Japanese firms likely this month

The Tk24,300cr project, approved in 2020, was delayed for years due to land acquisition and other issues

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Thai Airways, Thailand's national flag carrier, has reaffirmed its dedication to the Bangladeshi market, emphasising enhanced connectivity and world-class services for travellers.

Highlighting the airline's commitment, its vice president of Sales, Wit Kitchathorn, said, "Thai Airways remains dedicated to delivering world-class service and enhanced connectivity for Bangladeshi travellers, solidifying its position as one of the region's leading airlines."

The remarks came during an inauguration programme of Thai Airways new office in the capital's Gulshan Avenue. The airline opened its new Dhaka office today (27 January) to explore more market potential in Bangladesh.

The office was inaugurated by Thai Ambassador to Bangladesh, Makawadee Sumitmor, who during his address, said, "Thai Airways has played a pivotal role in fostering bilateral trade and strengthening people-to-people connections between Bangladesh and Thailand."

The event was also attended by Narintorn Sukkaseam, team lead for Western, Middle East and Bangladesh. Ahmed Yusuf Walid, managing director of Air Galaxy Limited, the passenger general sales agent (GSA) of Thai Airways, hosted the event.

Walid said that the new office aims to enhance customer service and provide greater accessibility for passengers in Bangladesh. The presence of the new office highlighted the enduring partnership between Thai Airways and the Bangladeshi market, which has spanned over 50 years, he added.

In addition to the new Dhaka office, Thai Airways has branch offices in Chattogram and Sylhet, further strengthening its footprint in the country.

Meanwhile, the airline hosted a networking event this evening at a city hotel.

Thai Airways operates two daily flights on the Dhaka-Bangkok route: TG322, departing at 1:40pm, and another TG322 at 2am.

These flights offer seamless connections to numerous international destinations, including Bangkok, Phuket, Chiang Mai, Krabi, Sydney, Seoul, Kuala Lumpur, Taipei, Tokyo (Haneda and Narita), Osaka, Manila, and Hong Kong.

To ensure a premium travel experience, the daytime flight utilises the Airbus A330-300, featuring 31 business class and 263 economy class seats. The early morning flight is operated by an Airbus A320 with an all-economy seating configuration.

Thai Airways opens new Dhaka office in Gulshan, reaffirms commitment to Bangladesh market

Thai Ambassador to Bangladesh Makawadee Sumitmor inaugurated the office at Gulshan Avenue in the capital, the airline said in a press statement issued today (27 January)

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Singer Bangladesh Limited, a subsidiary of Beko, a global appliance brand based in Türkiye, launched its state-of-the-art home appliances plant in the Bangladesh Special Economic Zone (BSEZ), located in the Araihazar upazila of Narayanganj.

Spanning 135,000 square meters, the new facility will produce refrigerators, televisions, washing machines, air conditioners and other major appliances for the local market, according to a press release.

The company held a grand opening ceremony for the plant today, with Bangladesh Economic Zones Authority (Beza) Executive Chairman Chowdhury Ashik Mahmud Bin Harun as the chief guest and Türkiye's Ambassador to Bangladesh, Ramis Şen, as the guest of honour, along with other key stakeholders.

By producing over 90% of its products domestically, the new plant will cater to the Bangladeshi market while positioning Bangladesh as a regional hub for consumer durables in the medium to long term.

Beko is owned by Arçelik AŞ, which is a subsidiary of Koç Holding, one of Turkey's largest industrial conglomerates.

Major investment and commitment to Bangladesh

Fatih Kemal Ebiçlioğlu, president of the Consumer Durables Group at Koç Holding, said, "Over the past 10 years, Beko has invested nearly $600 million across the South Asian region with Bangladesh emerging as one of the most investment-friendly and promising markets.

"Since acquiring Singer Bangladesh Limited, we have introduced Beko's global expertise to improve the consumer durables industry and enhance the lives of Bangladeshi people. This factory stands as a testament to our commitment to positioning Bangladesh as a regional manufacturing hub."

Kemal added, "Employing up to 4,000 people, it leverages advanced technologies such as artificial intelligence (AI), and the Internet of Things (IoT). We believe that it will serve as a benchmark for others exploring opportunities in this vibrant region."

Hakan Bulgurlu, CEO at Beko said, "Bangladesh is far more than just a market — it is a land of opportunity, innovation, and potential. By combining Singer's 120-year legacy, deep local knowledge, and extensive network with Beko's global expertise, we've created a strong foundation for growth in the country. Since 2019, we've invested $146 million in Singer Bangladesh, including this state-of-the-art facility.

"This factory represents the future of manufacturing, merging cutting-edge technology with a dedication to protecting the planet while driving economic growth."

Transformation and expansion

Singer Bangladesh Limited embarked on a transformation journey in retail, employee experience and manufacturing in 2024.

As part of this strategic initiative, the company relocated its headquarters to a new facility, adopting Beko's global workplace standards and establishing a pioneering concept store in Dhaka's Gulshan 1. Launched today, the new manufacturing plant embarks on another milestone in this journey.

The company also opened a new flagship concept store in Gulshan 2. The company aims to bring Koç Group and Beko's global expertise and standards to Bangladesh and enhance the consumer experience, reaffirming Singer Bangladesh's commitment to excellence.

M H M Fairoz, managing director & CEO of Singer Bangladesh, said, "At Singer Bangladesh, we are committed to keeping customer-centricity at the core of our operations. Our ongoing transformation aims to bring contemporary and global standards to the Bangladeshi market, enhancing the experience for our valued customers.

"With a vision to establish Singer Bangladesh as one of the leading brands in the country, we are leveraging our global expertise to contribute to the growth of the consumer durables industry and improve the lives of the Bangladeshi people."

The new facility is solar-ready, and the installation of solar panels would prevent up to 60% of carbon emissions.

Singer Bangladesh launches state-of-the-art home appliances plant in N’ganj economic zone

Singer Bangladesh Limited, a subsidiary of Beko, a global appliance brand based in Türkiye, launched its state-of-the-art home appliances plant in the Bangladesh Special Economic Zone (BSEZ), located in the Araihazar upazila of Narayanganj. Spanning 135,000 square meters, the new facility will...

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At least 95% of construction work of the MRT Line-1 depot has been completed so far, while works are progressing fast, aimed at completing the MRT Line-1 by 2028.

Talking to BSS, Project Director of Dhaka Mass Rapid Transit Development Project (Line-1), Md Abul Kashem Bhuiyan, said under the contract package-1, construction of the depot on 35.90 hectares of land at Pitalganj in Rupganj under Narayanganj district is almost completed.

"The financial progress rose to 88% while the realistic progress stood at 95%. Contract package-1 (CP-1) for the construction of civil work of depot and CP-2 documents will be sent to the head office for approval," he said.

The project director said the MRT Line-1 has a total of 19,872 kilometres of underground, consisting airport route with 12 underground stations, while an 11,369-kilometre elevated section from Notun Bazar to Pitalganj Depot of Purbachal route with seven elevated and two underground stations is being implemented through a total of 12 packages.

The Line-1, having two parts - the Airport Route and the Purbachal Route is being constructed with 12 packages, as the construction work of both the routes began on 2 February 2023, he added.

According to the project details, Dhaka Mass Transit Company Limited (DMTCL) has been implementing the MRT Line-1 with 12 packages.

Of the packages, the authorities sent draft contract documents of CP-2 and CP-5 to the Japan International Cooperation Agency (JICA) on 13 March 2025 after completing the pre-contract negotiation process for getting no objections.

Besides, processes are on for retendering of CP-3, as no pre-qualified bidder submitted their tender documents during the tender schedule period.

The financial proposal of CP-4 was opened on 27 February 2025, while the evaluation of the financial proposal is underway, it said.

Pre-contract negotiation with the lowest bidder under the CP-6 is going on after getting JICA's concurrence on the evaluation report of the financial proposal on 13 February.

The DMTCL is evaluating the technical proposal of the tender documents under contract package 7, which was floated on 27 February 2025.

The authority has re-fixed on 17 April for opening of the tender documents of the CP-8, which was floated on 4 November 2024.

Technical evaluation proposal reports of CP-9 and 10 were sent on 2 March 2025 and 19 March 2025 respectively, to JICA for concurrence.

The tender documents for both packages were invited on 23 December 2024 and 9 December 2024 respectively.

The DMTCL has invited a tender for the CP-10 on 9 January 2025. 22 April will be the last date for submitting tender documents.

The CP-12 was invited on 19 February 2025, while the tender documents will be opened on 2 June 2025.

The project details said the entire MRT Line-1 project is being implemented in 12 packages at a cost of Tk. 53,977 crore while the JICA is providing Tk. 39,450 crore as project assistance and the Bangladesh government is giving Tk. 14,527 crore.

Experts said 13.66 lakh people can move by this metro rail per day which is about 2.83 times higher than the existing MRT Line-6.

They said the government is moving forward with the mega plan to build a 140-kilometer metro rail network in Dhaka and its adjacent areas by 2030 to reduce traffic congestion.

Once the planned network consisting of six lines comes into reality, 50 lakh people will be able to use the facilities as the lines will cover 129 kilometres area of the city - about 68 km elevated and about 61km underground - having more than 100 stations.

95% construction work of MRT Line-1 depot completed

Project Director of Dhaka Mass Rapid Transit Development Project (Line-1), Md Abul Kashem Bhuiyan, said under the contract package-1, construction of the depot on 35.90 hectares of land at Pitalganj in Rupganj under Narayanganj district is almost completed

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Abu Dhabi Ports Group and Masdar, two leading UAE-based companies, have announced plans to invest in Bangladesh's port development, logistics, and renewable energy sectors.

Ahmad Ibrahim Al Mutawa, CEO of Abu Dhabi Ports Group (ADPG), and Fatima Almadhloum Alsuwaidi, head of Development & Investment, Asia-Pacific Region, Masdar, came up with the investment proposals when they called on Chief Adviser Professor Muhammad Yunus at the State Guest House Jamuna today (28 January).

Renewable energy company Masdar proposed to invest $500 million in reclaimed land on the coast to set up a 250-megawatt solar power project.

"We are very supportive of showcasing new ideas to Bangladesh," Masdar's regional head of investment, Fatima Almadhloum Alsuwaidi, said.

Appreciating the investment proposals, the chief adviser said, "Bangladesh is ready for business. Bring your people and set up as many plants as you want."

Abu Dhabi Ports Group is the fourth major port handlers and logistics company after DP World of UAE, AP Moller Maersk of Denmark, and Red Sea Gateway Terminal of Saudi Arabia to express interest in Bangladesh's port management in less than a week.

Abu Dhabi Ports Group has expressed interest in developing one of the proposed three Bay Terminals through financing, operating, and maintaining container and multipurpose terminals and facilities under a joint venture with the Chittagong Port Authority.

Group CEO Al Mutawa praised the welcoming attitude of Bangladeshi authorities and hoped its investment would help increase ship movement in Bangladeshi ports.

Abdulla Ali ALHmoudi, UAE ambassador to Bangladesh, Khalilur Rahman, high representative of the chief adviser, and Lamiya Morshed, senior secretary for SDG affairs, were also present on the occasion.

Abdulla Ali Alhmoudi handed over an invitation from Dubai ruler to the chief adviser to attend the World Government Summit in the UAE in February.

2 UAE companies to invest in Bangladesh's ports, set up 250 MW solar power project

Bring your people and set up as many plants as you want, the chief adviser says

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[Isa Khan]

Private Bangladeshi airline Air Astra is gearing up to begin passenger operations on international routes. As part of this expansion, the airline has issued a public notice yesterday via its official website and social media platforms, inviting proposals to acquire three to four Airbus A320 or A321 aircraft.

Speaking to The Business Standard, Shakib Hasan Shuvo, Deputy Manager of Air Astra, said, "We are working to open international flights on routes to Nepal and Phuket. After acquiring the aircraft, we will proceed accordingly."

The proposals are sought on a dry lease, operating lease, or direct purchase basis.

Air Astra clarified that only genuine leasing companies or airlines with their own aircraft are eligible to participate in the process. Proposals from brokers or intermediaries will not be accepted, even if they hold a mandate.

Interested companies have been requested to download the Request for Proposal (RFP) documents from a specified link and submit their proposals within the given deadline.

If Air Astra manages to acquire the aircrafts yon time, the airline aims to commence international flights by 2025.

Having launched flight operations in 2022, Air Astra has already established a strong presence in the domestic aviation market. It currently operates flights on routes including Dhaka, Cox's Bazar, Chattogram, Saidpur, and Jashore. With its entry into international routes, the airline is stepping into a new chapter of growth and business expansion.

Air Astra prepares to launch international flights, seeks aircraft proposal

Private Bangladeshi airline Air Astra is gearing up to begin passenger operations on international routes. As part of this expansion, the airline has issued a public notice yesterday via its official website and social media platforms, inviting proposals to acquire three to four Airbus A320 or...

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A German high-level business delegation visited Bangladesh this month to explore the possibility of expanding commercial relations between the two countries.

The delegation — including representatives from the German Foreign and Economic ministries, as well as officials from the nation's export credit agency and the international development agency — participated in the Bangladesh Investment Summit 2025 in Dhaka and held talks with the South Asian country's interim government.

The mission was coordinated by the German Asia-Pacific Business Association (OAV), a network that promotes German business interests across Asia.

"Bangladesh's resilience as an emerging market is impressive," said Thomas Köning, CEO of Ospig GmbH and a member of the delegation. "The presented macroeconomic figures and input factors important for prospective investors look very promising," he added.

Almut Rössner, executive board member of OAV, said the aim of the trip was "to learn, collect information, establish contacts and engage with leading figures of the interim government in order to provide German companies and relevant authorities with an updated and accurate picture of the reform policies and investment climate in Bangladesh."

What's the state of bilateral trade ties?

Germany and Bangladesh share close economic relations, with bilateral trade amounting to €8.6 billion ($9.8 billion) in 2023.

Germany is the second-biggest export market for Bangladesh, with textiles accounting for more than 90% of Bangladeshi exports to the EU nation.

Bangladesh, meanwhile, imports machinery as well as chemical products and electrical goods from Germany.

A number of German companies are present in Bangladesh, operating manufacturing facilities, particularly in the garments and leather goods sectors.

Early entrants like Köning's company, Ospig, employ thousands of workers to produce high-quality jeans and jackets, while Picard has been manufacturing handbags and accessories since 1995.

Some German firms also operate joint ventures, like Hana System Ltd. — a collaboration between Germany's Cube, a major bicycle manufacturer, and Bangladesh's Meghna Group.

According to OAV, around 80 German companies currently maintain operations, subsidiaries, or representative offices in Bangladesh, including multinationals like BASF, Bayer, Bosch and Siemens.

Eying opportunities amid tariff tensions

The German business delegation visited Dhaka at a time when the world increasingly fears the implications of US President Donald Trump's tariff onslaught and attempt to rewire the global trading system.

Trump also hit Bangladesh with biting new tariffs of 37% on April 2. Even though the US president granted a 90-day reprieve to most US trading partners, the policy flip-flop has already hit Bangladeshi suppliers and their orders.

Bangladesh exported approximately $8.4 billion worth of goods to the United States last year, of which $7.34 billion came from the ready-made garments sector.

Overall, textile and garment production accounts for about 80% of exports from Bangladesh, and the industry has been rebuilding after it was hit hard in a student-led uprising that ended Prime Minister Sheikh Hasina's 15-year rule last year.

But as the Trump administration seeks to rewrite global economic rules and redirect trade flows, by also hiking tariffs on goods coming from China to exorbitant levels, Bangladesh eyes an opportunity to attract foreign investment leaving China.

Köning said the geopolitical shifts and steep US tariffs on China are prompting German firms to explore alternative manufacturing hubs.

"In light of the need to diversify and recent tariff disruptions, Bangladesh has the potential to be an alternative manufacturing location to China for consumer goods, household appliances, electronics and industrial components," he said.

"With a workforce of 114 million and a middle-income bracket equivalent to Malaysia's population, Bangladesh offers numerous business opportunities," he added.

Masrur Reaz, an economist and CEO of Policy Exchange Bangladesh think tank, echoed this view, describing the current situation as a pivotal moment.

"This is a once-in-a-generation opportunity for Bangladesh," he said, urging the Bangladeshi government to act swiftly to address outdated regulations, trade logistics weaknesses, and productivity improvements through skills and technology.

"If we don't capitalize on this window, others will," he warned.

Investors remain cautious
A recent World Bank report highlighted barriers to investment in the country, including electricity shortages, limited finance access and corruption.

German investors are aware of these challenges, but König noted that Bangladesh's competitiveness has significantly improved.

König said that despite the challenges, Bangladesh's success in the garment sector shows the country could achieve similar success in other industrial areas.

Nevertheless, many investors remain cautious, said OAV's Rössner, citing Bangladesh's ongoing political transition, as interim leader Muhammad Yunus — a Nobel laureate who took charge of the administration after Hasina's ouster — tries to enact democratic reforms and hold a fresh election, which he has promised to stage by June next year at the latest.

"Unlike investors from across Asia or other European countries, German companies are currently hesitant to seize opportunities in this political transition period," Rössner noted.

Reaz, the Bangladeshi economist, said it's important for Bangladesh to conclude the political transition as early as possible.

"Investors come with a long-term perspective, so they look for a stable government — one with a clear political mandate," he stressed.

German firms eye Bangladesh amid US-China tariff war

Germany is the second-biggest export market for Bangladesh, with textiles accounting for more than 90% of Bangladeshi exports to the EU nation

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