Bangladesh Newsflash Editions 43, April 2015 Newsflash Bangladesh is a publication by the Embassy of the Kingdom of the Netherlands (EKN) in Dhaka. The newsflash provides an update in terms of economic developments, the most important tenders and a selection of other relevant business news related to Bangladesh. This newsflash is shared with a distinctive group of Dutch businesses with special interests in Bangladesh. It is put together on the basis of publicly available information from various sources such as news articles, press releases, and third party information. The Embassy of the Kingdom of the Netherlands in Dhaka is not responsible for the accuracy of the published information. If you do not wish to receive the Newsflash Bangladesh, or would like to add a person to the distribution list, or if you would like to give us your comments, please feel free to send a message to [email protected] further practical economic information about Bangladesh, please refer to the Netherlands Bangladesh Business Platform – www.nbbp.org, developed by the Embassy of the Kingdom of the Netherlands in Bangladesh in collaboration with Dutch Business University Nyenrode for the Dutch-Bangladeshi business community. The platform bundles information on all that is relevant for doing business in Bangladesh, providing targeted sector analysis, insights into risks and opportunities of doing business, including concrete advice on good business practices, an overview of the most relevant government policies for intending investors and many more. HIGHLIGHTS Queen Maxima of Netherlands, in her capacity as special adviser to the UN Secretary General on financial inclusion, praised the growth of financial inclusion in Bangladesh and expressed her interest to visit the country next year to see the development. Mixed results from Rana Plaza steps: TIB research on “Readymade garment: Problems to Good Governance and Way Forward”. JICA to provide assistance for making vulnerable RMG buildings safe through conducting retrofitting, a technology to make vulnerable building jolt resistant Rampal Power Plant – government to issue sovereign guarantee of US$ 1.17 billion to foreign funding agencies Bangladesh to join the Global Forum on Cyber Expertise, a new international cooperation platform to promote protection for the internet ecosystem in the developing countries. A fresh move made to build Bangladesh-Myanmar road - Yangon agrees on route through Bandarban. Bangladesh presents a stable outlook on the economic front but restive politics remains a looming risk to a robust performance – Moody's latest analysis Political update Transport movement across the country has returned to normal. According to the World Bank, economic losses over the three months of strikes and blockades are at $2.2 billion. Convicted Jamaat leader, Mohammad Kamaruzzaman, lost his final appeal to review the death sentence that was given to him earlier by the Appellate division of the Supreme Court on 3rd November 2014 for his 1971 war-time atrocities. He was executed on 11 April 2015. The International Criminal Police organization (INTERPOL) issued a Red notice (note: that an arrest warrant has been issued by a judicial jurisdiction or an international tribunal with a view to his/her extradition) for BNP senior vice Chairman Tarique Rahman (eldest son of Khaleda Zia) on charges of murder and explosion of hand grenades at the Awami League meeting in 2004. Tarique Rahman lives in London. The Dhaka and Chittagong city corporation elections were held on the 28th April. Before midday of the Election Day, the BNP-backed candidates in Dhaka and Chittagong had withdrawn from the race citing electoral fraud and the lack of a level playing-field. There were several reports of ballot-box stuffing and attacks on polling stations. Awami League backed candidates won the election. In the run-up to the elections the convoy of BNP-leader Khaleda Zia came under attack while she was campaigning for mayoral candidates in Dhaka. Textile and Ready Made Garments (RMG) Mixed results from Rana Plaza steps: TIB (The Daily Star) Only 12 out of the 80 ongoing initiatives to improve governance in the garment sector was completed in fiscal 201415, according to Transparency International Bangladesh. The country office of the global civil society movement against corruption said the implementation of 48 initiatives identified to fix the problems in the garment sector is underway, but 12 of them are moving slowly. Another 20 projects have remained stagnant. TIB said there has been progress in case of capacity building of the Department of Inspection for Factories and Establishments (DIFE) and the Bangladesh Fire Service and Civil Defense and decentralization of Rajuk and DIFE in last one year. Steps were also taken to ensure factory safety. But labor rights and security during the job period have been evaded, it said in a report published on 22 April 2015. The report from TIB comes just three days before the second anniversary of the Rana Plaza collapse that killed more than 1,135 and injured thousands. Conducted between April last year and March this year, the report is 2 the second follow-up to the TIB research, “Readymade garment: Problems to Good Governance and Way Forward”. Benetton doubles compensation for Rana Plaza victims (The New Age) Benetton Group has announced that it has contributed $11,00,000 to the Rana Plaza Trust Fund, doubling the sum recommended in an independent assessment of its contribution by PwC and endorsed by WRAP, an NGO focused on social compliance through global supply chains, the Italy-based fashion brand said at a news release on 18 April 2015. In fact Benetton’s payment of $11,00,000 follows a previous payment of $5,00,000 made through BRAC, before the Rana Plaza Trust Fund was established, said the release. This coincides with a commitment from Benetton to raise working conditions and living standards for workers in the international garment industry via several ‘people first’ sustainability initiatives rolling out across its global supply chain, it said. Benetton will progressively apply the principles of the Accord on Fire and Building Safety in Bangladesh to its producers in other global markets, it said. Newsflash April 2015 Primark pays out 668 Rana Plaza victims (The Daily Star) Primark has completed paying over 95 percent of long-term compensations to 668 Rana Plaza disaster victims, who were workers of New Wave Bottoms, a supplier of the British retailer. The retailer made the payments through BRAC Bank and bKash to the family members of the dead and injured workers of New Wave Bottoms, Primark said in a statement on 31 March 2015. Payments have been made according to the impact of the injury and the level of disability. In the case of the dependents of the deceased and missing workers, it was according to actuarial estimates of lost earnings, Primark said. The process has taken time to complete because the company was determined that its approach to compensation should be as fair, rigorous and as sustainable as possible, according to Primark. Primark's total aid stands at $14 million. The company has additionally made a payment of $1 million to the Rana Plaza Donors Trust Fund, chaired by the International Labor Organization, for distribution to workers in its competitors' supply chain, according to the statement. Complete govt-ILO factory inspections unlikely by Apr 30 (The New Age)The government-led and the International Labor Organizationsponsored readymade garment factory inspection programme is unlikely to be completed by April 30 deadline due to noncooperation of some factory owners and inconsistency in information including factory locations and contact numbers. As per announcement of the ILO, inspection of the readymade garment factories under National Tripartite Plan of Action was supposed to end by April 30. According to officials concerned, the ILO has so far inspected 850 garment factories with 500 units still remaining as inspection teams failed to reach the units due to incorrect contact details. Recently, ILO officials held a meeting with the Bangladesh Garment Manufacturers and Exporters Association and sought 3 intervention from the trade body so that factory owners give schedule for inspections. RMG units unhappy over addl remediation plan (The New Age)A section of readymade garment factory owners has alleged that the Alliance for Bangladesh Worker Safety, a consortium of North American retailers, is incorporating additional corrective action plan (CAP) to factories during its follow-up inspection. The factory owners have recently informed the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) that the inclusion of additional CAP may hamper the smooth progress of remediation process. BGMEA requested the North American retailers group to limit followup visits to factories and not to include additional cap as the factories are implementing CAPs on initial findings. A senior official of Alliance said that they had received a letter in this regard from the BGMEA and assured the garments factory owners that in the final inspection, the Alliance will declare factories compliant or noncompliant based on the implementation of corrective action plans on initial findings. Centre to fix skills gap in garment sector CEBAI unveils logo (The Daily Star) The newly launched Centre of Excellence for Bangladesh Apparel Industries (CEBAI) will enhance competitiveness in the garment sector by fixing skill shortage, Commerce Minister Tofail Ahmed said on 21 April 2015. CEBAI is an initiative supported by International Labor Organization, the Swedish government, leading Swedish retailer H&M, Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh government. Based in the garment manufacturing hub of Ashulia, the center will provide need-based certified training and research the socio-economic aspects of the garment industry. In December last year, Prime Minister Sheikh Hasina opened the center at Dhaka Apparel Summit. CEBAI will work as an independent center and protect the interests of millions of workers and value chain partners. CEBAI will be operated under a three-year project that will end in December 2016. Newsflash April 2015 Canada: the next big buyer of garment (The Daily Star) Canada will be a key garment export destination for Bangladesh in achieving the $50 billion overseas sales target by the end of 2021, according to the Canadian High Commissioner Benoît-Pierre Laramée. Currently, Bangladesh is the second largest garment exporting nation after China with shipments of $24.5 billion in the last fiscal year. Riding on duty-free benefits to Bangladesh since January 2003, garment exports to Canada have been on the rise in the last decade. Of Bangladesh's exports to Canada, 96 percent are apparel items. In fiscal 2013-14, Bangladesh's exports to Canada were worth $1.1 billion, while imports were $585.5 million, according to the Export Promotion Bureau. JICA to provide assistance for making vulnerable RMG buildings safe (The New Age) The Japanese government has taken an initiative to make vulnerable building of the country’s garments factories safe for the RMG workers through conducting retrofitting, a technology to make vulnerable building jolt resistant. ‘Japanese technology and experience to make building earthquake resistance can help Bangladesh to strengthen its vulnerable RMG buildings for avoiding any tragic incident like Rana plaza in future,’ Japan International Cooperation (JICA). According to the JICA senior official, Japanese experts had already started their work to do retrofit to two RMG factories initially and JICA would implement a large project soon to cover more vulnerable RMG buildings of the country. Alliance starts fresh inspection at listed RMG units after quake (The Financial Express) Alliance for Bangladesh Worker Safety has started fresh inspection at its listed garment factories following the complaints from the workers immediately after the earthquake on 25 April 2015. The Alliance is mindful of the impacts an earthquake of the magnitude of 7.8 that hit Kathmandu can have on structures like ready-made-garment factories in Bangladesh, the North American buyers' brands initiative said in a statement. The Alliance has received several calls to our helpline, Amader Kotha (Our Voice), from workers concerned about cracks in factory buildings following the earthquake. Officials of the Alliance's Dhaka office said they 4 got complaints of having cracks in some 21 garment factories and they have already visited 13 out of them and found no safety risk there. Exporters oppose pvt quality control center for RMG items (The New Age) Garment exporters have strongly opposed a decision of the National Board of Revenue (NBR) permitting a private organization to set up a quality control center for inspecting the quality of apparel products before shipment. On 5 April 2015, the revenue board permitted Ispahani Summit Alliance Terminals Ltd to set up a special bonded warehouse and quality center. Bangladesh Garment Manufacturers and Exporters Association in a letter to the NBR demanded for withdrawal of the permission for the sake of export of RMG products. Exporters also blamed that the revenue board took the decision to facilitate a vested quarter to run monopoly business in the sector. Garment exporters going green to grab more orders (The Daily Star) Bangladesh's garment sector is moving towards green building initiatives to impress the growing tribe of ecominded international retailers, and in the process, grab more work orders. So far, 14 garment factories from Bangladesh have received LEED (Leadership in Energy and Environmental Design) certification from the United States Green Building Council, according to Bangladesh Garment Manufacturers and Exporters Association. Fifty more factories are in queue to receive the LEED certification, as they have already passed the selection criteria, according to BGMEA. LEED is a green building certification programme that recognizes the best-in-class building strategies and practices. New challenge to garment sector: Sri Lanka (The Daily Star) Bangladesh's apparel sector is set to face yet another challenge as its close competitor Sri Lanka is lobbying for duty benefits from the European Union. The two parties held a meeting in Colombo recently, where the possibility of revival of the 'Generalized System of Preferences Plus' status for Sri Lanka were discussed. The island nation lost its GSP Plus status in 2010 after the United Nations Human Rights Council alleged violations of human rights during the civil war. However, Newsflash April 2015 given the political commitment by the new Sri Lankan government, the EU decided to consider the case under a special monitoring process. The full application process takes about 10 months. If the status is granted, Sri Lankan exports to the EU will attract lower or no duty. Currently, Sri Lanka is the seventh largest garment exporter in the $450 billion market, with a little more than 1 percent share, according to data from the World Trade Organization. Bangladesh is the second largest garment exporter after China with a 5 percent market share. Infrastructure RAMPAL POWER PLANT - Govt to issue US$ 1.17b sovereign guarantee (The New Age) The government has decided to issue sovereign guarantee amounting US$ 1.17 billion to foreign funding agencies to source the lion’s share of the estimated cost to construct the country’s largest 1320 megawatt Rampal coal-based power plant. The state guarantee that assures overseas lending agencies of getting back their investment in case the implementing agency fails to repay. This will be the largest ever guarantee the finance ministry is going to issue so far against any project in the country, a senior finance ministry official said. ‘The US$ 1.17 billion guarantee accounts for 70 per cent of the total estimated cost of the power plant,’ he said. The cost for the project has been estimated at US$ 1.68 billion, while the debtequity ratio for the project stands at 70:30, sources said. The project is a joint partnership between India’s state-owned National Thermal Power Corporation and Bangladesh Power Development Board. Foreign bidders vying for satellite contract (The Financial Express) The telecom regulator has drawn positive response from foreign companies as they bid for Tk 30 billion contract for the country's first satellite, officials said. Four companies (from USA, China, Canada and France) have already collected necessary documents to participate in the international tender floated by the Bangladesh Telecommunication Regulatory Commission (BTRC) on 24 March 2015. Earlier BTRC, the 5 project implementing body, had floated international tender to implement a geosynchronous satellite system with 40 transponders to provide quality communications and broadcasting services in the country. The government is set to build the country's own satellite to 119.1 degree east longitude under the Bangabandhu Satellite Project by late 2017. Railway Sector Development - China offers Bangladesh soft loans of $15-20b (The Daily Star) China has offered Bangladesh soft loans of $15-20 billion to help it expand railway networks across the country. Officials of the Chinese embassy in Dhaka placed the loan proposal at a high-level meeting with Bangladesh officials at the Prime Minister's Office (PMO) in January, according to railways ministry sources. Later, the PMO formed a three-member committee, headed by an additional secretary of the railways ministry, which primarily identified eight projects involving $10.79 billion. Railways ministry officials said they sent a list of the projects to the Economic Relations Division of the finance ministry last month for holding discussions with the Chinese government. Projects are Padma bridge rail link (Dhaka-Mawa-Bhanga) involving $2.18 billion; Padma bridge rail link (BhangaJessore) costing $1.14 billion; double line (Joydevpur-Ishwardi) involving $897 million; and double track line (Joydevpur-Mymensingh) costing $331 million. Joint venture of French and Japanese firms to construct 2nd submarine cable station in Kuakata of Bangladesh - Bangladesh to hook up with second submarine cable next year (The Daily Star) A joint venture of two companies from France and Japan will construct the second submarine cable station in Kuakata of Patuakhali, which will serve as an alternative to the existing submarine cable and ensure uninterrupted and secure ICT services. Apart from increasing the country's internet bandwidth, the second submarine cable, known as SEA-ME-WE-5, will help the country earn additional revenue by providing restorable Newsflash April 2015 circuits to the clients. French company Alcatel Lucent and Japanese NEC have been selected for setting up the landing station and doing other associated works. The Post and Telecommunication Division recently submitted a proposal to the cabinet committee on economic affairs, seeking approval of the project to connect the nation to a second submarine cable. The installation of the second cable station will be completed by 2016. A fresh move made to build BangladeshMyanmar road-Yangon agrees on route thru Bandarban (The Financial Express) A fresh move has been made to build the long-dreamt Bangladesh-Myanmar friendship road after the neighboring country agreed in principle to explore the possibility of routing the continental highway through Bandarban area, official sources said. The trans-border communications route is broadly planned to establish wider connectivity with the Southeast Asian countries, including the Chinese spring city of Kunming, Thailand, Malaysia and Singapore crossing over Myanmar. It is also conceived as part of the long-cherished Asian Highway and BCIM (Bangladesh-China-India-Myanmar) corridor. Bangladesh and Myanmar signed an agreement in July 2007 to build the cross-border friendship road. Oil, Gas & Energy ADB listing out right fields for funding BD energy development (The Financial Express) The Asian Development Bank (ADB) is doing spadework to enhance financial support for Bangladesh to help the latter meet its mounting energy demand, competent sources said. ADB is now searching out necessary fields where its funding could better help the energy sector. It has appointed a consultant to help in selecting the potential energy sectors for assistance. ADB is keen on bankrolling projects related to installation of compression stations, and gastransmission pipelines to help carry natural gas to the user-end. It has already provided funds for implementing a project involving import of 6 electricity into Bangladesh from India. It has also shown interest in assisting import of regasified LNG from India for feeding a 750-to 800mw combined-cycle power-plant project, costing US$ 550 million, in Khulna. LNG transmission from floating terminal-Govt moves to build 91km pipeline (The Financial Express) The government has now made a concrete move to install a 91-kilometre pipeline to carry re-gasified imported liquefied natural gas (LNG) from Moheshkhali Island in the Bay of Bengal to Anowara in Chittagong to facilitate its transmission to the users' end, said officials. Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources has floated two separate tenders to build around a 3-km section of the pipeline, which will cross four rivers -- Koheli, Uzantia, Matamuhuri and Sangu. The bid winner will be responsible to design, procure, supply, install, test and commission the pipeline through four rivers on turnkey basis. Petrobangla ready to set up JV with Gazprom Hydrocarbon operations in BD, elsewhere aimed at (The Financial Express) Petrobangla is ready to establish a joint venture (JV) firm with Russian oil major Gazprom to run hydrocarbon exploration operations at home and abroad, said officials. The state-owned petroleum corporation sent its wish letter, 21 April 2015, to Managing Director and Chief Executive Officer (CEO) of the Gazprom EP International BV Valery Gulev, in response to a desire from the Russian side. Its reply letter contains coinage of comments over the planned JV between Gazprom and Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX). The letter was sent after reviewing the draft agreement on the basic principles of JV. Through this letter, Petrobangla also invited Gazprom for any further discussion in relation to finalization of the agreement. Sources said Gazprom is eyeing a big role in Bangladesh's hydrocarbon sector under the planned JV with the Petrobangla subsidiary, BAPEX, on a government-to-government basis. The Russian firm had submitted a formal proposal to Petrobangla on February 26 this year in response to a July 17, 2014 initial letter from Newsflash April 2015 the latter wishing to establish such joint venture. No new gas links for households (The New Age) The government decided to stop giving all types of new gas connections to households. The decision implies that the households which already have one or two gas connections would not be allowed to increase the number of connections at the same holding keeping the total number of domestic gas connections limited to 29.4 lakh at least for now, officials said. The government, after a three-year moratorium until May 7, 2013, resumed giving household connections only where gas distribution networks have already been installed. Gas distribution companies in June 2010 suspended setting up fresh distribution networks for gas connections to households. The prime minister, in the meeting also asked the agencies concerned to ensure supply of Liquefied Petroleum Gas (LPG) to every household in three years at affordable prices. Water/Maritime Dhaka, Delhi sign draft coastal shipping agreement - Inland water protocol renewed for 5 yrs (The New Age) Bangladesh and India recently signed a draft agreement in Delhi to facilitate coastal shipping to boost bilateral trade. Shipping Secretary Shafiq Alam Mehedi and his Indian counterpart Rajive Kumar signed the draft ‘Coastal Shipping Agreement’ on 20 April 2015, Initially, according to officials, bilateral cargo traffic would use Chittagong, Mongla, Narayanganj (Pangaon) and Ashuganj ports of Bangladesh and Visakhapatnam, Kakinada, Paradip and Haldia of India. The two sides have to ratify and exchange the instruments of ratification to give effect to the agreement, they said Western Marine to build 10 cargo ships for Jindal Group (The Financial Express) Western Marine Shipyard (WMS) has announced that the company has made a deal with the Indian business conglomerate Jindal Group for building ten (10) cargo ships. WMS signed the agreement with Jindal Steel Works Limited on the 5 March 2015 in Mumbai, India for building 7 10 units of Mini Bulk Carrier. These ships will be built for about BDT 4.8 Billion (USD 61.25 million) which could be considered one of the highest worth contract that Bangladesh has signed with India so far. Agriculture/Fisheries Cotton cultivation to be extended to tobacco fields (The New Age) The agriculture ministry has taken a strategy to boost domestic production of cotton by gradually extending its cultivation on the land used for growing tobacco, said officials. Following the government strategy, Cotton Development Board (CDB) decided to increase cotton acreage to 1,00,000 hectares by 2020 from 48,000 hectares. About 80,000 small farmers now produce 1,50,000 bales of cotton against the annual demand of 45 lakh bales, according to CDB data. Cotton is grown in 32 districts, mainly in Kustia, Chuadanga, Jhenidhah, Meherpur, Magura, Jessore, Rangpur, Thakugaon and the hill tract districts. The government accepted a proposal from private ginning companies that they would provide loans, fertilizers and other incentives to cotton growers and buy their produce just as the tobacco industries do to keep farmers interested in growing tobacco, according to the agriculture ministry. Govt imports Bt cotton seeds for trial cultivation (The New Age) The Cotton Development Board (CDB) has imported genetically modified cotton seeds from China for trial cultivation in greenhouse. 500 grams of imported genetically modified cotton seeds, better known as Bt cotton seeds, reached Dhaka for sowing at Cotton Development Board’s cotton farm at Sreepur in Gazipur district in early July, said officials. After the trial cultivation and scientific assessment bt cotton seeds would be distributed among farmers for commercial cultivation, they said. Newsflash April 2015 Other news Queen Maxima of Netherlands praises financial inclusion in Bangladesh (The Daily Star) Queen Maxima of the Netherlands has appreciated the growth of financial inclusion in Bangladesh and expressed her interest to visit the country next year to see the development. The queen expressed her interest in a meeting with Bangladesh Bank Governor Atiur Rahman at the IMF headquarters in Washington during IMF-World Bank Spring Meetings held on 18 April 2015. Queen Maxima, also a special adviser to the UN secretary general on financial inclusion, praised the role of Bangladesh Bank in promoting mobile financial services and other inclusive financial activities such as women's empowerment and promotion of agriculture and small and medium enterprises. On the sidelines of the IMF event, the BB chief spoke as a panelist on “Leveraging migration and remittances for post-2015 development financing: the Bangladesh context”. Bangladesh to join global cyber forum expertise (The Daily Star) Bangladesh has decided to join the Global Forum on Cyber Expertise, a new international cooperation platform to be launched to promote protection for the internet ecosystem in the developing countries. Foreign Minister AH Mahmood Ali announced this while speaking at the Plenary Session of the Global Conference on CyberSpace 2015 at The Hague in the Netherlands on 16 April 2015, according to the ministry press release. The minister reaffirmed Bangladesh's growing stakes and interest in engaging in cyber diplomacy as a foreign policy. Ali has underlined some of the challenges before countries like Bangladesh in the face of organized cybercrimes and attacks. The two-day conference was opened by Dutch Prime Minister Mark Rutte. More than 1,500 participants from governments, private sector and civil society all over the world have attended the conference. 8 Benglish Crafts awarded the Prince Claus Fund prize (EKN) Benglish Craft is a part of Vialisa Foundation in partnership with Bangladeshi youth organization OGGRO, developed to create independent job opportunities for students participating in Vialisa's programmes. Vialisa aims to train its target group, underprivileged youths, to get a sustainable job, which will be economically independent from Vialisa. Therefore, they have searched for a way in which handicrafts will be a tool to achieve economic independence, instead of a target. They have found the answer in creating a unique social enterprise, Benglish Crafts, in which underprivileged youths will be trained to run all facets of a handicraft enterprise and gain full ownership. Tax incentives galore for investors in hi-tech parks (The Financial Express) The government has prepared a comprehensive incentive package for attracting both local and foreign investment in hi-tech and software technology parks. The investors in the technology parks, according to the proposed package, will be entitled to full waiver of corporate income tax for 10 years and many other tax incentives. Income from domestic operations and exports might be fully exempted from corporate income tax for the said period, starting from the date of commencement of operations by developers, property management firms and individual investors, according to the package. The Ministry of Information and Communication Technology prepared the package titled 'the preferential package for the developers, property management firms and investors in the hi-tech and software technology park'. The incentive package has been prepared after reviewing similar types of packages in other countries and exchanging opinions with local stakeholders. Ship-breakers to get training on waste management (The Daily Star) Local shipbreakers will receive training under a project to learn how to deal with hazardous waste and oil Newsflash April 2015 pollution in the best possible way. The Netherlands embassy in Dhaka will finance the project that aims to develop a more environment-friendly and superior shipbreaking sector in the country. Workers at different ship-breaking yards in Sitakunda upazila will get the training, for which Abu Taher, president of Bangladesh Ship Breakers Association, and Dharmesh Jani, chairman of Creative Consultants, an Indian firm, signed a deal in Chittagong on 13 April 2015. Sharp fall in foreign investment proposals Local investment proposals rise 48.13pc: BoI (The Daily Star) Foreign investment proposals fell 73.53 percent in the first quarter of the year from the previous quarter, mainly due to a volatile political environment. Commitments by foreign investors stood at Tk 1,046.66 crore during January-March, down from Tk 3,954.78 crore in OctoberDecember last year, according to the Board of Investment (BoI). The number of investment projects from foreign investors or joint ventures also dropped in the first quarter; only 24 investment proposals including eight fullyforeign investment proposals were registered at BoI. The number was 30 in the previous quarter. But local investment proposals rose 48.13 percent in the same period. Local entrepreneurs proposed to invest Tk 24,598.58 crore in 336 projects in the first quarter, while 291 projects worth Tk 16,605.60 crore were proposed in the immediate past quarter. Of the investment proposals, agro-based projects were the highest at 51.89 percent, followed by 10.46 percent in the chemicals sector, 8.94 percent in engineering and 8.52 percent in textiles. Economic zone developers, investors to get 10yr tax break - Govt approves incentive package (The New Age) Bangladesh Economic Zones Authority has approved an incentive package including tax holiday for 10 years for economic zone developers and investors in the zones, officials said. At a meeting with Prime Minister Sheikh Hasina in the chair on February 18, the governing body of BEZA approved the package to attract developers and investors to 9 the country, they said. The prime minister is the chairman of the BEZA Governing Board. According to the approved package, mostly related to income tax, customs duty and valueadded tax, economic zone developers will get 8 types of benefits while investors in the zones will get a total of 26 facilities. According to the package, developers may get income tax holiday on income derived from the business of development of economic zones for 10 years and opportunity of income tax payment at reduced rate for next 2 years. They may also be allowed exemption from payment of valueadded tax for 10 years from electricity generation and procurement for using in EZs. Economic cost of recent political troubles $2.2b - WB lowers GDP growth projection further (The Financial Express) Bangladesh's economy suffered a loss of US$2.2 billion (nearly Tk.18000 crore) due to the very recent political troubles, according to World Bank estimate. “We have mainly taken into consideration the losses the various sectors of the economy suffered during a period of 60 days since January 6 this year, said Dr. Zahid Hussain, the lead economist of the WB, while presenting the Bank's latest Bangladesh Development Update in Dhaka on 12 April 2015. WB also projected a far deeper cut in Bangladesh's economic growth in the current fiscal, to 5.6 per cent from 6.2 per cent forecast six months before, due mainly to political damper. Substantial economic losses caused by the impact of the recent political turmoil further dragged down the pivotal indicator of the economy; it said in a latest update The WB said the impact on direct production losses could be equivalent to around 1.0 per cent of GDP. The WB's projected 5.6 per cent GDP growth for the current FY2015 is 1.7 percentage points lower than the government's target of 7.3 percent. Seven local ICT projects up for global awards (The Daily Star) Seven ICT-related projects from Bangladesh got the nomination for this year's World Summit on the Information Society (WSIS) awards. The projects are: Hello 16123; the National Portal; the National Portal for Teachers; mHealth; Amaderdaktar (our doctor); Newsflash April 2015 Agriculture Helpline 27676, and Farmers Query Service. Their promotion to the final stage of the competition will largely rely on public votes, and the votes can be cast online until May 1, Zunaid Ahmed Palak, state minister for ICT, said at a press briefing on 19 April 2015. BD economy presents a stable outlook: Moody's (The Financial Express) Bangladesh presents a stable outlook on the economic front but restive politics remains a looming risk to a robust performance, global credit-rating agency Moody's said once more in its latest analysis of the country's situation. Bangladesh is rated Ba3 with a stable outlook, according to the Moody's analysis released on 29 April 2015 with a note of caution about the limiting factors stemming both from economics and politics. Bangladesh's Ba3 foreign currency government bond rating reflects its track record of macroeconomic stability, a modest debt burden, and limited external vulnerabilities with an ample foreign reserve buffer, the US-based Moody's Investors Service said in its analysis report. year as the country needs to spend foreign nationals working in Bangladesh, a top chamber leader said. Hossain Khaled, president of Dhaka Chamber of Commerce and Industry (DCCI), said the short supply of locally produced skilled manpower is forcing the country to spend an estimated US$6.0 billion per year on the remunerations and benefits of foreign nationals working in the country. He revealed the figures while speaking at a workshop dedicated to 'Opportunity out of Crisis,' organized by DCCI and LIM-Leadership, held on 20 April 2015. Majority of the foreign nationals are currently working in the industrial sector. The amount they are sending out as remittances is equivalent to almost a quarter of the country's inward remittance. Remittances sent home by expatriate Bangladeshis reached more than $14 billion in fiscal 2013-14. BB to launch $350m loan scheme for manufacturers (The New Age) Bangladesh Bank (BB) is likely to introduce a refinance and prefinance scheme worth $350 million in September this year, under which clients will get loans in dollars from banks and non-bank financial institutions on long-term basis to set up new manufacturing units or expand the existing ones. The central bank will introduce the scheme by taking assistance of $300 million from the International Development Association, a concern of the World Bank; BB will provide $50 million to build the fund. The scheme’s name will be financial sector support project. WB board might approve the fund on June 5 at a meeting and then the central bank would take required measures to introduce the project. Foreign nationals take home $6.0b a year DCCI chief for plugging skill shortage of locals (The Financial Express) A significant amount of foreign currency flies out of Bangladesh each 10 Newsflash April 2015 Events BANGLADESH DENIM EXPO is an International Denim Trade Show, which will take place twice a year in Dhaka - Bangladesh. The exhibition is a new comprehensive showcase of the entire Denim value chain: fabric, finishes, washes, accessories. The next one will be held from 11 to 12 May 2015. For more information, please visit: http://www.bangladeshdenimexpo.com/ Bangladesh Apparel & Safety Exposition, Chittagong 2015BGMEA is going to organize Bangladesh Apparel Expo -2015, Chittagong from 6 to 8 August 2O15 at Radisson Blue Chittagong Bay View, Chittagong. For details, please contact: http://www.bgmea.com.bd/ctgexpo/ Seminar ‘Horizon 2020:, from the lab to the market: cooperation on Research and Innovation between EU and Bangladesh’ Horizon 2020 is the biggest EU Research and Innovation programme with nearly €80 billion of funding available over 7 years (2014 to 2020) – in addition to the private investment that this money will attract. It promises more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market. By coupling research and innovation, Horizon 2020 is helping to achieve this with its emphasis on excellent science, industrial leadership and tackling societal challenges. The goal is to ensure Europe produces world-class science, removes barriers to innovation and makes it easier for the public and private sectors to work together in delivering innovation. To create awareness on the Horizon 2020 programme and invite Bangladeshi researchers and research institutes to apply, the EU delegation to Bangladesh organized a seminar on Horizon 2020 at the Westin in Dhaka on 22nd April. At the seminars, Mr. Denis Dambois, EU Regional Counsellor for Research and Innovation, made a presentation on Horizon 2020 and provided the audience with detailed explanation on the ways to benefit from this programme. More detailed information on the calls for proposals and the application procedure of Horizon 2020 can be found on the official Horizon 2020 website: http://eeas.europa.eu/delegations/bangladesh/projects/list_of_projects/20150325_en.htm Potato variety in PROOFS project The Food Security team of the Netherlands Embassy is proud to showcase the results of the private sector involvement in the PROOFS project that it cofinances. At the 7th of April, the results were shown of the collaboration between Malik (a local seed company) and the PROOFS project. Malik tested two potato varieties from Agrico, a company from the Netherlands. This is a good example of the 'aid and trade' agenda of Minister Ploumen. Dutch technology and trade opportunities are matched with the small farmers' networks developed in development cooperation activities to the benefit of those poor farmers (men and women). EKN Food Security Projects meeting and network event On 22 April 2015, the EKN’s food security related projects came together for an intensive day of group discussions. Various issues within the EKN’s food security programme were discussed. The day was finished with a networking event in which we invited the Dutch-related private sector to link projects (and their target groups) with business 11 Newsflash April 2015 Tenders Call for proposals - Food and Business Global Challenge program NWO-WOTRO Science for Global Development launched the third call for proposals within the Food & Business Global Challenges Programme. The call was developed in close collaboration with the Food & Business Knowledge Platform. Theme of the call is 'transformation of food systems with a focus on sustainability and urbanization'. Within the call, two types of research funding are available: funding for Integrated Projects (IPs) and for Fast Track Research projects (FTR). IPs may have duration of four years and a maximum budget of 600,000 euros. For FTR-projects, the maximum duration is two to three years with a maximum budget of 250,000 euros. Deadline for submitting a full proposal is 16 July, and an obligatory Letter of Intent for a FTR-proposal must be received by 23 June 2015. For details, please visit: http://www.nwo.nl/en/funding/our-funding-instruments/wotro/food--business-research/food-business-global-challenges-programme-gcp/food--business-global-challenges-programme-gcp.html Invitation for International Tender Bangladesh Railway under Ministry of Railway issued a tender for Supply of 70 Nos. Meter Gauge (MG) Diesel Electric (DE) Locomotives for Bangladesh Railway. Tender Last Selling Date: 28-May-2015, Tender Closing Date: 31-May-2015. For details, please contact: Dulal Kumar Roy, Chief Mechanical Engineer, Project & Project Director, Bangladesh Railway, Room No. 709, Rail Bhaban, 16, Nawab Abdul Gani Road, Dhaka, Phone: 01711692981 Email: [email protected] Invitation for International Tender Bangladesh Land Port Authority, an agency under the Ministry of Shipping, issued a tender for Improvement of Burimari Land Port. Tender was published on 27 April 2015 and closing on 26 May 2015 at 12:00 pm. For details, please contact: Md. Habibur Rahman, Project Director, Bangladesh Land Port Authority, TCB Bhaban (5th Floor), Kawran Bazar, Dhaka1215. Phone: 02-9123757 Fax: 02-9122627 Invitation for International Tender Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) under Energy and Mineral Resources Division issued a tender for Maheshkhali-Anowara Gas Transmission Pipeline Project. Tender was published on 7 April 2015 and closing on 11 May 2015 at 12:00 pm. For details, please contact: Engr. Abu Syed Mahmud, Project Director, Maheshkhali-Anowara Gas Transmission Pipeline Project, Gas Transmission Company Limited (GTCL), Red Crescent Borak Tower (Level 8), 71-72, Old Elephant Road, Eskaton Dhaka-1000, Bangladesh. Phone: 02 8322236 Fax: 02 9358100 Email: [email protected] Please remain updated on these http://www.cptu.gov.bd/Notices.aspx and future tenders at the following website: More information The Embassy always welcomes your comments on, and suggestions for the Newsflash. We also encourage interested Dutch and Bangladeshi companies to place an article or message in our newsflash. For more information please contact our economic department at the Embassy in Dhaka through email [email protected], or by phone (00882) 8822715-8. 12 Newsflash April 2015
© Copyright 2024