China to help install nuclear power plant

http://nation.ittefaq.com/issues/2009/02/16/news0445.htm

China to help install nuclear power plant

Staff Reporter

China will assist Bangladesh in installing nuclear power plant on the China-Pakistan cooperation model to help latter meet the rising electricity demand, Chinese Ambassador in Dhaka Zheng Qing Dian said yesterday.

“China and Bangladesh signed agreement on peaceful use of nuclear power in 2005, which clears the way for our civil nuclear cooperation,” the Chinese Ambassador told a Meet-the-Reporters programme organised by the Dhaka Reporters Unity (DRU) at its conference hall.

Zheng requested Bangladesh side for further communications and said the Chinese government supports the nuclear enterprises to carry out cooperation in nuclear power.

He noted the cooperation could follow the China-Pakistan cooperation model.

The present government has a pledge to make operational the dormant Rooppur Nuclear Power Plant to meet the growing demand for electricity.

Chaired by DRU president Shamim Ahmad the function was also addressed by its general secretary Pathik Saha.

Replying to a question over Bangladesh-China (Kunming) highway link through Myanmar, the diplomat said China takes an active attitude on this project as it will facilitate personal exchanges and trade among countries in this region.

Asked about a rising trade gap between Dhaka and Beijing, Zheng said China takes seriously its trade imbalance with Bangladesh and has no intention to pursue trade surplus. China has, therefore, actively adopted measures to increase imports from Bangladesh, he said.

He mentioned that China had sent delegations to purchase goods from Bangladesh for several consecutive years. In 2008, the Chinese Ministry of Commerce organised companies to buy goods from Bangladesh, and the two sides signed US$76 million worth of contracts and letters of intent.

Under the framework of the Asia-Pacific Trade Agreement, he said, China also offered to Bangladesh concessions covering 1,717 eight-digit tariff headings and special concessions to another 162 eight-digit tariff headings.

“We hope Bangladesh will make its export companies better informed of these concessions and encourage them to export to China,” the Chinese envoy said, indicating that a much greater market potential remained unexplored by Bangladeshi business community.

About investment from the new economic powerhouse on the global plane, he said China encourages Chinese enterprises to make investment wherein Bangladesh has comparative advantages, like light industry, textiles, garments and home appliances, according to the rules of the market economy and principle of equality, mutual benefit and so.

The Ambassador noted that Bangladesh has become an important market for China in South Asia. The bilateral trade volume increased to nearly US$5 billion in 2008.

In future, he said, China will build stronger ties with Bangladesh in the fields of increased high-level contacts and exchanges at various levels, strengthen business ties and address trade imbalance and expand cooperation in various fields, especially in agriculture, education and science and technology where the potential is great. They will also maintain coordination in regional and international affairs.

“I believe that with our joint efforts the China-Bangladesh comprehensive partnership of cooperation will make greater progress,” Zheng said.

Asked if China has any role in resolving maritime dispute between Bangladesh and Myanmar, he said the two sides should sit together and resolve the problem peacefully.

“Any trouble that surfaces should be resolved peacefully,” he noted.

Govt to set up commodity exchange market

http://www.newagebd.com/2009/feb/16/front.html#12

Govt to set up commodity exchange market
Pilot project of such a market for jute and potato soon
Staff Correspondent

Commerce Minister Faruk Khan said the government would set up a vibrant commodity exchange market within a year to develop the country’s agriculture marketing system and to stabilize the prices of essentials.

He said a pilot project on commodity exchange might be started in Dhaka under the Securities and Exchange Commission.

‘A wing of the SEC will monitor a pilot project on commodity exchange for two commodities — jute and potato,’ he told reporters on Sunday after a presentation on the feasibility of the commodity exchange system in Bangladesh.

Associate Professor Selim Raihan of the Dhaka University’s Bureau of Economics presented the findings of research conducted by a 3-member team.

The team, led by Professor Fariduddin Ahmed who is the head of the economics department of Dhaka University, worked for about a year, studying the success of commodity exchange markets in neighbouring countries like India, Pakistan and Nepal.

The commerce minister said a further study would be carried out on warehouse facilities, quality control and awareness of the concept of commodity exchange in local businessmen.

‘We have also felt that another study should be carried out for a ten-year plan of the commodity exchange market in Bangladesh,’ said Faruk.

The presentation meeting, attended also by commerce secretary Feroz Ahmed and SEC chairman Faruq Ahmed Siddiqui, decided to hold an inter-ministry meeting in the third week of March to finalise a pilot project of commodity exchange for jute and potato.

The meeting also decided to make field-trips to Nepal and some African countries to study development, protection of farmers’ interests and prevention of manipulation of the commodity exchange market.

The feasibility study suggested that a pilot project can be completed at a cost of an $18.24 million and more than fifty per cent of the fund should be spent on Information Technology.

Grain imports drop 76pc on good crops

http://www.newagebd.com/2009/feb/16/busi.html#4

Grain imports drop 76pc on good crops
Reuters/Bdnews24.com . Dhaka

Food-grain imports dropped almost 76 per cent year on year to 1.17 million tonnes in the second half of 2008 thanks to bumper rice crops, officials said on Sunday.

The country was hit by a food crisis after floods and a deadly cyclone in late 2007, which together damaged nearly 3 million tonnes of food grains, causing rice prices to almost double.

But crops improved markedly in 2008.

‘Imports dropped as this season we produced a record rice crop,’ a senior food ministry official said, adding that Bangladesh hoped for another bumper crop in the upcoming season.

The new government cut fertiliser prices by more than half and that of diesel by 4.35 per cent to help farmers grow more rice and help improve food security for the country’s more than 140 million people.

The country aims to produce 34.33 million tonnes of food grains, mostly rice, in the year to June, 15.3 per cent up from a year earlier, agriculture ministry officials said.

Earning from bicycle export rises by 61pc

http://www.thefinancialexpress-bd.com/2009/02/11/58533.html

Earning from bicycle export rises by 61pc

Jasim Uddin Haroon

Earnings from the country’s bicycle export rose by more than 61 per cent in the first half of current fiscal year mainly due mainly to rise in value and increase in demand, industry insiders said Tuesday.

Local bicycle manufacturers fetched US$39.74 million from export of bicycle in the first half (July-December) in fiscal 2008-09 over the same period of last fiscal, according to the Export Promotion Bureau (EPB).

Bangladesh exported $64.28 million worth of bicycles in 2007-08, which was 18.93 per cent up from that of 2006-07. The value addition is about 20-25 per cent after spending foreign exchange on imports of raw materials.

Mohammed Ferdous Ahmed, a senior official at the Alita Bicycle manufacturing Company, told FE Tuesday: “The growth rate in the first half of the current fiscal could be more had there not been recession in some developed nations, including UK.”

He also said: “Our earning significantly increased mainly due to the rise in value of bicycles and increase in sales.”

Local bicycle manufacturers are now selling bicycles at a price higher by 10 per cent over the previous rate.

But they said Bangladesh is still in a better position over price competitiveness.

Halim Khan, executive director of Bangladesh’s premier bicycle manufacturing company Meghna Group, said: “There is still potential as demand for our bicycles in the European markets is on the rise due mainly to price competitiveness.”

Local manufacturers said China, the world’s main bicycle exporting country, is now converting its industries into high-end products and this is helping Bangladesh’s bicycles industry.

“We’ve also potentials as global bicycle manufacturing leader China is not at all encouraging investment in such light engineering venture in the country,” Ahmed said.

Mr Ferdous said low cost labour and availability of latest technology helped Bangladesh compete with regional non-traditional countries, including Thailand, Vietnam, by manufacturing fashionable bicycles

According to industry sources, some 15 local companies, employing over 3000 workers, are manufacturing and assembling sport bicycles for export.

Currently, they said world’s some of the leading companies, including Raleigh, PCM and Motor and Sports of the UK and Aldi of Holland, Bachtenkirch Interbike of Germany, M&F De Scheemaeker and Formula Cycling of Belgium are importing bicycles from Bangladesh.

Bangladesh manufactures mountain bikes, city bikes, free styles, trekking, folding, beach cruiser and kid bikes. Industry insiders said the country can export around 2.0 million pieces of bicycles a year.

Draft industrial policy in 3 months

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Draft industrial policy in 3 months
Unb, Dhaka

Industries Minister Dilip Barua yesterday urged the local entrepreneurs to come forward to set up knowledge-based and labour intensive industries for industrial growth.

“Local entrepreneurs are to come forward and invest for the desired industrial growth,” he told the leaders of Corrugated Carton Accessories Manufacturers and Exporters Association who met him at his office in the afternoon.

Barua said a draft ‘industrial policy’ is in the making and will be announced in three months. The policy will attach priority to the knowledge based and labour intensive small and medium industries with incentives to the entrepreneurs.

The draft policy will encourage Bangladesh expatriates, local and foreign entrepreneurs to invest more for rapid industrial growth and generate employment opportunities, he added.

The minister urged the entrepreneurs to concentrate on producing quality products to compete in the world market.

The BCCMEA leaders Safiullah Chowdhury, Mir Mahmud Ali, Nazim uddin Chowdhury, Saleh Ahmed Babu and ASM Julfikar Haider were among others who met the minister.

They informed the minister that corrugated cartoon accessories manufacturers fetch foreign currency worth Tk 7,000 crore every year by exporting their products. They urged the minister to set up a packaging institute in the country.

Transit or trade?

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Transit or trade?

A hub of regional trade? Photo: goodolrodg.net Abul Kalam Azad

THE transit issue is back again to the forefront of discussions on Bangladesh-India relations. Apart from political reasons, some people are trying to justify granting transit to India on economic grounds. They are projecting the issue against the backdrop of globalisation and trade liberalisation and claiming that granting of transit will create additional trade for Bangladesh.

Other than a fixed “royalty” annually, I do not see how transit for India is going to create additional trade for Bangladesh. Instead, Bangladesh will destroy its chance of creating additional trade by moving goods/merchandise, either originating in or destined for India, through Bangladesh territory and through Chittagong port. Instead of granting transit, we can change our tariff duty regime, which will enable our traders to move Indian merchandise between western India and the “seven sisters.” Bangladeshi traders will also be able to move goods/merchandise, originating in or destined for the “seven sisters,” through Chittagong port. The process of such trade creation is described briefly in the following.

What is the purpose of transit? India wants to move goods (1) Between the northeastern India and western India; and (2) between northeastern India and rest of the world through Chittagong port. But, such movement of goods can take place through trade also. What is the modus-operandi of such trade?

It is simple. Bangladeshi traders will import goods from northeastern India and export them to western India/outside world. Similarly, they will import goods from western India/outside world and export them to northeastern India.

Thus, India gets movement of goods originating in India or destined for India through Bangladesh territory and through Chittagong port. And all this happens through the normal course of international trade.

Why does such trade not take place now? It is because of the existing tariff-duty regimes of both India and Bangladesh. Simple modifications in the present tariff practice of the two countries will result in normal international trade flow between western India, Bangladesh, northeastern India and rest of the world.

However, India will get this facility for moving only legally traded goods. If it wants to move unspecified goods in sealed containers, it will not be content with such a system. The movement of goods in sealed containers through Bangladesh territory is likely to invite attention from terrorists operating in northeastern India, and make Bangladesh vulnerable to terrorist attacks.

What will Bangladesh gain? An annual payment of, say, Tk. 500 cores. Not a big deal! Bangladesh will have to invest at least Tk. 5000 crores in infrastructure development. The price for transit should include similar transit provisions for Bangladesh to and from Nepal and Bhutan; uninterrupted and perpetual corridors for Bangladeshi enclaves in India for linking them with the mainland; ensuring fair share of Ganges water for Bangladesh; settlement of maritime boundary disputes to the satisfaction of Bangladesh.

This may be a “big” price for a “small” facility, but transit is the only “commodity” we have that India wants from Bangladesh. India should have fulfilled these demands a long time back, not as quid pro quo but as a gesture from a good and great neighbour. But, unfortunately, India did not care to do so. So, Bangladesh is left with no other option but to make a tall list of claims in lieu of transit facility wanted by India.

Besides, confusion should not be created about MOUs and Protocols. These are signed by the state or government heads to underscore the agreements in principle. It is the signing of agreements containing the details of implementing the principles that really matters (because devils live in the details). For some countries, even signing of an agreement is not enough — it must be ratified by their national parliaments.

For example, Bangladesh and India signed an agreement for exchanging our enclaves. Bangladesh returned Berubari to India accordingly, but India did not comply with the terms of the agreement by returning our enclaves because the Indian Parliament is yet to ratify the agreement.

So, if our government forgets the genuine and rightful claims of Bangladesh while granting transit facility to India, people will think that our statesmen are only too eager to concede to Indian demands — and not as eager to protect Bangladesh’s interest as a sovereign state. We would like to conclude by reminding our leaders of the words of a great statesman, Sir Winston Churchill

– a state has no permanent friend or foe, it has only interests.

[Adapted and abridged from the author's original article "Why make fuss over transit, if trade can do the trick?" included in the book Top Priorities : Tough Decisions.]

The author is Professor of Economics in Chittagong University, currently serving (on lien) as Chairman, Dept. of Economics and Dean, School of Arts and Social Sciences, Southeast University. E-mail: abulkalamazad1952@yahoo.com.

Govt to set up new Urea fertiliser factories: Dilip

http://www.theindependent-bd.com/details.php?nid=114476

Govt to set up new Urea fertiliser factories: Dilip
BSS, SANGSAD BHABAN

Industries Minister Dilip Barua recently informed the Jatiya Sangsad the government has a plan to set up two new urea fertiliser factories in the country.

Responding to a question from treasury bench member Begum Sarah Begum Kabori, the minister said the urea plants could be set up by 2012-13 with the availability of government grants, funds and gas supply.

The minister further said there are eight fertiliser factories in the country, including six urea, one TSP and one DAP plants.
Responding to another question from treasury bench member M.  Abdul Latif, the minister said the government has a plan to set up five new industrial estates under Bangladesh Small Cottage and Industries Corporation in the country.

The industrial estates comprise a garments industrial park at Munshiganj, plastic industrial park at Keraniganj, automobile industrial parks at Amin Bazaar and Matuail, Benarasee industrial park at Rangpur and extension of three industrial parks at Mymensingh, Bogra and Sirajganj.

Govt to carry out extensive industrialisation in Ctg region

http://www.newstoday-bd.com/frontpage.asp?newsdate=#17405

Govt to carry out extensive industrialisation in Ctg region

Industries Minister Dilip Barua Saturday said the government would take an initiative for extensive industrialization in Chittagong region, reports UNB.

“An initiative will be taken for massive industriali-sation in Chittagong region as per direction of Prime Minister Sheikh Hasina,” he told a reception accorded to newly elected Ministers, State Ministers and MPs from Chittagong region by Chittagong Samity in Dhaka at Dhanmondi Women Sports Complex.

He said there will be an accelerated industrialization in Bangladesh to turn it into a middle-income country by 2021.
Dilip Barua, a technocrat minister, said the economy would be gradually made industry-friendly alongside making it business-friendly.

He said the government of Sheikh Hasina has lowered the price of fertilizer as part of her election pledge made to the farmers. “Accordingly, she”ll fulfill her all election pledges regarding development of Chittagong.”

Dilip urged all, irrespective of party and opinion, to work together to make Bangladesh a prosperous country.

Jute and Textiles Minister Abdul Latif Siddiqui, Sate Minister for Foreign Dr Hasan Mahmud, State Minister for Youth and Sports Ahad Ali Sarker, MPs Engineer Mosharraf Hossain and Jafrul Islam Chowdhury, among others, addressed the function.

Nasir Glass exports rise on Indian foothold

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Nasir Glass exports rise on Indian foothold

Float glass being produced at the plant of Nasir Glass Industries Ltd, which exported glass worth more than Tk 20 crore last year. Photo: Sajjadur Rahman

Nasir Glass Industries Limited (NGIL) exported more than Tk 20 crore worth of glass in 2008, a chunk of which went to the northeastern states of India.

The country’s largest glassmaker that started commercial operations in September 2005 had explored the new markets over the past two years.

The company exported glass worth about Tk 13 crore in 2007, according to NGIL and bank officials.

“Ninety percent of the company’s exports go to the Indian market,” said Touhidul Alam Khan, executive vice president and head of syndication and structured finance unit of Prime Bank.

The bank deals with the company export documents.

Both Bangladesh’s export basket and markets are limited to a few products and countries. Many say that it is the collective failure of both businessmen and the government to diversify export products and destinations.

Glass has been added to the list of few products — jute, garments, battery, cement — that are generally exported to India.

Bangladesh’s exports to India are a mere $350 million against imports worth $3.5 billion from the next-door neighbour.

“We also export to Nepal, Bhutan, South Africa and Kenya, in addition to the north eastern states of India,” said Abu Sayed, general manager (commercial and banking) of NGIL.

“Now the company is trying to explore new export markets including the United States and the oil rich Middle Eastern countries,” added Sayed.

NGIL was set up with Tk 200 crore in investment, equipped with the state of the art technology and machinery.

Prime Bank lent Tk 100 crore as a syndicated term loan over a period of six years. Some 14 financial institutions participated in the largest syndicated arrangement in 2003.

In just three years of production, NGIL sales turnover stood at Tk 182 crore in 2008, which was Tk 157 crore in 2007, according to company statistics.

The company manufactures float glass, reflective glass, tempered glass, coated glass, mirrors, clear and coloured glass.

Besides NGIL, PHP Group also started commercial production of float glass at about the same time. Two other companies Osmania, owned by the government and MEB by Ilais Brothers, a private business house in Chittagong, were in operation earlier.

Currently, all these four companies produce around 350 tonnes of glass a day against their combined capacity of around 400 tonnes, according to the respective officials. NGIL produces 180-200 tonnes a day, PHP produces 100 tonnes on a single day and Osmania and MEB congregate the rest.

Bangladesh had once met 70 percent of its demand for glass by imports, at the time 2003-04. Now the sector exports after fulfilling the country’s total market demand for the product. Industry people said the country is saving crores of money that was previously spent on import of the product.

According to a market study jointly conducted by a local private bank and an international research organisation in 2003, Bangladesh imported 6.51 crore square feet of glass in 2003. The local companies produced 4.14 crore square feet the same year.

Glass is produced with silica sand, dolomite, soda ash and limestone, of which, silica sand represents 70 percent, a raw material available locally.

“The company has already paid back about 70 percent of its syndicated term loan,” Touhidul Alam Khan said.

NGIL can produce as much as 20mm thick glass, while the maximum capacity of other companies is 12mm, according to NGIL’s production manager.

sajjad@thedailystar.net

Govt mulling creating fund for ICT to boost SMEs

http://www.thefinancialexpress-bd.com/2009/02/08/58326.html

Govt mulling creating fund for ICT to boost SMEs

FE Report

Industries Minister Dilip Barua Saturday said the government is mulling over creating a fund for ICT (information communication technology) to give a boost to the country’s SMEs.

“We are planning to create a fund for the ICT in the next national budget,” Barua added.

He was speaking as chief guest at a seminar on role of ICT in the Small and Medium Enterprises (SMEs) organised by SME Foundation at a city hotel.

Mirza Nurul Gani Shovan, director of SME Foundation managing committee, presided over the meeting.

The industries minister said development of ICT will pave the way for creation of a large number of jobs, which is urgently needed to combat the effect of global recession.

“Experts are emphasising the need for job creation following the global recession. I think ICT-based industries will absorb huge manpower apart from increasing productivity of goods,” he added.

He expressed the hope that local ICT experts would innovate more new products to boost the SME sector.

“We have brilliant sons who are now working aboard, we have to create jobs for those brilliant sons in the country,” he added.

He also said the government is preparing an industrial policy for better growth of the industries including the SMEs.

“We will incorporate all stakeholders during drafting of the policy,” he added.

“Interest of all entrepreneurs will be recognised in the industrial policy so that they can think that the policy is their own,” he asserted.

He also said: “We must give emphasis on the private sector as it is playing a pivotal role in the economy.”

Mr Barua said Bangladesh’s main problem is not its resource constraint rather its existing mindset. “We must change it,” he added.

He also said: “We have to bring changes in our thoughts and beliefs. Then we will overcome poverty.”

He suggested that the SME Foundation organise training programmes with the help of Small and Cottage Industries Training Institute (SCITI).

“I think training programmes by SME Foundation with the help of SCITI on the development of ICT will help create efficient SME entrepreneurs and skilled manpower,” he added.

Zafar Osman, president of Dhaka Chamber of Commerce and Industry (DCCI), and Honorary President of Institution of Engineers Bangladesh (IEB) SM Nazrul Islam joined the programme as special guests.

Professor of Department of Computer Science and Engineering of BUET M Kaykobad presented keynote paper on the issue.

Pran signs deal on $15 lakh exports to Somaliland

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Pran signs deal on $15 lakh exports to Somaliland
Bss, Dhaka

Pran Export Ltd, a local company, will export processed agro-food products worth $15 lakh to Somaliland over the next one year.

An agreement was signed between Pran Export Ltd, a concern of the Pran-RFL Group, and Hadrawi Trading Establishment at the National Press Club in Dhaka, according to a press statement released yesterday.

General Manager of Pran Export Ltd Paramuddin Hossain and Hadrawi Trading Establishment proprietor Mohamed Omar Abdi signed the deal on behalf of their respective sides.

Later, Abdi said there is huge demand for Bangladeshi processed agro-food products in African countries.

Pran-RFL Group Chairman Mahatabuddin Ahmed said Pran products are being exported to 70 countries across the globe.

Paramuddin said that his company would start exporting processed agro products to Papua New Guinea, East Timor, Brunei, Mauritius, Algeria and some other countries soon.

Govt to make capital market major source of finance: Muhith

http://www.newagebd.com/2009/feb/08/busi.html#1

Govt to make capital market major source of finance: Muhith
Staff Correspondent

The finance minister, Abul Maal Abdul Muhith, on Saturday said the government would take necessary measures for strengthening and developing the country’s capital market to make it a major source of financing investments.

‘We want to increase investment on a massive scale and a major portion of funds for the investments should come from the capital market,’ the minister of the new government said coming out of a meeting with officials of the Securities and Exchange Commission and stock exchanges at the commission’s conference room.

As the capital market is a major source of financing, the government will be empathetic in considering proposals of the capital market stakeholders for the market’s growth, he said.

‘Our capital market is the second smallest source of financing,’ said Muhith, adding that ‘in many countries the major portion of investment financing comes from their capital markets.’

He said the government would enact the book-building system of initial public offerings’ pricing soon to encourage the entrepreneurs to list their profitable companies with the bourses.

‘In the meeting, we discussed the issue of involving people in bigger number in the capital market,’ the finance minister said.

‘They [stock exchanges] have proposed that the number of beneficiary owners’ accounts should be increased to 50 lakh from the existing 19 lakh and I have concurred with their proposal.’

‘We also discussed developing the bond market and share offloading by the state-owned enterprises,’ he said.

Recently, the country’s capital market achieved a significant growth in terms of market capitalisation and attained progress in infrastructure and regulations, he observed. ‘But the contribution of market capitalisation to the gross domestic product is still very low,’ he added.

SEC chairman Faruq Ahmad Siddiqi said, ‘We expect that the government will speed up the process of offloading of shares by the SoEs already under the process and also offloading more SoE shares in the market in phases.’

He said the commission would finalise the book-building system of the IPO pricing rules very soon.

A Dhaka Stock Exchange team led by its president Abdul Haque and a Chittagong Stock Exchange team led by its president Nasir Uddin Ahmed Chowdhury were present in the meeting.

Study Indian market before FTA

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Study Indian market before FTA
Sri Lankan economist speaks to The Daily Star

Sajjadur Rahman

Bangladesh should go for a comprehensive approach, including through research on Indian market, before striking a bilateral free trade agreement (FTA) with India, the biggest economy in South Asia, says a Sri Lankan economist.

“How will it benefit if we get duty-free access for thousands of products to Indian market without readymade garment?” questions Subhashini Abeysinghe, an economist at the economic intelligence unit of Ceylon Chamber of Commerce.

Readymade garment accounts for nearly 60 percent of Sri Lanka’s total exports, she said.

There are more contentious issues, including non-tariff barriers and the federal and provincial issues that need to be discussed thoroughly before inking a deal, Subhashini says.

“Now Sri Lankan companies are scared of losing business to Indian companies,” she told The Daily Star last week as she came to Bangladesh to attend a regional discussion.

Big companies may be optimistic about business with India, but Sri Lanka’s economy is based on small and medium companies similar to that of Bangladesh.

She said: “Sri Lanka’s food and agriculture companies and the services sectors including IT, telecom and banking are fearing losses to the growing Indian presence.”

India has long been pressing Bangladesh to sign an FTA between the two countries. But Bangladesh always regrets the issue. Once again the issue has come to the limelight soon after the Awami League-led government took over last month.

An FTA is not always bad, at least from the global perspective. Different countries, including developed ones, also prefer FTAs in the absence of a breakthrough in multilateral talks at the World Trade Organisation (WTO).

Since the signing of the FTA between India and Sri Lanka in March 2000, trade grew rapidly. Bilateral trade exceeded $1.7 billion in 2004 and rose to $2.025 billion in 2005. Exports from India to Sri Lanka in 2004 amounted to $1.35 billion, while exports from Sri Lanka to India in the same year were worth $382 million. Those rose to further $1.437 billion and $588 million respectively in 2005. The FTA prompted a 257 percent increase in bilateral trade between 2001 and 2004.

Under the FTA, Indian companies invest in Sri Lanka, produce and export those products to their country.

Subhashini says a lot of Indian companies are coming to Sri Lanka to exploit the tariff anomalies, not to do fair bilateral trade.

For example, she says: “Palm oil import to Sri Lanka enjoys zero duty facility, while the duty is 100 percent in case of import to India.” Copper is another product that is being exported to India, she said.

According to the economist, palm oil and copper exports account for 60 percent of Sri Lanka’s total export to India.

“It’s not a sustainable and competitive business,” she remarks.

Now Sri Lankan entrepreneurs are questioning the viability of the FTA.

She said there are other problems that include rules of origin, standard and sanitary, federal and provincial systems of business operations, and of course bureaucratic issues.

If the federal government in India gives a product duty-free access, not necessarily that a state government will do so, Subhashini says. “We don’t have that type of problem in Sri Lanka,” she says.

Then there is the port issue, she says, as India is a big country and has a lot of ports to operate business.

“Our products have to wait at ports for long time for clearance on standard issues,” the economist said.

Often Sri Lankan exporters face problems at Indian customs points. “We are not recognised by the Indian customs,” she said.

However, she admits that there is no alternative to doing business with India, the third largest Asian economy. India is thriving, no doubt, she says, but it is a difficult market also.

The economist suggested that Bangladesh should conduct detail studies on Indian markets before going for an FTA.

“A lot of researches on the Indian economy and its trend are needed while negotiating a deal,” she said. India’s commercial section does it consistently.

Bureaucrats, especially of the commercial section, have to do continuous studies on Indian markets and changes.

“Otherwise, Bangladesh will face the same situation as the Sri Lankan companies do,” she says.

Subhashini says failure in multilateral South Asian Free Trade Area (Safta) has prompted countries to go for bilateral agreement.

“Safta has become uncertain, especially after the Mumbai attacks,” she thinks.

sajjad@thedailystar.net

Govt will build road, railway with Myanmar: Minister

http://www.theindependent-bd.com/details.php?nid=114330

Govt will build road, railway with Myanmar: Minister
BSS, COX’S BAZAR

Feb 7: Communications Minister Syed Abul Hossain said the government will start implementing election pledges from the south-east, building connecting road and railway from Ukhia of Duhazari to Myanmar’s Ghum Dhum point.

He said this after visiting the location of the proposed China-Myanmar-Bangladesh friendship road and railway at Myanmar border close to Ghum Dhum town yesterday.

The minister was briefing newsmen at the local BDR outpost following his visit to the spots including the Ghum Dhum point where Bangladesh also plans to set up a railway station.

He said the government has sent proposals to Myanmar government to this effect and awaiting response to start planning and other physical mobilisation.

Local MP Abdur Rahim Badi who accompanied the minister said the former Awami League government initiated the project 10 years ago and it will implement the project now.

The minister said the government is putting top priority to developing the road and railway communication in this part of the region. This is needed to develop the region as the strategic transit point for goods, business and closer people to people connectivity, he added.

He said the government is planning to spend up to Taka 21,00 crore in developing the communication system in the region. It will be part of Prime Minister Sheikh Hasina’s far reaching plan to create a digital Bangladesh, he said.

The minister said Bangladesh government looks forward to open a new horizon in the area of trade, people to people connectivity and economic development of the region extended up to China in the east.

It will be the new economic zone to benefit all three countries of the region, he said suggesting it will not only develop tourism of the region but also bring boost to socio- economic development using the Chittagong port.

Chittagong WASA to set up Tk 1000cr water plant

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Chittagong WASA to set up Tk 1000cr water plant
NURUL AMIN, CHITTAGONG

Feb 7: The Chittagong WASA is implementing a 30 million gallon water project at a cost of Taka 1000 crore with the assistance of the Japan Bank for International Cooperation (JBIC).

Talking to The Independent, Shafiqul Islam, Chief Engineer of Chittagong WASA said tender for the project is expected to be invited by the end of the current month. He further said that the design of the project is nearing completion.

He said as per project profile, water of the river Karnaphuli will be treated at Rangunia.

Under the project, three water reservoirs, one booster station, transmission and distribution pipe line will be installed. The project is expected to be completed by 2011. As per agreement, JBIC is providing Taka 717.8 crore as credit assistance.

It may be mentioned that the Chittagong WASA can only meet the one-fourth of the total demand for water of the port city.
Meanwhile, the 10 million gallon Tk 100 cr Madunaghat project is expected to begin very soon.

Shafiqul Islam said as soon as the signing of the agreement is done, work on the implementation of the project will begin. He said the Italian government has agreed to provide taka 52 crore under a soft loan agreement on turn key basis, while the Bangladesh government will provide the rest amount. Under this project the surface water of the river Halda will be treated here for distribution through the supply network of the Chittagong WASA.  Initially, 10 million gallons of water will be treated in this project to be followed by another 10 million gallons.

In an exclusive interview with The Independent, Shafiqul Islam, Chief Engineer of Chittagong WASA said, the additional 20 million gallons Mohra plant costing Taka 350 crore, one of the biggest project of the Chittagong WASA is also expected to begin this year. It may be mentioned that the project had been inaugurated by the then Prime Minister on October 6 in 2004 that was undertaken to double the existing production of the Mohra Plant. The existing 20 million gallon Mohra Plant was set up in 1987. In this plant the sweet water of the river Halda is treated for human consumption.

It may be mentioned that since 1987 the Chittagong WASA could not implement any project to increase the production of water in such an important port city of the country. During the last 19 years the consumers of the city have increased remarkably.

The townspeople are suffering from the shortage of over 82 million gallons of water daily. A vast area of the city still remains out of the network of the Chittagong WASA.

According to Chittagong WASA, the present rate of production is about 38 million gallons of water daily against the total demand of over 120 million gallons. Of this the Mohra Water Treatment Plant is producing 20 million gallons of water daily and the rest 18 million gallons are produced by the 48 deep tube wells. Of them 30 per cent is wasted due to system loss reducing the actual supply of water to 26 million gallons per day.