Monthly Archives: March 2009

‘Bangladesh must go nuclear to meet energy demand’

http://nation.ittefaq.com/issues/2009/03/22/news0708.htm

‘Bangladesh must go nuclear to meet energy demand’

bdnews24.com, Dhaka

Bangladesh must go nuclear to meet its energy needs as it offers an attractive proposition for the power-starved country, says a top nuclear physicist.

Dr C S Karim, a former chairman of Bangladesh Atomic Energy Commission, argues that benefits from a hugely low cost of operation far outweigh the initial high capital expenses.

“A 600-megawatt N-power plant could cost us US$ 1.2 billion to build, but only 40-45 million a year to buy fuel,” Dr Karim tells bdnews24.com in an exclusive interview.

“A similar capacity coal-fired plant- at only US$ 600 million-will be a lot cheaper,” he says, “but annual fuel cost will be US$ 120 million at current prices.”

An oil-fired plant will require a whopping US$ 450 million annually to pay for its fuel, he estimates, based on today’s prices. Gas supply crunch is already causing less-than-capacity output from the country’s on-stream power plants.

The cost of building a traditional power plant does not vary much. The prices of fuel do, indeed. And they fluctuate too.

The extra capital cost of a nuclear plant is more than compensated by the annual saving on price of fuel. A nuclear plant usually gets a “lifetime assurance” of fuel supply, says Dr Karim, and its price changes do not have much impact on generation cost.

But how long does it take to put a nuclear plant in place?

“It’s a bit tricky … heavy equipment transportation is a major issue here, for example,” he explains. “If you miss one monsoon, you have to wait one year.” Delays also hike the cost.

If everything goes right, Dr Karim says, “from the first pour of concrete to completion, it’s roughly 60 months”. Add, he says, another one year for decision-making to contract negotiations.

Dr Karim’s assertions came on a day the prime minister told a team of top businessmen that the government was in talks with potential partners for a nuclear power plant.

Very simple, says Dr Karim. “One single source should not supply to the national grid more than a tenth of the peak demand,” he argues. “That creates a host of technical problems.”

“Anything between 300 and 600 is okay, but probably the optimum option is 600.”

The 600-mw option has certain economic advantages, he says, and there could be two similar-capacity plants in the same location.

In fact, Bangladesh needs roughly 6000 megawatts now, whatever the officials say.

Safety concerns have always dominated discussions on the nuclear option, but Dr Karim dismisses the fears. “This is exactly the reason why a nuclear plant is so expensive.”

The world’s first nuclear-fuelled power plant was built in 1954, and there have since been only two major accidents, says Dr Karim, whose doctoral research dealt with nuclear safety.

And, he says, so much effort and investment have gone into safety research in 55 years of history, especially since the two accidents, that it is “no longer an insurmountable problem at all”.

On Mar 28, 1979, a US plant, in Three Mile Island, Harrisburg, Pennsylvania, experienced a major accident. “Consequences could be contained, and no death was reported,” Dr Karim recalls.

And, in 1986, the world woke up to the real dangers of nuclear accidents when the Chernobyl plant in Ukrain, part of the then Soviet Union, dominated the news agenda for months. The Apr 26 accident killed about 40, some from radiation and others while fighting the deadly fire.

“These two accidents are Maximum Credible Accident type, and (now) form the basis for design of a nuclear power plant,” he says.

As far as safety is concerned, says Dr Karim, any nuclear power plant is now a global headache. The World Association of Nuclear Operators (WANO) and others keep an eye on every move in the industry, and regulates it.

“The new concept for NPPs is a passive safety system, meaning their built-in capabilities mitigate consequences of accidents without outside interventions, including those of operators.”

Dr Karim, an adviser to the 2007-8 caretaker government, points out Bangladesh is better poised than most countries to win support from the global watchdog International Atomic Energy Agency (IAEA) and the industry.

“We have an impeccable non-proliferation history. We have signed all the required non-proliferation protocols.”

He also refers to existing cooperation agreements with countries such as the US, China and ready-to-be-renewed deals with France. Some other countries are eager to help, he says.

In France, 78 percent of electricity comes from nuclear plants. Lithuania, a small Baltic state, tops the list-with over 80 per cent of its national needs being met from nuclear source.

There are about 440 nuclear power plants worldwide. Had they all been oil-fuelled, the world would have required “an extra Saudi Arabian production”, according to an oft-quoted estimate.

“Economic growth is linked to energy growth,” says the man who helmed the agriculture ministry for two difficult years when Bangladesh faced two successive floods, a super cyclone and an unprecedented global panic over food shortages. “The latter must grow at double the rate of the economy.”

Dr Karim, who co-authored the national energy policy in the 1990s, is not convinced that coal is a sound option.

For instance, even for a 300-mw plant, an average daily need of 3,000 tonnes of coal will require 10 barges or 60 rail cargo carriages for transportation. Added to such hazards is the high environmental cost.

Hydro-electricity has not been seen as a good alternative in Bangladesh. “There are environmental consequences, and downstream river flows are affected, with an impact on lives and livelihoods.”

Dr. Karim is in favour of a generation mix. “Nuclear, fossil and renewable energy technologies should all be exploited so that Bangladesh’s long-term demands are met on a sustainable basis, reliably and at affordable costs.

“All these have their own advantages and disadvantages and capability to respond to particular types of end uses.”

BD-Netherlands joint venture factory inaugurated

http://nation.ittefaq.com/issues/2009/03/22/news0720.htm

BD-Netherlands joint venture factory inaugurated

The inaugural ceremony of a Netherlands-Bangladesh joint venture, International Classic Composite Ltd. (ICCL), a state-of-the art knit garmen factory of the country, Noajur, Kodda, Joydevpur, Gazipur was held on 18 March at factory premises.

Commerce Minister Lt. Col (Retd) Muhammad Faruk Khan, also MP, inaugurated the factory complex as chief guest while Mrs. Bea ten Tusscher, the Royal Dutch Ambassador in Bangladesh was present as special guest.

M.A. Muttaleeb (Khokan), Managing Director of International Classic Composite Ltd delivered the welcome speech and Mr. Joel L. Menco, Director thanked the guests.

Mr. Khokan said that ICCL is a fully compliant factory with capacity of producing 5,00,000 pes garments per month with 1000 workers efforts. And it would be able to add more value to the RMG sector as it is established like an independent world standard garment factory. That is why its production capacity is high and able to meet the delivery date with adequate supply with quality products.

Ambassador of the Netherlands to Bangladesh Ms. Bea ten Tusscher said, “We are also feeling proud to be a stakeholder of this factory as we providing financial support to ETP and Dye House under PSOM programme of the Netherlands Government”. Bangladesh is not a developing country rather it is a developed country as it holds this very factory with world standard facilities, she added.

Commerce minister said after visiting the factory”I am really charmed to see the factory’s environment as well as warm relationship among M.D, Directors, High officials and workers. So, I hope to see the same in other factories of the country.”

Krishnamoorthy, High Commissioner of Srilanka, Mr. Khandker Fazle Rashid, Managing Director of Dhaka Bank Ltd, Mr. Sajedur Rahman, Managing Director of Basic Bank Ltd were, among others were also present in the ceremony.

Islami Bank to set up 200 ATMs, 500 POS

http://www.thefinancialexpress-bd.com/2009/03/20/61705.html

Islami Bank to set up 200 ATMs, 500 POS

A triangular and two dual agreements for setting up 200 own ATM booths and 500 remittance and merchant point of sale (POS) were signed recently among Islami Bank Bangladesh Limited (IBBL) and Aamra Technologies Limited, Bangladesh and Interblocks Ltd of Sri Lanka at Islami Bank Tower in the city Monday.

IBBL Deputy Managing Director and Head of Operations Wing Mohammad Shamsul Haque, Managing Director of Aamra Technologies Syed Farhad Ahmed and Managing Director-cum-CEO of Interblocks Limited Dinesh Lasantha Rodrigo signed the agreements on behalf of their respective companies.

IBBL Executive Committee Chairman Mominul Islam Patwary, Director AKMS Islam, Managing Director M Fariduddin Ahmad, deputy managing directors Mohammad Abdul Mannan and Md Habibur Rahman and other top executives and officials of the related department of these organisations were present at the programme.

As a result of this agreement, IBBL will set up 200 ATM booths and 500 remittance and merchant POS across the country. Through the ATM and POS the clients of Islami Bank and other banks will get 24 hours fast and secured services of Khidmah Credit Card, Pre-paid Card and Foreign Remittance Card services beside debit card services.

At present, the clients of Islami Bank are getting ATM services through 26 ATM booths in different places of the country, says a press release.

BTCL, KT sign Tk 280cr deal

http://www.newstoday-bd.com/business.asp?newsdate=3/21/2009#9040

BTCL, KT sign Tk 280cr deal

Bangladesh Telecommunication Company has signed a Tk 280 crore internet expansion deal with state-owned Korean Telecommunication (KT) Corporation, reports bdnews24.com.

BTCL and KT inked the deal Thursday for delivering the internet information network to divisional cities and districts within 18 months.

“Bangladesh is on its way to becoming a digital country through this deal. We will bring the whole country under the network by 2021,” telecommunication minister Raziuddin Ahmed said at the signing ceremony.

“We will install optical fibre cables district-wise to promote the internet facilities.”

Korean ambassador Suk Bum Park said the signing ceremony brought closer cooperation between Korea and Bangladesh in the ICT Sector.

“As a global IT power house Korea stands ready to contribute in making this dream into reality and further developing mutually beneficial projects between the two countries,” he said.

Under the deal, the Bangladesh government will provide Tk 110 crore and the South Korean government will lend the remaining Tk 170 crore.

New optical cable lines will be installed between Kushtia-Maghura-Jessore-Khulna for a length of 184km, Maghura-Faridpur-Madaripur-Barisal of 180km and between Brahmanbaria-Habigonj-Moulovibazar-Sylhet of 190km.

Bangladesh to emerge as refrigerator exporting country

http://nation.ittefaq.com/issues/2009/03/21/news0634.htm

Bangladesh to emerge as refrigerator exporting country

UNB, Dhaka

Bangladesh is going to emerge as a refrigerator exporting country in the world market.

According to industry sources, Walton, a local firm, has started manufacturing world-class refrigerators in its high-tech plant in Gazipur, 40 kilometres off the capital.

Walton officials claim they can produce about 2,000 units of refrigerators a day. Even production could be enhanced to three-times as well if there is a market demand.

The Walton High-Tech Industry had set up a composite manufacturing plant a few years back to produce refrigerators and some other electronic goods in the country.

The country’s annual demand for refrigerator is about 500,000 units. The demand is growing with the rapid growth of urbanization and also the increasing purchase power of the rural people.

Such growing demand has prompted the Walton management to set up their manufacturing plant near the capital city.

However, the growing demand in the neighbouring countries was another reason to opt for setting up such a venture in the country.

In the Walton plant, all the backward linkage accessories are also being produced to support the main product. It contains other facilities for die, mould, sheet processing, power press, powder cooking, injection moulding, pure-foaming, thermo-foaming, gasket making and packaging.

Several thousand workers are engaged in the manufacturing plant.

Walton officials claim that cost of their manufactured refrigerators is 20-30 percent lower compared to imported ones.

They said at present, local traders are importing refrigerators mainly from China, India, Thailand and Malaysia. But those products are not up to the mark.

“But our products are world-class and we can assure their life-span is more than the imported ones,” said Walton director Emdadul Haque.

“We’re manufacturing our products as conducive to our own environment,” he added.

Haque said although the main consumers of Walton fridge are local people, but “export is also our target as this product is more competitive.”

He said they would move to world market soon as many foreign buyers are showing huge interest because of the competitive price of Walton products with world-standard.

Tk 300cr private ICD starts operation in Chittagong today

http://www.thedailystar.net/newDesign/news-details.php?nid=80646

Tk 300cr private ICD starts operation in Chittagong today

Twenty kilometers away from Chittagong Port, this inland container depot on around 46 acres of land will be able to handle 15,000 (twenty equivalent unit) containers.Photo: STAR

Twenty kilometers away from Chittagong Port, this inland container depot on around 46 acres of land will be able to handle 15,000 (twenty equivalent unit) containers.Photo: STAR

Staff Correspondent, Ctg

A Tk 300 crore off-dock Inland Container Depot (ICD) ‘KDS Logistics’, begins its formal operation today on a sprawling 14.65 lakh square-feet (around 46 acre) land at Sonaichhari in Sitakunda, about 20km from Chittagong port.

Shipping Minister Afsarul Amin will formally inaugurate the yard in the morning. Industries Minister Dilip Barua, State Minister for Foreign Affairs Hasan Mahmud, Chittagong City Corporation (CCC) Mayor ABM Mohiuddin Chowdhury and a few lawmakers are expected to be present in the inaugural function.

Equipped with state-of-the-art technologies the ICD is capable of handling around 15,000 TEUs (Twenty Equivalent Unit) containers, said Quazi Murad Hossain, KDS group executive director.

He said the modern and swift services of this depot would help boost the trade and economy of Bangladesh to a great extent.

KDS Group, one of the country’s leading apparel, accessories, textile and steel producers, is launching the logistics yard raising the private off-dock service providers tally to 14 who together operate a huge business worth between Tk 1,000 crore and Tk 1,500 crore.

“KDS Logistics, having enough space for handling both empty and loaded containers with additional parking, aims to provide hassle-free as well as prompt, efficient and international standard operational services in order to meet the increasing needs of shipping trades and support the Chittagong Port in quick handling of containerised cargoes and container vessels,” said KDS Group Chairman Khalilur Rahman.

The group chairman is looking forward to get to the break-even point in only five years with an expected annual turnover of Tk 80 crore from KDS Logistics.

Sources said Bangladesh handles 25,000 TEUs a month in export business while in import the private off-dock operators handle 10,000 TEUs out of 50,000 TEUs per month.

Barren land turned into Mandarin orchards

http://www.newagebd.com/2009/mar/21/busi.html#2

Barren land turned into Mandarin orchards

Like many of his neighbours, Achinta Kumar Karkun, a farmer of Sardarpara village under Boda upazila in Panchagarh district, picks Mandarin oranges from a tree at his orchard recently. — New Age photo

Like many of his neighbours, Achinta Kumar Karkun, a farmer of Sardarpara village under Boda upazila in Panchagarh district, picks Mandarin oranges from a tree at his orchard recently. — New Age photo

Abdur Rahim . Panchagarh

A large area in the northwestern district of Panchagarh that was almost barren just a few years ago has turned into Mandarin orange orchards.

The district now boasts of high quality Mandarin orange cultivated in around 67.49 hectares of land in Panchagarh Sadar, Tentulia, Boda, and Atwary upazilas, sources in the local horticulture centre said.

At present 11,998 farmers are involved in orange cultivation in the district who have planted 40,132 Mandarin orange trees of Darjeeling variety, said Asim Kumar Paul, orange cultivation development officer at the local horticulture centre.

He said, although at present around 20 metric tons of orange are harvested from those trees a year, the yield will rise to about 500 metric tons when all the trees start to bear fruits in four years time.

The colour, taste and size of the Panchagarh orange is better than that produced in other areas of the country and close to those produced in Shiliguri, North Dinajpur and Darjeeling of India and gets the highest price among all grades of orange put on regular auctions, Asim added.

The sources said, under an initiative of the Bangladesh Agriculture Research Institute, DAE, and Bangladesh Agriculture Research Council, agriculturalists and soil scientists tested the soil of Panchagarh in 2003 and found the land suitable for orange cultivation. A number of farmers then began test cultivation of orange at their homesteads and found the yield and quality of the fruit better than anyone’s expectations.

Achinta Kumar Karkun, one of those farmers, said, ‘I planted one orange tree given by the horticulture centre and it started to bear fruits after three years. In the fourth year the tree bore about 200 fruits. Then I brought and planted 15 more saplings in a fallow land. The yield is really good and I am making a good profit.’

At least 68 hectares of land can be brought under Mandarin orange cultivation in the district, according to a survey conducted by the horticulture centre, the sources said.

Asim said, ‘This region is suitable for Mandarin orange plantation. The climate is favourable. If the government lends adequate support in expanding orange cultivation, Panchagarh might be able to meet one-third of the country’s demand for orange, which would save a significant amount of foreign currency for importing the fruit.’

Deal signed with Korean firm to expand internet

http://www.newagebd.com/2009/mar/21/busi.html#5

Deal signed with Korean firm to expand internet
United News of Bangladesh . Dhaka

The government has signed a deal with a Korean firm to expand internet to all divisional cities and important district towns.

The telecommunications minister, Razi Uddin Ahmed Razu, said the journey of implementing the prime minister’s election pledge to build ‘Digital Bangladesh’ began Thursday with the signing of the deal.

‘It’ll be an epoch-making history in the country when the internet information network expansion project will be implemented within a year. Students will have a great opportunity to enhance their knowledge using the internet,’ he said.

He was addressing a function marking the signing of the deal for implementing the National IP Backbone at the Telecommunications Bhaban.

Mess KT Corporation of Korea will implement the project at an estimated cost of Tk 300 crore.

Bangladesh Telecommunications Limited managing director SM Khabiruzzaman and KT Corporation vice-president Maeng Soo Ho signed the deed on behalf of their respective sides.

The salient features of the project are to establish a new optical fibre network, a high-power transmission network using the existing optical fibre, establishing IP POP in important 17 district towns and establish an access network to provide various IP-related services.

Post and telecommunications state minister Yafes Osman, secretary Sunil Kanti Bose, BTRC chairman Zia Ahmed, South Korean ambassador in Dhaka Suk Bum Park and BTCL managing director SM Khabiruzzaman also spoke on the occasion.

Rahimafrooz building Asia’s largest battery plant

http://www.theindependent-bd.com/details.php?nid=119094

Rahimafrooz building Asia’s largest battery plant

Economic Reporter

Rahimafrooz Globatt Ltd, a new concern of Rahimafrooz Group, is building Asia’s largest battering manufacturing factory in the country. The factory is being built at Ishurdi Export Processing Zone in the northern part of the country at a cost of around Tk 100 crore.

Jeddah-based Islamic Corporation for Development (ICD), the private sector financing arm of Islamic Development Bank  (IDB), and Hongkong and Sanghai Banking Corporation (HSBC) are jointly financing the project.

Rahimafrooz has been the first business venture of the country to receive financing from ICD. A financing agreement was signed to this effect between Rahimafrooz Globatt  and ICD at Pan Pacific Sonargaon in the city recently, says a press release.

Fawaz Adbul Nour, Executive director of ICD, and Munawar Misbah Moin, Managing Director of Rahimafrooz Globatt, signed the agreement on behalf of the respective organisations.

Rahimafrooz Globatt Chairman  Feroz Rahim, HSBC hief Executive Officer Sanjay Prakash and Board of Investment Executive Chairman Kamaluddin also spoke on the occasion. Rahimafrooz Group chairman Afroz Rahim, directors Mohammad Ismail and Niaz Rahim, other senior officers of the group, representatives from Bangladesh Bank, BEPZA, financial institutions and different business houses were present.

Production at the factory, having a capacity of 25 lakh batteries per year, will be launched in May this year. The factory will produce batteries using state-of-the-art battery technology and SAP enterprise solution.

BTCL teams up with Korean firm on high-speed internet

http://www.thedailystar.net/newDesign/news-details.php?nid=80448

BTCL teams up with Korean firm on high-speed internet
Star Business Report

The Bangladesh Telecommunications Company Limited (BTCL) yesterday signed a Tk 280 crore deal with South Korea’s KT Corporation to install the latest internet backbone in a bid to provide high-speed broadband services.

The deal was designed to implement a project titled “Internet Information Network Expansion” for BTCL, which will jointly be financed by the Bangladesh and Korean governments.

Under the deal, KT Corporation will install the internet protocol (IP)-based network for BTCL in six divisions, along with 17 other district towns, in 18 months.

The new backbone primarily will work with BTCL’s existing TDM (time-division multiplexing) network. BTCL now has 40,000 internet connections, run mainly by dial-up connections.

“The project will provide high-speed internet access to the mass,” said Telecommunications Minister Rajiuddin Ahmed Raju at the deal signing ceremony in Dhaka.

He said the initiative is one of many to materialise the present government’s election pledge of a Digital Bangladesh.

The South Korean government is providing Tk 170 crore in loans, of the total Tk 280 crore project, while the remaining will be organised by the Bangladesh government.

SM Khabiruzzaman, managing director of BTCL, and Meang Soo Ho, vice president of KT Corporation, signed the deal on behalf of respective organisations.

Under the project, a total of 17 IP POP (post office protocol) will be set up in different places, connected by an optical fibre network.

BTCL officials said home users can enjoy speeds of up to 256kbps when the network is installed. On the other hand, corporations or business organisations can enjoy speeds of up to 10gb per second.

The Internet Information Network Expansion was taken up by the former BTTB in July 2006, with an execution deadline of June 2009. But a long bidding process delayed execution.

BTCL officials claimed that after commissioning the IP network, the company would be owner of the first ever IP backbone network.

“Gradually, the IP network would be utilised to introduce WiMax,” said a high official of the company. BTCL is planning to adopt WiMax technology to provide wireless broadband services to remote areas, where installation of the optical fibre network would be expensive, he added.

Bangladesh’s broadband market is yet to flourish. Only a million customers are enjoying internet facilities that are mainly provided by local internet service providers and mobile operators.

However mobile operators claimed that they have connected more than four million customers by EDGE technology for internet services.

The state-run Bangladesh Telegraph and Telephone Board (BTTB) was made into a company in July 2008 in a bid to gradually bring the organisation under private management. The present government has already recognised BTCL’s activities in principle, by approving the company’s organogram.

Dhaka to take part in World Expo-2010 in Shanghai

http://www.thedailystar.net/story.php?nid=80465

Dhaka to take part in World Expo-2010 in Shanghai
Unb, Dhaka

Bangladesh will participate in the World Expo-2010, a mega event to be held from May-October in Shanghai, China.

An agreement to this effect was signed by the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) with a representative of the World Expo-2010 at the Ministry of Commerce yesterday.

FBCCI President Annisul Haq and Deputy Director of International Participation Division of the World Expo-2010 Zhou Xiangrian signed the agreement for their respective sides.

The government earlier made Annisul Haq commissioner general, Bangladesh Chapter of World Expo-2010.

Commerce Secretary Firoz Ahmed, FBCCI First Vice President Abul Kashem Ahmed, Vice President Abu Alam Chowdhury and Vice Chairman of Export Promotion Bureau Mohammad Sahab Ullah were, among others, present at the signing ceremony.

World Expo, Shanghai, China is a thematic fair and the theme for 2010 is Better Cities Better Life.

The fair will provide a unique opportunity for Bangladesh entrepreneurs to display their products and manage the pavilion for a segment of period in accordance with their capacity and to make direct interaction with the foreign buyers and visitors.

BSRM’s billet plant goes into operation by August

http://www.thedailystar.net/newDesign/news-details.php?nid=80315

BSRM’s billet plant goes into operation by August

Picture shows billet, a raw material for steel. BSRM will set up its largest billet-manufacturing unit in Chittagong by August.

Picture shows billet, a raw material for steel. BSRM will set up its largest billet-manufacturing unit in Chittagong by August.

Star Business Report

BSRM Group, a leader in iron and steel manufacturing in Bangladesh, is setting up a high quality billet making plant in Chittagong to ensure a steady supply of quality billets for its rolling mills, senior officials said.

The construction of the new plant, BSRM Iron & Steel Company Ltd (BISCO), claimed to be the largest billet-manufacturing unit, is progressing fast. It is expected to start its commercial operation from August this year.

BISCO’s estimated cost will be Tk 1.946 billion, of which Tk 1.362 will be provided by several financiers.

“We signed a syndicated term loan facility for the Tk 1.362 billion with 14 financial institutions on Tuesday,” said Aameir Alihussain, director of BSRM Group.

Industrial and Infrastructure Development Finance Company (IIDFC) is the lead arranger of the syndicated term loan. Representatives from the participating banks and BSRM signed the loan agreements.

Alihussain Akberali, chairman of BISCO, M Matiul Islam, chairman of IIDFC, Asaduzzaman Khan, managing director, SA Farooqui, managing director of Standard Bank, Erfanuddin Ahmed, president and managing director of Bank Asia, M Shahidul Islam, deputy managing director of United Commercial Bank, Rakibur Rahman, president of Dhaka Stock Exchange, and AB Siddique, CEO of Chittagong Stock Exchange, were present at the signing ceremony.

“The production capacity of the new plant will be around 1.50 lakh tonnes billet per year. The full output of the plant will be consumed by BSRM Steels Limited, an entity of our group,” Aameir Alihussain said, revealing another plan to set up a 1.50 tonne capacity billet making plant after setting up the ongoing plant.

The BSRM Group set up a captive billet making plant in 1996.

IIDFC arranges Tk 1.36b for billet plant BISCO

http://www.thefinancialexpress-bd.com/2009/03/19/61601.html

IIDFC arranges Tk 1.36b for billet plant BISCO

The signing ceremony of the syndicated term loan facility for Tk 1.362 billion to set up a prime quality 145,800-tonne capacity billet making plant namely, BSRM Iron & Steel Company Ltd (BISCO), took place at a city hotel Tuesday. A total of 14 financial institutions under the lead arrangement of Industrial and Infrastructure Development Finance Company (IIDFC) participated in the syndication.

BSRM group, which is the pioneer in iron and steel manufacturing in Bangladesh, is establishing this new plant with an estimated cost of Tk 1.946 billion. It will be located at Nasirabad Industrial Area in Chittagong, says a press release.

The full output of the plant will be consumed by BSRM Steels Limited, which is the largest steel-bar producer in the country. BSRM Steels Limited is a publicly traded company and has obtained good confidence from the investors. The construction process of BISCO is going on in full swing and the plant is expected to start its commercial operation from August this year.

Representatives from the participating banks signed the loan agreements while chairman and managing directors from different participating banks and financial institutions and other dignitaries attended the function.

M Matiul Islam, chairman of IIDFC Ltd; Alihussain Akberali, chairman of BISCO; Md Asaduzzaman Khan, managing director of IIDFC Ltd; SA Farooqui, managing director of Standard Bank Limited; Erfanuddin Ahmed, president and managing director (CC) of Bank Asia Ltd and M Shahidul Islam, DMD of United Commercial Bank Ltd spoke on the occasion.

President of Dhaka Stock Exchange Md Rakibur Rahman, CEO of Chittagong Stock Exchange AB Siddique and senior officials from a number of banks and financial institutions and other professional organisations also attended the programme.

51mw Rental Power Plant

http://www.thedailystar.net/newDesign/news-details.php?nid=80254

51mw Rental Power Plant
Production may begin in May
Staff Correspondent

A 51-megawatt rental power plant at Fenchuganj of Sylhet may start commercial production in May.

The announcement came at the signing ceremony of a syndicated loan financing the power project undertaken by Barkatullah Electro Dynamics Ltd.

The total cost of the project will be over Tk 183 crore. Of the amount, Tk 125 crore will be provided by six financial institutions.

Infrastructure Development Company Limited (IDCL) is leading the syndicate of lenders that include BRAC Bank, AB Bank, Trust Bank, Janata Bank and Industrial and Infrastructure Development Finance Company Limited (IIDFC).

Construction of civil infrastructure for the project has already been completed while the installation of a generator and other equipment is underway, said officials involved in the private power scheme.

Tawfiq-e-Elahi Chowdhury, prime minister’s adviser for power, energy and mineral resources, was the chief guest at the function held at a city hotel.

In his address, he underlined the importance of merchant power operations in mitigating electricity crisis.

He cited examples of India, which recently adopted a policy to promote merchant power plants selling electricity on the competitive wholesale market.

Chowdhury said the government is considering introducing similar policy in Bangladesh.

He lamented the absence of a major independent power plant even after a decade since the last Awami League government approved the Independent Power Plant Policy.

Referring to gas shortage plaguing power generation, the adviser said for efficient use of fuel the entrepreneurs should go for big power projects instead of small ones.

The adviser also stressed the need for public-private partnership in the energy sector.

Organic tea grower enters Japan

http://www.thedailystar.net/newDesign/news-details.php?nid=80200

Organic tea grower enters Japan

Star Business Report

The country’s lone organic tea grower has recently bagged export orders from the quality-conscious Japanese market, opening a new avenue for the local tea sector.

Kazi and Kazi Tea Estate Ltd, which for the first time in Bangladesh ventured into the organic tea business by taking up a project in Panchagarh in 2000, grabbed an order for exporting 4,000 kilograms of tea through a food exposition in Japan in March.

“Demand for organic foods is being created in different areas of the world, which is sure to rise in the coming days,” said Kazi Anis Ahmed, director and chief executive officer of Kazi and Kazi, at a press conference, organised by Japan External Trade Organisation (JETRO) in Dhaka yesterday.

“The order volume is not so big, but the important thing is, we entered the highly sensitive Japanese market with our own brand,” he said.

“It has created a new window of opportunity.”

The organic tea estate is located over 600 acres of land in Tetulia and capable of producing around 2.4 lakh of tea a year. Each kilogram of organic tea sells at $4-$9 on the global market, depending on quality.

The company sells its products on the international market with the brand name “Tetulia”. It is known as “Kazi & Kazi Tea” on the local market.

Before going into international market, Kazi & Kazi was recognised under JETRO’s one village one product programme as part of its effort to familiarise the concept among policymakers.

The press conference was organised to make the activities public.

Organic tea is produced through organic method in which chemicals and toxic elements are not used in manufacturing states.

The production of organic tea is around one million kilograms worldwide.

Export earnings from tea stood at $14.89 million in fiscal 2007-08, up 114.55 percent from $6.94 million in 2006-07, according to the Export Promotion Bureau.

Speaking as special guest at the function, Shahab Ullah, vice-chairman of Export Promotion Bureau, said Bangladesh has also undertaken a one-district-one-product plan and identified few districts to develop certain products in line with Japan’s OVOP.

Tomohiro Kinomoto, country representative of JETRO, also spoke.