Bangladesh’s shoes gaining ground in US

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Bangladesh’s shoes gaining ground in US

An Apex-Adelchi web site photo shows factory workers stitch shoe uppers. The shoe industry sees robust growths in their shipments to the USA with retailers including Bostonian, Macys and Genesco source from Bangladesh.

Kazi Azizul Islam

Bangladesh’s leather products are gaining foothold in the multibillion dollar US footwear market as American importers, hard-pressed by the worse recession, are turning to price-competitive sources, industry people said.

Shoe shipments from Bangladesh to the USA increased by 112 per cent in January-June this year, helping local shoemakers offset the slide in their sales in recession-hit Europe.

During the period, Bangladesh shipped 192,509 pairs of leather shoes to US market, up from 90,991 pairs of a year-ago period, a Bangladesh Footwear and Leather Goods Exporters Association official said quoting US commerce department data.

The figures cheered the leather industry up, as exporters in recent months found US retailers like Macys or Bostonian and giant wholesaler like Genesco on the list of American buyers.

‘Bangladesh might have been spotted by US importers as rescission made them more price conscious than ever,’ said Syed Nasim Manzur, managing director of Apex Adelchi Footwear.

The joint venture with the leading Italian shoemaker that entered American market four years back made up $5 million or 12 per cent of its 2008 export turnover from USA and expected 20 per cent in 2009.

‘Relocations of manufacturing facilities in Bangladesh by some Taiwanese and Chinese shoe manufacturers may also have inspired US importers to rate Bangladesh high,’ said Nasim.

Sikder Mesbahuddin Ahmed, operation director of the South Korea-based Youngone Corporation’s Bangladesh’s business, said, ‘Number of queries to his company from US buyers has multiplied in recent months compared to those a year ago.’

A major supplier of outerwear and sportswear to North Face and Nike, Youngone is the largest foreign investor in Bangladesh garment export sector and shoe exports share only one-sixth of its annual export turnover.

The company, which concentrates its production facilities in EPZs, hopes to raise its shoe sales from $50 million last year to $300 million from 30 million pairs annually as it plans to inaugurate the first phase of its mega shoe factory in Chittagong EPZ by the end of this year.

The USA is the world’s single largest footwear market with imports in 2008 amounting to $19.07 billion, including $11.34 billion worth of leather shoes.

China occupied two-thirds of the market, while other major suppliers include Vietnam, Italy, Indonesia, Thailand, Brazil and India.

US official data showed shoe imports from China, Italy, Brazil and Thailand were on the decline, while the Philippines, Bangladesh, and Cambodia were having growths in recent months.

At present US importers are mostly sourcing men’s dress shoes and casual shoes from Bangladesh. Shipments of luggage, briefcases, travel and sports bags and personal leather goods to USA also doubled over the year, exporters’ association officials said.

In 2008-09 fiscal that ended in June, Bangladesh exported footwear worth $187 million, up 10 per cent year on year and leather bags and purses exports amounted to $17 million, up by 65 per cent.

Industry people estimate that less than 10 per cent of Bangladesh shoe exports earnings came from USA in the last fiscal. Europe and Japan, however, remained major destinations of Bangladesh’s leather products.

The USA is the single largest market for Bangladesh’s garments with exports totaled $3.5 billion in 2008.

Nasim Manzur said, ‘I foresee USA becomes the major destination for Bangladeshi shoemakers very soon and shoes can book a billion dollar sales there.’

Bangladesh’s shoes get duty-free access to Europe, but are subject to seven per cent duty in US ports.

‘If zero duty is offered, $10 billion sales in dress and shoe to USA are nothing impossible,’ said Anwar Ul Alam Chowdhury Parvez, the immediate past president of the Bangladesh Garment Manufacturers and Exporters Association.

He stressed that Bangladesh needs to lobby hard for getting duty-free access to US market for dresses and shoes to create several million more jobs.

Joint venture aims high for power

http://www.thedailystar.net/newDesign/news-details.php?nid=102008

Joint venture aims high for power
Star Business Report

Cimillae Development Company Limited, a Korea-Bangladesh joint venture, has sought approval from the government for producing 5,000 megawatt (MW) electricity through coal gasification system in Jamalganj coal mine area of Joypurhat district.

Ali Akkas Nurani, vice president of the company, said they have already submitted application to the Prime Minister’s Office seeking permission to set up a power plant in the coal mine area.

“We are ready to invest $8.0 billion in joint venture with South Korea’s Geed Limited for producing 5,000 MW of electricity within the next three and a half years,” Nurani said at a press conference at Dhaka Reporters Unity yesterday.

Coal gasification is the conversion of coal, char, or coke to a gaseous product by reaction with air, oxygen, steam, carbon dioxide, or mixtures of these.

Nurani said Korea-based Samsung Consortium would provide technological support in setting up the plant, while Green Power Limited of UK would offer the coal gasification technology for producing power.

He said it is possible to produce 5,000 MW of electricity a day for the next 50 years with the existing reserve of coal in Jamalganj, and during this period Cimillae would give $50 billion to the government’s exchequer as taxes and VAT.

The gasification system will not need to evacuate the area, as the coal would not be extracted from the mine, rather it would be fired inside the mine, Nurani said.

“Coal gasification is the real solution to generating electricity within a short time, because all other processes are time-consuming,” he said.

Mutaharul Islam Bhuiyan, former managing director of state-run Petrobangla, said more than 85 percent coal could be used under the coal gasification system to generate power.

In open-pit mining or underground method of coal extraction, it is not possible to extract 85 percent of coal due to digging problems, life risk and higher costs, Bhuiyan said.

Geed Chairman Donald H Kang, among others, was present.

Study on industrial park for SMEs soon

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Study on industrial park for SMEs soon
bdnews24.com, Dhaka

The work on a feasibility study over establishment of a cluster industrial park in coordination with the small and medium industries will begin soon, a senior SME Foundation official said on Monday.

“We will strike a deal with IFC on the issue by two weeks and then the work on conducting a feasibility test over the establishment of a cluster park will begin,” acting managing director of SME Foundation Momtaz Uddin Ahmed told bdnews24.com after a meeting with representatives of the International Finance Corporation.

The IFC, the World Bank’s lending arm, and SME Foundation will jointly run the feasibility test and IFC will spend $ 0.5 million on the study. “We aim to bring plastics, light engineering, electronics and electrical industries under the roof of one industry as these industries resemble one another.”

“If the industries remain in the same place, they can provide us with products in less cost and get technical and infrastructural facilities.” The three industries scatter across the country; for example, most light engineering industries have been set up at Dholaikhal in the old part of the capital. There has long been a demand to set up a cluster industrial park.

The SME Foundation and IFC signed a memorandum of understanding on establishing a cluster park, but it is not clear how much assistance the IFC will provide and under what conditions.

Tk 520m to bankroll Paragon Ceramic

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Tk 520m to bankroll Paragon Ceramic
Star Business Desk

An export-oriented porcelain tableware manufacturing plant, Paragon Ceramic Industries Ltd, will be set up at Gazipur soon with a target to go into commercial operation in the second quarter of 2010.

City Bank has recently arranged a syndicated term loan of Tk520 million and working capital of Tk130 million for the company, according to a press release.

The deal was inked at a city hotel in presence of Bilal Mamoon, chairman of Paragon Ceramic, and K Mahmood Sattar, managing director and chief executive officer of City Bank, and other high officials from participating banks.

Oher participants of the syndication are Eastern Bank, Mercantile Bank, Mutual Trust Bank, Premier Bank, SABINCO, Standard Bank and United Commercial Bank. City Bank is also assuming the role of Facility Agent and Account Bank.

The venture sets out to tap highly potential export market for Bangladesh made ceramic tableware.

It also targets meeting domestic market also.

Pakistani textile millers keen to relocate plants to Bangladesh

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Pakistani textile millers keen to relocate plants to Bangladesh
Star Business Desk

Pakistani textile businessmen are keen to relocate their industrial units to Bangladesh and invest in other sectors like tourism and infrastructure, said the president of Faisalabad Chamber of Commerce & Industry of Pakistan yesterday.

Mian Hamid Javed, also the leader of an eleven-member delegation from Pakistan, was speaking at a meeting with the members of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) in Dhaka, said a statement.

Abul Kashem Ahmed, acting president of FBCCI, urged the delegation to import more from Bangladesh to reduce the trade gap between the two countries.

Local manufacture of 3W CNG auto rickshaws

http://nation.ittefaq.com/issues/2009/08/18/news0973.htm

Local manufacture of 3W CNG auto rickshaws

BSS, Dhaka

Encouraged by the government’s massive industrialisation process based on Small and Medium Enterprises (SMEs), Bangladesh Industrial Technical Assistance Centre (BITAC) has undertaken a plan to manufacture 3-wheeler (3W) CNG-driven auto rickshaws at home.

For the first time, the country is going to produce the motorised rickshaws using the local expertise and spare parts aimed at replacing the city’s non-motorised rickshaws, considered as one of the worst reasons for nagging gridlock in the capital. BITAC, an autonomous body under the Ministry of Industries, prepared a nine-year project proposal involving an initial amount of Taka 26.84 million for producing such an easy-going passenger vehicle. “Now the project awaits approval of the Ministry of Industries,” Director General of BITAC Ashish Kumar Paul told BSS on Monday.

He said the main objective of the project is to phase out non-motorised rickshaws in phases and put in operation an alternative mode of transportation with a rehabilitation option for the rickshawpuller.

The BITAC chief, however, made it clear that the rickshawpuller would get training on technical know-how with soft-loans to help them take up an alternative mode of transportation to earn their bread and butter.

Referring to the poor condition of a sizeable number of motorized vehicles on the city streets, Paul said most of the vehicles of such nature burn much fuel while stranded in traffic jam, contributing pollution enormously into the air to jeopardize the environment.

He, however, claimed that the existing intolerable gridlock could be reduced to a larger extent besides saving a huge sum of foreign currency when the 3W CNG-driven auto rickshaws would be marketed on commercial basis.

The large-scale manufacture of the 3W CNG-run rickshaws will be done with the use of small and medium workshops located in the city’s Dholaikhal, a hub of the country’s potential light engineering workshops.

Asked why the local light engineering workshops have been chosen for manufacturing the 3W CNG-run auto rickshaws instead of imports, Dr Ihsanul Karim, Additional Director of BITAC, said some of these workshops have a good setup and expertise also in manufacturing 3-wheller automobile parts.

“There is no alternative to promoting the local SMEs to further hasten the countrywide industrialization process” said Dr Karim with the hope that the new venture would contribute a lot in easing the traffic movement in the city.

Bangladesh University of Engineering and Technology (BUET) will be given the responsibility to carry out a design task following the ministry’s approval to start the project, he said.

Dr Karim also said that an initial estimation of Taka 2.50 lakh might be charged for each 3W CNG-run autorickshaw equipped with locally-produced sustainable light and medium industries. “Such an autorickshaw with sub-standard spare parts is being purchased in some local markets at over Taka 3.50 lakh,” he said.

Approximately 2,000 3W CNG-driven rickshaws could be produced every year depending on availability of local light and medium industries, said Dr Karim.

BAPEX identifies three possible gas reserves in Ctg

http://www.thefinancialexpress-bd.com/2009/08/18/76469.html

BAPEX identifies three possible gas reserves in Ctg

CHITTAGONG, Aug 17 (BSS): Prospects of gas discovery at three places of the district has become bright as the drilling by BAPEX, the exploration agency of Petrobangla, is yielding highly positive results.

BAPEX General Manager MA Baki told the news agency of the prospect saying initial survey report showed presence of gas deposits at Budbudi Chara of Patiya, Joldi of Banshkhali and Fatikchhari.

He said the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) carried out exploration drilling at these places and became confident of the reserves. The discovery outlook was positive, he said adding, they had informed Petrobangla about it.

They were now waiting for permission of Petrobangla to go into drilling gas wells and such other discovery activities, he said adding, Petrobanbgla as the apex body in the country’s energy sector, it held the key to such decision.

New discoveries might come as a breakthrough after a long gap since the discovery of Sangu gas field, another BAPEX official said. He said his organisation had started survey work at different locations of the district in recent past on its own in even absence of Petrobangla’s necessary directives in hand.

Referring to acute gas shortage and its adverse impact on socio-economic development, the BAPEX official said the country was waiting for new gas field discovery to bring relief to present sufferings.

FDI on upward curve

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FDI on upward curve
Bangladesh Bank report points to 2008 figure

Rejaul Karim Byron

Foreign direct investment (FDI) crossed $1 billion last year, marking a 63 percent rise compared to 2007, mainly because of an increased inflow of such investment to telecom sector.

According to the Bangladesh Bank’s latest survey report released on Sunday, the FDI inflow was $1,086.31 million in 2008, which was $666.37 million in the previous year.

The central bank calculates FDI on the basis of three components — equity capital, reinvestment earning and intra-company loans.

Equity capital comes solely from abroad, while foreign investors reinvest local earnings in intra-company loans and reinvestment earning.

Equity capital shot up by 102 percent in 2008 and stood at $809 million from $401 million in 2007.

Reinvestment earning increased by 15 percent to reach $245 million, while intra-company borrowing fell by 39 percent to $31 million in 2008.

The telecom sector attracted more than half of the total investment. It increased by 219 percent and $641 million was invested in the sector last year. The amount was $202 million in the previous year.

Bangladesh Bank officials said more investment by different oil companies went to energy sector in the last 10 years. But in the recent years the investment was attracted to the telecom sector as the mobile phone companies went for expansion.

Although FDI decreased over the last several years, an Egyptian company made a huge amount of investment in the telecom sector last year.

Country-wise FDI inflow shows that FDI increased by 397 percent from Egypt last year to $373 million, which was the highest from a single country.

In textile sector 23 percent more FDI was recorded in 2008 over 2007 and the amount stood at $126 million.

In banking sector the FDI increased by 78 percent to $141 million, which was $79 million in 2007.

Food sector brought in $22.89 million, while agriculture and fishing $14.43 million.

FDI inflow from countries like the USA and UK went down last year. FDI from the USA fell by 60 percent to $41 million, while 0.05 percent to $130 million from the UK.

FDI from Malaysia increased by 268 percent to $71 million and from Japan by 58 percent to $57 million.

However the outstanding FDI stock in Bangladesh is still more in gas and petroleum sector although the FDI increased in the telecom sector.

In December 2008 the total outstanding FDI stock was $4,817.05 million where the contribution of gas and petroleum sector was $1,203.40 million, telecom $1,045.96 million, textile $925.03 million, banking $728.40 million, power $251.45 million, cement $139.07 million, food products $104.18 million and of fertiliser $103.71 million.

Huawei, GP to deploy first solar-powered BTS

http://www.thefinancialexpress-bd.com/2009/08/18/76408.html

Huawei, GP to deploy first solar-powered BTS

Huawei, a leader in providing next-generation telecommunications network solutions for operators around the world, Monday announced that it has been selected by Grameenphone (GP), a subsidiary of Telenor, to deploy Bangladesh’s first solar-powered base transceiver stations (BTS), said a press release.

Huawei will install its fourth-generation base stations, using a solar and diesel generator hybrid power solution to provide mobile connectivity in rural areas. The base stations will primarily be powered by harnessing solar energy without having to be linked to an electricity grid. The diesel generator will be used as a backup.

“As Bangladesh’s key telecom operator and a responsible corporate citizen, GP is committed to investing in green mobile network,” said Oddvar Hesjedal, Chief Executive Officer of GP. “Huawei’s competitive green power solution helps us utilize renewable energy and reduce our CO2 emissions while providing even better broadband services to our customers.”

Once deployed, the new system will improve GP’s network performance by preventing service interruption, a previously persistent challenge in Bangladesh due to power instability. It will also lower fuel consumption and CO2 emissions, and reduce the cost of refueling and site visits, thereby lowering GP’s total cost of ownership. These savings will offset GP’s capital investment in just two-to-three years.

“We are delighted to be the main provider for GP’s solar powered BTS project,” Tony Zhang, President of Huawei Bangladesh, said. “As a responsible corporate citizen, Huawei is actively committed to environment protection and the sustainable development of local societies. Green technology is one of Huawei’s most important strategies and we will continue to pursue cutting-edge, cost-lowering green solutions for all of our operator customers in Bangladesh and around the world.”

Huawei has developed a series of end-to-end green solutions for wireless broadband networks, using a combination of solar energy, wind power and diesel fuel. These innovative solutions aim to assist operators optimize energy efficiency, maximize their return on investment, fulfill their social responsibilities, significantly reduce the TCO in the product life cycle and enhance market competitiveness. To date, Huawei’s green solutions have been adopted by leading telecom operators around the world, including Vodafone, Warid, China Mobile.

Construction of $1.8b steel-truss Padma bridge begins next year

http://www.thefinancialexpress-bd.com/2009/08/18/76470.html

Construction of $1.8b steel-truss Padma bridge begins next year

FE Report

The government will finalise the scheme design of the Padma multi-purpose bridge by the end of this month paving the way for beginning construction of the long-awaited world-class steel structure next year.

Official sources said the panel of experts has agreed on the scheme design after scrutiny of different aspects and decided to construct the bridge on steel-truss composite.

“It is almost decided that the main structure of the bridge will be made of steel,” said Mohammad Zahid Hossain Ferdous, Secretary-in-Charge of the Bangladesh Bridge Authority (BBA).

He said the panel was yet to reach an agreement on some technical issues like the type and the diameter of the foundation, considering the possibility of it being linked to the proposed Trans-Asian highway in future.

“If possible the bridge’s rail lines would be of the international standard gauge of other Asian countries,” he said.

Sources said the panel of experts and consulting firms had so far been considering two options out of five for the construction of the US$1.8 billion bridge and came to an agreement on steel structure disposing the second option of concrete construction.

They said though the final decision on the mode of construction would come at the August 27 meeting, the panel and the consulting firms have been working on the design based on the steel structure.

Another BBA official said to build the bridge on concrete-structure would need almost six years.

“Steel based structure is possible to be completed within three and a half years and with a lower cost,” he said preferring anonymity.

Bangladesh’s growing pharmaceutical sector

http://www.thefinancialexpress-bd.com/2009/08/17/76297.html

Bangladesh’s growing pharmaceutical sector

Ferdous Alam

The export value of pharmaceuticals is growing at a reasonable rate every year. Exports increased from $8.2 million in 2004 to $28.3 million in 2007 and posted further gains last year. Export destinations are also increasing in number.

Beginning in the 1950s, when a few multinationals and local entrepreneurs set up manufacturing facilities in the then East Pakistan, now over 200 companies produce now medicines in Bangladesh.

The pharmaceutical industry in Bangladesh has otherwise the potential to grow and enjoy a number of competitive advantages. Quality assurance has put the industry on a solid base. Almost all companies follow the World Health Organisation (WHO) Good Manufacturing Practice (GMP) standards.

Bangladesh’s strict quality compliance gives pharmaceuticals an advantage to compete with producers in India, China, Brazil and Turkey in the overseas export markets. The capability of the industry has helped it achieve excellence as per the general international standards.

A good number of local pharmaceutical companies have won accreditation from the overseas regulatory authorities including some of those in the developed countries. Two such local companies have been accredited by EMEA (Austria) and the Therapeutic Goods Administration (TGA-Australia). The accreditation facilitates their entry into the lucrative market as reputed players. Bangladesh’s national drug policy requires strict standards compliance from the pharmaceutical manufacturers.

The Current Good Manufacturing Practice (cGMP) is recognised worldwide for its holistic approach for the control and management of manufacturing and quality control testing of food and pharmaceutical products.

Bangladeshi pharmaceutical industries are expanding their exportable items. The country is now exporting a reasonably wide range of pharmaceutical products covering therapeutic classes and dosage forms like tablets, capsules and syrups.

Bangladesh also exports some high-tech specialised products like, HFA, inhalers, suppositories, hormones, steroids, oncology, immunosuppressant products, nasal sprays, injectibles and IV infusions. The sector stands on a sound footing due to the growing demand of medicines for the country’s 150 million people.

The industry, producing quality medicines at an affordable price for millions of people, has made Bangladesh almost self-reliant in pharmaceutical products. It meets the major part of local demand for medicines.

Mortality from major epidemics, malaria, dengue, cholera and typhoid, has also been reduced substantially over the years in Bangladesh. Increased affordability and availability of medicines have contributed to this achievement.

Bangladesh’s average life expectancy of about 63 years is otherwise at a high level in South Asia though its per capita consumption of medicines is at one of the lowest levels in the region. A good number of new factories that have come up in recent years, have aggressive sales and promotion strategies. A sizeable number of them have their own manufacturing facilities of which five are multinationals.

The sector is active in API (active pharmaceutical ingredients). Many companies now locally manufacture a good number of APIs. However, compared to large local demand, more API industries are needed to be set up. Pharmaceutical industries’ potential has multiplied with the recently approved API industrial park in Munshigonj.

The API can save at least 70 per cent of the cost of import of pharmaceutical raw materials from aboard. Skilled professionals at home and abroad are joining the industry’s human resources pool every year.

Currently, bio-equivalency tests are conducted in Singapore, Malaysia and in European countries, resulting in some hefty operational expenditures on the part of pharmaceutical industries. More investments in these sub-sectors would be needed in future. Foreign investors can take advantage of the flourishing industry.

It is estimated that over $250 million have been invested in this sector over the recent years for facility modernisation and setting up of new facilities.

All of these investments were for developing full GMP compliant facilities to meet the stringent regulatory requirement of any country of the world. The investment has already started paying off as most of the companies have either already received certification or are about to get the approval from more regulatory authorities at abroad. This has opened up wider opportunities for the Bangladeshi companies to claim a bigger share in the large global pharmaceutical market.

Local interior decors shoring up foothold

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Local interior decors shoring up foothold

Locally-made sanitary fittings are on display at a shop in Dhaka. Demand for Bangladeshi sanitary accessories is gradually increasing in domestic markets. Photo: STAR

Kawsar Khan

Bangladeshi products meant for interior decoration are gradually getting a strong foothold in domestic market, as many local companies have sprung up over the past few years on increased demand for less expensive but quality items.

The items like sanitary ware, tile, aluminium products including doors and windows, bathroom fitting and cable now drive out foreign products.

Sector people attribute the present position to the local realtors’ quest for low cost but quality interior materials to make apartments affordable to customers.

In a span of only eight years, local makers of such materials have been able to grab a major market share, they said.

Rashed Mowdud Khan, president of Bangladesh Ceramic Ware Manufacturers Association, said, “You can even buy a square foot of tile for only Tk 30 now, which was Tk 130-140 seven to eight years back. It has become possible, as local manufacturers in a bigger way have come into the scenario. Earlier, a major portion of the local demand for the item was met through imports.”

Khan also pointed to the fact that availability of cost-effective tiles has driven out mosaic largely from the market. “I guess local manufacturers account for more than 65 per cent market share of domestic tile consumption,” he said.

Around seven companies now exist in the market, of which where RAK Ceramics (Bangladesh) Pvt Ltd and Bangladesh Insulator & Sanitary Ware Factory Ltd are on the front line. RAK Ceramics is a joint venture with the United Arab Emirates, while the other is a state-run enterprise. These two companies also manufacture sophisticated bathroom fittings and other equipment.

“We produce around 2,700 pieces of sanitary ware every month,” a sales executive of RAK Ceramics said.

The chief of the trade body for ceramic ware manufacturing sector is also upbeat on the item’s exports in a very near future.

Meanwhile, demand for local doors, made of wood, plastic and aluminium, is also on the rise.

“Even five-six years ago, most readymade doors in the local market were foreign, but things have changed with the entry of different local companies who make quality wood and plastic doors,” said M Shamim Ullah, proprietor of Shamim and Brothers, a door vendor and manufacturer in the capital.

Around 10 companies are producing doors with reputation, according to an official of a renowned furniture company.

“Now most buyers are enthusiastic about locally made doors because these are durable,” said Ranjit Roy, an assistant manager (Sales and Marketing) of Akhtar Furniture Ltd.

Besides, local companies are making aluminium-made doors, windows and stairs as an alternative of wood products.

“Now the demand for aluminium-made interior material in the construction sector is fully met by local makers. But things were different just eight years back when the sector was import-dependent for such item, ” said M Moniruzzaman of Ornate Thai Aluminium.

The annual turnover of the aluminium industry is around Tk 1,000 crore, according to industry insiders.

President of the Real Estate and Housing Association of Bangladesh (REHAB) Tanveerul Haq Probal said realtors prefer to use local products as manufacturers offer warranty and also provide after-sales-services.

“People in the downtown prefer locally made interior materials as those are cheaper,” he added.

kawsar@thedailystar.net

Govt to enact new law to woo investment for hi-tech parks

http://www.thefinancialexpress-bd.com/2009/08/16/76274.html

Govt to enact new law to woo investment for hi-tech parks

Five more specialised parks to be set up across country

Doulot Akter Mala

The government has moved to enact a new law empowering an authority to establish six hi-tech parks across the country to boost foreign investment in the key information and communication technology sector.

Ministry of science and information technology has prepared a draft ‘Hi-tech park authority law-2009′, which stipulates creation of a high-powered body to manage and woo investment for the specialised industrial parks.

The move comes, just a couple of months ahead of the formal opening of the country’s lone hi-tech park in Kaliakoir, which would need amendment of a raft of legislations for its full take-off.

“We are drafting a law that will pave the way for luring foreign investment in the hi-tech parks and clear all legal hurdles for their establishments and operation,” a senior government official said.

The new laws have become a necessity for full “operationalisation of the parks as goods and services to be produced in the specialised zones could conflict with the country’s existing labour, patent and copy-right acts.

“The law would be enacted very soon. It is absolutely needed to bring discipline in the newly emerging sector,” he said, adding many other countries have already framed similar laws.

He said the government has also planned to build another five hi-tech parks to create hundreds of thousands of white color jobs and make Bangladesh a major exporter IT software, hardware and services.

The proposed authority to be empowered under the new law would take up the tasks to suspend or modify 16 laws of the country, he said.

The key laws expected to be modified are: the stamp act 1899, the companies’ act 1913, the excise and salt act 1944, the foreign exchange regulation act, the employment of labour (standing orders) act, the industrial relations ordinance, the land development tax ordinance, the income tax ordinance, the municipality taxation act, the explosives act, the boilers act and the electricity act.

The park authority will expedite export of products produced in the special economic zone and ensure enforcement of international standards and quality rules.

The authority will acquire lands for the hi-tech park in line with the acquisition and requisition of immovable property ordinance, 1982, the draft law said.

After selection of land, the hi-tech park authority can declare a land as a park with all the legal facilities of a specialized industrial zone, it added.

Local or foreign banks could operate their banking transaction in the hi-tech park with permission of the authority and the central bank. It can take loans with prior permission of government.

Investors in the park will get special duty facility to export and import their products, the draft said.

High tech park authority can sign any agreement to boost investment in the park. It will encourage public-private investment to develop and operate the parks.

IDCOL to introduce solar irrigation plants

http://nation.ittefaq.com/issues/2009/08/16/news0793.htm

IDCOL to introduce solar irrigation plants

UNB, Dhaka

Infrastructure Development Company Limited (IDCOL), a partner organisation of the government, is planning to set up multipurpose Solar Irrigation System (SIS) in off-grid areas of the country which is expected to help save some 750 mw of electricity.

“We’re working to introduce mini-power plants within a year. It’ll be a large-scale investment and its benefit in rural areas will be comprehensive. It’s like solar home systems (SHSs) programme IDCOL introduced earlier,” IDCOL Chief Executive Officer and Executive Director Islam Sharif told UNB in his office on Saturday.

IDCOL, a non-bank financial institution, promotes solar home systems (SHSs) in rural areas under a programme jointly being financed by IDA, Global Environment

Facility (GEF) and KfW & GTZ. More than 300,000 SHSs have already been installed.

Sharif said they are negotiating with four foreign companies to implement the project and trying to finalise its technical aspects too.

He said there are some 2,00,000 irrigation pumps across the country which consume about 750 megawatts of electricity everyday. “We’ll install solar panels for all the irrigation pumps that’ll help save some 750 mw of electricity.”

Asked whether the solar panels would be used for only pumping out water, the IDCOL CEO said it would not be financially viable for the villagers if they use it only for irrigation. “To make it financially viable, they need to set up it in a location close to their cluster villages.”

About cost, the CEO said each project will cost about Tk 18-20 lakh which will be primarily funded by IDCOL but funds from the government and donors will be needed to complete the total process. “We didn’t select our locations for the plants yet, but those will be set up in remote areas,” he added.

Sharif said they will try to get local power thespians involved in the renewable energy sector to make it profitable.

He urged the government to modify the existing act to attract power entrepreneurs and create a viability gap fund (VGF) in order to achieve 5 percent goal by 2020 to meet the renewable energy goal.

Sharif also urged the government to introduce a ‘feed-in tariff system’. “Such initiatives will be profitable for the renewable entrepreneurs.”

The IDCOL chief said the country needs to enact an energy conservation law and there should be a special authority to ensure coordination between private and public sectors for development of the power sector.

When contacted, Director of Dhaka University Renewable Energy Research Centre Prof Dr Neem Chadra Bhoimik said such irrigation plant project would bring about a massive change in rural Bangladesh.

Dr Neem Chadra Bhoimik, who has been appointed Bangladesh Ambassador to Nepal, suggested that the country’s northern parts should get priority in implementing such projects.

About its feasibility, Prof Neem said, “We have enough solar light because of our geographical location. So, such project will be viable financially for the rural poor farmers.”

Pragati Industries plans to assemble Pajero Sports

http://www.thefinancialexpress-bd.com/2009/08/14/76075.html

Pragati Industries plans to assemble Pajero Sports

Jasim Uddin Haroon

The state-owned Pragati Industries Limited is planning to assemble Pajero Sports, a new model sports utility vehicle (SUV) of the Mitsubishi, shortly, officials said Tuesday.

Recently, a technical and commercial team from Mitsubishi visited the Pragati plant in Chittagong and met its high officials in Dhaka.

“The visiting team has been pleased seeing our facility and we expect to assemble this shortly,” said Zahiruddin Chowdhury, managing director of the Pragati Industries Limited.

Mitsubishi, Japanese automaker, introduced the SUV a few years back and is now marketing it in different parts of the world.

The new model SUV is a seven-seater with 2500 cc engine capacity. It is also equipped with other modern facilities.

Quoting Asia commercial chief of Mitsubishi Kazuhaita Ogata, Mr Zahir said the team is highly pleased with the Pragati infrastructure.

Currently, Pragati assembles Pajero G-31, a nine-seater with 2350 cc engine capacity.

It assembled 446 Pajero G-31s in the last fiscal and it might assemble 500 vehicles in the current fiscal year, according to sources.

The sources said the Mitsubishi will provide some technical support from its plant located in Thailand.

The Pragati chief said: “We’ve asked the visiting team to introduce octane system converting the diesel system to have a good market in the country.”

Mr Zahir said they are yet to complete negotiation on the prices of the parts of the new model saying “We will finish it in the next meeting later this month or in the first week of the September when another team will visit Bangladesh.”

The prices of such SUVs will come down if those are assembled locally, Pragati officials said.

The government has taken this move to revamp the state-owned automobile company, which had for many years been struggling to survive.

Mitsubishi, the Japanese automobile company, has an agreement to assemble Pajero with state-owned Pragati since 1998.

Pragati, formerly known as Gandhara, had launched its operation for assembling motorised vehicles by importing CKD (completely knocked down) parts in 1966.

It first started assembling Vauxhall cars of General Motors but after the independence of Bangladesh the work stopped.

During the 1980s, it assembled Maruti cars in a limited scale.

“We cannot be cost-effective if we produce a limited number of cars,” Zahir added.