PDB to float RFP for 1125 MW power projects by Feb

http://nation.ittefaq.com/issues/2009/12/19/news0056.htm

PDB to float RFP for 1125 MW power projects by Feb
BSS, Dhaka

Bangladesh Power Development Board will float Request For Proposal (RFP) for installation of three gas- based power plants with a capacity of 1125 MW by February 2010.

“We have received good response from the investors in London Road Show Conference. We, however, will also issue RFP (Request For Proposal) for three combined Cycle power plants having 1125 MW capacity by mid February”, ASM Alamgir Kabir, Chairman PDB told BSS over telephone from London on Thursday.

He said “Our plan is to install these three power plants by 2014 and as per our observation we would not face any problem to install these three plants as gas is available here.”

The three plants included 350-450 MW capacity power plants at Bibiana-2 and Meghnaghat-2 and a 150 MW power plant at Bhola.

The plants are at the top priority list in the case of issuing RFP.

All the plants would be gas-based and the foreign investors showed interests about these projects, he added.

In London show, the projects which were presented are three combined cycle power plants with a 1125 MW capacity, two peaking plants with a capacity of 100 MW each, imported coal-based power plants of 2000-2600 MW capacity and one LNG terminal with a capacity of 3.5 million tonnes.

To woo the expatriate and Asian and American investors to implement around 3500 MW power projects in the next couple of year, the Power Development Board will go for another two road shows in Singapore and the USA in next month.

BB chief sees 6 pc growth

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BB chief sees 6 pc growth
STAFF REPORTER

The country’s economic growth during the current fiscal year is unlikely to dip below the government projection at 6 per cent with all major indicators showing signs of recovering trend by November.

“I would stick to our previous estimate at 6 per cent as all the indicators were improving,” Bangladesh Bank Governor Dr Atiur Rahman told The Independent yesterday.

“However, we’ve no hand on natural disasters that we can foretell about the boro harvest in advance,” he spoke about the lone uncertainty over the agriculture production. “Even then, I don’t see any reason why GDP would grow lesser than the previous fiscal at 5.8 per cent.”

Asian Development Bank (ADB) on Thursday painted a gloomy picture on the country’s growth prospect, as low as 5.2 per cent, for the current fiscal year.

Their estimate was based on a slowed down in imports, exports and private sector credits, and an apprehension over delayed impact of global economic recovery on the country’s exports.

Dr Atiur said all the major economic indicators were showing recovering trend by the month of November with exports rebounding from the negative growth trend to positive (18 per cent) while export orders were reported to have increased substantially.

Latest figures from Bangladesh Bank suggest that opening import LCs (letter of Credit) increased 18 per cent in October this year from the same month previous year, indicating a recovery from the negative growth by about 3 per cent in September this year.

However, settlement of LCs still showing negative trend by about 14 per cent in October, but having a recovering trend from minus 18 per cent in September.

The Governor said private sector credit has been increased by 9 per cent during the first nine months of this year (January-September) while he was expecting 4-5 per cent further increase to have a moderate growth in private sector credit during the current fiscal year.

Taking into account the figures of the first quarter of the current fiscal year (July-September), the private sector credit shows only about 3 per cent growth as compared to 7 per cent of the same period last fiscal year.

Wage earners remittance increased by 38 per cent to US$ 1.05 billion in November this year from the same month previous year.

“Still we need to remain cautious about any adversities and we’ll have to continue our efforts,” Dr Atiur said. “Let’s see what is waiting for us.” He is expecting a good aman harvest in the current season as he is getting information from different quarter and visiting across the country to promote agriculture credit.  “We’re set to give a big push to promote small and medium enterprises (SMEs) like the agriculture sector,” said the Bangladesh Bank governor.

The central bank has been pursuing an aggressive approach to boost agriculture credit to stimulate agriculture production since 2007, following two consecutive floods and cyclone Sidr.

The abnormal price hike of food items last year prompted the central bank to continue with the aggressive agriculture credit to attain self-sufficiency in food. The central bank also continued with the approach afresh immediately after the governor Dr Atiur assumed office.

The SMEs sector is considered another major area having potentials to boost economic growth and create huge employment opportunities. The governor said Bangladesh Bank just opened a separate SME Department while general manager of the department joined on Thursday.

About ADB projection on increased inflation, the central bank governor said the rising trend of food prices in the international market would have an impact to some extent while the economic growth would contribute further to it. Latest figures from Bangladesh Bureau of Statistics say the point-to-point inflation rose to 6.7 per cent in October this year from 4.60 per cent in September due to increasing prices of food.

“Food inflation unlikely to increase as such if we can achieve agriculture production target as we’re expecting and making efforts in this regard,” he said, adding that the inflation is a reality of the situation.

He said the central bank has enough instruments to address the problem of inflation and it would announce measures in this regard through the next monetary policy due in January next.

“We’re aware of the situation and trying to cope with it,” said the Bangladesh Bank Governor.

Local company to Invest $ 7.9m in Adamjee EPZ

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Local company to Invest $ 7.9m in Adamjee EPZ
ECONOMIC REPORTER

Bangladeshi company Mis. Mikhail Plastopak Limited will set up a Rubber, Plastic, Papaer Products and Garments Accessories Manufacturing Industry in Adamjee Export Processing Zone.

This100 per cent local owned company will invest $ 7.893 million in setting up their unit and will produce Rubber, Plastic, Paper Products and Garments accessories Items. The company will also create employment opportunity for 596 Bangladeshi, says a press release.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the Mis. Mikhail Plastopak Limited in BEPZA Complex, Dhaka recently. Md. Moyjuddin Ahmed, member (Investment Promotion) of BEPZA and Md. Fahad Muneem Rahmatullah, managing director of Mis. Mikhail Plastopak Limited signed the agreement on behalf of their respective organisations.

Local company to invest $ 1.087m in IEPZ

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Local company to invest $ 1.087m in IEPZ
Business Report

Bangladeshi company M/s. Fortune Metal Processing Company Limited will set up a Recycling Industry in Ishwardi Export Processing Zone.

This100 per cent local owned company will invest US$ 1.087 million in setting up their unit and will produce recycling items. The company will also create employment opportunity for 276 Bangladeshi nationals.

An agreement to this effect was signed between the Bangladesh Export Processing Zones Authority and the M/s. Fortune Metal Processing Company Limited in BEPZA Complex, Dhaka recently. Md. Moyjuddin Ahmed, Member (Investment Promotion) of BEPZA and Md. Shariful Islam, Proprietor of M/s. Fortune Metal Processing Company Limited signed the agreement on behalf of their respective organization.

Brig General Jamil Ahmed Khan, ndc, psc, Executive Chairman, A.K.M. Mahabubur Rahman Member (Finance), Md. Shawkat Nabi Secretary, A.Z.M. Azizur Rahman, General Manager (Investment Promotion) and other officers of BEPZA were present at the signing ceremony.

NBR to alter tax rules

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NBR to alter tax rules
Sayeda Akter

The National Board of Revenue (NBR) is set to bring changes in VAT and customs regulations to simplify the taxation system, said the chairman of the board yesterday.

The tax administrator will make public the changes by end-January and present the reform proposals in the budget for the next fiscal year, said Dr Nasiruddin Ahmed.

“We are trying to rationalise the tariff structure and remove anomalies in the taxation system to encourage more taxpayers to submit value added taxes, customs duties and income taxes,” he said.

“Now we are revising the VAT Act and the First Schedule of the Customs Act, and will make public the changes on January 27. We hope to present and pass the reform proposals in the next finance bill in June 2010,” he added.

The NBR chairman was speaking at a discussion on ‘Complexities in the Income Tax Laws: A Quest for Simpler Taxation’, organised by International Business Forum of Bangladesh (IBFB), in Dhaka.

“Modification to the First Schedule of the Customs Act will help simplify customs appraisal, while the reformed VAT structure will help entrepreneurs pay taxes under a single VAT registration,” he said.

At present a high duty structure is in place for industrial raw materials, which disrupts growth. The board considers revising the present tariff structure for industrial raw materials to make it more pragmatic. Also, it plans to reduce supplementary duties.

The ‘First Schedule’ of Customs Act includes general rules for interpretation of the Harmonised System Code, which is essential to pay taxes.

“If we can simplify the entire taxation system, it will help increase revenue collection,” Ahmed said, adding that the NBR is working to introduce an online tax payment system by next month to upgrade the existing tax returns submission procedure.

“We have signed a memorandum of understanding with International Finance Corporation to initiate the online tax payment system. In this process, the taxpayers will be able to pay tax online from January,” said Ahmed.

“Simultaneously, we are trying to enhance the board’s transparency and accountability further by initiating a Digital NBR,” he said. “Introduction of an effective online system will also reduce complexities and weaknesses related to ‘tax at source’.”

The NBR chief said they will set up a national data centre to provide adequate information to help taxpayers avoid hassles.

Dr Mashiur Rahman, economic affairs adviser to the prime minister, said the tax structure should be reshaped to widen the tax net and increase revenue collection.

“If the tax structure gets a new shape, the government will earn more revenue. For example, the government should bring the agricultural sector under the income tax system,” he said.

If the farm sector is taxed, the government will earn at least 10 percent to 20 percent more revenue than before, he said.

Speakers at the discussion also stressed the need for taking necessary measures to strengthen the tax administration.

“The government should recruit more people to improve NBR’s performances. The tax administration body needs more budgetary allocation and investment to enhance its performance,” said Prof Mohammad Ali Ashraf, a lawmaker.

“Tax administration should be computerised and a complete database should be there to help taxpayers get information regarding income and corporate taxes,” he said.

MK Anwar, another lawmaker, and Mahmudul Islam Chowdhury, president of IBFB, also spoke at the discussion.

sayeda@thedailystar.net

Dhaka liberalises investment policy

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Dhaka liberalises investment policy
Thai entrepreneurs told at Bangladesh road show
Unb, Bangkok

Commerce Minister Faruk Khan here yesterday called upon Thai investors to invest more in Bangladesh’s potential sectors as the country liberalized investment policy much more than other South Asian countries and announced the Industry Policy 2009 with a new vision.

“The policy has given more emphasis on private sector. I would urge private-sector leaders of both the countries to reap fruits of these policies to march forward,” he said addressing the opening session of “Bangladesh Road Show 2009 in Thailand ” held at the Miracle Grand Hotel in the Thai capital under the government’s current quest for foreign investment.

The Bangladesh-Thai Chamber of Commerce and Industry (BTCCI) in cooperation with the Board of Investment (BOI), Thailand, the Thai Embassy in Dhaka and Thai-Bangladesh Business Council (TBBC) and Bangladesh Embassy in Thailand staged the road show.

A 39-member business delegation, including BTCCI President MA Momen, and over 100 Thai entrepreneurs participated in the show.

Objective of the campaign was to focus Bangladesh’s immense opportunities in promising sectors as well as to induce prospective Thai investors into investing in Bangladesh.

Deputy Secretary General of the Thai Board of Investment Ajarin Pattanapanchai also spoke in the opening session.

Referring to the objective of the road show, Faruk Khan said the exposition was organised to highlight jute, leather, pharmaceuticals, power and energy, health and hospitality, agro-food, roads and highways infrastructures, tourism and travel sectors of Bangladesh and Thailand.

The minister hoped that the programme would help reduce trade gap between the two countries and increase potential of trade, commerce, investment and other economic activities between the two countries.

He noted that the existing bilateral trade figure is not Satisfactory and said the balance is very much in Thailand’s favour.

Bangladesh exported products worth US$39.31 million to Thailand while its import bill was US$529.72 million in 2008-09 fiscal year. In 2006-07, exports from Bangladesh fetched USS$21.85 million as against imports costing US$214.68 million.

The commerce minister emphasised finding out practical ways and means for furtherance of the relations between Bangladesh and Thailand as there is huge potential to increase the bilateral trade, business and economic cooperation between the two countries.

Two sessions on “Sectors of Opportunities in Bangladesh ” also focused on eight important sectors which include pharmaceuticals, capital market, jute and jute goods, tourism and travels, IT and telecom, leather and leather goods, fisheries, textile and RMG.

ADB signs deals with 12 banks to boost export-import trade

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ADB signs deals with 12 banks to boost export-import trade
FE Report

The Asian Development Bank (ADB) has signed deals with 12 local private commercial banks for expansion of its Trade Finance Facilitation Programme (TFFP) in Bangladesh.

Under the agreement, the banks will be able to offer more trade financing support to their clients particularly exporters and importers through international banks.

The banks are Bank Asia Ltd., BASIC Bank Ltd., Dhaka Bank Ltd., Dutch Bangla Bank Ltd., Eastern Bank Ltd., Export Import Bank of Bangladesh Ltd., National Bank Ltd., Premier Bank Ltd., Prime Bank Ltd., Southeast Bank Ltd., Standard Bank Ltd., and United Commercial Bank Ltd.

The signing ceremony was held at a local hotel Thursday morning. Chief executives and senior officials of the banks concerned were present on the occasion.

“We’ve taken the TFFP aiming to increase trade volume regionally as well as globally,” Steven Beck, head of Trade Finance Capital Markets and Financial Sectors Division and Private Sector Operations Department of the ADB, told the FE.

The TFFP was set up in 2004 and was expanded to a $1.0 billion programme in March this year after ADB perceived a growing and urgent need to help address the lack of finance that was holding back trade, particularly in developing economies.

Under the programme, the triple-A rated ADB provides loans and guarantees through, and in conjunction with, local and international banks to back trade transactions.

“We’ve planned to include more commercial banks of Bangladesh under the TFFP aiming to facilitate foreign trade,” Paul Heytens, country director for ADB’s Bangladesh Resident Mission, told the FE.

He also said some firms in Bangladesh, particularly smaller companies, find it difficult to get hold of the trade finance they need to buy key components and final goods from overseas or to ensure timely payment for products they are selling abroad.

The TFFP is already active in Azerbaijan, Afghanistan, Cambodia, Bangladesh, Indonesia, Nepal, Pakistan, Sri Lanka and Vietnam.

The TFFP is scheduled to expand in the Philippines, Mongolia and Uzbekistan in the first quarter of 2010, to be followed in Kyrgyzstan, Turkmenistan and Tajikistan, to be followed in all other Central Asian countries over the course of the rest of 2010, the Manila-based multilateral donor agency said.

The TFFP supports developing countries’ banks by providing resources to support trade and facilitating partnerships with international banks. “It supports small and medium -sized firms by providing guarantees and loans and promotes regional cooperation,” the ADB added.

DCCI help line for submission of online co return

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DCCI help line for submission of online co return
FE Report

President of Dhaka Chamber of Commerce and Industry (DCCI) Zafar Osman inaugurated a help line centre for submission of online company return to the Registrar of Joint Stock Companies and Firms (RJSC) at DCCI in the city Monday.

Joint Secretary and Registrar of Joint Stock Companies and Firms Ahmedur Rahim and Joint Secretary of the Ministry of Finance Amalendu Mukherjee were present at the inaugural function, said a press release.

The DCCI President, in his speech on the occasion, termed it another step forward towards public-private-partnership (PPP) initiative.

He assured the RJSC of all possible support from DCCI in this connection.

Mr Ahmedur Rahim said when online submission of company return will be implemented, it would save time and make it hassle-free.

From now on, any company, or organisation will be able to prepare its own accounts and submit return using a security number given by RJSC from the return filing option at www.roc.gov.bd.

Solar panels light up remote CHT

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Solar panels light up remote CHT

The solar panel on a tin-shed house of a Marma family at Aungsajai Karbari Para in Rangamati helps them earn better income while children learn lessons at night. Many indigenous people in hill areas now use such solar panels.Photo: STAR

Porimol Palma, back from Rangamati

Electricity generated from solar panels in remote parts of Chittagong Hill Tracts (CHT) is helping indigenous communities to involve themselves in new income-generating activities.

Traditional income sources of the hill people are fishing, jhum cultivation and selling daily labour. But they are now rearing goats and cows, weaving clothes and making bamboo baskets in the extra hours into the night thanks to power generated by solar panels.

“On an average my income is now Tk 80 daily, which was Tk 50 when we had to use kerosene lamps only three years back,” 40-year old Anil Kumar Chakma told The Daily Star during a visit to his Sagu Para village, 10km off Rangamati Sadar.

Anil got a 50-watt capacity solar panel at Tk 28,500. He got a grant of Tk 15,000 from the United Nations Development Programme (UNDP), while he has paid the rest of the money in monthly instalments of Tk 205.

UNDP provides grants of Tk 4 lakh to each of around 2,600 Para Development Committees (PDC) formed under a project titled “Promotion of Development and Confidence Building in CHT.” The PDCs then decide to buy solar panels or cows and goats for its members to generate income.

The project started in 2003 with support from European Commission, Canada, Denmark, USA, Norway, Australia and Japan to improve socio-economic status of the poorer communities in Rangamati, Bandarban and Khagrachhari.

According to official statistics, 62 percent people in CHT are absolute poor (intake of per person per day is 2,122 kilo calorie), while 36 percent are hardcore poor (1,805 kilo calorie).

National figures are 39.5 percent and 17.5 percent for absolute and hardcore poor.

Infant and maternal mortality rates and school dropout rates are also higher in CHT than that of national figures because of two decades of conflicts. But hills people are now aspiring to live a peaceful life following the CHT peace accord signed in 1997.

On the sideline of a community experience-sharing meeting with a high-level delegation of the development partners on November 26, Anil Kumar said it was easy for him to pay the monthly instalments against the solar panel, which has a guarantee for 20 years, and helps him save money for not using kerosene oil.

“With the savings I can buy bulbs and battery as and when go out of order. While we had used kerosene oil, we could not buy it during the rainy days that hampered the study of my children. But now they are not facing such problems.”

“As we get electricity from solar panels, we can weave clothes extra hours at night, charge mobile phones, cook in ovens and watch televisions,” said Bharati Chakma, 35, while sharing her experience with the delegation.

They can also learn good practices in agriculture and handicrafts through televisions, she said, adding that they also bought cows and goats and have rice-husking mills, which help them supplement their income.

Akkhoya Mong, a leader of Aungsajai Karbari Para PDC in Rangamati, said they bought 37 cows with Tk 2.8 lakh in 2004 and after three years sold them at Tk 4.16 lakh. Of the money, Tk 2.76 lakh has been deposited to a bank while some corrugated iron sheets and solar panels bought for the members using rest of the money.

They meet monthly to discuss their problems and the means to overcome those.

“Such sharing meetings give us confidence. Now we also go to banks and other offices in the towns. But a major problem for us is transport,” Mong says.

“Yes, these people are coming out, but they need better negotiation skills to sell their products. A major problem they face is the land dispute. Once land disputes are over, I am sure their lives will be more stable and peaceful,” said Patrick Sweeting, project director of CHT Development Facility.

Rice bran oil eyes market

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Rice bran oil eyes market
Sohel Parvez

A new avenue is set to open up on the edible oil market as Rashid Oil Mills Ltd has moved to extract oil from rice bran. Company officials expect that the product will attract a wide spectrum of consumers.

The company said it set up a plant in Baharpur area of Ishwardi in Pabna by investing about Tk 20 crore.

The new entrant with a daily capacity of producing between 60-84 tonnes oil from the extraction of about 300 tonnes of rice bran, is expected to supply between 18,000-25,200 tonnes of rice bran oil a year to market.

“We have been inspired by the popularity of rice bran oil in India. It’s a vegetable oil and has various health benefits,” said Abdur Rashid, managing director of Rashid Oil, a concern of Rashid Group, known for marketing fine rice such as miniket in bulk quantity.

Rice bran oil is the oil extracted from the germ and inner husk of rice. It is suitable for high-temperature cooking methods such as stir frying and deep-frying. It is popular as cooking oil in several Asian countries, including Japan and China.

Traditionally, potato chips, rice crackers, and even French fries have been fried in rice bran oil in parts of Asia. In the US, rice bran oil is currently being used in upscale snack food production and restaurants.

Rashid Oil attempts to make rice bran oil at a time when Bangladesh consumes about 13 lakh tonnes of edible oil a year — mostly imported by private refiners.

In Bangladesh, rice bran is used mainly for preparing feed for poultry, fish and cattle. Rashid got the idea of producing oil from rice bran after he had witnessed demand from Indian buyers for bran produced in his rice mill.

He said his rice mill would meet part of the raw materials supply required for oil production. The rest of the supply will come from local market.

Rashid said rice barn oil could be used in foodstuffs. “It’s a cholesterol-free oil.”

“We expect to put our rice bran oil up for sale by August next year. The prices of our rice bran oil will be almost equal to the prices of soybean oil.”

sohel@thedailystar.net

Coriander wafts flavour in Chapainawabganj

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Coriander wafts flavour in Chapainawabganj
Rabiul Hasan Dollar, Chapainawabganj

Coriander cultivation is gaining popularity among farmers in Chapainawabganj as it has become profitable because of the low costs of production and easy farming methods.

Farmers in the district are now cultivating coriander leaf commercially and earning handsome amounts of money.

They have been marketing for the last five years coriander of over 500 maunds a day to different parts of the country, especially to Dhaka, after meeting local demand in the peak season.

The herb was earlier cultivated only on small plots around homes for family consumption and sale at local markets.

Now it is grown on a large scale in the shoal areas of Shibganj and Sadar upazilas.

Sundarpur, Shahjahanpur, Charbagdanga, Narayanpur and Debinagar unions in Sadar upazila and Panka, Durlavpur, Ghorapakhia and Uzirpur unions in Shibganj upazila are well known for coriander farming.

“The herb is widely cultivated between October and February at very little costs in shoal areas, considered suitable for coriander cultivation,” said an official at the regional office of the Department of agriculture Extension.

“Coriander cultivation needs only Tk 2,500 to Tk 3,000 to cultivate a bigha of land, which sells between Tk 12,000 to Tk 15,000,” accoprding to a farmer in Bagdanga.

Over 2,000 farmers have cultivated coriander this season on 130 hectares in the district.

Bangladesh road show in Thailand tomorrow

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Bangladesh road show in Thailand tomorrow
Unb, Dhaka

A 39-member business delegation led by president of Bangladesh Thai Chamber of Commerce & Industry (BTCCI) MA Momen will leave for Thailand today to attend Bangladesh Road Show-09 Thailand in Bangkok.

Objectives of the show will not only be to focus Bangladesh’s immense scope in promising sectors but also to induce prospective Thai investors for investing in Bangladesh.

The prospective sectors include pharmaceuticals, capital market, jute and jute goods, tourism and travels, IT and telecom, leather and leather goods, fisheries, textile and RMG.

The BTCCI in cooperation with Board of Investment, Thailand, Thai Embassy in Dhaka and Thai Bangladesh Business Council (TBBC) and Bangladesh Embassy in Thailand will stage the road show.

Commerce Minister Mohammed Faruk Khan will formally inaugurate the show at Miracle Grand Hotel.

The success of this programme will help reduce trade gap between Bangladesh and Thailand.

Post offices to go automated

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Post offices to go automated
Star Business Report

The country’s post offices will go under automation within a year, breathing a new life into the technology-lagged department.

Bangladesh Post Office has teamed up with Synesis IT, a local information technology firm. Under the Tk 32 crore deal signed between the two sides yesterday, as many as 84 post offices, including the principal ones, in 64 districts countrywide will go automated.

AKM Shafiur Rahman, additional director general (planning) of Bangladesh Post Office, and Shohorab Ahmed Chowdhury, managing director of Synesis IT, inked the agreement.

Experts think the new system will help remove the prevailing anomalies and corruption in postal services.

Synesis IT will build the required software solutions for post office automation, a device that facilitates a customer’s access to monitoring his or her status when any service is asked for by signing in respective accounts.

Customers will get faster money transfer and other postal services. The government’s postal services have weakened in the last few years, as other alternative handy technologies like mobile phone hit the market.

At present, 9,876 post offices are providing services to the people across the country. The services include letter and document delivery, domestic mail service, emergency mail service, domestic express service, electronic mail service, postal life insurance, savings certificate and money order.

Speaking at the signing ceremony, Posts and Telecommunications Minister Rajiuddin Ahmed Raju pointed his finger at the age-old legal framework for Bangladesh’s post office.

“The act of 1898 is now under review and will be amended in a way that the post office authority can do whatever it deems necessary for offering people better services,” the minister said.

Elaborating the two-phase automation, Synesis MD said firstly the new technology will be installed, and then postal officials will go for a massive training to adapt to it.

“Adaptation to the new system will be the main challenge for the officials accustomed to traditional devices,” said Shohorab Ahmed Chowdhury.

Hasanul Hoque Inu, chairman of parliamentary standing committee on the Ministry of Posts and Telecommunications, was also present.

New IMO rule boon for local ship breakers

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New IMO rule boon for local ship breakers
Jasim Uddin Haroon

The country’s ship scrap market is likely to remain stable for the next few years, as new IMO rule forces hundreds of tankers to go into ship-breaking yards from April 2010, ship breakers said.

The International Maritime Organisation (IMO), in its recent assembly held in London approved single hull tanker elimination rule.

A hull is the watetight body of a ship or tanker, above the hull comes the superstructure and deckhouse.

This will ensure adequate supply of MS rod raw material in the country as Bangladesh’s steel manufacturers largely depend on the ship scraps to produce the construction material.

“Our sector is expected to remain stable for the next few years as supply side of old ships will improve sharply from April 2010,” Captain Mohammed Anam, a senior consultant of Bangladesh Ship Breakers Association (BSBA) told the FE after attending the London conference.

“We will break the large chunk of the old oil tankers to be scraped from May next year as Bangladesh is the number one player in ship scraping in the world,” Anam added.

The UN body in its rule said all single hull oil tankers will become unfit after April 2010 as these have been affecting the envirnment to a great extent.

Currently, single hull tankers account for over 800 mostly carrying Greek, Maltese, Librarian, Bahamian and Singaporean flags.

Local ship breakers who supply around 2.0 millon tonnes of scraps each year said prices of used steel materials would only be competitive if vessel supply was ensured.

The ongoing economic recession forced many to scrap their vessels resulting in increased supply of old ships in the Bangladesh’s ship breaking yards.

Local ship breakers supplied 2.2 million tonnes of scraps in 2008-09 fiscal year.

The currnet prices for each tonne of non-rollable scrap is Tk 24,000 and rollable Tk 27,000. It reached between Tk 50,000 and 52,000 prior to the global recession.

BSBA presdient Md Zafar Ahmed said: “The IMO rule will be a boon for us and our market will not become volatile any time soon.”

The steel market remained stable over the past one year as the ship breakers had supplied adeqaute quantity of scraps to the re-rolling mills.

Curretly, each tonne of quality mild steel rod is being sold between Tk 43,000 and Tk 44,000 against Tk 75,000 and Tk 78,000 earlier.

Bangladesh’s around 200 steel and re-rolling mills consume around 70 per cent ship scraps to produce around 2.4 million tonnes MS rod annually.

Dhaka applies for Egmont Group membership

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Dhaka applies for Egmont Group membership
Siddique Islam

Bangladesh has applied for membership of Egmont Group to operate its newly-established financial intelligence unit (FIU) in line with international standard, officials said Monday.

Malaysia, an Egmont Group member country, made the proposal for inclusion of Bangladesh in the Toronto-based Egmont Group, which was seconded by Thailand, another member country of the Group.

The Egmont Group, formed in 1995, is the coordinating body for the international group of FIUs. It has now 106 members across the world to promote and enhance international cooperation in anti-money laundering and counter-terrorist financing.

Both the countries have raised some legal issues and suggested that Bangladesh should comply with the legal matters shortly that would facilitate the process of obtaining her membership in the group.

The countries particularly raised the matters of Bangladesh Bank’s practice of issuing circulars without amending existing acts relating to anti-money laundering and anti-terrorism, the central bank officials said.

They said both the government and the central bank of Bangladesh are now working to comply with the legal issues.

“We’ll invite the concerned authorities of Malaysia and Thailand to visit Bangladesh for discussion of the legal issues,” a senior official of the Bangladesh Bank (BB) told the FE.

He also said the BB will invite the Bank Negara Malaysia, the central bank of Malaysia, and the Anti-Money Laundering Office (AMLO) of Thailand to send their representatives for discussion of the issues.

The AMLO serves as the Financial Intelligence Unit for law enforcement agencies in Thailand. As such, a primary function is to collect and analyse various reports submitted to AMLO by financial institutions and other sources of information in order to identify subjects for investigation.

“We are hopeful about receiving result relating to obtaining membership of the Group by the end of 2010,” the BB official said, adding the central bank is working to implement the recommendations of mutual evaluation report on Bangladesh, prepared by the Asia Pacific Group (APG) on Money Laundering.

David Shannon, principal executive official of the APG, is now in Dhaka for providing training to both officials and policy makers for implementation of the reports.

Mr. Shannon arrived in Dhaka Saturday last for a three-day visit to facilitate implementation of the reports.

In 2008, Mr. Shannon led a five-member expert team from the APG to prepare the report after revelation of the country’s overall performance in curbing money laundering and alleged terror financing.

The expert team has already submitted the report to the concerned authorities of Bangladesh for implementation within the next five years.

“The APG team prepared the report in line with the Financial Action Task Force (FATF) on Money Laundering recommendations,” another BB official said, adding that the FATF earlier approved 49 recommendations to curb money laundering and terror financing.

The FATF is an inter-governmental body, whose job is to develop and promote policies, both national and international, to combat money laundering and check financing of terrorism.

Bangladesh is now serving as a member of the APG, a regional anti-money laundering body, which is a part of the global network.