JAICAF interested to facilitate technology-based agricultural info in Bangladesh

http://www.newagebd.com/2010/apr/24/busi.html#9

JAICAF interested to facilitate technology-based agricultural info in Bangladesh
United News of Bangladesh . Dhaka

Japan Association for International Collaboration of Agriculture and Forestry has expressed its interest to help the government in disseminating technology-based agricultural information services to the rural farmers in the country.

They showed the interest when a two-member JAICAF delegation, led by its technical advisor Kichiji Yajima, on Wednesday met with Agric-ulture Information Service director M Nazrul Nazrul Islam at the latter’s office.

During the meeting, the delegation also showed interest in setting up rural community radio, agriculture information and communication centre to reach IT-based agriculture services at the farmers’ doorsteps.

Talking to UNB, the AIS director said that the Japanese delegation lauded the AIS initiative on farmers TV and AIS website featuring agriculture related information.

He said the Japanese team agreed to cooperate with the government in empowering the farmers through their introduction with the agriculture related information as well as to help the government’s vision in building digital Bangladesh. The AIS director said the more the farmers will have access to information like marketing information, the chance of incurring financial loss will reduce.

BGMEA to set up world class lab for apparel chemical tests

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BGMEA to set up world class lab for apparel chemical tests
Refayet Ullah Mirdha

Bangladesh is going to launch a world class testing firm for the first time in the country to conduct chemicals and dyes tests of exportable apparel items, said Abdus Salam Murshedy, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

At present, the apparel exporters test the samples of exportable goods from different foreign testing firms for certification.

BGMEA will sign a memorandum of understanding (MoU) with Spanish giant clothing retailer brand Inditex at Luck AÑO in Spain on April 29.

“Inditex will provide all technical and other supports to build the testing firm at BGMEA office,” Murshedy said.

Inditex Group, one of the world’s largest fashion retailers, has 4.607 stores in 74 countries.

The group comprises more than 100 companies operating in textile design, manufacturing and distribution.

The BGMEA leader also said exporters will have to pay $30 for every test from the proposed testing firm. The charges payable to some recognised testing firms like Bureau Veritas, SGS and ITS range from $200 to $300 per test.

“The country will immensely be benefited by the proposed testing laboratory, as time and cost for such tests will come down significantly,” Murshedy said.

Professor Dr AAMS Arefin Siddique, vice-chancellor of Dhaka University, Abdus Salam Murshedy, all four vice presidents of BGMEA.—Nasir Uddin Chowdhury, Md. Shafiul Islam Mohiuddin, Faruque Hassan and Md. Siddiqur Rahman— are scheduled to attend the MoU signing ceremony in Spain.

Teachers, students and experts from the Department of Chemistry at Dhaka University will cooperate in setting up the testing firm.

Country gets new land

http://www.thedailystar.net/newDesign/news-details.php?nid=135529

Country gets new land
Study reveals 1,790sq km landmass emerges out of Bay for incredible rate of sedimentation

Pinaki Roy

Even as many worry Bangladesh will shrink in size because of global warming, a new study shows that the country has actually grown in landmass equal to five times the size of Dhaka city.

The new land has emerged in the Meghna estuary, where sediments flow down from the Himlayas and collect into charlands. The study found that the 8.5-magnitude 1950 Assam Earthquake increased the sediment flow and has added a net increase of 1,790 square kilometers to the country’s land mass.

“More charlands have emerged than we have lost due to river erosion over the years,” said Dr. Maminul Haq Sarker, a geo-morphologist who conducted the study at the Center for Environment and Geographical Information System (CEGIS).

The new land, which emerged mostly in Noakhali, was discovered when Sarker and his research team analyzed satellite pictures and other data from 1943 to 2008 tracking sediments coming from the Himalayas and flowing down the Padma (Ganges in India) and Jamuna (Brahmaputra) rivers. The rivers deliver about one billion tons of silt a year from India, Nepal, China , and Bhutan to the Megnha estuary within the Bay of Bengal.

The study found that the 1950 earthquake accelerated the sediment flow by causing huge landslides in the Himalayas, dumping an estimate 45 billion cubic meters of earth into the rivers. Within a few years after the 1950 earthquake, silt and clay began to rapidly accumulate in the estuary. In all, the sediment added 2970 square kilometers in new charland while 1180 square kilometers were erodeda net gain of nearly 1800 square kilometers.

Beside Noakhali, new land has accumulated at the Patuakhali, Shariatpur, Barisal and Chittagong districts.

The findings, formally released yesterday, shines a ray of hope on otherwise dire predictions by groups such as the International Panel on Climate Change (IPCC) that Bangladesh will lose about 17 percent of its land area because melting polar ice daps will increase sea levels.

But Sarker cautioned more research is needed.

“This is an indicative study,” he said. “We need to continue our research to say something concrete.”

“Now we might think to battle the climate change challenge in different way if we can use the sediment in planned way,” he said. “We can recover certain amount of our land mass from the aggression of rising sea level.”

Citing a recent study of two American scientists, Saker said that the research suggests that one-third of this sediment is deposited on the floodplain and tidal plain of Bangladesh, thus continuously raising the land. One-third of the sediment is deposited on the estuary thus building new islands. The final third is lost in the deep ocean, he said.

The research also found the main reason behind the erosion of 230 square kilometers at Bhola Island, which many regard as an victim of rising sea levels due to climate change, was instead caused by the shifting flow of the Meghna channel. The shift also eroded a total of 195 square kilometers of land from Sandwip and Hatiya islands.

Jute goods exports up by 49 pc

http://www.newstoday-bd.com/frontpage.asp?newsdate=#25783

Jute goods exports up by 49 pc
News Report

Export earnings from jute sector marks a sharp rise in the first eight months of the current fiscal as exports in jute products rose by 49.18 per cent and raw jute by 28.89 per cent following growing demand for the eco-friendly fibre in the global market. Bangladesh earned $270.68 million from jute goods export against the target of $181.44 million and $128.70 million from raw jute export against a target of $99.85 million during the period according to a data released by the Export Promotion Bureau (EPB). Export earnings from jute goods were $177.42 million and from raw jute $87.83 million during the same period of the previous fiscal, which shows 52 per cent rise in export earning from jute goods and 46 per cent from raw jute in the current fiscal.

The prime export promotion authority, EPB, fixed an export target of $282.71million for jute goods while raw jute export target was at $155.58 million for 2009-10 fiscal year. “When country”s major export sectors posted a negative export growth performance of jute sector was bright during the said period,” said a high official of commerce ministry. The performance would definitely encourage the exporters and the industry will regain its previous glory days, he hoped.

The higher demand for biodegradable fibre across the world makes a fresh comeback for the jute sector as people are now looking for eco-friendly products replacing synthetics, according to the industry insiders. “Despite the clouds of economic slowdown shipments of raw jute and jute were able to record a significant rise and that will definitely encourage us,” they added.

Meanwhile, prices of jute moved up substantially due demand hike from domestic and overseas markets, according to the jute millers. They also said these developments have also helped well for the jute farmers, who have received good prices for their jute produce in the current season. “Prospect of Bangladeshi sector seems to be bright as developed countries have started imposing ban on using polythene shopping bags,” they added.

Industry insiders said the country”s yearly jute production is near about 10 lakh tonne. But to grab the global demand it would require more or less one or two lakh tonne raw jute. “So we should concentrate on more jute production to meet the additional export demand, they added. “It is true that demand for diversified and value added jute products are growing in the international market as well as also on the domestic market,” told Md Humayun Kabir, CEO of Beximco Jute Division to The News Today on Thursday. He said many countries have imposed ban on polythene use in a bid to keep ecological balance and as well as restore the soil construction.

Besides, most of the global cereals producing countries are using jute-sacking bags instead of synthetics bags to preserve food grains. “We are the quality jute producing nation having good reputation since long so that these countries are giving priority to Bangladesh to outsource their demand,” he added. He said: “The demand might increase more or less 10 per cent from the existing level. So, to cater such demand we have to increase jute production immediately.”

Australia, Canada, USA, Belgium, India, Indonesia, Thailand, China, Pakistan and Philippines are showing keen interest for jute bags in the local markets.

Many of the importers of those countries have contacted to the respective embassies and high commissions of Bangladesh expressing their interest to import jute bags. “We are receiving huge enquiries regarding jute bag supply from these countries,” said industry insiders.

But we are in doubt whether we will be able to supply jute bags according to their demand due to demand and supply mismatch of raw jute, they added.

While talking to The News Today president of Bangladesh Jute Goods Association Kazi Syedul Alam Babul said demand for jute goods, especially jute bags, is in high demand in the recent years. “We are receiving substantial quantity of buying orders for value added jute goods. But we are refusing orders due to lack of capacity,” he said. He said jute goods producers are getting good prices and the sector became feasible after long time.

Currently Bangladesh exports over thousand types of jute goods as the local manufacturers could develop diversified products for different uses. Many exporters said demand for the golden fibre in India, Pakistan and China is a catalyst to export growth, which they said helped jute farmers receive well prices this year. Export price of raw jute is around Tk 13,000 a tonne, but its price becomes Tk 35,000 when it is converted to sacks, said millers.

Bangladesh exports jute goods over 85 countries including Turkey, Iran and Belgium, Canada, Japan, EU and the United States. It also exports raw jute to 59 countries including Brazil, Vietnam Thailand, China, Germany, India, Pakistan, Spain, and the USA and UK. In the fiscal year 2008-09 the country”s jute goods export was recorded at $269.25 million and raw jute export at $148.17million.

Facilitating shipbuilding industries

http://www.thefinancialexpress-bd.com/more.php?news_id=98288&date=2010-04-23

Facilitating shipbuilding industries

BANGLADESH, over the last thirty-nine years of its existence, has been able to develop only a few export-oriented industries of any significance, the readymade garments (RMG) industries being the main one of them. This alone shows up the imperative of diversifying export activities both to substantially increase export earnings as a whole and to be able to withstand any decline in the fortunes of the existing few well-established sectors.

Shipbuilding has been in focus for the last couple of years. The optimism about this industry arose from the success attained by a number of entrepreneurs. They brought name and fame to Bangladesh as a country with great potentials in shipbuilding by building and handing over to overseas buyers of European origin well in time a few ocean-going vessels. These were found to be well-built and elegant in all respects. Like success fetching more success, the shipbuilders in Bangladesh did not have to look back. The country’s nine shipbuilding companies have reportedly their hands full with export orders of 38 small and larger vessels worth US$600 million with a December 31, 2013 deadline. They could have acquired more orders if only they had capacities to make more ships. Thus, the present shipbuilding companies have the potential of further expansion if they get the necessary support from the government. The extension of such support is likely to interest new entrepreneurs to enter this promising field.

Bangladesh can turn itself into a hub of shipbuilding in the global context for small and medium-sized vessels. Competitive wage costs and easily trainable workers provide this country with a decisive edge over other prospective countries in this industry. The size of the global ship export market now stands at US$ 400 billion annually, on average. And Bangladesh can, in a short period of time, position itself to earn one per cent of this global earnings from shipbuilding. In that case, it can, fairly soon, have export income from this sector equivalent to US$ 4.0 billion annually. And this would be only a beginning with swift additions to such earnings as the local capacities in this sector would rise enabling the taking of more orders progressively.

The shipbuilders here are seeking 30 per cent cash incentives from the government. Their demand merits a careful examination. Reportedly, Bangladesh’s next-door neighbour, India, is providing such incentives to their shipbuilders. With some incentives provided to the ship-building sector, Bangladesh, according to the concerned industry circle, would be in a position to be more competitive than India, China and Vietnam, particularly in the less sophisticated segment of the industry. If such competitiveness can be achieved, this would lead to greater health and vitality of the existing shipbuilding companies. It will, in turn, motivate new entrepreneurs to try out their hands in this growingly lucrative sector.

Apart from opening up a major new source of export earnings, the growth of backward linkages of this industry, opportunities for employment expansion, higher revenue earnings, etc., should make this sector deserving for appropriate government support.

Plan to up power production to 9426MW by 2015

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Plan to up power production to 9426MW by 2015
Unb, Dhaka

The government has a plan to increase the electricity generation to 9426 MW by 2015 through implementing a short, medium, and long-term projects, State Minister for Energy and Power Md Enamul Haque said yesterday.

“This may sound an ambitious plan, but it is a must to increase the power generation to transform Bangladesh into a middle income country,” he told a discussion at the National Press Club in the city, organised by the Energy Reporters Forum.

He also said that about 40 percent of people are living below the poverty line who do not have access to electricity.

At present, the country’s available generation capacity is 3800-4000 MW.

According to the government plan, about 920MW will be added to the national grid by 2011. The generation will be raised to 1369 MW by 2012, 1975 MW by 2013, 1770 MW by 2014 and 2600 MW by 2015.

The minister said that 40-50 percent power will be generated in the private sector while the rest will come from public sector. An Energy Fund is being created to implement the power projects.

He also said that the government is likely to take a decision soon in favour of open pit coal mining.

“If coal is extracted through open pit mining method, we’ll get the optimum output. So, it would be better to go for open pit mining operation after addressing the relevant social issues,” he said.

‘Country can earn forex by exporting minerals of Cox’s Bazar’

http://www.theindependent-bd.com/details.php?nid=170574

‘Country can earn forex by exporting minerals of Cox’s Bazar’
bss, DHAKA

Bangladesh could earn Taka 14,000 crore foreign exchange by exporting a deposits of at least 1.76 million tonnes of minerals in the beach sand of vast areas stretching of Cox’s Bazar district, experts said.

A total of 17 mineral sands deposits containing 23 per cent heavy minerals for an estimated reserve of about 4.45 million tonnes have been identified.

Only nine are economically viable though, said Bangladesh Atomic Energy Commission (BAEC) Chairman Mosharraf Hossain. They are: titanium, ilmenite, zircon, rutile, magnetite, leucoxene, kyanite, garnet and monazite.

He said the price of the mineral deposit could be realized through exports which have high demand in the global market.

The valuable mineral sands mostly zircon, ilmenite, magnetite, garnet and rutile could be extracted on a commercial basis from the vast areas stretching from Najirartek of Cox’s Bazar sadar to Teknaf, he said.
For a decade or so, BAEC scientists have been studying the sea beach where the minerals were found.

The minerals are scattered in an area of about 8,000 hectares of land in Cox’s Bazar district.

Many heavy minerals found in Bangladesh are in high demand, both at home and abroad. For this reason, exploiting such resources will require cooperation or a joint venture with foreign countries with experience in mineral development, Mosharraf said.

Proper exploitation of mineral resources at the Cox’s Bazar sea beach and other points along the coastal belt will open up a new vista of rapid economic development of Bangladesh, he added.

Researchers said that the world’s longest sand beach is endowed with a vast reserve of titanium, zircon, rotail and monanjitis.

Titanium is mainly used as raw material for building aircraft. It has been found at 17 points at the coastal area of Cox’s Bazar and khulna. It is possible to lift 10 lakh tonnes of elmanite from the coastal belt.

With this quantity of elmanite four lakh tonnes of titanium worth Tk 560 lakh crore can be produced, they mentioned. They further said one kilogram of titanium is now sold at 19,500 US dollars to 22,000 dollars. Mexico, India, North America and Australia are the main buyers of this mineral. Titanium is used not only for building aircraft but also for brightening the colour of paints and lifting coal from the mine.

It can fetch huge foreign currency, researchers said.  Exploitation of mineral resources will also generate employment opportunities in the field of research and other sectors, they said.

In an initial survey, researchers found that each ton zircon is worth about Tk 60,000 and others on an average Tk 6,000. The mineral resources were first found in Cox’s Bazar in 1960s and later Bangladesh Atomic Energy Commission started diverse researches.

During early 1970s, a study conducted by the Australian government suggested the Bangladesh government set up a pilot plant in Bangladesh.

Probable extraction saw some development as a pilot plant with the support of the Australian government was set up in Cox’s Bazar in 1975 for segregation of mineral resources from sea beach. BAEC scientists recommended the government set up another plant on a commercial basis but no progress was made so far.

Talking to the BSS, scientific officer M Moshruzzaman of Sea Beach Extraction Centre in Cox’s Bazar said the mineral resources are now being extracted on an experimental basis and these resources are being sold too on a small scale as per the demand of various organisations in Bangladesh.

Locals expressed their opinions in favour of extraction of the valuable mineral resources saying that a number of new industries would be set up in the sea-resource areas generating jobs if the government take any step to extract the resources on a commercial basis.

BRRI innovates new brand of super rice

http://nation.ittefaq.com/issues/2010/04/22/news0265.htm

BRRI innovates new brand of super rice
A Correspondent

Bangalamoti super rice is the 49th brand of rice innovated by Bangladesh Rice and Research Institute (BRRI). The BRRI officials claimed that their innovated rice was no less in quality than Basmati of India and Pakistan, rather it has more production capacity The production of Banglamoti is about 70 mounds per acre compared with Basmati’s 45 to 50 mounds.

There are fine potentialities of this new brand of super rice named Banglamoti in Bangladesh. Farmers can get a good quantity of this crop, even sowing at shrimp hatcheries in Khulna district, sources close to Agriculture officials said. This brand of paddy is equal to Basmati in quality and taste.

On Monday, the harvesting of Banglamoti paddy was formally inaugurated at Karticdanga beel of Dumuria upazilla in which the agriculture officials disclosed that 70 mounds of paddy (42 to 43 mounds in the form of rice) were grown cultivating in one acre of land, the international market price whereof would be about taka three hundred thousands on the basis of taka 200 per kilo, transpiring that a former can make a huge profit by sowing Banglamoti.

In the country of all kinds of aromatic rice, Kalojira sells for taka 4,000 per mound i.e. taka 100 per kilo. So, exporting the new brand of Banglamati super rice rice, Bangladesh can earn a hue foreign exchange. Not only that, the country may throw a good challenge to both India and Pakistan For this, however, State’s initiative and support are necessary.

The Boro season is conducible to Banglamoti. Last season, it was tentatively cultivated in Jessore and there was success. This season a farmer of Dumuria upazilla of Khulna district took personal initiative and selected a shrimp hatchery at Karticdanga beel in the district as the test case. His name is S M Atiur Rahman, Deputy Director, Public Relations and Publications Department, Khulna University.

He took cares of his field on holidays. He said that he collected 15 kilos of seeds from farmer Ayub Ali of Magura’s Seemakhali area at the rate of taka 4,500 per mound. The seeds of Banglamoti look like those of cucumber, slightly longer than BR-28 and the rear side looking like the sword. He added that the seeds were sown on December 10 2009, saplings on January 10, taking 131 days to get result. Atiur Rahman informed that nurturing is the prime job. The expenditure is also sustainable.The application of pesticides is little.

Now the government needs to extend full cooperation to the farmers desirous to grow Banglamati super rice in greater interest. thwart all attempts to destroy the future of this rice.

Construction of $2.4b Padma bridge begins in December

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Construction of $2.4b Padma bridge begins in December
Staff Correspondent

Communications Minister Syed Abul Hossain yesterday said construction of the $2.4 billion Padma multi-purpose bridge would begin in December this year with a target of finishing the work by 2013.

He placed a detailed schedule on the construction plan of the bridge at a joint press conference with the donors at a city hotel.

Ellen Goldstein, country director of World Bank, said donors desired speedy implementation of the bridge but they would not compromise with the work quality.

Abul Hossain said pre-qualification tender document for the main bridge has been approved in concurrence with the development partners by April 10.

Tender notice for pre-qualification of bidders has been published in the newspapers and they have been asked to submit their proposals by June 8, he said, adding that the date will not be extended further.

According to the plan, the government would appoint the contractor for main bridge construction by October 2010 after finalising pre-qualification of the bidders.

Prime Minister’s Principal Secretary Abdul Karim, Communications Secretary Mosharraf Hossain Bhuiyan, ADB Country Director Paul J Heyetns and Japan International Cooperation Agency (JICA) Representative Takao Toda participated in the programme.

Five short-listed consulting firms will submit their proposals on supervision work by May 13 and their appointment is likely to be finalised by August.

The minister told the press that the government started handing over cheques to first-phase project-hit people by recruiting some NGOs for smooth implementation of the resettlement.

According to the ministry proposal, the bridge, which will be 6.15km in length, will connect 19 districts of the south-western part of the country with the eastern part, including the capital, and it will be linked with the Asian Highway.

Of the $2.4 billion financing, different development partners have agreed to co-finance about $2.2 billion, of which the WB will provide $1.2 billion, Asian Development Bank $615 million, Islamic Development Bank $130 million and JICA $300 million.

British firm to generate 200MW power by July

http://www.thedailystar.net/newDesign/news-details.php?nid=135149

British firm to generate 200MW power by July
Contract after purchase body approval
Sharier Khan

The Power Development Board (PDB) yesterday initialled an unsolicited rental power contract with a British company to generate 200 megawatts of power.

According to the deal, 100MW of power would be generated within June 22 and the full-capacity production would be reached within July 28, sources said.

British company Aggreko, one of the world leaders in rental power, will install its diesel-fired power generation equipment in Ghorashal and Khulna or any other site designated by the government.

Meanwhile, the cabinet committee on economic affairs headed by the finance minister yesterday approved a proposal giving waiver from the Public Procurement Regulation (PPR) and Public Procurement Act (PPA) to procure urgent rental power of 1,000MW to 1,500MW without any tender.

Both PPR and PPA bar public procurement without open tenders.

The deal with Aggreko was achieved following the country’s fastest ever negotiation spearheaded by a high-powered committee led by Power Secretary AK Azad. Other members of the committee includes representatives of PDB, the National Board of Revenue, law ministry, power ministry and the Prime Minister’s Office (PMO).

The high-powered committee has also been negotiating for urgent rental power installation with Alsthom of USA, Apac of Australia and a Turkish company. The committee has invited a few more rental power companies including GE of USA, which are yet to hold any negotiation.

Yesterday’s deal was initialled within 12 days of the prime minister’s nod to urgently install 600MW to 1,200MW rental power on unsolicited negotiation basis with experienced companies. The PM made the decision hoping that the unsolicited deals with experienced bidders would minimise the ongoing load shedding from July-August.

The final contract with Aggreko will be signed after the cabinet’s purchase committee gives it a green signal. Sources said the power ministry would seek the committee’s approval next week to ensure the fastest ever implementation of a power contract in the country.

Aggreko has been producing 40MW of rental power in Khulna since 2008 under a three-year contract. The cost per kilowatt-hour from the Khulna plant is Tk 21.52 — the highest tariff of the country.

Without giving any figure a competent PDB source, however, said the power tariff under the current deal would be much lower than that of the Khulna deal with Aggreko.

Sources said the deal with Aggreko could be secured quickly because the company had its equipment ready for mobilisation. So far the other rental power companies could not assure immediate mobilisation of their plant equipment.

“The negotiations with the rental companies mainly focussed on whether they have power generation equipment ready to be mobilised in different places of the country,” said an official.

PDB secretary Azizul Islam and Managing Director of Aggreko (Asia) Devajit Das signed yesterday’s deal at the power division. Finance Minister AMA Muhith, PM’s Energy Adviser Towfiq-e-Elahi Chowdhury, State Minister for power Enamul Haque, Power Secretary AK Azad, PDB Chairman ASM Alamgir Kabir and others were present on the occasion.

After the signing, the finance minister said though the power tariff of this deal was very high, the government would welcome the deal if the company could install the plant within the time frame.

He said for the last 16 months, the government has been trying to ease the country’s power crisis. But due to different problems, including lack of gas supply, the government finally opted for diesel and furnace oil-based power plants which would be costlier than coal and gas-based plants.

The finance minister noted that the country would ultimately have to rely on large-scale coal exploration for power generation and tap regional power grid sharing.

BGMEA to set up warehouse in Spain

http://www.thedailystar.net/newDesign/news-details.php?nid=135220

BGMEA to set up warehouse in Spain
Unb, Dhaka

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) will set up a warehouse in Spain to ease its business operations in the European market.

An agreement was signed between BGMEA and Yu-Kom-Publicidad SL, a Spanish company, at the BGMEA headquarters in Dhaka yesterday.

BGMEA President Abdus Salam Murshedy and Nuria Lopez of Yu-Kom-Publicidad SL signed the agreement.

Yu-Kom-Publicidad will provide unloading facilities for BGMEA members if any company refuses their shipment, allowing the shipment to be stocked at the warehouse until they can be sold at proper prices.

It may be mentioned here that Bangladesh exported a total of $7.218 billion readymade garments to the European Union in fiscal 2008-09.

Work on development of special tourist zones begins

http://nation.ittefaq.com/issues/2010/04/21/news0165.htm

Work on development of special tourist zones begins
BSS, Dhaka

The government has started work on developing ‘special tourist zones’ for promotion of the country’s tourism sector.

To this end, the authorities concerned identified 700 spots from which sites would be selected to develop as tourism zones.

The objective of the programme, to be implemented by the civil aviation and tourism ministry, is to generate employment and earn foreign currency by attracting the foreign tourists.

The government is going to enact ‘Bangladesh Reserved Areas for Tourism and Special Tourism Zones Act 2010.’

The draft of the law has already been approved by the cabinet. This law will prohibit construction of unplanned and illegal structures in the places of tourist attraction.

Civil Aviation and Tourism Secretary Shafiq Alam Mehdi said the special tourist zones would be developed in public-private joint ventures or at individual initiatives.

The formulation of the new tourism law in a short time proved the Prime Minister’s keenness for development of tourism sector, he said.

Development of the sector would create employment opportunities for huge population and earn foreign currencies, he added.

The tourism secretary said the necessary structures would be built and arrangements made in the selected tourist spots for the local and foreign tourists.

The special tourist zones would be set up in a very planned way. The tourism project would be implemented by 2013. Work is also on for adoption of a long-term plan to be implemented by 2021.

Sources said local and foreign entrepreneurs are coming forward with investment proposals because of the tourism-friendly plans of the present government.

Modern Poly set to go public

http://www.thedailystar.net/newDesign/news-details.php?nid=135218

Modern Poly set to go public
Sarwar A Chowdhury

Modern Poly Industries Limited, a concern of business conglomerate TK Group, is set to raise fund from the stockmarket for business expansion.

The Chittagong-based company will float three crore ordinary shares of Tk 10 each using book building method, a modern pricing mechanism for initial public offering (IPO).

With IPO proceeds, the company will acquire a 95 percent stake in Modern Fibre Industries Limited, a sister concern of Modern Poly Industries. It will also use a portion of the fund to repay bank loans and the rest will be added to its working capital.

“We have already submitted a draft prospectus of the IPO to the Securities and Exchange Commission for its consent to commence bidding to discover cut-off price for each share,” said Abul Bashar, chairman of Modern Poly Industries.

“Another objective of going public is to involve general public in our businesses and share the profit with them.”

Pointing out that doing business after investments with bank borrowing is very difficult, as high interest has to be paid for the loan, Bashar said, “We will not require paying any interest if we raise funds from the stockmarket.”

Modern Poly Industries, the paid-up capital of which is Tk 50 crore, will organise a roadshow today to display the company’s key facts to the institutional bidders.

Organising road show is required by the book building regulations, before price discovery of a company’s share.

During the road show, Alliance Financial Services Limited, the issue manager of the IPO, will present Modern Poly Industries’ information, fundamentals, valuation, indicative price and so on to the eligible institutional investors.

Indicative price for each Modern Poly share has already been fixed at Tk 64. Now under book building method, the eligible institutions will be allowed to quote 20 percent up or down from the indicative price for each share. It means the investors will be allowed to offer prices between Tk 51.20 and Tk 76.80.

Modern Poly Industries, which diluted earnings per share as of 2009 was Tk 2.52, established in 1999 as a fully export-oriented company that manufactures “Partially Oriented Yarn” (POY) and “Drawn Texturised Yarn” (DTY) products.

Entrepreneurs of the company are also involved in other businesses such as hatchery, power generation, insurance, synthetic yarn and trading.

Modern Poly Industries is the fourth company that announced its intention to go public using the book building method.

This mechanism was introduced last year to attract large and profitable companies to be listed on bourses.

RAK Ceramics, a UAE-Bangladesh joint venture, is the first company that uses book building for IPO. After RAK, LankaBangla Securities Limited and Alliance Holdings Limited have announced share offloading under book building.

BEACON PHARMA IPO APPROVED

The Securities and Exchange Commission at a meeting yesterday gave consent in principle to Tk 30 crore IPO by Beacon Pharmaceuticals.

Beacon, the paid-up capital of which is Tk 190 crore, will offer three crore ordinary shares of Tk 10 each In another move, the SEC has decided to make it mandatory for newspaper advertisement before setting indicative price of a share under book building method.

Presently, the indicative price of a share is set through bidding by any five institutions from three categories and there is no need for prior advertisement in the newspaper.

But the stockmarket regulator thinks that the bidding process for setting the indicative price of a share may be influenced.

sarwar@thedailystar.net

Country can earn huge forex by exporting Dholaikhal built automobile parts

http://www.bssnews.net/newsDetails.php?cat=0&id=101451&date=2010-04-19

‘Country can earn multi-billion dollars forex by exporting Dholaikhal- built automobile’

DHAKA, April 19 (BSS) – Bangladesh could earn multi-billion US dollars foreign exchange by exporting automobile parts being built at the city’s Dholaikhal to US market as a company is keen on importing automobile products from the local automobile zone, which has propelled from almost zero status.

The US company named ‘New Mil Bert Int. Inc’, which import automobiles, already contacted with Bangladesh Industrial Technical Assistance Centre (BITAC) for sending some samples including bumper bracket, rubber brush and suspension kits worth US$15,000.

Responding to the US company’s offer, the BITAC requested Bangladesh Engineering Industry Owners’ Association (BEIOA) to take over the opportunity and later the BEIOA agreed to produce the automobile products.

“The automobile samples are now ready. We have maintained highest quality and those will be sent to the US market next week,” Abdur Razzaque, president of the BEIOA told BSS today.

He said the US company is now importing the automobile sample from Taiwan and India, he said adding that Bangladesh is likely to will get huge export order once the sample is okayed.

It also assured the BEIOA of providing technical support to build expensive control numerical control (CNC) machine to expedite manufacturer, said Razzaque.

“We have set a target to surpass the number one export earning garment sector within few years by exploring untapped potential of local automobile products,” said BEIOA president.

Razzaque said, the sector needs the government support for technological upgradation, planned infrastructures and luster of all items.

Besides, an area has already been located for setting up an industrial park under the public-private-partnership (PPP) initiative.

“We do not need aid from the government or foreign donors. I we get the government’s policy support, the sector will show how it can change the country’s economic status,” said the optimistic entrepreneur.

The sector mainly involves three kinds of works—making complete machinery, construction of equipment and spare parts.

There are currently around 40,000 small-scale light engineering enterprises in the country, which directly involves six lakh people, according to Board of Investment (BOI) statistics.

The sector manufactures more than 10,000 types of items and the BEIOA can now supply light engineering products worth Taka 2000 crore a year for local industries.

Trade with China on a robust rise again

http://www.newagebd.com/2010/apr/20/busi.html#2

Trade with China on a robust rise again
Surge in import major cause: analysts
Kazi Azizul Islam

The country’s trade with its largest trading partner China increased robustly in the first two months of the current year indicating a rise on raw-materials and equipment procurement by industries and consumers goods by importers.

Analyst pointed out that a massive rise in imports from China might have been caused by importers diverting their procurements to China while strengthening of Indian Rupee made procurements from India costlier.

Sources at the office of the chief controller of exports and imports told New Age that Bangladesh-China trade increased by 58 per cent to $820 million in January-February of the current year.

Imports from China increased by 59 per cent to $790 million in the period while exports amounted $20 million with 35 per cent year-on-year growth, said one senior official, citing a latest report of Chinese government.

Bangladesh’s major imports from China include fabrics, non-cotton yarn and accessories for garment industries, machineries, chemicals, intermediary raw-materials for industries and fertilisers.

Hundreds of consumer goods including electrical and electronic appliances, furniture, footwear, glassware, plastic products, toys, and food items including spices and fruits also make significant amounts in import bills.

‘Imports from China made unexpected growth in the first two months of the current year indicating that local industries are on the recovery of productions,’ said a senior official at the office of chief controller of exports and imports.

He pointed out that with the Indian Rupee becoming stronger Indian suppliers might have lost their competitiveness with the China getting more orders from the Bangladeshi importers.

If formal trade is considered, India is the second largest source for industrial raw-materials and consumer goods imported in Bangladesh. In recant years, Indian suppliers have been facing a fierce competition in Bangladesh from their Chinese counterparts.

In 2009, the two-way trade between Bangladesh and China valued at $4.58 billion registering a 2.2 per cent negative growth against the bilateral trade worth $4.8 billion the previous year.

In the past year, Bangladesh’s imports from China amounted to $4,442 million and 2.5 per cent decline on previous year’s imports worth $4,556 million. Exports in 2009 had registered 7 per cent increase year-on-year to $141 million.

Trade analysts attributed that decline in Bangladesh’s imports, especially raw materials and machinery, to the effects of the global recession on Bangladesh’s export industries, especially in the last half of last year.

Bangladesh’s exports to China, for years, remain trapped in a low turnover and product base with significant shipments of raw jute, jute goods, leather and some dehydrated sea fish.