Dipu Moni looks to Japanese, Chinese development fillips

http://www.thefinancialexpress-bd.com/more.php?news_id=118031&date=2010-11-22

Dipu Moni looks to Japanese, Chinese development fillips
EPA with Tokyo, Kunming bid stressed

Sheikh Shahariar Zaman

The government is considering signing economic partnership agreement (EPA) with Japan to strengthen bilateral relations between the two Asian countries.

“The bilateral trade between the two countries has reached $1.3 billion and in the future we want to sign EPA with Tokyo to make exports and imports and investments easier,” said an official at the foreign ministry.

The EPA covers the entire range of issues including export and import facilitation, customised tariff rate structure and investment opportunities.

Japan has EPA with a number of countries where it has significant economic interests.

The government is also planning to create an ‘exclusive industrial corridor’ under the framework of export processing zone for the Japanese investors, the official said.

“Foreign minister Dipu Moni on Sunday held a meeting with a Japanese business delegation on the issue and sought their assistance in this regard,” he said.

The minister asked the delegation to fund the Padma bridge, Dhaka-Chittagong four-lane highway and help develop the railway infrastructure, he added.

“The Japanese team also expressed their interest in the issues,” he said adding, “Prime Minister Sheikh Hasina will visit Japan this month and it is expected she will strike a deal with the Japanese government for funding Padma bridge.”

“Japan has helped us in developing the Bangabandhu Bridge and this time we seek their help in building the Padma bridge,” he said.

Another foreign ministry official said Dr Dipu Moni sought assistance from a Chinese delegation to materialise the Kunming initiative when they met her at her office Sunday.

The Kunming initiative will physically link Bangladesh and China and it could be done through road and rail networks, he said.

“If the network can be developed through Myanmar, Chinese products can be shipped to Dhaka at lower costs and it is also important for Bangladesh to make the deep-sea port viable,” he added.

Bangladesh also sought $1.2 billion in Chinese assistance in developing the deep-sea port in Sonadia to make the country a regional hub of cargo handling taking in the entire region stretching from China to Nepal and Bhutan.

“Dr Dipu Moni sought Chinese support in agriculture, climate change management, renewable energy and infrastructure,” the official said.

The foreign minister urged the Chinese delegation to request their business people to invest more in Bangladesh that offers attractive tax and legal regime along with cheap and efficient workforce.

Nordic cos in Bangladesh to launch business chamber tomorrow

http://www.newagebd.com/2010/nov/22/busi.html#6

Nordic cos in Bangladesh to launch business chamber tomorrow
Diplomatic Correspondent

The Nordic Chamber of Commerce and Industry will be launched in Dhaka on Tuesday, according to a news release of the NCCI.

Nordic companies in Bangladesh have formed the NCCI for establishing a platform to promote and serve the Nordic business community here, to provide a platform for creating and safeguarding new business opportunities and to promote bilateral trade, services and investments between the Nordic countries and Bangladesh, and reportedly also to help improve the business and ethical environment.

The founding members and sponsors of the NCCI include ERICSSON, Telenor, Brummer & Partners, Logic Management Consulting, Arla, Magnus and Maersk.

Commerce minister Muhammad Faruk Khan and Norway’s environment and development cooperation minister Erik Solheim will jointly inaugurate the launching at a function in the Westin Hotel on Tuesday.

Foreign affairs secretary Mohammed Mijarul Quayes and ambassadors Svend Offing of Denmark, Ragne Birte Lund of Norway and Anneli Lindahl Kenny of Sweden will also attend the function.

The ambassadors said in a joint statement on Sunday that the NCCI will be an important step for encouraging and enhancing trade between the Nordic countries and Bangladesh, the news release said.

Membership of the NCCI is open for all Nordic individuals and all legal entities registered in a Nordic country or in Bangladesh, at least 20 per cent of which are owned by Nordic companies.

Erik Solheim will be in Dhaka today (Monday) for a two-day official visit. He will visit a ship-breaking yard in Chittagong and a disaster management project at Char Kukri Mukri in Bhola. He will also call on finance minister AMA Muhith.

Sugarcane production in Khagrachari

http://www.theindependentbd.com/business/others/19991-sugarcane-production-in-khagrachari.html

Sugarcane production in Khagrachari
Over Tk 26 crore is expected to be earned from sugarcane this year
JAGARAN CHAKMA, back from Khagrachari

Prospects for Sugarcane cultivation in Khagrachari in the three hill districts of Chittagong Hill Tracts (CHT) region appears bright as the soil and land of the district is suitable for sugarcane cultivation than any other districts in the  country, Bangladesh Sugarcane Research Institute (BSRI) officials said. Farmers in the Khagrachhari Sadar, Dighinala, Panchhari, Mohalchhari, Luxmichhari achieved a bumper output of the crop this year as they have  cultivated sugarcane in a scientific method with the consultation and logistic support provided by the BSRI amid a  favourable climate,  the farmers  and BSRI sources said.

Talking to The Independent, scientific officer of BSRI, Dibakar Chakma said, apart from the sugarcanes as part of crop diversification there is a huge prospect for commercial farming of Coffee and Coco, two crops from the equatorial region in the CHT due to its quality of soil and favourable weather. The scientific officer of BSRI said, the farmers there had learnt to prepare molasses by crushing the sugarcane, which was better in quality compared to the sugarcane produced rest in the country.

A total of 8,30 hectares of land was brought under sugarcane cultivation in this year, Dibakar Chakma said, adding that  “over Tk 26 crore  is expected to  be earned from sugarcane this year.” He also said that around 30,000 farmers were involved in sugarcane cultivation this year.

Day by day the sugarcane cultivation is increasing in Khagrachari, as it is a profitable crop than any other crops in the CHT region, he said.

Different high yielding varieties of sugarcane was imported from China, Vietnam, India and Philippine to develop the sugarcane cultivation and fulfill the demand of sugarcane in the country, the BSRI official said. BSRI started a pilot project for extension of sugarcane in CHT from 2006 involving TK 5.60 crore, he said. Sugar cane is grown as a 12-15 month crop in a two year rotation with Aus rice crop during the monsoon season, followed by oilseeds, wheat or vegetables during the dry season, Dibakar said, adding “research efforts will be strengthened to raise yield per hectare through  improvement of variety, better management of water resources, fertilizers and other inputs, improved cropping systems and development of a sugarcane delivery system from farms to the market.” Chiranjib Chakma, a sugarcane farmer of Bhaibonchara union of Sadar upazila of Khagrachhri told The Independent that he had received logistic support from the  BSRI for sugarcane cultivation. I have cultivated two acres of sugarcane this year, providing me an income of  Tk 2 lakhs, Chiranjib said.

But there is a problem to sell sugarcanes as the market demand is high at present, buoyed by the availability of mobile phones which helped  expand our marketing network across the country, he said. Binoy Kumar Chakma, a potential sugarcane cultivator of Dewanpara village under sadr upzila of Kharchhari said, the businessmen from Dhaka and Chiitagong  are coming  to  buy  sugarcane from their field in advance. He also said that the sugarcane was more profitable than any other crops but requires large labour force for the  plantation.

Local shipbuilder to deliver two vessels to German co Nov 26

http://www.thefinancialexpress-bd.com/more.php?news_id=117929&date=2010-11-21

Local shipbuilder to deliver two vessels to German co Nov 26
Western Marine creates history

Pankaj Dastider and Jasim Uddin Haroon

CHITTAGONG, Nov 20: Western Marine Shipyard, a leading shipbuilder of Bangladesh has created a milestone in the country’s shipping industry by successfully launching the largest and longest marine vessels in Bangladesh.

The company is going to deliver the ice class multipurpose vessels of 5200 DWT each – EMS SEA and EMS RIVER – to the German owner Ms Grona Shipping GmbH formally from Chittagong Dry Dock on November 26 next.

Each of the ships has been built at the cost of Tk 1800 million under a contract signed for building as many as 12 ships for the same German company. The company will make complete delivery of all the 12 ships within 2012 as per contract signed in 2008.

Industries Minister Dilip Barua will attend the vessels’ delivery and reception ceremony of the two vessels as chief guest while Martin Biesel, state secretary of the federal foreign office of FRG and Holger Michael, ambassador of Germany in Bangladesh, will be present as special guests.

Each ship is multipurpose dry cargo equipped for carriage of containers having strength for heavy cargo with overall length of 99.53 metres and draught load 9.00 metre and the container capacity is 108 TEUs in the hold and 88 TEUs in the hatches.

Gross tonnage of each of these Antigua flag vessels is 3500 MT and net tonnage is 1382 MT. The export price of each of the vessels is 8.0 million euros (US$11 million).

WMS officials said sea trial of the ships was accomplished by the engineers of the vessels’ German buyer Grona Shipping on November 15 in the sea waters of Bangladesh.

The 40-men strong special team headed by owner of the company came to Chittagong from Germany and joined the day-night sea trial. They made the voyage with the ships at 9.00 am from Chittagong and returned at 9.00 pm at 12 nautical miles an hour in the deep waters of Kutubdia.

The engineers and crew were fully satisfied at the performance of both the vessels after examining their machineries and speed capacity, they said.

WMS managing director Shakhawat Hossain said, the ships have been built with the world’s sophisticated machineries.

He said that it was a great achievement for Bangladesh that it is building 12 highly sophisticated ships for a German company. Building of eight more ships for the German company has been going on at the shipyard in Chittagong.

He said that they have successfully completed two ships now and expressed the hope that other countries would come forward with orders of building bigger ships for them.

Earlier in December 2008, the local ship building giant inked a deal to build 12 vessels for the company.

Sakhawat said, “These vessels are bridge controlled. Bridge controlled vessels are operated remotely having few people on the engine room. Those can also ply on the ice.”

Western Marine Shipyard Ltd was established in 2000. In 2008, the Chittagong-based company set up a Tk2.00 billion shipyard and slipways at Kolagaon on the bank of the river Karnaphuli with orders from European companies to build 18 ships at a price of US$180 million.

BAPEX moves to hunt gas in onshore blocks

http://www.thefinancialexpress-bd.com/more.php?news_id=117927&date=2010-11-21

BAPEX moves to hunt gas in onshore blocks
FHM Humayan Kabir

State-owned petroleum exploration firm BAPEX has taken a massive gas hunt programme in the country’s untapped onshore gas blocks as it is going to appoint foreign contractor for the exploration works, officials said Saturday.

“The seismic survey at the untapped gas blocks in the country’s western region would be started next year. Foreign contractor will conduct seismic survey,” BAPEX Managing Director Murtoza Ahmed Farooq told the FE.

He said, “we have already evaluated bids of foreign firms that participated in the tender invited a few months back.”

Cash-starved Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) would invest more than Tk2.00 billion to explore oil and gas at the block numbers 3, 6, 8 and 11 situated in greater Pabna, Rajshahi, Faridpur, Mymensingh and Manikganj districts.

“We are hopeful of finalising selection of the foreign company to conduct two-dimensional seismic survey in the next month (December),” Mr Farooq said adding the contractor will conduct survey is block numbers 3, 6 and 8.

BAPEX has already conducted survey in block no. 11 and a partial area of block no. 8.

The foreign firm will conduct 2D seismic survey in 3100 line kilometres areas at the untapped blocks in western Bangladesh by December 2012.

“Since we have shortage of equipment and manpower to hunt oil and natural gas, we are appointing a foreign firm as contractor,” the BAPEX managing director said.

He said as the energy demand of Bangladesh has been swelling, which has already walloped the supply chain, the energy division has taken the “first-track programme” to hunt the locations of possible oil and gas reserves.

Attaching highest priority to looking for gas in the untouched onshore areas, the government has decided to provide adequate money for the state-owned energy explorer, producers and suppliers aimed to ensure the country’s long-term energy security.

The caretaker government allocated Tk32 billion in FY2009 for next seven years to mend the impoverished BAPEX, replace more than 20-year old two rigs and arrange adequate experts and tools.

“Since the BAPEX at this moment has had lack of adequate drilling rigs and other tools to start exploration works from next year, we have planned to appoint qualified firms to do the job,” he said.

Amid growing energy crunch in the country, the government has taken initiatives to boost its hydrocarbon exploration and production activities in the untapped areas in the country.

The Petrobangla has said the country’s proven gas reserve will start to deplete in 2012 before drying up completely in 2019 unless new discoveries are made.

Hundreds of factories have failed to go into production due to energy crunch, although the investors have spent hundreds of millions of dollars to build up the facilities.

The untapped block numbers 3 and 6 are situated Pabna, Manikganj and greater Faridpur areas and blocks 8 and 11 are situated in the greater Mymensingh areas.

BAPEX would conduct 2D survey, geophysical and geological studies and delineation of drillable subsurface structure in over 1,000 line kilometres areas in blocks 8 and 11 and 2,100 line kilometres at block numbers 3 and 6.

The country has so far not any gas and oil discovery in the western, northern and southwestern districts, which covered more than half of Bangladesh.

All the existing gas fields are situated in the north-east, eastern, and south-eastern parts of the country.

Jute geotextile holds out immense promise

http://www.thefinancialexpress-bd.com/more.php?news_id=117853&date=2010-11-21

Jute geotextile holds out immense promise

Geotextiles. Source: http://en.wikipedia.org/wiki/Geotextile

Shahiduzzaman Khan

Jute geotextile has immense potential both in domestic and international market as it possesses much more advantages than the synthetic fibres.

It is used in controlling soil erosion — of roadside, riverbanks and hillsides. As India is using jute geotextile in the construction of national roads, this could also be used in road construction in Bangladesh. The USA has been using both synthetic and jute geo-textile for road and highways construction.

Jute geotextile is a kind of fibre that addresses geo-technical problems. It is of different kinds — coir geotextile, jute geotextile and blend of different fibres. Geotextiles can be effectively used in the management of eroding slopes of roads and railway embankments, mild landslides, prevention of railway track settlement, river embankment and management of solid waste. Presently, some 20,000 tonnes of jute is being used for geotextiles globally, accounting for about two per cent of the market segment. The jute geotextile market has doubled since 1980.

Jute geotextile has some advantages. It is biodegradable and it does not spoil the fertility of soil. It is highly hygroscopic and can suck water as well as helps consolidate soil, enhances the flexibility of soil and above all, it is cheaper than the synthetic fibres. This item can be produced in the country’s jute mills as raw materials are available locally. This can even be made from inferior jute.

Jute geotextile had so far been used locally in two projects – Hatirjheel project and the road from Prime Minister’s office to Agargaon in the capital. It is now being used globally, including the USA and Australia. It is more environment-friendly than traditional geotextiles. Bangladesh is the major contributor of jute geotextiles. It’s a new idea and if the use of geotextiles could be increased, the demand of jute would further rise and also its cultivation.

A five-year project, titled ‘Development and Application of Potentially Important Jute Geo Textile’, is going to be implemented in Bangladesh and India under the auspices of Common Fund for Commodities (CFC) to promote jute geotextile. Of the total project cost of US$ 3.962 million, CFC is providing $2.045 million, Indian counterpart contribution will be $1.24 million while Bangladesh counterpart contribution is $0.567 million. IJSG is the supervising agency of the project while Jute Diversification Promotion Centre (JDPC) is the collaborating institution.

As of now, Latif Bawany Mills under the state-owned Bangladesh Jute Mills Corporation (BJMC), and privately-owned Janata Jute Mills are now exporting jute geotextiles to different destinations including EU, Australia and Canada. Janata Jute Mills exports around 2,000-2,500 tonnes of jute geotextiles every year.

The International Jute Study Group (IJSG) has suggested that Bangladesh government should use jute geotextile with concrete in construction of roads and highways in order to enhance jute usage. Indian experiment of effective usage of jute geotextile with concrete in constructing roads has been highly successful. This is one of the main reasons for the return of good days for jute there. Jute geotextile can be used as layers in making highways as the item is much more biodegradable than any other ingredients. If the jute geotextile is used in the construction of roads, the production of jute will definitely increase and farmers will get fair prices of the item because the government will purchase the item in bulk amount directly from them.

An ILSG roadmap for revival of the jute sector suggested the government to introduce a system for direct purchase of jute at growers’ level. It said the government should buy jute from the growers to stop any price deprivation of the growers by middlemen. The jute has lost its glory from this region as farmers are often denied fair prices of their produces. ILSG also suggested a public-private partnership for operating the jute mills to minimise the losses.

The research group prepared a roadmap for the jute sector under a project funded by the Geneva-based International Trade Council (ITC). The roadmap also advocated subsidy for the jute farmers and increasing uses of jute bags in processing of sugar, rice and other daily necessities. The Indian government made the use of jute bags mandatory in processing of sugar and rice as the bags made of jute are more environment-friendly.

Jute geotextiles are textiles used in or near the ground to enhance the ground’s characteristics. Applications are usually in the field of civil engineering and environmental engineering and consequently the design of these applications is often closely associated with geo-technical engineering.

Demand for jute would increase manifold when the Bangladesh Water Development Board (BWDB) would use the jute geotextile for constructing embankment or barrage to prevent river erosion, in addition to road construction.

Public and private jute mills together will not be able to meet the growing demand of jute geotextile when the use of this item will start fully due to stock crisis. Moreover, it will not be commercially viable for the country to meet the demand through imports. As a result, the government should start vigorous campaign to increase the production of jute through massive cultivation right now.

Despite a big prospect, the jute industry is currently facing a crisis due to lack of proper management of the sector. Most experts and businessmen involved with the sector blame the wrong policies of the past governments for the current condition of the sector. Despite being one of the highest foreign currency-earning sectors, the sector faced difficulties since the nineties when the government decided to shut down many mills under pressure from the World Bank. Besides, the military-controlled caretaker government was also responsible for the present state of the jute sector of the country. In 2007, the-then chief of the caretaker government ordered closure of four jute mills. ‘Insufficient performance’ was cited as the reason for closing down the mills.

Bangladeshi jute sector has tremendous possibilities. Economists have time and again recommended that total revival of the sector will ensure employment, inflow of foreign currency through exports and in other ways. In addition, the country’s infrastructure, communication, manpower and land conditions are conducive to the growth of such an industry.

Bangladesh can take the opportunity of the worldwide environmental concern to popularize use of jute and jute geotextile. If proper management policies are adopted, the jute sector will be a profitable one. There can be no question about the possibility of the revival of jute sector since jute industries have been a profitable one in Bangladesh for decades. Short-term and long-term steps are needed to bring about a positive change in this sector. Due emphasis must be given on the diversified use of jute and jute geotextile.

szkhan@dhaka.net

Turkey eyes $3b trade with Bangladesh

http://www.thedailystar.net/newDesign/news-details.php?nid=162610

Turkey eyes $3b trade with Bangladesh

Prime Minister Sheikh Hasina speaks at a bilateral meeting with visiting Turkish Premier Recep Tayyip Erdogan at the Prime Minister's Office in Dhaka yesterday. Photo: PMO

Star Business Report

Turkish Prime Minister Recep Tayyip Erdogan has said bilateral trade between Turkey and Bangladesh will cross the $3 billion mark by 2015.
In the first 10 months of 2010, bilateral trade increased to $742 million from $648 million in 2009, despite the global financial crisis.

When the incumbent Turkish PM’s party assumed power in 2002 through a general election, two-way trade between Bangladesh and Turkey was only $47 million.

“Our target is to increase the bilateral trade to $1 billion at the end of the year and $3 billion at the end of 2015. The target is achievable, because we have determination,” said Erdogan yesterday at a luncheon meeting of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Dhaka Sheraton Hotel.

He suggested Bangladesh utilise Turkish expertise in construction and infrastructure development as his country boasts skills to carry out those jobs.

Turkey achieved 11 percent economic growth in the first six months of this year, ranking number one in Europe and third globally, he said.

“The rate of unemployment has been increasing worldwide in the wake of the global recession, but Turkey successfully cut its unemployment rate by maintaining significant economic growth,” the Turkish PM said.

Tourist arrivals in Turkey are increasing while neighbouring Spain and Greece have been losing the numbers, Erdogan added.

Erdogan added that the most important asset of Bangladesh is the country’s young and dynamic people, which Bangladesh should utilise for achieving overall development.

He urged the government to enforce the trade and investment protection agreement signed between the two countries in 1987 to boost trade.

At the meeting, Finance Minister AMA Muhith said mutual cooperation and investments between the two countries must be enhanced as Turkey has already made considerable advancements in this regard.

“Direct flights between Turkey and Bangladesh are all set to begin next month,” he added.

FBCCI President AK Azad said major export items from Bangladesh to Turkey include knitwear, woven garment products, raw jute and jute goods, hides and skins, crockery, cutlery and handicrafts.

On the other hand, the goods imported from Turkey include machinery and mechanical appliances, base metal, textile and textile articles, vehicles, aircraft, vegetable products, mineral products, plastic and rubber products and prepared foodstuff.

The Turkish investors have opportunities to invest in textiles, tourism, energy, construction, natural gas-based industries, telecommunication, fisheries and agro-based industries in Bangladesh, he said.

BILATERAL TALKS

Emerging from bilateral talks yesterday, the Bangladesh and Turkey prime ministers held a joint press conference.

Erdoðan said his government and the private sector of Turkey will continue to offer and provide support and assistance to help Bangladesh emerge as a mid-income country by 2021, according to news agency UNB.

“There is huge potential to increase the trade up to a minimum $3 billion by 2015,” he said.

About the direct Dhaka-Istanbul air-link, he said it would strengthen cooperation between the two countries in various sectors, especially tourism.

Erdoðan hoped the economic and cultural collaboration would be further strengthened in the future.

He also said the Turkish government is interested to see an increase in the number of Bangladeshi students studying in Turkish educational institutions at graduation and under-graduation levels.

Prime Minister Sheikh Hasina urged her Turkish counterpart to encourage Turkish investors to invest in infrastructure development, energy production, river dredging, machinery and equipment plants, ICT, tourism, textile and particularly agro-based industries.

Spinners upbeat over Uzbek cotton co-op

http://www.newagebd.com/2010/nov/15/busi.html#2

Spinners upbeat over Uzbek cotton co-op
Kazi Azizul Islam

Local spinners were upbeat as the government of Uzbekistan, the largest source of cotton for Bangladesh, has assured of directly supplying quantity cotton.

The Uzbek government made the offer to a visiting Bangladesh delegation, led by commerce minister Faruk Khan, and also asked Bangladeshi entrepreneurs to set up spinning units in the central Asian country.

Apart from producing quality cheap yarn, the proposed spinning units could export at least half of their outputs to Bangladesh and feed the country’s $13 billion-plus, mainly cotton-based, apparel export industry.

‘A new dimension was added to Bangladesh’s relations with Uzbekistan with the proposed cooperation in cotton and textiles sector,’ Badsha Mia, a leading spinner and member of the Bangladesh delegation told New Age.

Bangladeshi spinners procured over 0.9 million tonnes of cotton last year and at least half of that came from Uzbekistan, one of the largest cotton growing countries.

The Swiss and French cotton merchants supply major portion Uzbek cotton deliveries to Bangladesh, Badsha said, pointing out that latest move following the visit of Bangladesh delegation would result in more direct sourcing from the central Asian country.

Bangladesh urged the Uzbek authorities to allocate big portion of their exportable cotton stock as quota for Bangladesh and called for taking measures so that Uzbek banks would accept letters of credit from Bangladeshi banks to facilitate direct trade between the two countries.

Mazhar-Ul Haque Bhuiyan, managing director the Ekhlas Spinning Group, said, direct sourcing of cotton from Uzbekistan would be very helpful for Bangladeshi spinners as the industry here mostly depend on middlemen who inflate cotton price.

Ekhlas Group with its three spinning units of some 3,50,000 spindles capacity, the largest in the country, procures most of their cotton requirements through middlemen. Mazhar said direct sourcing of cotton would benefit the Bangladeshi spinners.

He said the Uzbek offer to Bangladeshi spinners for setting up spinning units in that country also appeared to be a potential proposition. ‘As they have abundant supply of cotton as well as electricity, the Bangladeshi entrepreneurs can set up units in Uzbekistan taking workers from Bangladesh.’

Local spinners started suffering following a ban on cotton exports by India in April this year and the situation worsened with cotton price in international markets soaring record high in recent weeks.

Monoj Kumar Roy a joint secretary of the Commerce Ministry, who was also a member of the delegation to Uzbekistan, said their visit would help strengthen Bangladesh’s cotton cooperation with Uzbekistan, the world’s third largest cotton exporter.

He said that a joint-commission would be formed soon with the government representatives of two countries and the private sectors to follow up trade in cotton and other products and deal with investment issues between the two countries.

‘Cotton has become a burning issue now, so any potential bilateral corporation in trade and investment in the cotton and textiles sectors will be pursued,’ said Roy.

Eight power plants having 1,283MW capacity okayed

http://www.newagebd.com/2010/nov/15/nat.html#1

Eight power plants having 1,283MW capacity okayed
United News of Bangladesh . Dhaka

The cabinet committee on public purchase on Sunday approved proposals to award contracts for setting up eight power plants having total capacity of 1,283MW. This is the first time in the country that a cabinet body in a single sitting approved so many power projects with huge capacity.

The finance minister, AMA Muhith, presided over the cabinet committee meeting that took just about an hour to give nod to the projects.

Of the approved projects, three are medium and large scale base-load independent power producer plants while the remaining five are quick rental power plants.

With the latest approval of the five QRPP projects, the total capacity of such projects rose to 1,873MW after the present Awami League government took office.

The tariffs of the QRPPs are excessively high compared with the tariff of IPP and state-owned power plants.

All the IPP and QRPP units will be set up by private sponsors and the government will purchase electricity from the projects.

The IPP projects, which the private sponsors will implement on build-own-operate basis, are 341MW Bibiyana-2 combined cycle plant, 335MW Meghnaghat-2 (dual-fuel) combined cycle plant and the 216.80MW Bhola combined cycle plant.

Local power giant Summit Group under a joint venture with GE of the USA won the contracts of the Bibiyana-2 and Meghnaghat-2 projects while the Malaysian Ranhill Berhad won the Bhola project.

The state-owned Power Development Board will purchase electricity from the IPP projects for next 22 years.

The levelised tariff of Bibiyana-2 project was fixed at 3.39 US cents (Tk 2.37 equivalent) per kilowatt hour (per unit) while the tariff of Meghnaghat-2 was fixed at 6.8472 US cents (Tk 4.79) per kilowatt hour.

The tariff of Bhola plant was fixed at 3.4301 US cents (Tk 2.40 equivalent).

The sponsors of Bibiyana-2 and Meghnaghat-2 projects will have to set up their plants within next 36 months after signing of the contracts while the sponsor of Bhola project has to set up the plant within 32 months.

The QRPP projects are 50MW plant at Meghnaghat, 90MW plant at Chandpur or Barisal, 99MW plant at Ghorasal, 48MW plant at Ashuganj and another 53MW plant at the same place.

The government has selected the private sponsors for these QRPP projects without any tender process.

Among the selected sponsors, APR Energy will set up 50 MW plant at Meghnaghat (tariff Tk 7.70 per unit), Cambridge Energy will set up 90MW plant at Chandpur or Barisal (tariff Tk 7.65 per unit), Wintara INC will install 99MW plant at Ghorasal (tariff Tk 4.49 per unit), EQ Capital Energy will set up 48MW plant at Ashuganj (tariff Tk 4.50 per unit) and the United Enterprise will set up 53MW plant at Ashuganj (tariff Tk 4.45 per unit).

All these companies will have to set up their respective plant from 90 days to 120 days on the basis of their contracts with the government.

Tk 700 crore deposited in Gas Development Fund

http://www.bssnews.net/newsDetails.php?cat=0&id=144185&date=2010-11-14

Tk 700 crore deposited in Gas Development Fund

DHAKA, Nov 15 (BSS) – A significant amount of money has been deposited in `Gas Development Fund’ to carry out vigorous gas exploration, seismic and well augmentation work by the national gas and oil companies.

The fund was formed as per an order by Bangladesh Energy Regulatory Commission (BERC)) issued on July 13, 2009 to boost up gas exploration work by the national companies.

This is a separate fund for the energy sector from the regular budgetary allocation. The BERC in its order said that the fund must be utilised exclusively for gas sector development that includes exploration, production, transmission and distribution.

“About Taka 700 crore has been deposited in this fund so far. We need a policy guideline to use it by the national companies,” BERC Chairman Yusuf Hossain told BSS today.

BERC is the monitoring authority to oversee the utilization of this fund.

According to the BERC, it imposed a condition on gas price hike application by Petrobnagla as it observed that Petrobangla pays IOC’s (international oil companies) US$ 480 million per year as gas bill. It also observed that the IOC’s gas output surpassed that of the local’s as their combined gas output reached over 52 percent of total gas production although the country has five gas and oil exploration companies.

“We did not like to see a skeleton Petrobangla that gives all its milk to the IOC’s. We want to see that it will take measures to strengthen our own companies to carry out the risky exploration job, so BERC imposed a condition on them when they want to hike gas price”, the BERC chairman said.

Petrobangla in June 2008 applied to the commission for allowing it to increase gas prices by 65 percent at consumer level.

BERC conducted public hearing on it and increased gas price from last month. According to that verdict, Petrobangla increases gas price by 10 to 15 percent and creates this fund from the increased price of gas.

“We are formulating the policy guideline to use the money of this fund for strengthening our own gas exploration companies. Hopefully, we could start our journey very shortly,” Secretary of the Energy Division Mohammad Mejbahuddin told BSS.

Earlier, the energy sector was given Taka 3,500 to 4,000 crore per year from the budget which was very little for this sector to carry out vibrant exploration work or to do intensive seismic job.

Dutch ship breaker plans green facility

http://www.theindependentbd.com/business/others/19334-dutch-ship-breaker-plans-green-facility.html

Dutch ship breaker plans green facility
ECONOMIC REPORTER

A Dutch-Bangladeshi joint venture has decided to build a ship breaking unit at Chittagong using environmentally friendly practices, with its investors saying they consider Bangladesh the best place to set it up after carrying out a study on the location. Doebren Mulder, one of the patent owners of the Greendock BV project, has already met the minister for Environment and Forests, industries minister, delegation of European Commission, ship breakers in Chittagong and some new potential investors in the technology on his recent visit, says a press release.

The project will cost 50 million Euro and take one year to begin its operations, Mulder said.

He added that the first Grenndock site to be set up in Bangladesh was much cheaper than the original Ecodock site in Europe.

Mulder said, “We just finished a study with all recent figures and statistics.

Our experts are working to prepare the final report to share its findings with different local and international
stakeholders.”

Greendock is headquartered in Groningen.

Mulder said the steel infrastructurefor each dismantling site is to be built locally in low-cost Asian countries.

The concept involves floating pre-cleaned panamax-size ships into a specially-built graving dock and onto a steel pontoon of around 20,000 cbf, which is then raised by pumping in air. Mulder said that ships could then be cut into 20 pieces, each of around 500 tones, which are then wheeled to a dismantling site for further cutting.

Greendock claimed its system could dismantle vessels in 15 days, as compared with five to eight months for ships that are beached.

The company said that dismantling in a closed environment would reduce environmental pollution.

Mulder said that the feedback from the group of Scandinavian investors has been positive.

The investors have agreed to pay around EURO 66 per ton for pre-cleaning and then a fee similar to that earned by brokers for the dismantling.

Greendock would also receive commission for finding a buyer of the steel, proceeds of which go the vessel owner.

Initially, interest in the concept came from China but the investors then examined sites in Bangladesh and Thailand.

In Bangladesh the company has been registered as a Joint Stock Company with the Ministry of Commerce and a joint venture partnership has been set up in the name of “GreenDock Bangladesh Limited”.

Having its set up in Chittagong, a dynamic well trained and equipped Greendock team is working to realize the project step by step, Qumrul Islam Chowdhury, resident director of Greendock Bangladesh Ltd in Chittagong said, “Greendock is aiming to develop a database of workers who are now jobless.

We are also developing a complete plan with the help of French and Dutch experts to put a new know how.”

BTRC starts groundwork to launch broadcast satellite

http://www.newagebd.com/2010/nov/14/busi.html#3

BTRC starts groundwork to launch broadcast satellite
Staff Correspondent

The Bangladesh Telecommunication Regulatory Commission has started a process to appoint a consulting firm aimed at launching the country’s first artificial satellite in three years at an estimated cost of $200-$300 million.

The commission requested experienced firms on Saturday to apply by December 8 for the consultancy services to prepare detailed business and technical plans for the entire process of the launch of Bangabandhu 1 Satellite.

‘We have taken initiative to appoint a consulting firm aimed at the launch of a communications and broadcast satellite for VSAT, digital television and internet services in three years,’ the communication’s director general Rezaul Quader told New Age.

The selected consulting firm will help the commission in the entire process of the satellite launch, organise and manage arrangement with the International Telecommunication Union for frequency coordination, business plan preparation, identification of financing options, market study, tender document preparation, formulation of a domestic operating organisation and the procurement and launch of the satellite.

Commission officials said the consultant would negotiate with the ITU for frequency allotment and with countries over which the satellite will be orbiting the earth.

‘A lot of negotiations need to be completed before we can go for the satellite launch. If everything goes in keeping with the plan, we may launch the satellite in three years,’ an official said.

‘Around $300 million is needed to launch such a satellite. The funding issue is yet to be decided. The consultant will recommend to us funding sources. The government may fund the project or can go for public-private partnership,’ he said.

He said Bangladesh would first decide how much bandwidth the country would need from the satellite. ‘We will sell the remaining bandwidth to other countries and companies once we launch the satellite,’ he said.

The country’s television channels and some internet providers take rent of satellites of other countries for broadcast purposes.

The country is also linked to an international submarine cable which meets the major demand of the internet and data services.

Drought tolerant paddy being grown in Rangpur

http://www.thefinancialexpress-bd.com/more.php?news_id=117617&date=2010-11-15

Drought tolerant paddy being grown in Rangpur

Our Correspondent

RANGPUR, Nov 14: Rangpur Dinajpur Rural Service (RDRS) is cultivating a drought tolerant variety of paddy on trial basis in Rangpur and Panchagarh districts to face the adverse effect of climate change, as every year a vast tract of land in the country is getting dry.

“It is a drought tolerant and short duration paddy which the farmers of drought prone area of Bangladesh can cultivate to face the challenge of climate change”, RDRS agriculturist MG Neogi said.

“International Rice Research Institute (IRRI) had been trying to evolve the variety since long. It calls the variety as IR74371-70-1-1″, he said.

Good yield can be achieved if fertilisers are applied properly after testing the fertility of the land.

A hectare of land needs 15 Kg of phosphorus, 17 Kg of potash and 30 kg of Nitrogen fertilisers for good yield of the variety, he also said.

In India the farmers of drought prone states have been cultivating the rice variety massively since 2009 and the Indian government named the paddy as “Shabaji”, he added.

RDRS has undertaken the project on a trial basis and has already found the variety effective for cultivation on drought-prone dry land. The paddy has also been proved to have strong resistance against plant diseases and pest attack. The sheaf of the paddy is around 25 cm long and the size of the plant 85-90 cm. Around 4 tonnes of rice can be produced in one hectare of land, official sources said.

The farmers in drought prone areas are usually encouraged to cultivate the variety. They are advised to transplant 25 days old saplings in a well-prepared land. They need around 40 Kg seeds to grow saplings for a hectare of land, sources added.

Rahimafrooz Globatt enters China

http://www.thedailystar.net/newDesign/news-details.php?nid=162487

Rahimafrooz Globatt enters China

Source: http://www.globatt-battery.com/

Sayeda Akter

Rahimafrooz Globatt Ltd will export a $15 million consignment of maintenance-free batteries to China in three years. The company sent two consignments on Wednesday, the first export of such an item to China by any local company.

“We will export at least half a million units of maintenance-free automotive, tractor, and inverter batteries to Dynavolt, China, within the next three years,” said Munawar Misbah Moin, managing director of Rahimafrooz Globatt.

“We hope to earn revenues worth $15 million a year from this deal,” he said. “This is the country’s first ever export of engineered goods to China.”

“We are producing batteries designed specially for the markets of developed nations, including the US, Europe, Korea and Australia,” said Moin.

The company exported 1.75 lakh pieces of car batteries worth $5.5 million in October-June last fiscal year.

Globatt is a flagship project under Rahimafrooz’s global expansion plans that were put in place in August 2009. Its exports started in October of the same year.

The batteries, which will be free of maintenance costs, were exported to 12 countries, including all Saarc nations, except Pakistan, and Singapore, Kuwait, Qatar, United Arab Emirates, Tanzania, Angola and Namibia.

In addition, Rahimafrooz plans to export a million battery units to Australia and Europe by the end of this fiscal year.

The company’s projected revenue was around $28 million in 2009-10, which would grow to $70 million this year. It started to export to 18 countries in the South Asian and Asean regions, Middle East and Africa, and exported over 250,000 units so far, said Moin.

Earlier, Rahimafrooz doubled its annual automotive battery production capacity to 25 lakh units, Moin said, adding that the establishment of a world class manufacturing plant is a part of global strategic plans.

The Tk 110 crore project situated in Ishwardi EPZ is using the latest in technology, including business software solution applications and services. It went into production in May 2009.

The project received the country’s first-ever equity investment from Frontier Fund, a local partner of Brummer and Partners, Sweden’s largest hedge fund manager, in January 2009.

Founded in 1954, Rahimafrooz is the pioneer in producing industrial batteries, solar power and IPS (instant power system) in the country. The company also spearheaded the export of batteries to more than 40 countries.

Currently, the group has seven operating companies, three other business ventures and a non-profit social enterprise.

sayeda@thedailystar.net

Annual trade with Turkey set to top $1b

http://www.newagebd.com/2010/nov/14/busi.html#2

Annual trade with Turkey set to top $1b
Kazi Azizul Islam

The robustly increasing exports from Bangladesh is set to take its annual trade turnover with Turkey to $1 billion mark within next few months, business leaders of the two countries said.

In the last one year, from September 2009 to October 2010, two-way trade amounted to $927 million, Afsarul Arefin, a senior official of the Federation of Bangladesh Chambers of Commerce and Industry told New Age.

Bangladesh exported goods worth $741 million to Turkey in the period while its imports from that country amounted some $186 million.

‘As Bangladesh’s garment exports, in terms of value, to Turkey, is growing by 40 per cent or more, two-way year-on-year trade is set to cross $1 billion mark by early 2011,’ said Arefin.

Businessmen said that more than two-thirds of Bangladesh’s exports to Turkey are readymade garments.

Growth on the shipments of made-in-Bangladesh garments remains very high in recent times as many Turkish brands, including Tema, and other wholesalers are increasing their procurements from Bangladesh, said Shamimul Islam, a senior official of the leading garment exporter, Babylon Group.

The visiting Turkish president’s wife visited Babylon’s state-of-the-art factories at the outskirts of the city on Saturday.

Industry people say despite Turkey remains a major garment producing and exporting county, its retailers and wholesalers are coming to Bangladesh for competitive sourcing.

‘Turkey has become one of the top new markets for Bangladeshi garment exporters and recent growth in shipments indicates that it is becoming a billion-dollar market for Bangladesh very soon,’ Anwarul Alam Chowdhutry, a former president of Bangladesh Garments Manufacturers and Exporters Association, said.

‘Recently, some Bangladeshi manufacturers are even souring denim and other fabrics to Turkish apparel makers,’ Chowdhury, also the chairman of Argon Denim, said.

Fikret Cicek, president of the Turkey-Bangladesh Chamber of Commerce and Industry, told New Age that his country’s carpet industry had been a major importer of jute yarns from Bangladesh.

‘Now Bangladeshi readymade garments are seeing a bigger opportunity in Turkey,’ said Fikret.

He listed major Turkish exports to Bangladesh as textile dying machinery, chemicals, power generators, steel products and red lentils.

Recently, Turkish-made consumer goods like kids diapers are also being sold widely in shops in Bangladesh.