Govt to prepare digital topographical map

http://www.daily-sun.com/details_ds-govt-to-prepare-digital-topographical-map_345_1_1_1_3.html

Govt to prepare digital topographical map
Tk 3.74bn can be saved a year
Asif Showkat

The government with help of satellite imagery and digital elevation model will prepare a digital topographical map for implementing the country’s development programmes which can save at least Tk 3.74 billion a year.

A recent study conducted by the national surveying and mapping agency, Survey of Bangladesh (SOB) revealed new scope of cutting government and private sectors’ expenditures in several economic fields.

The study also estimated that the total economic benefits would be Tk 18.90 billion a year if indirect economic effects were accumulated with the direct benefits of the new digital map.Bangladesh Survey Directorate under Defence Ministry had already selected a Japanese consulting firm to assist the government in preparing the digital topographical map.A defence ministry’s proposal is likely to be placed before the cabinet committee on economic affairs next week for approval, according to committee sources.

Defence Secretary Khandaker M Asaduzzaman said successful implementation of the project would provide a common platform for the government agencies as well as private sector for using geographical data for development of the country.

Professor Ainun Nishat, vice-chancellor of BRAC University, told daily sun on Saturday that foreign donors like Japanese agencies would provide technological support.

“Bangladesh Water Development Board (BWDB) has already used the digital mapping system (IDMS), although it faced difficulties in modelling,” he added.

He further said BWDB used satellite map after 1988 devastating floods for forecasting such disaster. The Finland government prepared a digital map of whole Bangladesh.

Using a digital map might be good in forecasting, he added and stressed on improvement of efficiency.

The programme is targeted at preparing a new 1:25,000 scale digital topographical map covering whole territory and 1:5,000 scale digital topographical map covering five major cities.

Official sources said the existing 1:50,000 scale national base map covering the whole territory of Bangladesh was prepared 50 to 60 years ago.

The study also said digital topographical maps can be used in the fields of communications, agriculture, infrastructural development, enforcement of law and order, disaster warning, defence, engineering and establishing e-governance for expediting work as well as reducing activation cost.

Of the projected saving amount, the study estimated that the highest Tk 980 million can be saved from transportation sector every year, followed by power sector by Tk 550 million.

The digital mapping system would save Tk 410 million in health and population sector, Tk 390 million in rural development, Tk 365 million in physical planning, water distribution and housing and Tk 301.6 million in agriculture sector.

A Japanese consulting firm PASCO Corporation was selected by the defence ministry under item of acquisition of satellite imagery of improvement of digital mapping system (IDMS) programme.

The government will be given Tk 153.2 million from Japanese Debt Relief Grant Assistance (DRGA) counterpart fund as consultancy fees for operation of Japanese consulting firm to provide satellite imagery and digital elevation modal services to the government as well as private sectors.

As per the defence ministry’s proposal, two Japanese consulting firms — Nakanihin Air Service Company Ltd and PASCO Corporation — took part in the tender process.

Considering growing demand for new maps, SOB had decided to take up a project under “Improvement of Digital Mapping System (IDMS)” programme.

The Japan government had supported this project “Bangladesh Digital Mapping Assistance Programme (BDMAP)” under its technical cooperation programme.

For public and private sectors, statistical data especially geographic information like topographical maps is the fundamental need for planning and implementation of various types of development projects, SOB sources said.

SOB had decided to take initiative to set up six permanent Global Positioning System stations in six districts from the current fiscal year which will help convert all maps in the country into digital format with creation of a geo-database, according to the defence ministry’s proposal.

Pak textile industry turns to Bangladesh

http://www.theindependentbd.com/business/finance/71980-pak-textile-industry-turns-to-bangladesh.html

Pak textile industry turns to Bangladesh

Bangladeshi Textile worker. Source: http://www.bangladeshembassy.com.cn/

MASHIUR RAHAMAN, back from Karachi

DHAKA, SEPT 23: Pakistan’s once-thriving textiles industry now faces hard time. In a country plagued by political violence and longstanding energy crisis, investment drain-out has forced the textile business to move to other countries, most notably, Bangladesh. Industry experts said conditions in Bangladesh are favourable and this is luring Pakistani businessmen to relocate or expand their business to Dhaka. They cited certain advantages for Pakistani businessmen in Bangladesh, such as having a common history and culture, more investor-friendly policies, cheap labour and tax-free access to 37 countries, including the European Union, Canada and Australia.

Rafiq Habib Godil, chief executive officer of Pakistan’s leading apparel-maker, Unicon International (Pvt) Ltd, is all set to relocate the company’s machineries, worth Rs 8 million, to Bangladesh as part of its desperate survival strategy.

“Our country can’t even ensure a minimum supply of power to the factories. So, we have no alternative but to shift our business centres,” he said. Bangladesh has become the most likely choice for investors. In Karachi alone, owners of textile factories, worth USD 600 million, had gone bankrupt last year.

“We can only remain operational on 235 days a year at the most, owing to irratic power supply. Lack of supportive policies and abrupt hike in power tariff has also contributed to our decision to relocate our business,” he added. He, however, declined to comment on Pakistan’s internal security concerns.

“Bangladesh too has its share of energy problems. But they seem to manage it well,” said Tauseef Salamat, owner of Tauseef Enterprises. Like Unicon International, Salamat opened two factories in Dhaka about three years ago, and he is now contemplating opening a third unit in Bangladesh. “The energy crisis in Pakistan has increased the cost of doing business,” he added.

Although such relocation of the textile business does not feature in any official data, interviews with a string of Pakistani businessmen revealed that at least a dozen companies have set up factories in Bangladesh.

“Our decision to expand operation in Bangladesh is, of course, aided by a thriving business there. We are overbooked,” said Salamat, whose firm produces products for brands like Adidas and Nike. Masood Textile Mills, a large knitwear exporting company, is going to set up a sewing plant in Bangladesh.

“In Pakistan, we can’t work three days a week because of power cuts. There the industry works at only 30-40 per cent of its full capacity,” said Wasim Latif, chairman of the Pakistan Textile Exporters Association (PTEA). He rued the fact that foreign buyers are reluctant to place orders in Pakistan owing to security concerns. Last year, Bangladesh nearly doubled its minimum monthly wage to Tk. 3,000 for workers in the garments industry. However, the pay is still low compared to China, India, Vietnam, Thailand and Cambodia. At a government-set Rs 7,000 (USD 80.55), Pakistan’s minimum monthly wage is much higher than that in Bangladesh, said Latif.

While Bangladesh has its own power problems, facing up to 2,000 MW of shortage, it is taking firm steps to address the energy crisis. The government is aiming to triple power generation to 15,000 MW over the next five years, and plans to build 89 power plants on a fast-track basis.

Pakistan – beset by crises on multiple fronts – is struggling to tackle its energy problems. The country is facing a gas shortfall of nearly 2 billion cubic feet per day. The total electricity demand in summer months outstrips the supply by 22 per cent – or about 6,000 MW – during peak hours.

“Textile manufacturers of Pakistan are looking for new homes, and Bangladesh could provide them with a better choice,” said Abdus Salam Murshedy, president of the Exporters’ Association of Bangladesh. Bangladesh is also offering tax holidays up to 10 years to foreign investors, as well as duty-free import of raw materials and repatriation of capital and profits, he added.

Classified as a least-developed country, Bangladesh enjoys duty-free export facility to 27 European Union countries, and 10 other developed countries, including Japan, Canada and Australia, under bilateral agreements. Pakistan, on the other hand, faces higher tariffs in the EU and US markets, putting its exporters at a disadvantage.

Easy availability of cheap labour has enabled Bangladesh to join the global supply chain for low-end textiles and clothing. It has also helped the country to manufacture garments for international brands, such as JC Penney, Wal-Mart, H&M, Kohl’s, Marks & Spencer and Carrefour.

“Obviously, the investment climate in Bangladesh is positive owing to a number of reasons like attractive incentive packages earmarked for foreign investors, better political condition and relative social stability. Besides, promises to ensure required infrastructure has also been instrumental in luring Pakistani investment,” said Mr Godil, former chairman of the Pakistan Knitwear and Sweater Exporters Association (PKSEA).

Pakistan’s textile industry accounts for 38 per cent of workers in the country’s manufacturing sector and more than half of its exports, which stood at nearly USD 25 billion in 2010-11.  Textile exports rose by 35 per cent to USD 13.80 billion in the fiscal year owing to high cotton prices. However, it came down by 15 per cent in July.

UK power company plans expansion in Bangladesh

http://www.thedailystar.net/newDesign/news-details.php?nid=203806

Business Interview
UK power company plans expansion in Bangladesh
T&R high-up shares his views on solar power and the company’s future plan with The Daily Star

Steve Bandey

Md Fazlur Rahman

A UK-based power company plans to set up a solar panel manufacturing plant and a diesel-run power generator producing plant in Bangladesh to expand its business and help the country meet the soaring demand for energy, a top official said.

“My immediate plan is to do something quickly as Bangladesh is growing very fast and so the demand for solar energy products. I’m not going to wait,” said Steve Bandey, managing director of Transformers & Rectifiers Ltd (T&R).

“I would like to form joint partnership with local companies so that we can work together,” Bandey told The Daily Star in an interview in Dhaka.

“We believe we could probably achieve something in three to five years. We will work on phases. It is just how quickly we can utilise everything we already have.”

Set up in 1951, the T&R specialises in designing and manufacturing of custom-made power supplies ranging from 4 to 36 megawatt.

The company started manufacturing diesel-run generators in 1975 and made a foray into the solar energy sector after much analysis in 2010.

During his fifth visit to Dhaka, Bandey also met secretaries of the implementation monitoring and evaluation division, local government, planning, power and also the chairman of Bangladesh Power Development Board. Bandey also gave a presentation for engineers at the Dhaka City Corporation about his plan.

“I have received very positive response from them. The officials have showed eagerness. They were very positive. They want to support me. It will definitely help me move forward,” he said. “I think it could be very good for Bangladesh because it will offer employment.”

“I recognise the need for power here and it is very urgent. So I want my company to start manufacturing solar panel here as such panel would be very important for the country’s future power generation. I also like to bring in diesel generators to Bangladesh.”

Bandey said solar power has become a reality for Bangladesh, as half of its population is still out of the electricity network.

“With the investment and hopefully in shared partnership, I would like to set up solar plants with a capacity of 50 megawatt. That is our long-term plan. Once completed, the plant will last over for 30 years.”

He said solar panel could be very useful in areas where there is no electricity supply. “We want to see this panel is used by local households and businesses.”

Bandey is also bullish about the country’s investment climate. “I am here for the fifth time this time. But I can see a lot of positive change now. So far I have faced no obstacle. It is very pleasant feeling.”

He said he chose Bangladesh as the base of his company’s next industrial initiative, as the country is full of talented engineers. “I believe there are a lot of talent engineers in Bangladesh, who need a bit of help and confidence. I believe we can have a very, very good manufacturing unit here. I want to tap their talents.”

He said some of Bangladesh’s textile factories and even military establishment have bought generators from his company.

T&R has presence in Asia, Africa and Latin America. “We used to be the biggest company in Africa. But the Chinese have flooded the continent with cheaper products. I do not want to compromise with the quality.”

“So, I am moving to other emerging markets, where quality products will be sold well. I will transfer technology and knowledge and use the talent of the host country,” said Bandey.

The British electrical and mechanical engineer said the prices of the final products would be much cheaper compared to other neighbouring countries, as the products will be manufactured locally.

He plans to set up five solar energy-run power plants, with capacity of 50 megawatt each in the next three to five years.

Bandey said in the next five years the price of a single unit solar energy would to equal to that of conventional energy. “The country will require more solar panel at that time, as the country’s stock of gas will deplete and imports of hundreds and thousands tonnes of oil will be challenging.”

He said although he plans to work in Bangladesh, he personally has not set any target. “As long as I get support from the government I will continue to work in Bangladesh.”

He also denied giving any figure about his investment plan. “It will depend on how much I am allowed to invest.”

Bandey also said Bangladesh’s clients should not worry about the cost of solar system. “The initial cost is higher and it is expensive too. But in the long run it will be hugely beneficial.”

“Bangladesh has much sunshine as anywhere in the world. We believe with fossil fuel running out, power will be more expensive by the day. As the technology moves on, the solar panel will be cheaper and a lot more economical.”

The T&R top official also plans to introduce windmills in the country’s coastal areas. “Bangladesh will benefit hugely if it can set up windmill in its about 70 kilometre of coastal areas alongside the solar system.”

“In the coastal areas and Chittgong, wind power could be very effective especially in certain times of the year. The problem with wind power it is not reliable as solar.”

“Like solar, wind power could be very, very useful. If we combine the two, especially in the coastal areas, we believe Bangladesh will benefit much.”

Bandey also plans to introduce solar irrigation pump to slash farmers’ dependency on the grid network or heavily subsidised diesel.

He said Bangladesh would be able to save tens of thousands of pounds if the company manufactures equipment in the country.

“Solar panels are a long-term project. I want to manufacture solar for irrigation.”

Bandey said his company is ready to start working in Bangladesh. “I hope we can start something this year. If we become successful in our first operation, we will do more.”

fazlur.rahman@thedailystar.net

BEPZA records Tk 250 crore investments in PPP projects

http://www.bssnews.net/newsDetails.php?cat=2&id=202101&date=2011-09-24

BEPZA records Tk 250 crore investments in PPP projects

DHAKA, Sept 24 (BSS)- Bangladesh Export Processing Zones Authority (BEPZA) has taken up eight development projects worth Tk 250 crore under the public private partnership (PPP).

The projects under implementation are: one 50 MW power generation plant in Chittagong EPZ, three 40 MW power plants each at Dhaka, Adamjee and Ishwardi EPZs, a hundred lakh gallon water treatment plant at Dhaka EPZ, one 50 lakh gallon central effluent treatment plant at Chittagong EPZ, one hundred lakh gallon water supply management plant at Dhaka EPZ and installation of a cellular phone hub in Chittagong EPZ.

“We received tremendous response from the entrepreneurs for developing and managing different infrastructure projects in the EPZs across the country. Being encouraged by the response we are offering many other projects to the investors,” A Z M Azizur Rahman, GM (Investment Promotion), said.

Apart from the already approved projects the BEPZA is offering 15 other development projects and eyeing Tk 300 crore investment in the EPZs, he said.

Other than developing and managing power generation and water treatment plants the BEPZA is offering projects like developing container terminal, construction of shopping cum commercial complex, hospital, healthcare, day care centres, development of multi modal system, security system, online system, training institute and cleaning system.

Azizur Rahman said BEPZA received huge response for its PPP initiative for the benefits it is offering like 10- year tax holiday to service industry, duty free import of capital machinery and full repatriation of profit and dividend.

Eight EPZs under BEPZA registered US$3.69 billion export earning in the fiscal 2010-11 with a record growth of 31 percent compared to the previous fiscal. In 2009-10 export earning from the EPZs was $2.82 billion.

The EPZ’s created employment for 2.73 lakh people and 66 percent of them are women.

The EPZ’s employed over 55000 workers during the first two years of the present government.

Bangladesh on the Rise

http://asiasociety.org/policy/strategic-challenges/intra-asia/bangladesh-rise

Bangladesh on the Rise

NEW YORK, September 20, 2011 — “The Switzerland of the East” isn’t a title most would associate with Bangladesh. Yet this is an impression Bangladeshi Prime Minister Sheikh Hasina would like to forge.

Speaking at the Asia Society on Tuesday afternoon, Hasina mentioned the central European nation as a role model for her own country, citing the two countries’ similar position as crossroads amid much larger powers.

Without a doubt, Bangladesh has a long way to go before anyone confuses it with one of the world’s most prosperous countries. In recent years, however, the Bangladeshi economy has shown impressive growth, averaging six percent even during the recent global economic slowdown. According to the prime minister’s prepared remarks, all sectors of the economy — agricultural, industrial and services — have shared in the growth, and 90 percent of annual public expenditure now comes from domestic sources.

On top of this progress, Bangladesh has enormous economic potential, not least due to its geographic location. Situated between India and Southeast Asia and only a short distance from China, Bangladesh is positioning itself as a regional economic hub. Demographics may also play a favorable role in Bangladesh’s future. Of its population of over 160 million people, more than half are under the age of 40. Such a sizeable, inexpensive pool of labor could pay the same dividends in Bangladesh as it has in China, India and elsewhere.

“We want to become the breeze between East and West,” remarked Sheikh Hasina.

Clearly, major problems persist. Bangladesh remains one of the continent’s poorest nations, facing enormous resource and environmental hurdles. Political instability has plagued the country since its independence from Pakistan in 1971, often preventing previous governments from implementing sound economic policies. Corruption remains rife in spite of Hasina’s rhetorical commitment to eliminating it. Basic needs such as food, shelter, education, and health care remain the prime minister’s biggest priority.

“Helping my people meet those needs is the only thing I worry about,” she said.

Yet one could detect a spirited optimism in Sheik Hasina, now in her second tenure as prime minister. Relations with neighboring countries are good, and the investment climate has improved markedly since her first days in office. The prime minister, though, believes more can be done. Referring to high US tariffs on apparel and textile products, the prime minster said that waiving these tariffs would “contribute to our economic development and social transformation, particularly in the empowerment of women.”

Bangladesh may not be close to becoming a world-class skiing destination, but in the future comparisons to Switzerland may become considerably more apt.

Reported by Matt Schiavenza

Bangladesh emerges as promising avenue for Diaspora bonds

http://www.daily-sun.com/details_ds-bangladesh-emerges-as-promising-avenue-for-diaspora-bonds_344_1_3_1_3.html

Bangladesh emerges as promising avenue for Diaspora bonds

Bangladesh Bank Governor Dr. Atiur Rahman, now in Washington, said that Diaspora bond is a promising fund mobilisation option both for the government and the private sector in order to fulfill the requirement of higher investment in the country.

“Bangladesh’s growth aspirations and the recent sharp pick up in her real sector investments require higher investment levels than can be mobilised from domestic savings; and the Diaspora bond issue is a promising fund mobilisation option,” he said.

The central bank governor was addressing a seminar on ‘Diaspora Bonds: Operational and Implementation Challenges’ held in the World Bank Headquarter in Washington DC on Thursday, according to a message received here yesterday (Friday).

Bangladesh Bank governor Dr. Atiur Rahman and Central Bank of Kenya governor Prof. Njuguna Ndung’u spoke at the seminar about the prospects of Diaspora bonds in Bangladesh and Kenya. The seminar was chaired by World Bank managing director Mahmoud Mohieldin.

World Bank’s Lead Economist Dilip Ratha presented case studies of the Philippines, Ethiopia, Nepal and India, while Otaviano Canuto, Vice President and Head of Network, Poverty Reduction and Economic Management, gave an overview of the World Bank’s role in promoting Diaspora bonds throughout the world.

Speaking about the prospects of Diaspora bonds in Bangladesh, Dr Atiur said that bond issuance abroad is among the options under consideration for financing the government’s infrastructure investment projects (including those in PPPs) in power generation, toll bridges, toll roads that will generate future income streams to pay off debts and other costs.

“Ring fencing of revenues for debt repayment should make these bonds attractive to the Diaspora and other non-residents, individual and institutions.”

He said that while dealing with license applications for new banks, Bangladesh Bank will consider prioritising applications proposing external fund raising by issuance of Diaspora bonds for long term financing of local private sector investment projects.

Given Bangladesh’s current sovereign rating (BB-) with stable outlook, the BB governor said: “We expect borrowing costs in external bond issues to be bearable, not far from costs of sovereign borrowing.”

He also welcomed any help that the World Bank group might offer in issuance of Diaspora bonds.

Dr Atiur said that Bangladesh has emerged as one of the promising avenues for promoting Diaspora bonds with steady, resilient economic growth over the past few decades.

Bangladesh has two US Dollar bonds (‘USD Premium and Investment bonds’) in issue, mainly targeting the Bangladeshi Diaspora abroad but open also for investment by any non-resident individual or institution regardless of nationality.

Available on tap through banks in Bangladesh authorized to deal in foreign exchange or their branches and correspondents abroad, the 3-year Premium and Investment Bonds fetch interest in US Dollar respectively at 7.5 and 6.5 per cent annual rate at maturity. The interest on Premium Bond is payable only in equivalent Bangladesh Taka.

Premature redemptions are permissible, at interest rate lowered by 0.5 per cent for each year short of maturity.

Total outstanding balance of the two bonds stood at US$ 149.2 million as of end August 2011. The sale volume remains modest in absence of aggressive marketing, another likely reason being that the bonds are not freely tradable, though useable as collaterals.

Sales restrictions on such foreign bonds in the US and other advanced Western countries hosting the better off segments of Bangladeshi Diaspora may also be among the reasons. —UNB

Wales Bangladesh trade team arrives today

http://www.theindependentbd.com/business/others/71974-wales-bangladesh-trade-team-arrives-today.html

Wales Bangladesh trade team arrives today
UNB

Dhaka, Sept 23: The Wales Bangladesh Chamber of Commerce team arrive here on Saturday for a week-long visit to Bangladesh.  The chamber was established in 1998 to promote trade relations between Bangladesh and Wales, in the UK. During the visit the trade mission will pay calls on industries minister Dilip Barua, PM’s adviser for Power Energy and Mineral Resources Ministry Dr Towfique-e-Elahi Chowdhury and members of the Dhaka Chamber of Commerce.

The delegation will also travel to Chittagong, where they will meet the Chittagong Chamber of Commerce and the Vice Chancellor of the Chittagong University, according to a release of the British HC. They will also visit Sylhet, where they will hold discussions with the members of the Sylhet Chamber and Vice Chancellor of Shahjalal University Md Saleh Uddin.

Commenting on the visit, the head of UK Trade and Industry in Dhaka, Justin Davies, said: I am confident that during this visit, previously untapped angles of UK-Bangladesh trade and co-operation will be discussed and taken forward.’

Bangladesh-UK bilateral trade made steady growth of almost 40 per cent between 2005 and 2009. UK’s exports to Bangladesh were £80 million between January-June 2011 while imports from Bangladesh were £723 million from January to June 2011.

Coconut fibre business creates jobs in Khulna

http://www.daily-sun.com/details_ds-coconut-fibre-business-creates-jobs-in-khulna_344_1_3_1_23.html

Coconut fibre business creates jobs in Khulna
Nanda Kishore Chakrabortty

Producing yarn and other items through rejected coconut husks gained popularity in Khulna and Bagerhat districts in recent years, with an estimated 200,000 people are employed with the sector, both directly and indirectly.

Coconut husks are collected from coconut traders when they sell the item to coconut mills after removing the husks.

Then the husk is taken to nearby factory to remove the fiber from it. Soft seats of rickshaws and scooters, bead and other different forms of essential products are being made with the fiber. Some traders even export the fiber to India and China, local businessmen said.

Many small and medium scale mills have been developed in Khulna and Bagerhat over the years as the machineries are not so expensive.

Suresh Kumar Kundu (45), machine operator of Kathipara Mill at Morrelgong upazila under Bagerhat district, said, ‘‘We buy 1,000 coconut husks at about Tk 500-600.”

He also added it required Tk 500,000 to install a mill.

Aklima, who works at a mill at Banagram union under Morrelgong upazila, said, ‘‘I can earn Tk 175 a day working at the mill and can meet the expenses of my two kids”.

A mill owner as well as a coconut trader Tarapada Shaha of Morrelgong upazila said, “Some manufacturers are exporting the fiber”.

Another mill owner Millon Kumar Das of Kachua upazila says, ‘‘At least 1,000 people work at his mill.”

SME product display centre to open Sept 24

http://www.bssnews.net/newsDetails.php?cat=0&id=201778&date=2011-09-22

SME product display centre to open Sept 24

DHAKA, Sept 22 (BSS) – SME Foundation has set up a centre dubbed ‘SME Product Display and Information Centre’ aimed at displaying quality products of local SME entrepreneurs.

A source in the foundation told BSS today that an array of goods of 100 small and medium enterprises would be displayed in the centre, first of its kind in the country.

The SME products especially electrical, electronics, light engineering, agriculture, leather, plastic, design and fashion would be put on display.

The source said SME products would be displayed before local and foreign buyers attuning to the country’s latest development of the SME industry.

Local entrepreneurs especially women would be able to display their products in the centre to survive themselves in the competitive world.

Located on third floor of the Foundation Bhaban at the city’s Panthapath, the centre will have all kinds of facilities as per the international standard.

Industries Minister and SME foundation Chairman Dilip Barua will inaugurate the centre at a function at 5.30 pm on September 24.

Japanese Ambassador to Bangladesh Tamotsu Shinotsuka, Industries Secretary KH Masud Sidique and SME Foundation managing director Syed Rezwanul Kabir will attend the function as special guests, said an Industries Ministry official.

Donors to discuss funding of major solar projects next month

http://www.thefinancialexpress-bd.com/more.php?news_id=148217&date=2011-09-03

Donors to discuss funding of major solar projects next month
Syful Islam

Bangladesh will host an international donors’ conference this month or next in Dhaka to secure US$1.57 billion fund to generate a total of 500 megawatts (MW) of electricity from solar power by 2015, a top energy ministry official said.

Renewable energy sources contribute now some 55 mw to the electricity supplies in the country.

The Asian Development Bank (ADB) will organise the conference on behalf of the government. The key development partners will attend it to discuss matters relating to funding of some major solar projects.

“We put forward the initial idea at the ADB’s third Social Energy Forum in Bangkok this June which the lender conceptually endorsed. The ADB will hold a conference in Dhaka in the presence of other donor agencies in late September or early October this year to secure funds for the solar energy programme,” Tapos Kumar Roy, additional secretary of the ministry told the FE.

The move to generate more electricity from solar power aims at increasing the share of green energy in the country’s overall energy output.

Mr Roy said the government is also exploring the possibility of generating electricity from other sources like wind, hydro, biomass gasification, biogas, geo thermal and sea-wave.

Against the country’s present requirements for nearly 5,500 mw of electricity, the fossil fuel-based power plants generate some 5,000 mw. The national grid so far could cover 49 per of total population of the country.

Of the total 55 mw of power from renewable energy sources, 47 mw comes from 1.0 million solar home system (SHS), 3.0 mw from roof-top solar photovoltaic systems of new electricity consumers, 2.0 mw from wind energy, 1.0 mw from other solar photovoltaic applications, 1.0 mw each from biomass and biogas based electricity. Solar power projects with a capacity of generating 35 mw of electricity are in the pipeline.

“Electricity generation from fossil fuel emits greenhouse gases, causing warming of air and resulting in an increased number of climate-change related problems. The fossil fuel is depleting quickly which is a threat to future power generation. So, we are in search for alternative energy sources,” Mr Roy added.

Replying to a question, he said despite the high cost of generating electricity from the renewable sources, solar power is still popular in the rural areas when compared with the cost of kerosene.

According to him, the government has identified some 30 remote sub-districts where grid expansion is not possible in next 10-15 years. “So, we have no alternative to renewable energy to meet the government’s social commitment of providing electricity for all by 2020.”

According to the plan about 500 mw solar power, some 370 mw will be meant for irrigation pumps, solar power mini grid system, solar park, private commercial and residential buildings, solar home system in government and semi-government offices, and solar park in railway area.

Rural health centres, remote educational institutions, e-centres in local government offices, religious establishments, and remote railway stations will get 44 mw of solar power under the social sector projects, Mr Roy said.

Mr Roy said a total of $2.24 billion has to be invested to generate additional 500 mw of solar power. Some $1.57 billion is expected to come from the ADB and other development partners while the rest $0.67 billion will be funded by the government and the private sector.

Mr Roy told the FE that many foreign companies showed interest in helping Bangladesh generate power from the renewable sources.

After examining the satellite data, a US organisation named NREL said Bangladesh has a large possibility for wind energy generation in its coastal areas.

In this connection, the ADB has agreed to fund installation of two towers, USAID 10 towers, and UNDP five towers for wind mapping. Establishment of 50-200 mw wind power plant is in the pipeline under private sector financing.

Mr Roy said the government is studying the possibility of setting up geo-thermal power plants in country’s northern Panchagarh district.

Chief executive officer of Grameen Shakti, Abser Kamal, told the FE: “Generation of 500 mw of electricity from the renewable sources is possible but it will require a large involvement of fund.”

Chairman of technical standard committee of state-owned IDCOL, Dr Rezwan Khan said: “The government’s move for generating 500 mw of electricity from solar system will be viable if it only targets at promoting green energy, instead of considering its economic cost.”

He, however, said since there is a provision for carbon trading under the Clean Development Mechanism (CDM), the government may achieve success to manage the high costs of renewable establishments.

“But at the initial stage, the government will have to provide a large amount of subsidy,” he added.

Jute export gains momentum in Bangladesh

http://www.bssnews.net/newsDetails.php?cat=0&id=201700&date=2011-09-22

Jute export gains momentum in Bangladesh

DHAKA, Sept 22 (BSS) – Since the use of natural fibre increased worldwide against the backdrop of environmental hazards, the Bangladesh’s export of jute and jute products have witnessed a significant rise during the last couple of years.

Experts said today that government’s favourable policy to increase production and use of jute products, development of new varieties, people’s awareness against environmental hazards and demand of natural fibres abroad played a significant role in boosting the export of the country’s jute goods.

Statistic showed that Bangladesh has earned 111.50 crore US Dollars in the last (2010-11) fiscal from jute sector which was 41.49 percent higher than the previous (2009-2010) fiscal.

According to the latest statistics of Export Promotion Bureau (EPB), Bangladesh has exported 21 lakh bale raw jute worth of $ 35.72 crore and jute fibre of $ 50 crore in the last fiscal year. During the same period , Jute bags worth $ 20.67 crore and others jute product of $5 (five) crore were exported.

Bangladesh is exporting its jute products to India, China, Turkey, Iran, Syria, Uzbekistan and many European countries. Besides, the government is looking for more potential markets in African countries.

Apart from foreign markets, the demand of jute and jute products has also increased in the local markets as well. Statistic showed that jute goods of Taka 274 crore have been sold in the local markets in the last fiscal. The sale has increased 176 percent in a year.

Talking to BSS today, EPB Vice-Chairman Jalal Ahmed said the demand of jute and jute goods have been increasing gradually due to various factors including environmental hazards, affordable price of jute goods and people’s awareness against the use of synthetic materials.

He said the present government is searching for new markets across the world especially in Africa considering its increased demand globally. “There is immense prosperity of jute goods in the present world.and we are taking preparation to take the opportunities,” he added.

Director General of the Department of Jute Md. Nasiruddin said considering the present demand of jute, farmers are being provided subsidy and modern variety of seeds to increase production of jute once called as “Golden fibre of Bangladesh”.

In this context, he said Bangladesh Bank has already reimbursed fund involving Taka 500 crore to revamp the country’s once dying jute sector.

According to available data, the contribution of jute and jute products to the national economy is still significant. In the 1950s and 60s, almost 80 percent of the world’s jute was produced in Bangladesh.

Due to several setbacks and the introduction of, often cheaper, substitutes the market declined and jute started to lose its dominant position. In 2000, five percent of all exports from Bangladesh consisted of jute. This figure decreased to 3 percent in 2004, while the world market for jute products is slowly increasing again.

The present government led by Prime Minister Sheikh Hasina after assuming office has taken various pragmatic measurers to increase the country’s jute production including expediting research on jute and reopening a number of jute mills which were closed down during the past regime.

However, decoding of genome sequencing of jute by a group of Bangladeshi scientists has opened up a new vista in the development of golden fibre.

Exports to grow 15pc

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Exports to grow 15pc
Growth highest in South and South-West Asia: UN ESCAP report

From left, Bangladesh Tariff Commission Chairman Mozibur Rahman, Commerce Minister Faruk Khan and ARTNeT Coordinator Mia Mikic launch Asia-Pacific Trade and Investment Report 2011 at Ruposhi Bangla Hotel in Dhaka yesterday.Photo: STAR

Star Business Report

Bangladesh’s exports are forecast to grow by 15 percent annually in 2011 and 2012, higher than any country in South and South-West Asia, said the Asia-Pacific Trade and Investment Report (APTIR) 2011.

Exports of South and South-West Asia will increase by 9.5 percent in 2011 and 9.7 percent in 2012, while least developed countries (LDCs) are projected to grow by 8.7 percent this year and 14 percent next year, according to the report.

Bangladesh Tariff Commission and the Asia Pacific Research and Training Network on Trade (ARTNeT) launched the UNESCAP’s APTIR for 2011 at Ruposhi Bangla Hotel yesterday.

The report hailed Bangladesh’s booming performance of services exports, which grew by 24 percent in 2010 after a slow growth of 4 percent in 2009.

With its theme of “post-crisis trade and investment opportunities”, this year’s Asia-Pacific Trade and Investment Report has identified challenges and opportunities for trade and investment in the region.

The APTIR identified poor foreign direct investment inflows and intra-regional trade as major challenges for Bangladesh.

Commerce Minister Faruk Khan spoke at the report launching programme as chief guest. Mozibur Rahman, chairman of Bangladesh Tariff Commission, and Mia Mikic, ARTNeT co-ordinator, UNESCAP (United Nations Economic and Social Commission for Asia and the Pacific), also attended the event.

The commerce minister gave an overview on how the government is trying to expand the export basket and destinations to further boost the country’s export earnings.

“Export of non-conventional goods and services such as ship, jute and IT has been growing. Incentives will be given to boost handicraft export,” said Khan.

On the new markets, he said Japan, South America and South Africa are increasingly becoming Bangladesh’s export destinations. He cited an example of Japan that has relaxed value addition to 20 percent from previous 30 percent for getting generalised system of preference (GSP) facility.

The minister said India that has recently allowed duty-free and quota-free exports of 46 garment items will also boost Bangladesh’s exports there.

He said the GSP form will soon be made fully automated to render faster and reliable services.

Mikic said though Bangladesh’s exports of goods and services are growing, the FDI and intra-regional trade are not. Bangladesh received only $4 billion in FDI in five years (2005-09), lower than many LDCs.

“Improving the private sector business environment is a major task to increase FDI,” said Mikic.

She said only 15 percent of Bangladesh’s exports went to Asia-Pacific countries in 2010, while 63 percent of its imports came from the region.

Mikic urged Bangladesh to look for new opportunities in climate smart goods and technologies, which is estimated to be $30 billion globally.

The report recommended that with strengthened regional cooperation and the right policies, the region will be able to continue its strong trade- and investment-led growth.

UK entrepreneur keen to invest in generators, solar panel plants

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UK entrepreneur keen to invest in generators, solar panel plants

Steve Bandey, managing director of T&R Limited, is speaking at a function in the city on Wednesday.

Staff Correspondent

British generator and solar panel manufacturing company T&R Limited has showed keen interest to invest in power related sector in Bangladesh.

The UK-based company has aimed to invest in Bangladesh to install factory for manufacturing generator and solar panels locally in a bid to help provide Bangladesh people with the items at low costs.

“My objective for investing in Bangladesh is to utilise its skilled and cheap workforce to boost production,” the visiting T&R managing director Steve Bandey said Wednesday.

“T&R Limited is doing business in Africa, Asia, Europe and America after it was established in 1951. Steve Bandey is visiting here in response to the invitation of local company Cardiac Presision Ltd and Home Street Builders.

T&R Limited showed interests in investing in partnership for Diesel Generator Manufacturing Plant by providing technical support and consultancy, training local engineer, and design and management. It also showed interests at solar panel manufacturing plant, 5x50MW solar power plant to be implemented in 2-5 years, solar power irrigation and wind power generation.

Steve Bandey said that his company wants to make the products available in the peoples’ doorsteps at cheap rates and for this he was interested to manufacture those locally.

“Price is a very important factor to popularize any kinds of product in a developing country,” observed Steve.

Offering products at cheap rates is only possible when the products are manufactured locally, he said.

“We aim to provide our products at low prices as the local engineers are very highly skilled that might help us produce high quality products at low costs,” he said.

He said his company’s target is to export their products within 4 to 5 years after making investment in Bangladesh. “Local skilled engineers and lobourers would contribute a lot in boosting the production,” he added.

T&R power at their expected Diesel Generator Manufacturing Project would do fabrication locally in the first phase, control system in second phase and new design in the third phase. Later, it will train local engineers.

About renewable power and energy, Steve said: “We will design the solar panel locally with the technological support of a British university.”

“If we could design and manufacture the solar panel locally, it might help us supply the product at local market at cheaper rates compared to the imported cost,” he said.

“We have a plan to install five solar systems with capacity of 50 megawatt (MW) each and it would be possible within three years,” said Steve, adding: “I want to continue investment without interruption if favorable environment is ensured.”

Processed shrimps a hit abroad

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Sown & Reaped
Processed shrimps a hit abroad

Workers process shrimps into ready-to-eat and ready-to-cook forms in ARK Seafoods Ltd in Chittagong. Photo: Anurup Kanti Das

Sohel Parvez

It is a graduation from mere suppliers of shrimps to high-end processors, inspired by best practices in other countries.

Continuous efforts have given the Bangladeshi shrimp exporters a new identity. They are now known as the processors of value-added shrimps. They are no longer mere suppliers of raw materials for buyers.

Today, a large volume of shrimps and frozen fish, the country’s third biggest export earner, are exported in ready-to-cook or ready-to-eat forms, thanks to steps taken two decades ago.

“Until the mid-80s, we were raw material suppliers to European buyers who processed shrimps at their factories. Later, we thought that we could do the same,” says Ashim Kumar Barua, director of Apex Foods Ltd, a pioneer in value added shrimps and fish.

“We had the confidence that we could process our products further. If processors in Thailand and Europe could do it, we could too,” he adds.

Based on that spirit, the Chittagong-based Apex Foods began efforts to process shrimps in 1988 and set up machines to make individually quick frozen (IQF) shrimps — which give consumers scope to cook the desired quantity instantly.

The move to export shrimps in IQF form was meant to shift from the practice of exporting shrimps in frozen blocks. It reduced the hassles of end consumers, who previously had to wait for the whole block to defrost before breaking free the desired number of shrimps.

“The IQF shrimp offers them the benefit. There is no need to wait. Consumers can just pick out the number of shrimps they want and cook instantly. Shrimps in IQF form are preferred in households,” he says.

Initially, our buyers were from Denmark and the UK. We exported shrimps in cooked brown form and IQF form, says Barua.

Following Apex and some other leading processors such as Meenhar Seafoods, Rupsha Seafoods and Fresh Foods began to sign up for upgrading their plants to make value-added shrimp.

Industry insiders say the attempt to add value to shrimps was taken in a bid to gain wider acceptability among buyers in the West and sustain competition with other countries like Thailand.

A rise in the cost of labour for processing shrimps in Europe and changing consumer preferences gave additional impetus to the local exporters. Furthermore, they also received better prices for processing the seafood up to ready-to-cook and ready-to-eat stages.

Currently, 20-25 processing plants are engaged in exporting more than 50 types of value added shrimps — IQF, tail-on, tail-off, P&D (peeled and de-veined), breaded and marinated, etc. The volume of exports of value added items is rising, according to exporters.

Industry insiders say the amount of exports of these further processed or value added shrimps would be 40-60 percent of total shrimp exports of 50,000 tonnes a year, rising from 30,000 tonnes a decade ago.

“The main demand from buyers is for value added shrimps. Except for restaurants, no one wants to buy traditional shrimps sent in block forms,” says Md Amin Ullah, managing director of ARK Seafoods Ltd.

Barua says the exports of value-added shrimps began to rise in 1998.

“Now, value added products occupy more than 90 percent of our export basket,” says Barua of Apex that exports 5,000 tonnes of shrimps and frozen fish a year.

The company makes 70 types of value added shrimps, such as herb and garlic, butterfly, cooked butterfly, breaded and marinated shrimps, for buyers abroad including superstores such as Walmart and Tesco.

Industry people say Bangladesh exports of processed shrimps mainly reach Germany, Netherlands, Belgium, France, Switzerland, UK, US, Canada and Australia. A portion is also exported to Japan and Russia, while some exporters are looking to tap the Middle Eastern and African markets.

However, demand for shrimps in block form will remain. Restaurants prefer shrimps in block forms, says Barua.

According to exporters, shrimp processing has widened job opportunities in the sector, giving employment to more than 10 lakh people, including farmers. Various ancillary industries have also developed.

“It has created new jobs for people as factories have expanded their processing lines,” says the managing director of ARK Seafoods Ltd.

Bangladesh’s image has also brightened in the export markets, adds Barua of Apex.

“This has been possible because of value addition. If we do not make any major mistake, there will be no problems in exporting,” says Barua.

“Prospects are bright. But one problem is that demand for shrimp depends on the economic condition of the western countries. If the economies of our importing countries do good, we will do better,” says Barua.

Another problem is low farming of shrimps, processors add.

“There is demand for shrimps abroad. If you can give us the raw materials, we will be able to export greater quantities,” says the managing director of ARK Seafoods.

sohel@thedailystar.net

Faruk for expansion of export basket

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Faruk for expansion of export basket
Staff Correspondent

Commerce Minister Faruk Khan on Wednesday said the government is working hard to increase country’s export basket along with diversify exports.

Speaking at the launching of Asia-Pacific Trade and Investment Report 2011 he said the process is on to explore new export destinations to inflate the export earnings.

“The government is not sitting idle in negotiating the challenges,” he said adding: “You can see the silver lining as the power and energy scenarios of the country are developing.”

About the intraregional trade, he said Bangladesh’s export to India rose to US$ 2.3 billion in July this year, from $ 1.8 at the same period in 2009.

He also mentioned his government’s latest success in attaining GSP facility from another giant Asian economy Japan to inflate the export basket.

United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) unveiled the report at a local hotel jointly with Bangladesh Tariff Commission.

BTC chairman Dr Mojibur Rahman chaired the function while Commerce Minister spoke as the chief guest.

The report forecasts that Bangladesh will do much better compared to other South and South-West Asian nations in 2011 and 2012.

Exports of both Bangladesh and India will grow 15 percent in the next two years, much higher from the average performance of 9.5 and 9.7 percent respectively for other countries of the region.

The report said Bangladesh economy is relatively resilient and it was strongly recovered from the global economic downturn.

But in terms of FDI inflow, Bangladesh showed comparatively poor performance from 2005 to 2009, the report said. Country could manage to attract only $4 billion or 1.7 percent of the FDI in South and South-West region during the period.

The report recommended strong intraregional trades for buoyant export growth and the region’s resilience.

Only 15 percent of Bangladesh’s exports went to Asia-Pacific countries, while 63 percent of its imports came from the region.

Bangladesh can exploit the opportunity of boosting its exports in the 30 billion dollar markets of environment-friendly products in the Asia and Asia Pacific Region, it said.

Mia Mikic, coordinator of Arnet, a research network of UN-ESCAP, said labour costs in Japan, South Korea and China is on the rise, paving the opportunity for Bangla-desh to grab the markets.

Mikic said the time span for customs procedures in the region reduced to 28 days in 2010 from 46 days in 2005 that cuts costs by 1.6 per cent resulting in improvement of customs services.