ePaper_2nd Edition_October 12, 2016

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DT 12 Business WEDNESDAY, OCTOBER 12, 2016 ERL new unit work stalled for fund crisis Second unit work of the oil refinery was scheduled to be completed by June 2016 • Aminur Rahman Rasel The work of setting up second unit of the Eastern Refinery Limited (ERL), the only state-owned oil refinery in Bangladesh, has been disrupted due to lack of funds. The installation of the ERL unit- 2 was scheduled to be completed by June 2016. But the work of the project worth Tk16,731 crore is not progressing as financial assistance from foreign sources is still at negotiating stage. Once installed, the unit is expected to refine 4.5m tonnes of petroleum annually. About the situation, ERL General Manager and Project Director Aktarul Haque told the Dhaka Tribune yesterday that the development project proposal (DPP) has been sent to the Planning Commission for approval while negotiation for funds is on-going with several foreign banks and financiers. “The design of the project will be finalised after the DPP is passed Once installed, the second unit of the Eastern Refinery is expected to refine 4.5m tonnes of petroleum annually from the Planning Commission, and French company Technip will do the designing,” he said. Haque added the government has already signed a memorandum of understanding with Technip for the unit.” He said: “The construction cost will be negotiated with Technip on the basis of the MoU. If both parties reach a consensus, Technip will be awarded the job. Otherwise, the government will look for another company.” ERL Managing Director Engr. Md Emdadul Haque said: “The unit may take around three years to Bida seeks govt help in equity fund for new entrepreneurs • Asif Showkat Kallol Bangladesh Investment Development Authority (Bida) has urged Finance Division to provide assistance in its initiative of forming an equity fund for the country’s new entrepreneurs. Bida Chairman Md Aminul Islam recently sent a letter to Finance Minister AMA Muhith requesting for the help. In the letter, the chairman said: “This fiscal year Bida has allocated Tk10 crore for the emerging entrepreneurs’ fund.” He said Bida plans to create an equity fund with an initial amount of Tk110 crore. “We want to help young entrepreneurs from the fund in the current fiscal year,” Aminul Islam said. He said the government is unable to create new entrepreneurs in the This fiscal year Bida has allocated Tk10 crore for the emerging entrepreneurs’ fund absence such funding initiative. This is helpful as the new entrepreneurs in Bangladesh usually do not have enough resources to start a business, according to the letter. Bida said it has prepared concept papers on creation of new entrepreneurs with the help of Brac University and Daffodil International University in Dhaka. The concept papers have elaborated on management of the training and financing for new entrepreneurs. On the basis of the guidelines as developed in the papers, the standards will be set for the emerging entrepreneurs. Bida has urged Finance Division to fund Tk100 crore under the Bida venture capital fund. In Bangladesh, around 2m new faces are entering the job market every year, with only half of them being employed, either at home or abroad. Bangladesh Bank has taken efforts as part of its policy to create additional employment opportunities in the country. In 2013 the Dhaka Chamber of Commerce and Industry published a handbook on entrepreneurship with a view to creating 2,000 innovative entrepreneurs across the country. • complete, after the DPP is passed.” The estimated project cost is Tk16,731 crore, out of which, Tk5,000 crore will be provided by the Bangladesh Petroleum Corporation (BPC) and the remaining Tk11,731 crore is expected to come as project assistance. Presently, ERL refines 1.3m DHAKA TRIBUNE tonnes of crude oil annually though its capacity of 1.5m tonnes. The BPC annually imports nearly 5m tonnes of crude and refined oil at an average cost of Tk50,000 crore. Technip, which installed the ERL’s first unit, was also given the task of designing the second unit. • ‘China economy improving, debt risks under control’ • Reuters China’s economy performed better than expected in the third quarter and the country’s debt risks are under control, Premier Li Keqiang said yesterday. “China’s economy in the third quarter not only extended growth momentum in the first half but showed many positive changes,” Li said in the speech in Macau that was broadcast live on state television. Key indicators such as factory output, company profits and investment have rebounded, he said, ahead of China’s release of third-quarter gross domestic product (GDP) data on Oct. 19. More than 10 million new urban jobs were created in the first nine months, with the survey-based jobless rate falling below 5% in September, he said, while acknowledging that the economy still faces downward pressure. •
Business 13 DT WEDNESDAY, OCTOBER 12, 2016 Foreigners cut down on emerging Asia bonds • Reuters Foreign investors have cut holdings in most emerging Asian government bonds so far this month on expectations that US interest rates will rise in December and that other major central banks will not ease further. South Korea, India and Thailand have suffered outflows so far in October. “The global environment for bonds has become less favourable with major central banks contemplating reducing stimuli,” said Eugene Leow, interest rate strategist for DBS Bank in Singapore. The US Federal Reserve is expected to raise interest rates in December, as three months of slower employment growth is not considered enough to stop it from moving. Also weighing on emerging Asian debt are perceptions that other major central banks are unlikely to ease further as well as higher oil prices, which have reduced concerns about inflation being too low. Outflows Foreign investors sold a combined net 1.7tn won ($1.5bn) worth of South Korean bonds in the first 10 Runner to bring Bajaj 3-wheelers in Bangladesh market • Tribune Business Desk Runner, a local motorcycle manufacturer, has tied up with Bajaj Auto Limited, India-based three-wheeler manufacturer, to introduce Qute and LPG and Diesel range three wheelers. On this tie-up, Manish Singh Rathore, general manager (International Business) said: “Bajaj would be introducing LPG three-wheeler along with four-wheeled Qute to Bangladesh market through Runner in December,” said press release yesterday. Both Qute and three-wheeler would provide added mobility options to Bangladesh Customers. Qute – a safe, smart, fuel-efficient, environmentally friendly and compact mobility solution on 4 wheels – is already operating in 20 countries. “With its unique design, it would cater to consumer travel needs on highways as well as in dense traffic conditions, especially in metro cities like Dhaka, Khulna and Chittagong etc,” said Mukesh Sharma, managing director and CEO, Runner Automobiles Ltd. Runner would create a complete ecosystem for Distribution and Servicing of three-wheelers and Qute in Bangladesh, he added. • days of October, preliminary data from the country’s Financial Supervisory Service showed. This follows 663bn won of outflows from bonds in September, with foreigners reducing holdings of maturities of less than one year by 3.4tn won, according to separate data from the regulator. “Short-dated notes are not attractive, given low chances of a rate cut in a near term, although investors extended duration, indicating US-Bangla Airlines adds first Boeing to its fleet • Tribune Business Desk their sentiment stays bullish,” said Shin Dong-su, a fixed-income analyst at Eugene Investment & Securities in Seoul. South Korea’s central bank holds a policy meeting on Thursday and is not expected to lower rates, with rising household debt seen as one hurdle to a cut. In India, foreign investors booked profits by selling more $600m worth of domestic bonds this month after buying $1.5bn of US-Bangla Airlines has brought Boeing 737-800 aircraft into its fleet to expand its wing to home and abroad. Cockpit crew and officials of the US-Bangla Airlines received the new aircraft at Hazrat Shahjalal International Airport yesterday evening, creating a new milestone in the aviation industry of Bangladesh. US-Bangla will now be able to connect more international destinations in the upcoming days with the 158-seater Boeing 737-800 aircraft. The carrier began its journey on July 17, 2014 with its maiden flight from Dhaka to Jessore. The airliner has so far successfully operated over 16,000 flights in the domestic and Dhaka-Kathmandu route. With the new Boeing 737-800 aircraft, the total number of aircraft of the company is now four. Boeing 737-800 aircraft has 158 revenue seats each including 8 business class and Dash8 Q400 aircraft 76 seats each. It took to the skies with a slogan “Fly Fast-Fly Safe” and has been providing committed services ever since. Since its inception, US-Bangla Airlines received a positive market response and presently holds a major connectivity of the domestic routes and one regional Dhaka-Kathmandu route. In a span of just two years of its operation, US-Bangla has established its brand reputation. In the domestic sectors, currently it provides connectivity to all the domestic airports with the capital by giving regular flights. US-Bangla Airlines operates three aircrafts in its inventory; these are DASH 8-Q400 aircrafts. To further expand its operation into the international arena, the management of US-Bangla will procure two more brand new Boeing 737-500 aircraft, out of which, them in September, before a policy meeting on Oct 4 at which interest rates were cut. Foreign investors cut Thai bond holdings by 9.2bn baht ($263.8m) in the first 10 days of October, following inflows of 15.3bn baht in September and of 41.1bn baht in August, according to Reuters calculations based on Thai Bond Market Association data. Thai markets have fallen this week after a palace statement on Sunday said the health of King US-Bangla Airlines officials and crew members pose for photo as the company brings a Boeing to its fleet one will be arriving in Bangladesh in the third week of this month and the other one in December 2016. Each aircraft will posses 4 lavatory to facilitate the passengers’ comfort. The management of US-Bangla Airlines has decided to operate regular scheduled flight to Kolkata, Kuala Lumpur, Bangkok, Singapore, Muscat, Doha, Guangzhou and many more international destinations with these Boeing 737- 800 aircraft. US-Bangla will be the first airline in Bangladesh to connect Paro (Bhutan) with Dhaka in Bhumibol Adulyadej, 88, was in an “unstable” condition. Malaysia saw bond outflows of 1.4bn ringgit ($336.9m) in September after three months of inflows, central bank data showed. Indonesia Foreign holdings of Indonesian bonds, by contrast, have hardly changed this month. Among Asia’s highest yielding bonds, they attracted 16.9bn rupiah ($1.3bn) of inflows in September, nearly double the August level. These inflows came as Bank Indonesia last month delivered its fifth interest rate this year, boosting bond prices. The country also collected 97.2tn rupiah in revenue from the first phase of the country’s tax amnesty, helping cover the government’s fiscal deficit. Some investors think the falling yuan might prompt some foreign investors to sell Chinese bonds and move into other emerging Asian debt. The renminbi has hit six-year lows this week. “After CNY depreciation, money has been flowing out of onshore China to the offshore market,” said Gordon Ip, investment director at Value Partners in Hong Kong. • COURTESY the near future. US-Bangla Airlines maintains an impeccable standard of service equipped with incomparable reliability and flying comfort with in-flight service of international standard, and reached the milestone for best on-time performance, which is about 98.7%. To facilitate its passengers further beyond flying, US-Bangla also maintains a frequent flyer program named ‘Sky Star’. For in-flight entertainment of the passengers, US-Bangla also published its own in-flight magazine ‘Blue Sky’. •
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