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Monthly
business
magazine
December 2019
Dhaka Metro Rail
to speed up life and efficiency
of millions of commuters
Bangladesh-US Partnership
An Eventful Year of Shared Goals
Turning to the ocean for value
Women In Bangladesh Facing Off Challenges
Leather Industry: Big Opportunity Ahead
Electricity Industry attracting highest FDI
Advisers
Prof Dr Maniruzzaman
Dr Mohammed Farashuddin
Andrew Robinson
Editor
Shamim Uz Zaman
Consulting Editor
M Azmat Khan
Tauhidur Rahman Khan
Zahidur Rahman Khan
Content Editor
Munawer Mehedi
Monthly business magazine
Associate Editor
Farhana Khan Tania
Regular Contributors
Munzure Aziz
Engr Mohammad Zahinul Islam
Graphic Design
Mostafizur Rahman
Editorial & Business Office:
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Tel: +8801678040066
Email: magazine@beBangladesh.com
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Published by:
Shamim Uz Zaman
67/D North Dhanmondi, Kalabagan,
Dhaka 1205, Bangladesh
Masthead Concept & Design
Mustafa Kamal
Editorial
We begin our maiden journey of Business Express (BE) Bangladesh with a
far-reaching vision.
Bangladesh is amongst the top three fastest growing nations in the world
for this year and the next. Bangladesh achieved a growth of 188% in last decade.
Current forecasts by all leading multilateral institutions, including American
credit ratings agency S&P and Moody’s, affirm Bangladesh’s growth potential.
The solid growth will likely continue to raise average income. HSBC Bank has
predicted Bangladesh will be the 26th-largest economy in the world by 2030.
Buoyant exports, robust consumption, higher remittances, ongoing reform to
improve business climate for private investment, public infrastructure investment
and an accommodative monetary policy have all set the ground for Bangladesh to
compete in the global marketplace.
Bangladesh is world’s second-biggest apparel exporter after China. It is now
the fourth largest rice producer in the world, the second largest jute producer,
fourth largest inland fish producer, the fourth largest mango producer and the
fifth largest vegetable producer. Bangladesh has also been able to export industrial
robots to South Korea and
ships to India.
International
investors have
taken notice of the
huge investment
opportunity in
Bangladesh.
Since 2018,
the net
Foreign Direct
Investment
(FDI) has
increased by
42.9%. At a
time when many
countries are
looking inwards and
opting for closing their
doors, Bangladesh, with its
favorable investment climate, is open for business.
Dhaka, the capital of Bangladesh, is one of the fastest growing cities in the world.
For this reason, the government has undertaken the 2.8 billion USD Dhaka Mass
Rapid Transit (MRT) project, the largest infrastructure project the country has
seen, second only to the 3-billion USD Padma Bridge project. The MRT is projected
to ease traffic congestion in the city, saving much of the 3.2 million working hours
which are wasted every day due to the current congestion.
Construction of the MRT project is progressing fast. Once completed, the MRT
will not only help ease the traffic sorrows of millions of commuters but it will and
provide a modern, comfortable and reliable urban transport service.
Bangladesh has had social success as well. Its progress in the Human Development
Index (HDI) has been widely acclaimed in global forums, and the country is seen
as a role model for others to follow. The world has begun to recognize these
positive social and economic trends of Bangladesh as an investment opportunity
and perhaps it would demand to even “BE Bangladesh”.
Shamim Uz Zaman
3
EDITORIAL
Monthly business magazine
Monthly business magazine
december, 2019
VOL-01, ISSUE-01
4
inside
CONTENT
20
Dhaka
Metro Rail
to speed
up life and
efficiency of
millions of
commuters
Long stretches of the
20.1 km Dhaka Metro
Rail line is now visible
across the capital city.
Construction work of the
first-ever metro rail in
Bangladesh, Mass Rapid
Transit (MRT) Line-6 is
proceeding at full pace.
As of September, 30.05%
work is complete,
according to the Dhaka
Mass Transit Company
Limited (DMTCL)
Waste to Energy
New-generation solution for
Sustainable Pollution Control
Dhaka North City Corporation (DNCC) is
exploring prospects of generating renewable
energy from Municipal Solid Waste (MSW),
according to a report published by the Dhaka
Tribune on September15th.
38
Monthly business magazine
december, 2019
5
CONTENT
26
Bangladesh-US Partnership
An Eventful Year of Shared Goals
The United States is among the top trading partners and the
largest investment partner of Bangladesh. Trade between
Bangladesh and the US doubled to more than $8 billion over the
past decade. And this year (2019) has been particularly eventful in
furthering the shared goals of trade, partnership and prosperity.
16
Electricity Industry
attracting highest FDI
Bangladesh saw highest electricity generation in its history on 29
May 2019. According to information given by Bangladesh Power
Development Board (BPDB), 12,893 megawatt (MW) electricity
was generated, against the forecasted demand of 14,796MW.
34
SEZs
Fit Drivers for FDI
Investors seek safe havens with quality infrastructure
and services for their investments. In Bangladesh,
where social and cultural trends may often seem exotic
to foreigners; and where governance and political
tendencies may often strike as somewhat inadequate
and puzzling, Special Economic Zone (SEZ) is exactly
36
PHP assembling Proton
in Bangladesh
Chittagong based local conglomerate PHP Group announced, back
in 2015, of assembling sedan car for the first time in Bangladesh.
After two years, they started marketing almost in silence. In
the meantime, two years just passed away. When people began
to wonder if the PHP Group had simply vanished from the car
assembling industry, right at that point they came into spotlight.
december, 2019
Monthly business magazine
Monthly business magazine
News Snippets
6
News Snippets
ADB to provide around $5bn to Bangladesh for 2020-202
The Asian Development Bank (ADB) will provide around $5 billion to Bangladesh for 2020-2022, aiming to
further strengthen its partnership to promote rapid, inclusive and sustainable growth in Bangladesh. ADB Country
Director for Bangladesh Manmohan Parkash met Prime Minister Sheikh Hasina recently and handed over ADB’s
new Country Operations Business Plan (COBP) for 2020-2022, which programs around $5 billion in firm projects.
ADB in its 46-year-long partnership with Bangladesh has mobilized over $25 billion in loans and grants to help
bring better infrastructure, public services, and social development outcomes to the people of Bangladesh. In 2018
alone, ADB approved a record $2.5 billion for assistance to Bangladesh.
Blue Revolution in Bangladesh
International Food Policy Research Institute (IFPRI) study found
that more than two million Bangladeshis escaped poverty between
2000 and 2010 by engaging themselves with aquaculture. This
Washington-based organization in the book “The Making of a Blue
Revolution in Bangladesh: Enablers, Impacts, and the Path Ahead
for Aquaculture” termed the massive expansion of aquaculture in
Bangladesh was a Blue Revolution.
$500 Infrastructure Fund
Bangladesh Government is planning
to create a $500 million infrastructure
fund supported by the government and
managed by the private sector to fund
the Public-Private Partnership (PPP)
projects. The Public-Private Partnership
Authority under the Prime Minister’s
Office (PMO) has already developed a
pipeline of more than BDT48,700 crore
of PPP projects, in addition to the already
awarded projects worth BDT25,000
crore. The fund will raise long-term
capital from private investors, while
the Government will support the fund’s
structural framework, seed capital,
risk guarantees and regulatory support
including investor incentives.
Monthly business magazine
december, 2019
News Snippets
Monthly business magazine
Japan invests USD
330m in Summit
Power
Japan’s largest energy
company JERA Co. Inc.
recently acquired a 22%
stake in Summit Power
International Limited,
for USD 330 million. The
investment has been finalized
within only four months of
7
News Snippets
Cotton import to rise in Bangladesh
Due to the USA-China trade war, China became very expensive for western
garment retailers and brands hence they are coming back to Bangladesh
with a lot of work orders, as a result, Bangladesh’s cotton consumption will
continue to grow. Bangladesh imported 226,000 bales of cotton each year
between 2015 and 2017 but the quantity tripled to 785,000 bales in 2018. Last
year Bangladesh imported 8.26 million bales of cotton worth US$ 3 billion
out of which 11 percent from the USA.
signing the memorandum
of understanding (MoU)
between JERA and Summit
in Tokyo. JERA will strive to
increase the corporate value of
Summit through the efficient
construction and operation of
its power generation facilities.
Japan-Bangladesh
JV Hospital about to
launch
Japanese health service
provider SHIP Healthcare
Holdings and a Bangladeshi
organization Aichi Medical
Group almost completed a
650-beds joint venture multispecialized
Japan East-West
Medical College Hospital at
Ashulia, Dhaka investing US$
65 million. Japanese Doctors,
nurses and hospital managers
will work in the hospital in the
first phase as trainers to train
local resources aiming to place
the high quality of service. The
hospital will introduce artificial
intelligence technologies for
diagnostic purposes in the near
future.
december, 2019
Monthly business magazine
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News Snippets
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News Snippets
Bangladesh pursues French Investment
A high level government delegation comprises of high officials from Bangladesh
Investment Development Authority (BIDA), Bangladesh Economic Zones
Authority (BEZA), Ministry of Commerce, Bangladesh Hi-Tech Park Authority
headed by Bangladesh Foreign Minister Dr. A K Abdul Momen have recently
participated at Bangladesh-France Economic Forum organized by the Senate
of France in Paris where relevant French agencies also attended. The Foreign
Minister explained the advantages that Bangladesh offers as an investment
destination. The delegation urged French investors to invest in Bangladesh
with a focus on infrastructure, renewable energy, waste management, and
ICT sectors
Made in
Bangladesh
event in Qatar
The ‘Bangladesh
Forum Qatar’ (BFQ) - a
non-profit business
council is hosting the
three-day exhibition,
the first of its kind, at
the Doha Exhibition
and Convention
center (DECC), from
December 10 to 12,
promote Bangladeshi
trade and business
with Qatar. Qatar is
also keen to invest in
Bangladesh.
Commencing Ctg-Chennai-Europe route
The strategic Chattogram-Chennai-Europe shipping route is likely to launch from next
month. As a result, domestic goods will reach through the feeder vassals to the Chennaibased
Krishnapatnam Port, popularly known as KPCL – India’s transshipment giant, and
load them onto mother vessels heading for central Europe. KPCL is a privately built and
owned all-weather, deep-water port located in the Nellore district of Andhra Pradesh.
Monthly business magazine
december, 2019
News Snippets
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News Snippets
Samsung Bangladesh to assemble Galaxy products
Samsung Bangladesh will start assembling its Galaxy-branded flagship products within the next few months.
Samsung Bangladesh and its assembly partner Fair Electronics Ltd set up their mobile plant in Narsingdi
two years ago and began assembling a range of 4G smartphones in June last year. The plant is currently
assembling products that account for 96% of Samsung’s smartphone sales in Bangladesh. Samsung is the
top player in the smartphone segment in Bangladesh, with a 31% market share in terms of volume and 48%
share in terms of value. Samsung Bangladesh and Fair Electronics Ltd informed at a press conference in
Dhaka in October that no Samsung mobile handsets will be imported to Bangladesh after March next year
as its local plant is capable of meeting the domestic demand entirely.
Japan has been the single biggest
bilateral development partner for
Bangladesh. The amount of Official
Development Assistance (ODA)
to Bangladesh from Japan During
last year was US$ 1.8billion.
Mr. Kazuo Nishitani, General
Secretary of Japan-Bangladesh
Committee for Commercial and
Economic Cooperation recently
expressed his view that people
in Bangladesh have a very “high
level of seriousness and skills”
with stable political and economic
growth, making Bangladesh a
good destination for investment.
Japanese Economic Zone
(Araihajar EZ) is now attracting
more investment from Japan to
Bangladesh.
Japanese companies showing
interest in Bangladesh
december, 2019
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News Snippets
British Asian Trust launched
The British Asian Trust, a leading South Asian development organization founded by the Prince of Wales, has
bee officially launched in Bangladesh recently. The Bangladesh Advisory Council of the British Asian Trust
is chaired by Mr. Shayan F Rahman. The trust is known for its pioneering work in social finance. The British
Asian Trust has been addressing poverty in South Asia, working primarily in the fields of education, livelihoods,
anti-trafficking and mental health.
Coca-cola to invest $200mn
Multinational beverage giant Coca-Cola has planned
to invest US$ 200 million in Bangladesh in the next
five years. They plan to invest $50 million in 2020,
and the rest in the following 4 years. Brian Smith,
President and Chief Operating Officer (COO) of Coca-
Cola, recently visited Bangladesh and confirmed this to
Industries Minister Nurul Majid Mahmud Humayun
MP. Bangladesh is a potential market and Coca-Cola
would like to expand its production to increase supply
to the rural areas. Coca-Cola would produce beverages
with different levels of sugar, in Bangladesh.
Lee Cooper in Bangladesh
UK-based lifestyle brand Lee Cooper is about to
enter the Bangladesh market. Express Leather
Products Limited, the local franchise, is going
to front-end this global fashion brand and
is eying to tap the country’s growing middle
class. Lee Cooper is a global lifestyle brand
operating in more than 100 countries with 65
global partners, in retail sales across a multifascia
distribution of wholesale or retail stores
as well as in digital outlets. In Bangladesh, Lee
Coopers’ store will concentrate on the footwear
and apparel segment.
Monthly business magazine
december, 2019
News Snippets
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News Snippets
Bangabandhu satellite feeding all 34 TV Channels
The commercial transmission of the Bangabandhu-1 satellite was inaugurated formally by Prime Minister
Sheikh Hasina in a gala ceremony at a city Hotel on October 2nd. All the 34 local television channels are now
using the feed of the Bangabandhu-1 satellite on a commercial basis. The parent company of the country’s
first satellite, Bangladesh Communication Satellite Company Ltd (BCSCL) will receive $2,817 per Megahertz
(MHz) of spectrum per month from each TV channel. BCSCL is also trying to sign agreements with the army
and the navy and file two separate projects on telemedicine and e-education. With these deals, about 40%
of the Bangabandhu-1’s bandwidth would be taken care of, and the government will keep another 50% to
sell to other countries. The much-awaited Bangabandhu-1 satellite was launched into orbit on May 12, 2018.
Halal Certification to tap Trillion markets
Bangladesh requires to form a halal certification body in the country to tap the trillion-dollar international halal
food market. The popularity of halal foods and other consumer items have been rising even among the non-
Muslim populations around the world, as halal foods are hygienic and healthy. The global halal food market size
was worth US$ 1.6 Trillion in 2018. The global consumption value of halal food increase with an 8.14 percent
average growth rate, and over the next five years the halal food market will register a 6.1 percent compound
annual growth rate in terms of revenue.
december, 2019
Monthly business magazine
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News Snippets
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News Snippets
Saudi inked $2.5b investment in the power sector
ACWA Power, a Saudi Arabia based company, recently signed a memorandum of understanding (MoU) with
Bangladesh Power Development Board (BPDB), for investing around US$2.5 billion in power and energy sector,
aiming for Development of Natural Gas/R-LNG Based Combined Cycle Power Plant in Bangladesh. The power
plant will be set up within the next 4-5 years. ACWA Power Chairman Mohammed Abunayyan signed the
agreement with BPDB Chairman Engineer Khaled Mahmood.
Greenland Malaysia keen to
invest in Bangladesh
Greenland Group, the Shanghai-based real
estate and property developing company of
China stepped into the Malaysian market
during 2014 and has completed many
remarkable projects. Now the Malaysian entity
is keen to step in the Bangladesh housing and
real estate sector. The Managing Director Mr.
Lim Sun Peng met the Housing and Public
Works Minister Mr. SM Rezaul Karim recently
and expressed the company’s intent about
investing in Bangladesh. They are interested
in ‘Business-to-Business’ or ‘Public-Private-
Partnership’ projects, with a focus on microhome
or micro-housing, following the models
of Malaysia, Indonesia, and Singapore.
Bangladesh fastest-growing
economy in South-Asia
World Bank report on the economic situation ranked
Bangladesh as the second fastest-growing economy in
South Asia, after Bhutan. The report projected a 7.2%
growth for Bangladesh in 2020, following Bhutan’s
7.4%. India has been forecasted to grow at 6.9%, Nepal
6.4%, Maldives 5.5%, Sri Lanka 3.3% and Pakistan 2.4%.
World Bank predicts that Bangladesh is projected to
grow 7.3% in the next fiscal year.
Monthly business magazine
december, 2019
News Snippets
Monthly business magazine
96pc Motorcycles locally made
Almost 96% of the motorcycles plying on the roads
are now locally manufactured or assembled in
Bangladesh. Seven firms have made Bangladesh
nearly self-sufficient in motorcycle assembling
and manufacturing. These seven firms are Runner
Automobiles of Bangladesh; India’s Bajaj, TVS
and Hero; and the Japanese
brands Honda,
Suzuki, Yamaha.
Bangladesh
was dependent
on imports to
meet 95% of the
local demand for
motorbikes, even
just two years ago.
The turnaround
came in 2016-17
when to encourage
local assembly and
manufacturing, duty
on import of completely
knocked
down (CKD) units of motorbikes was cut by 25
percentage points to 20%. According to market
players, around 1,600 units of motorbikes are
currently sold every day in Bangladesh, nearly
doubling from 900 units in 2016. According to
official data, some 307,656 motorcycles were
registered across the
country in the
first nine months
of the current
calendar year. The
data also revealed that
395,603 motorbikes
were registered in 2018
while 326,550 in 2017.
and tariff
Industry insiders
predict that the market
would grow many
folds in the next
two-three years,
boosted by rising
incomes, steady
growth of the
economy and
favorable policy
structure.
13
News Snippets
KDDI Japan interested to invest in Bangladesh
The Japanese second-largest telecom operator KDDI Corporation delegation led by its Global ICT Division General
Manager Hiroyasu (Hiro) Morishita recently met the Posts and Telecommunications Minister Mustafa Jabbar
and expressed their interest to invest in Bangladesh 5G telecom network. The company also wants to develop the
Internet of Things (IoT) devices and other digital technologies in Bangladesh. KDDI is conducting a feasibility
study to find out other potential investment areas.
december, 2019
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News Snippets
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News Snippets
Korean Expressway Corporation inked with Padma Bridge
Bangladesh Government recently signed a Memorandum of Understanding (MoU) with the Korean Expressway
Corporation (KEC) for the maintenance of Padma Bridge. A technical team of KEC will visit the Padma
Multipurpose Bridge site soon and submit a technical proposal for the bridge maintenance procedure and
necessary manpower. KEC will introduce the Electronic Toll Collection (ETC) system for Padma Bridge.
Bangladesh to export 5 tons Jute Leaves Tea
Bangladesh has got an order from Germany for exporting five
metric tons of tea produced from jute leaves this year. Bangladesh
exported 2.5 tons of tea produced from jute leaves to Germany
during the last year.
US$172 Billion Climate-smart
investment potential
International Finance Corporation (IFC)
estimated that Bangladesh has a Climatesmart
investment potential of US$172
billion between 2018-2030. To meet
the nationally determined contribution
(NDC) targets the investment will be
mainly in green building, transportation
infrastructure, urban water, agriculture,
waste management, and renewable energy.
Monthly business magazine
december, 2019
News Snippets
Monthly business magazine
Local Manufacturers grip growing Baby Diaper market
Locally produced baby diapers are gradually
gripping the market previously dominated
by foreign brands. According to retailers and
local manufacturers, about 70% of demand
for baby diapers was met with imports in
2014, which has come down to 40%. Local
manufacturers are now fulfilling over 60%
of domestic demand. Industry insiders say,
the market size of baby diapers grows 20%
to 30% annually, as the awareness about
baby care is increasing. The growth also
owes to an increasing number of women
going out to work, and so they need for their
babies to be draped in diapers becoming an
everyday necessity. Currently, eight local
companies are manufacturing baby diapers in Bangladesh. According to unofficial estimates of the market
players, Incepta Pharmaceuticals Ltd’s brand NeoCare holds a 10% share of the total market while it enjoys
a 30% market share of locally produced baby diapers. Chu-Chu diaper of Bangladesh Silicon Corporation
holds around 23% market share. Supermom of Square Toiletries holds a 10% share of the market. ACI
Limited launched Savlon Twinkle around two years ago, which now holds around 6% to 7% market share.
Bashundhara diaper of Bashundhara Group, Thai baby diaper of AB Group, PRAN-RFL’s brand Kidstar,
Smile baby diaper of Social Marketing Company (SMC) is among the local brands holding around 10%
market share. On the other hand, Pampers, Molfix, Huggies, MamyPoko, Glory, Bambo Nature diapers, etc
are the foreign brands, imported mostly from India, China, Egypt, and Nigeria.
15
News Snippets
Security-free loan for entrepreneurs
Supporting the small and cottage industries in
Bangladesh, the Industry Minister of Bangladesh Mr.
Nurul Majid Mahmud Humayun has revealed that his
ministry is taking proper initiatives to ensure securityfree
loan and market facilities to the entrepreneurs of
small and cottage industry sector. He expressed his belief
that there is a huge demand for Bangladeshi handicraft
products in international markets and so it is time to
explore and strengthen export facilities.
NY keen
to boost
investment in
Bangladesh
A US business
delegation led
by Senator Luis
Sepulveda recently
met a couple of
business leaders
of the Federation
of Bangladesh
Chambers of Commerce and Industries (FBCCI),
including its President Sheikh F Fahim, to discuss
cooperation in potential sectors. The delegation
expressed their keen interest in strengthening
state-level partnership with Bangladesh,
highlighting New York’s role in the USA economy
as the financial epicenter. The delegation also
discussed possible ways for knowledge transfer,
industry-academia exchange and strengthening
trade relations between Bangladesh and the USA.
Trade relations between the two countries stand
in FY 2019 at $8.65bn, with exports $6.87bn and
imports of $1.77bn.
december, 2019
Monthly business magazine
Monthly business magazine
power & energy
16
power & energy
Electricity Industry
attracting highest FDI
g Enrg. Mohammad Zahinul Islam
Bangladesh saw highest electricity
generation in its history on 29 May
2019. According to information
given by Bangladesh Power
Development Board (BPDB),
12,893 megawatt (MW) electricity
was generated, against the
forecasted demand of 14,796MW.
The power sector of Bangladesh is
one of the fastest growing in South
Asia, according to the World Bank.
Bangladesh has made rapid progress
in access to electricity by doubling
electrification coverage in a decade, reaching
to 93% of the population. Growth in terms
of capacity addition has been remarkable,
increasing from 5% in 2012 to 28% in 2018,
according to BPDB and World Bank information.
A decade ago, when the government of Prime
Minister Sheikh Hasina re-assumed power,
Bangladesh was immersed in acute power
shortage. To come out with a quick solution, the
government invited private companies to build
Monthly business magazine
december, 2019
small-range power plants, termed as quick-rental
power plants. The decision initially was received
with much skepticism by many intellectuals and
policy advocates.
After a decade, the Power sector of Bangladesh
is on track for attaining mid-term and long-term
goals. The government has set the target of taking
electricity to 100% population by 2021 and increase
generation capacity to 24,000 MW.
Strategy taken by the Government of Bangladesh
(GoB) was to address acute shortage through
immediate short-term measure and to chalk out
mid-term and long-term measures to meet growing
demand for electricity. The government formulated
detailed supportive policies to accommodate
private players in the power generation sector. The
Power sector was liberalised for private investment
and Foreign Direct Investment (FDI). The Power
Cell was set up as the designated department, to
facilitate private sector investment in the Power
sector of the country.
Private sector was encouraged to generate
electricity under Public Private Partnership (PPP),
Rental Power Producer (RPP), and Independent
Power Plant (IPP) arrangements as well as Captive
Power. Detailed plans were chalked out to produce
electricity from a mix of diverse energy sources,
such as fossil fuels including natural gas, coal
and LNG; nuclear power; and renewable sources,
including wind and solar energy.
Boosted by favourable investment policy offered
by GoB, private sector power generation witnessed
substantial growth in the past one decade. The
private sector is contributing about 55% of the
total electricity produced, against 45% produced
by state-owned power plants.
Attracted by the investment potentiality, many
foreign companies have been keen to invest in
Power sector of Bangladesh. In 2018, Bangladesh
received a record FDI of $3.61 billion, of which the
power sector alone attracted $1.01 billion, equaling
27% of total FDI.
Companies from Russia, Britain, Germany,
Japan, China, India and the United States have
signed investment agreements with Bangladesh
authorities to set up mega power plants.
The Russian state-owned Rosatam Atomic
Energy Corporation is investing US$12.65 billion
in the lone nuclear power plant of Bangladesh
(2,400MW) at Rooppur. The Russian Federation
and GoB signed a strategic co-operation agreement
in November 2011. Detailed engineering design
and site preparatory works for the project were
completed by the end of 2013. The Bangladesh
Atomic Energy Regulatory Authority (BAERA)
issued license for the design and construction of
the Rooppur units one and two in November 2017
and July 2018, respectively.
As per information uploaded in Energy Bangla
webpage, the Coal Power Generation Company
Bangladesh Limited (CPGCBL) signed a contract
with Sumitomo-led Japanese consortium, in July
2017, for construction of a 1,200MW coal-fired
power project at Matarbari, worth US$4.5 billion.
The Matarbari Coal-fired Power Project is the
second largest power project in Bangladesh, next
to Rooppur Nuclear Power Project.
BPDB signed a joint venture agreement with China
Huadian Hong Kong Company Ltd (CHDHK) in
May 2018 to construct a 1,320-megawatt (MW)
coal-fired power plant at Maheshkhali in Cox’s
Bazar, at a cost of U$2.0 billion.
Earlier in November 2017, the cabinet approved
a joint venture agreement between Bangladesh’s
state-owned Rural Power Company Ltd and
Norinco International China to build two power
plants to produce 1320 mw electricity. The plants
will be constructed at Paira in Patuakhali.
China’s energy giant PowerChina signed an
agreement and a contract in January 2019 with
GCM Resources, a leading British resource
exploration company for development of a coalfired
power plant in Bangladesh’s northern district
Dinajpur. The proposed project is reportedly part
of a broader strategy by GCM to generate 6,000
MW of low cost electricity for the Bangladesh
market utilizing domestic coal.
American company GE signed a deal with BPDB in
2018 to build a 3600MW LNG-based power plant
on Moheshkhali Island in Cox’s Bazar at a cost of
US$ 2.8 billion.
Indian state-owned firm National Thermal Power
Company (NTPC) formed a joint venture with
Bangladesh Power Development Board to construct
1320 MW Rampal Power Project at estimated cost
of US$ 1.6 billion.
Bangladesh’s North-West Power Generation
Company signed a deal with Siemens AG of
Germany in February 2019 to build an LNG-based
3,600 megawatt power plant in Patuakhali’s Payra
at estimated cost of $2.8 billion. Of the total cost,
80% is expected to come from loans and rest
will remain as equity. Countries like Singapore,
Malaysia and Saudi Arabia are reportedly willing
to invest in the power sector of Bangladesh.
17
power & energy
December, 2019
Monthly business magazine
18
In Bangladesh, domestic and industrial sectors
are the key power demand drivers, followed by
commercial and agriculture sectors. Electricity
consumption is rising in Bangladesh in line with rise
in production and coverage capacity. As demands
grow in consequence of accelerated economic growth
and structural transformation of the economy,
future demand for electricity in Bangladesh will
be changed. According to the Power Sector Master
electricity access, has registered significant growth
in terms of distribution network and sub-station
capacity. Various technological initiatives, including
Pre-paid Metering; Enterprise Resource Planning
(ERP); Supervisory Control and Data Acquisition
(SCADA); and upgrade of Geographic Information
System (GIS) have been undertaken.
As mentioned in the Ease of Doing Business 2019
power & energy
Plan (PSMP) 2016, the structure and composition of
electricity demand will be changed with the changes
in economic activities.
Significant rise in demand is obvious in the industry
as well as commercial and public services, such as
special economic zones, metro rails and others. The
peak electricity demand, projected in PSMP 2016, is
to be 14,500 MW in 2021; 27,400 MW in 2030; and
51,000 MW in 2041.
Along with rise in power generation capacity,
the transmission sector has also gone through
significant capacity building. The focus has shifted to
higher voltage operating levels to reduce losses. The
distribution sector, with a clear focus on increasing
Report, the electricity supplier in Dhaka cut the
security deposit for a new connection by half and
undertook major investments to expand its staffing
and digitization of processes.
Bangladesh has set some key transition milestones
projected to be achieved over the next 20–25 years.
The key focus for investments is on capacity addition
across the generation, transmission and distribution
sector, along with infrastructural improvements by
adopting superior technology solutions.
The writer is a Mechanical Engineer with 26 years’
experience in energy sector. He can be reached at zahinul@
iesl.com.bd
Monthly business magazine
december, 2019
Leader’s View
Monthly business magazine
“Environment Friendly Industrialization will bring
Sustainable Growth and Development”
Exclusive Interview of the Hon’ble Minister, Ministry of Industries Mr. Nurul Majid Mahmud Humayun
We had the opportunity of obtaining an exclusive interview of
the Hon’ble Minister, Ministry of Industries Mr. Nurul Majid
Mahmud Humayun for the very 1st. Issue of our Monthly Business
Magazine BE Bangladesh. The Industries Minister highlighted
various priorities and initiatives taken by the government to build
a vibrant industrial sector. -Editor
BE Bangladesh: As the economy of Bangladesh is shifting from
agriculture-base to industry-base, what are the main priorities of
industrialization in our country?
Hon’ble Minister: Industrialization is essential for economic
growth and sustainable development. To build an economically
strong and prosperous Bangladesh, we have prioritized a
balanced development of industry and agriculture, under the
dynamic leadership of our Prime Minister Sheikh Hasina.
The National Industrial Policy-2016 makes provisions for
providing all necessary support to encourage expansion of the
SMEs and cottage industry, to accelerate the pace of domestic
industrialization. Likewise, emphasis is given on maximum
utilization of local agricultural, livestock and natural resources
to develop specialized industries. Our target is to generate decent
employment through environment friendly industrialization and
to enhance the opportunity for employment of women through
healthy and safe working environment.
BE Bangladesh: What steps are being taken to enhance
employment opportunity for the women?
Hon’ble Minister: With the growth of small and cottage
industries, employment opportunities for women are being
created. Women are encouraged to generate self-employment
through entrepreneurship. Different institutions under the
Ministry of Industries, such as BITAC (Bangladesh Industrial
Technical Assistance Center), BSCIC (Bangladesh Small and
Cottage Industries Corporation), BIM (Bangladesh Institute of
Management) and NPO (National productivity Organization)
impart various modern technical training, in which women are
given priority to enroll. There are various schemes for providing
financial assistance to Women entrepreneurs. Women are
given technical support to establish and run small and cottage
industry.
BE Bangladesh: What is the contribution of Micro Small and
Medium Enterprises (MSMEs) in the overall Industry sector?
Hon’ble Minister: The government of PM Sheikh Hasina has
given special emphasis on MSMEs, because these enterprises
play a very important role in employment generation, resource
utilization and income generation. There are 7.8 million SMEs
in our country, which contribute nearly 25% to GDP, and
produce 40% of the total manufacturing outputs. There are 177
SMME clusters in 51 districts of Bangladesh. Around 5.8 million
are located in rural areas and over two million operate in urban
areas. We have planned to establish MSMEs in each and every
part of our country. And so you see, significant importance is
placed on MSMEs in the National Industrial Policy (2016) and
a separate SME policy has been drafted, in the mean time, to
promote SME development. The cabinet has given approval to
the draft ‘SME Policy 2019’, in a meeting chaired by the PM in
September. The new SME Policy extends six types of scopes for
entrepreneurs, which are; funds, technology and innovation,
access to markets, education and training, trade support, and
access to information.
BE Bangladesh: The government has taken steps to establish
SMEs, Industrial Parks and special Economic Zones (SEZs) all
over the country. What measures are being implemented to
control the devastation of pollution due to industrial operation?
Hon’ble Minister: Basic strategy taken by our government
is to develop an environment friendly Industrial Sector all over
Bangladesh, spread out in rural and urban areas, to ensure
sustainable employment and income generation. Government
has taken steps to provide all necessary assistance for creating
a pollution-free environment in the industrial sector. For the
industries that produce toxic wastewater, installation of ETPs
(Effluent Treatment Plant) and CETPs (Centralized Effluent
Treatment Plant) have been made a mandatory requirement
and provisions are there for punitive measure in case of noncompliance.
The government is establishing ETPs in all the
Industrial Units of the 76 BSCIC Industrial Estates. To manage
the CETP of Savar Leather Industrial Estate, a new company has
been formed in June this year.
BE Bangladesh: Would you like to give any special message
to our readers?
Hon’ble Minister: I congratulate BE Bangladesh for taking up
the initiative to publish monthly business magazine. Our vision,
as a nation, is to become a middle income country by 2021, and
a developed industrialized economy by 2041. I truly believe that
every citizen of Bangladesh can become a nation builder through
hard work, innovation and entrepreneurship.
19
Leader’s View
december, 2019
Monthly business magazine
Monthly business magazine
Cover story
20
COVER STORY
Dhaka Metro Rail
to speed up life
and efficiency
of millions of
commuters
Monthly business magazine
december, 2019
21
COVER STORY
g Shamim Sahani John.
Long stretches of the 20.1 km Dhaka Metro
Rail line is now visible across the capital city.
Construction work of the first-ever metro rail in
Bangladesh, Mass Rapid Transit (MRT) Line-6 is
proceeding at full pace. As of September, 30.05%
work is complete, according to the Dhaka Mass
Transit Company Limited (DMTCL) progress report.
The $2.8 billion Metro Rail is to be the secondlargest
infrastructure project of Bangladesh after
the $3-billion Padma Bridge project.
Photography : Internet
December, 2019
Monthly business magazine
22
COVER STORY
Government of
Bangladesh (GoB)
has undertaken
some long-term
projects, including
three-ring roads to
deviate traffic from
the city center, five
metro rail lines,
two rapid bus
routes, and 1,200
kilometers of new
roadways.
O
stone of the Metro Rail
n 31 October 2013 Prime
Minister Sheikh Hasina
laid the foundation
project. Construction
work of the much-awaited Mass Rapid
Transit project was inaugurated by the
PM on June 26, 2016. The project is
progressing fast After the work of all the
packages started.
Work of the first phase (12km track
from Uttara to Agargaon), the second
phase (from Agargaon to Motijheel)
and packages for collecting rolling stock
and installing electrical equipment are
presently ongoing in full swing. The
government plans to inaugurate the
maiden metro rail on the Golden Jubilee
of the Independence of Bangladesh in
December 2021.
The MRT Line-6 stretching 20.1km
from Uttara to Motijheel will run from
Uttara 3rd Phase and pass through
Pallabi, the west side of Rokeya Sarani
and Farmgate, Hotel Sonargaon,
Ruposhi Bangla, TSC of Dhaka
University, Doel Chattar, Topkhana
Road and Bangladesh Bank.
Sixteen stations will be set up in Uttara
North, Central and South, Pallabi,
Mirpur-11, Mirpur-10, Kazipara,
Shewrapara, Agargaon, Bijoy Sarani,
Farmgate, Karwan Bazar, Shahbagh,
Dhaka University, Secretariat and
Motijheel.
The Dhaka Metro Rail project is being
implemented by Dhaka Mass Transit
Company Limited (DMTCL), a stateowned
enterprise founded to implement
the metro rail lines across the Dhaka
city, under the supervision of Dhaka
Transport Coordination Authority.
Fastest Growing City
Dhaka and the municipalities that make
up the Greater Dhaka Area have now
a total population of over 18 million.
Dhaka is the most densely populated
city in the world with a density of
47,400 people per square kilometer.
Dhaka has shown a population growth
of about 4.2% annually, with at least
1,418 people adding to the population
of Dhaka every day, as per government
estimates.
Monthly business magazine
December, 2019
One of the fastest-growing cities in the
world, Dhaka plays the broad-based multifunctional
role of being the administrative
center, business, trade, and commercial
center and political and cultural center of
Bangladesh.
The prospective population in RAJUK area
is projected to grow to 26.3 million by the
year 2035, according to the Revised Strategic
Transport Plan for Dhaka (RSTP) of 2016. A
large percentage of this growth will be coming
from immigration, as the rural population is
consistently attracted to the capital city for its
expanded job opportunities. The household
income in Dhaka is expected to increase by
about four times comparing to the current
level, according to studies.
Traffic Congestion
According to the Bangladesh Road Transport
Authority (BRTA), there are about 1.1 million
registered vehicles in Dhaka. As per the
RSTP, residents of Dhaka make around 30
million trips every day, of which some 47%
involve buses, 32% are made in rickshaws,
while nine percent are carried out by private
cars.
The traffic congestion in Dhaka has turned
daily trips of millions of commuters into a
terrible experience. According to a World
Bank report published in 2018, average
traffic speed in Dhaka has dropped to 7
kmph, wasting around 3.2 million working
hours daily. According to another research
conducted by the Accident Research Institute
(ARI) of the Bangladesh University of
Engineering and Technology (Buet), Dhaka
traffic wastes 5 million work hours daily,
causing a loss of Tk 370 billion a year.
In order to ease traffic congestion, the
Government of Bangladesh (GoB) has
undertaken some long-term projects,
including three-ring roads to deviate traffic
from the city center, five metro rail lines, two
rapid bus routes, and 1,200 kilometers of new
roadways. Some of these projects are already
at different stages of implementation.
RSTP 2016
As the Dhaka metropolitan area grows to its
future population of over 35 million, there will
be an increasing demand for public transport
The same year, Dhaka
Mass Transit Company Ltd.
(DMTC) was formed, to be
the implementing agency
of the MRT Line-6 project.
services. An efficient mass rapid transport
system which the general public can afford
to use will be necessary to transport people
to work and also to their leisure activity. To
develop an efficient, integrated, and modern
transit system in and around the capital city,
the Dhaka Transport Coordination Authority
(DTCA) formulated a 20-year strategic
transport plan (STP) in 2005.
As part of concrete planning for the
integrated transit system, Dhaka Transport
Coordination Board (DTCB) of the GoB,
as the implementing agency and Japan
International Cooperation Agency (JICA) as
the executing agency conducted a preparatory
survey on Dhaka Urban Transport Network
Development Study (Phase 1) from March,
2009 to March 2010. The Phase 1 Study
recommended a series of urban transport
network development projects and programs.
The MRT Line-6 was selected in the Phase
1 Study as the high priority project. Later
further studied in Phase 2 were conducted
to confirm the feasibility, technical and
economical details. The STP was revised to
adjust to prevailing transport needs in 2016.
Under the revised STP (RSTP), five 5 mass
rapid transit (MRT) and two bus rapid transit
(BRT) lines were proposed. Implementation
of short-, medium- and long-term projects
has been suggested to cope with the additional
vehicular movements in the future, which
could almost double by 2035.
23
COVER STORY
December, 2019
Monthly business magazine
24
COVER STORY
Mass Rapid Transit Line-6
On 20 February 2013 GoB signed a loan deal with
JICA for construction of the 20.1 kilometers MRT
Line-6 costing $2.8 billion. JICA will finance 85% of
the project cost as a soft loan at an interest rate of
0.01%.
The same year, Dhaka Mass Transit Company Ltd.
(DMTC) was formed, to be the implementing agency
of the MRT Line-6 project. MRT Line-6 is being
constructed in the supervision of DMTCL under
the jurisdiction of Road Transport and Highway
Division, Ministry of Road Transport and Bridges.
The entire metro rail route and its 16 stations will
be elevated. Only the depot will be on the ground
level. Once complete, the metro rail services will be
operated by DMTCL.
The metro rail would be noise-free, with noise
barriers and vibration-free lines. The cars would be
made of stainless steel and aluminium alloy. Every
metro rail train will consist of six air-conditioned
spacious cars. Each train will hold up to 1800
passengers. With 56 trains in service, there will be a
train in every four minutes at each of the 16 stations,
heading in both directions. A city commuter will
travel between Motijheel and Uttara North in less
than 40 minutes, at an average speed of 100 km/h.
Twenty four trains will together transport 60,000
passengers every hour in both directions.
The entire project is being implemented under
eight separate contracts, including four for building
the 20km elevated overpass. The fifth consists
of the construction of viaduct and stations from
Agargaon to Karwan Bazar and the sixth on similar
construction from Karwan Bazar to Motijheel. The
seventh consists of electrical and mechanical work.
The eighth consists of the procurement of 144 metro
rail cars.
A consortium of consultants was hired in
November 2013 for general consultancy. Nippon
Koei Ltd of Japan is leading the consortium with
partners Nippon Koei India Ltd, Delhi Metro Rail
Corporation Ltd, Mott MacDonald Ltd India, Mott
MacDonald Ltd UK, and Development Design
Consultants Ltd Bangladesh. The consortium has
prepared the metro’s detailed design and takes care
of construction supervision, procurement support,
and management of the work.
Authorities of the Dhaka Metro Rail project signed
three contracts with two companies on 3 May 2017
for the civil construction work at the Uttara depot
and building elevated rail viaducts from north Uttara
to Agargaon. According to one of the contracts, a
joint venture of Italian-Thai Development Public
Company and Sinohydro Corporation is going to
execute the Tk 1,595 crore civil constructions at the
metro rail depot. The other two contracts (package-3
and -4) worth Tk 4,230 crore were signed with Ital-
Thai for the construction of 10km-long elevated
viaducts and nine stations between north Uttara to
Agargaon. Contractors were given work orders on
August 1, 2017.
DMTCL signed three more agreements with Chinese
and Thai firms on 13 September 2017. The separate
contract packages (CPs) including CP-2, CP-3 and
CP-4 worth over Tk 58.26 billion ($719 million)
Monthly business magazine
December, 2019
were signed with a Thailand-based construction
firm Italian-Thai Development Public Company
Limited, and Chinese state-owned Sinohydro
Corporation Limited.
DMTCL signed contracts with two joint-venture
companies on 30 April 2018. The contract for
Package-5 worth Tk 1,855 crore was signed with
Takken Corporation, Abdul Monem Ltd and
Abenikko JV. Another contract for Package-6
worth Tk 2,332 crore was signed with Sumitomo
Mitsui Construction Co Ltd JV.
Along with the 30.05% work of MRT Line-6
completed and physical progress of the first-ever
metro rail service in Bangladesh majestically
visible across capital Dhaka, implementation of
four more proposed metro lines is simultaneously
going on as a measure for relieving the capital city
of its terrific traffic congestion.
Once construction and installation work
is completed and the metro rail service is
inaugurated, MRT will help resolve the capital
city’s pathetic traffic condition and at last provide
a modern, comfortable and time-bound urban
transport service. According to recommendations
in the RSTP, the next four metro rail systems are
targeted to be completed in the second and third
phases, by the year 2035.
The write is a Policy Analyst. He can be reached at
shamimsahani@gmail.com
2 Metro Rail gets go-ahead
The Executive Committee of the National Economic
Council (Ecnec) has approved two more metro rail
projects worth Tk 93,800 crore, on 15 October 2019.
A total of 10 projects including the Dhaka Mass
Rapid Development Project (Line-1) and Dhaka
Mass Rapid Transit Development Project (Line-
5) were approved during a meeting chaired by
the Prime Minister. The ten projects will cost Tk
100025.23 crore. Of the total amount, Tk 69043.37
crores are foreign loan and Tk 30466.02 crore will
be funded by the GoB. Remaining Tk 515.84 crore
will be spent from the Ecnec fund.
Under the metro rail projects, two mass rapid transit
lines spanning from Kamalapur Railway Station to
the airport area and Natun Bazar-Purbachal Depot;
and the other from Hemayetpur to Vatara route via
Mirpur and Gulshan, will be constructed.
The total length of MRT Line-1 from Kamalapur
to Natun Bazar-Purbachal Depot will be 31.24
kilometers, worth Tk 525.61 billion. MRT Line-5
will link Hemayetpur and Vatara via Aminbazar,
Gabtoli, Mirpur-1, Mirpur-10, Kachukhet, Banani,
Gulshan-2 and Natunbazar. GoB targets to complete
the Kamalapur metro rail project by 2026 and the
Hemayetpur-Vatara one by 2028.
25
COVER STORY
December, 2019
Monthly business magazine
Monthly business magazine
foreign direct Investment
26
foreign direct Investment
Bangladesh-US Partnership
An Eventful Year of Shared Goals
The United States is among the top trading partners and the largest investment
partner of Bangladesh. Trade between Bangladesh and the US doubled to more
than $8 billion over the past decade. And this year (2019) has been particularly
eventful in furthering the shared goals of trade, partnership and prosperity.
Partnership Dialogue and Trade
Winds Mission
Bangladesh and United States convened the 7th
Bangladesh-US Partnership Dialogue on June 10,
2019 in Washington D.C. The two governments
reaffirmed their commitment to lasting partnership.
Bangladesh shared plans to facilitate Foreign Direct
Investment (FDI) for supporting infrastructure and
energy projects. And the United States affirmed
that it would continue to promote US business
engagement in support of Bangladesh’s development
goals. It was agreed by the two sides that the 8th
Partnership Dialogue between Bangladesh and the
United States will be held in Dhaka at a mutually
convenient time.
A month earlier, the acting Assistant Secretary of
Commerce and the Director General of the US and
Foreign Commercial Service, Ian Steff encouraged
Bangladesh to remove remaining trade barriers
to ease doing business, for mutual economic and
commercial ties to continue to grow rapidly. Ian
Steff made his first visit to Dhaka, from May 11-13,
to participate in a 2019 Trade Winds Indo-Pacific
Forum and Mission, and to promote US-Bangladesh
trade and investment.
Monthly business magazine
December, 2019
The Trade Winds Indo-Pacific Forum & Mission of
the US Department of Commerce that began in New
Delhi on May 6 concluded in Dhaka on May 13. The
Trade Winds was the first major US trade mission to
Bangladesh in recent history.
And in the 7th Bangladesh-U.S. Partnership Dialogue
in Washington held in June 10th, it was affirmed that
the United States will continue to support US private
sector involvement in Bangladesh, through initiatives
such as the Trade Winds mission to Dhaka.
‘win-win option’
According to information of the office of the United
States Trade Representatives (USTR) website, the total
(two way) US-Bangladesh goods trade during 2018
was $8.2 billion. Bangladesh exported products worth
$6.1 billion to the US in 2018, mostly consisted of
woven and knit apparel, textile articles and footwear.
In turn, the US exported goods worth $2.1 billion to
Bangladesh, in 2018. Top US export categories include
cotton, wheat, soybeans, aircraft, iron and steel and
machineries.
According to the information posted in the website
of the US Embassy in Bangladesh, the United States
accounted for 23% of the stock of foreign direct
investment in Bangladesh at the end of 2017. As per
the USTR information, US FDI in Bangladesh (stock)
was $513 million in 2018, a 11.5% increase from 2017.
The largest foreign investors in Bangladesh are US
companies. Vast majority of these investments are
in the oil and gas, banking and insurance, and power
generation sectors. Chevron is the single largest
foreign investor, producing some 55% of Bangladesh’s
domestic natural gas.
The Honorable Prime Minister of Bangladesh Sheikh
Hasina, while speaking at a luncheon roundtable
organized by the US Chamber of Commerce in
27
foreign direct Investment
U.S. Goods Trade with Bangladesh (in millions of Dollars)
1995 2000 2008 2013 2014 2015 2016 2017 2018
Total 1,582.3 2,656.7 4,216.5 6,060.7 6,390.0 6,933.0 6,915.8 7,160.4 8,184.0
Exports 325.0 239.1 468.1 708.3 1,113.2 942.5 905.7 1,473.8 2,081.5
Imports 1,257.2 2,417.6 3,748.4 5,351.9 5,276.8 5,990.5 5,910.1 5,686.5 6,102.6
Balance -932.2 -2,178.4 -3,280.4 -4,643.2 -4,163.5 -6,047.9 -5,004.3 -4,212.7 -4,021.1
SOURCE: USTR
U.S Manufacturing Trade with Bangladesh (in millions of dollars)
1995 2000 2008 2013 2014 2015 2016 2017 2018
Total NA 2,420.1 3,855.1 5,760.1 6,023.1 6,387.6 6,243.0 6.079.7 6,823.6
Exports NA 153.2 252.6 497.5 808.3 484.3 437.7 480.3 811.5
Imports NA 2,266.8 3,602.5 5,262.7 5,214.8 5,903.3 5,806.3 5,599.4 6,012.1
Balance NA -2,113.6 -3,349.9 -4,765.2 -4,406.6 -5,419.0 -5,367.6 -5,119.0 -5,200.5
SOURCE: USTR
December, 2019
Monthly business magazine
28
foreign direct Investment
September at the Lotte Palace Hotel in New York,
urged US entrepreneurs to stay with Bangladesh
for shared benefits and prosperity. The “Bilateral
Investment Treaty” and the “Convention on
Avoidance of Double Taxation” were signed
between the two countries in 1986 and 2004
respectively, with a view to encouraging and
protecting US investment in Bangladesh.
Bangladesh has the most liberal investment policy
in South Asia, offering tax holiday, concessionary
duty on import of machinery, protection of foreign
investment by law, unrestricted exit policy and full
repatriation of dividend and capital on exit.
With this liberal investment climate, low cost of
doing business, and a growing consumer market of
over 165 million, the returns on investments of US
businesses in Bangladesh are apparently very high.
Bangladesh hopes to attract more US investment
and engagement, supporting its development goals
to achieve the target of becoming a middle-income
country by 2021. Terming this a ‘win-win option’
for both the countries—an expression reportedly
used by the Prime Minister Sheikh Hasina.
Key Sectors for Investment
The development arm of the US government,
USAID has been Bangladesh’s development partner
since the country gained independence in 1971. The
USAID Mission in Bangladesh is one of the largest
USAID development assistance programs in the
world.
USAID is partnering with the Government of
Bangladesh and the Bangladeshi private sector to
help diversify Bangladesh’s economy, and stimulate
new streams of economic growth.
The Comprehensive Private Sector Assessment
(PSA), conducted by the USAID between October
2018 and July 2019, identifies six key-sectors that
are the most promising areas for private sector
investment and engagement. The six key sectors
identified by USAID PSA are:
1) Agribusiness (food processing), 2) Light
engineering, 3) ICT, 4) Outsourcing, 5) Tourism,
6) Pharmaceuticals
The study also included ceramics, entrepreneurship,
leather and leather goods, medical equipment,
plastic, renewable energy and energy efficiency,
shipbuilding, shrimp and fish, telecommunications
and vehicle assembly.
SOURCE: www.bdembassyusa.org
Monthly business magazine
December, 2019
29
Having ensured strong and steady market
fundamentals, the six sectors are recognized as key
sectors for supporting sustainable economic growth
in Bangladesh. These sectors are poised to earn more
than 60 billion dollars at the end of 2023.
Alice Wells’s visit to Bangladesh
The US Acting Assistant Secretary Alice Wells in her
early November visit to Bangladesh affirmed that US
wants to make big investments in Bangladesh, under
the Indo-Pacific Strategy (IPS). The three major
components of IPS are economy, governance and
security.
Significant part of Alice Wells’s conversation with
the Foreign Minister AK Abdul Momen and Home
Minister Asaduzzaman Khan Kamal, at their
respective ministries, focused on the possibilities of
improving foreign direct investments and expanding
American business in Bangladesh.
Earlier in June this year, Alice Wells sought
Congressional support for the Bay of Bengal Initiative,
when she spoke before a House foreign affairs
subcommittee, and urged the lawmakers to support
her department’s request for a US $30million in
funding for the initiative that will build maritime and
border security capacity for Sri Lanka, Bangladesh,
and the Maldives. This fund was in addition to
the $64 million already announced by the Donald
Trump administration to support the region’s digital
connectivity and bolster cyber security.
New Deals and Initiatives
The US Ambassador in Dhaka Earl Miller led a
delegation of 17 Bangladeshi companies to the Indo-
Pacific Business Forum in Bangkok. The forum was
SOURCE: www.bdembassyusa.org
organized by the US State Department and was held
on November 4 in Bangkok, in the presence of the US
Acting Assistant Secretary for South and Central Asia,
Alice Wells.
Over 1,000 business and government leaders from
the United States and across the Indo-Pacific region
gathered for the Indo-Pacific Business Forum to
promote the value of high-standard investment,
transparency, rule of law, and private-sector-led
economic development.
The US officials and business executives at the Forum
in Bangkok highlighted a range of commercial deals
and new initiatives for Bangladesh.
New deals for Bangladesh:
• New York based GE Power announced a $390 million
power plant near Dhaka, that will supply power to
700,000 homes by 2022. GE Power also developed
the $350 million Meghnaghat 600-megawatt natural
gas power plant near Dhaka that is expected to start
commercial operations by 2021.
• Florida-based APR Energy invested in a 300
MW power plant and will support more than 100
sustainable jobs for Bangladeshis.
• Texas-based Excelerate recently commissioned a
floating storage and regasification unit at the Summit
LNG terminal to double Bangladesh’s LNG import
capacity, building on Excelerate’s$500 million
investment in the Moheshkhali floating LNG terminal,
Bangladesh’s first LNG import infrastructure.
• Coca-Cola announced investment plans in excess
of $200 million in Bangladesh through 2024. The
company supports 29,300 jobs throughout the country
and estimates that one Coca-Cola job supports 48
other jobs in Bangladesh.
foreign direct Investment
December, 2019
Monthly business magazine
Monthly business magazine
Leader’s View
A vision to Promote Trade and
Investment with Australia
30
Leader’s View
g Sheikh Fazle Fahim
Bangladesh has one of the most liberal and flexible
investment regimes in South Asia. With ongoing
reforms to improve business climate and more
than US$40bn investment in infrastructure to
update the industrial eco-system for domestic and
foreign direct investment, Bangladesh made it to the
World Bank’s list of the ‘Top 20 improvers in Doing
Business in 2020’.
Australia, a strategic partner and a key foreign direct
investor, has made major contributions in the gas
and petroleum sector of Bangladesh, in addition
to investments in textiles and chemicals. As of
June 2019, total FDI stock of Australia is worth
US$845.75mn.
After our independence in 1971, Australia was
among the first countries to recognise Bangladesh.
Australia established its resident mission in Dhaka
in 1972. Since then, the two countries are engaged
in long proven relations, marked by humanity and
dynamic partnership.
Bangladesh received Duty Free Quota Free (DFQF)
facility to the Australian market since 2003. The
total volume of Bangladesh-Australia trade has
increased significantly, with bilateral trade standing
at US$1.14bn in the last fiscal year, including exports
to Australia worth US$0.8bn and import worth
US$0.6bn.
Since 2008, we are experiencing shining examples
of positive trend for greater engagements and
cooperation in education, economic resilience, trade,
investment and counter terrorism. Our leaderships’
shared values for their constituents sustainable
growth is a reflection of our bilateral relations today.
However the economic synergy is yet to be reflected
in our trade and investments.
Bangladesh is at the cusp of the next growth
trajectory. With fiscal and non fiscal incentives, 100
economic zones, Hi-tech parks, export processing
zones and multimodal-connectivity, Bangladesh
offers endless possibilities that investors could
explore, including:
Joint High tech research, development and
innovation incubators
Knowledge transfer to transition from 3rd IR to 4th
IR including Re-skilling
Cooperation in Trade Logistics, e-commerce,
Fisheries, Agro Processing, Fintech, Halal industry,
ICT, nanotechnology, robotics, IOT, Cyber Security,
AI, Quantum Computing, Quantum Internet among
others.
Joint Ventures on Light, Medium & Heavy industries
Business process re-engineering of MSMEs
Power, Energy, infrastructure and Blue Economy
cooperation
Knowledge transfer for industry academia HR skill
gap, TVET curriculum,
STEAM (Science, Technology, Engineering, Arts &
Mathematics) based curriculum etc.
Along with diversifying business, we hope to explore
with private sectors of Australia and engage on
each other’s strengths in investment, trade and
knowledge, while adding value to our constituents
and environment.
We look forward to Australia and Bangladesh’s
private sectors engagements to contribute towards
humane sustainable inclusive advancement of our
nations. Our goals are to be targeted, focused, time
bound milestone assessed, complementing our
mutual vision to promote trade, investment and the
role of the private sector.
The writer is the President of FBCCI.
Monthly business magazine
December, 2019
INDUSTRY
Monthly business magazine
31
INDUSTRY
Leather Industry:
BIG OPPORTUNITY AHEAD
g Shariful Hassan
The leather industry, which is the secondlargest
exporter after RMG, has a high
potential for expansion and upgrading.
Leather from Bangladesh is well reputed
for its good quality. Leather goods and
footwear factories in Bangladesh are increasingly
establishing their competence to meet the high
demands of foreign buyers.
In FY2017, the leather industry accounted for
3.5% of Bangladesh’s annual exports worth US$1.2
billion. By volume, Bangladesh occupies about 3.0%
of the world’s leather and leather products market.
Although Bangladesh exports high-quality raw
leather and some of the leather articles and finished
products are also of good quality, our leather industry
accounts for only 0.6% of the global export market
and less than 1.0% of gross value added in domestic
manufacturing. The industry’s contribution to gross
domestic product (GDP) is estimated at 0.35%. The
leather industry employs over 850,000 workers,
directly and indirectly.
December, 2019
Monthly business magazine
32
INDUSTRY
In view of the
large scope for
broadening its
markets and
increasing
export volume,
the Seventh
Five-Year Plan
(7FYP) of the
Government
of Bangladesh
(GoB) envisaged
at least $5 billion
export revenues
from leather,
leather goods,
and leather
footwear by
FY2021.
The scope for upgrading and expansion of the leather
industry becomes obvious from a comparison of
available data. In FY2015, Bangladesh exported 44
leather products to 84 destinations. In comparison,
Viet Nam exported 59 leather products to 122
destinations; India, 63 items to 196 destinations;
and the People’s Republic of China (PRC), the
global leader in leather exports, 65 leather items to
209 destinations.
In view of the large scope for broadening its markets
and increasing export volume, the Seventh Five-
Year Plan (7FYP) of the Government of Bangladesh
(GoB) envisaged at least $5 billion export revenues
from leather, leather goods, and leather footwear
by FY2021.
Taking into account its considerable growth and
investment potential, GoB has identified the leather
Monthly business magazine
December, 2019
33
INDUSTRY
industry as a priority sector. GoB is providing
the sector with numerous incentives such as tax
incentives, and duty-free import of raw materials
and machinery for 100% export-oriented factories.
Given the availability of local raw materials, the
know-how of the supply management within the
export industry, and expressed policy support, the
leather industry has the potential to develop the
entire supply chain domestically--starting from
raw leather to leather processing, to production of
footwear and leather goods.
Bangladesh also has the potential to become an
investment hub for the global leather industry value
chain. Some modern footwear and leather-based
products manufacturing units with world-class
operations have already been set up in Bangladesh.
A growing number of large footwear manufacturers
are engaged in producing high-quality leather
footwear and leather-based products for exporting.
As the labor cost in PRC is rising, many global
brands are already sourcing from Bangladesh.
Other than labor cost, pollution is a critical factor
for which many factories in PRC are likely to shut
down. The government in China reportedly shut
down 17,000 polluting industries in 2015. Around
1,000 manufacturing firms in the capital of Beijing
are expected to be shut down by 2020. Under the
circumstances, most of the buyers depended on
China are diverting to Vietnam for high-quality
leather goods. Here, for Bangladesh, there is an
enormous opportunity ahead to give it’s leather
industry a big boost.
Relocation of Tanneries
Hazaribagh, in capital Dhaka, with about 200
tanneries formed the backbone of Bangladesh’s
leather industry. However, these factories operated
with little or no government oversight with regard
to environmental regulations and labor laws.
Poor environmental standard maintained by local
leather factories and tanneries has often come
under international as well as national scrutiny,
effecting a negative impact on the export potential.
To make the leather sector compliant, GoB took
initiative in 2003 to relocate the tanneries from
Hazaribag to Savar. After extended delays, the
government completely stopped rawhide supply
and cut power and gas supplies to the tanneries in
Hazaribagh in April 2017, to compel the owners to
relocate to Savar Leather Industrial Estate.
Relocation of tanneries from Hazaribagh to Savar
Leather Industrial Estate with Common Effluent
Treatment Plant (CETP) is going to boost leather
exports positively by addressing longstanding
compliance issues.
The writer is the former director of Leather-goods &
Footwear Manufacturers & Exporters Association of
Bangladesh (LFMEAB). He can be reached at leatherex.
hassan@gmail.com
December, 2019
Monthly business magazine
Monthly business magazine
economic zone
34
economic zone
SEZs
Fit Drivers for FDI
g BE Bangladesh Desk
Investors seek safe havens
with quality infrastructure and
services for their investments. In
Bangladesh, where social and
cultural trends may often seem
exotic to foreigners; and where
governance and political tendencies
may often strike as somewhat
inadequate and puzzling, Special
Economic Zone (SEZ) is exactly
the feasible option for investment.
Photography : Internet
SEZs in Bangladesh fulfill the key criteria of;
g A clearly demarcated geographical area
g A regulatory regime distinct from the rest of the
economy
g Infrastructure support
Reportedly, Japanese companies see SEZs in Bangladesh
as a comfortable investment destination. Several
Japanese companies have shown interest to invest
in different SEZs, including Moheshkhali Economic
Zone and Bangabandhu Sheikh Mujib Industrial
City comprising the Miresharai, Sitakunda and Feni
Economic Zones in Chattogram.
Honda Bangladesh has started operation of its new
factory at Abdul Monem Economic Zone. Sakata
Inx, which is a globally reputed Japanese liquid ink
manufacturing company, is moving to set up an ink
factory in the Meghna Industrial Economic Zone (MIEZ)
in Narayanganj. Rohto-Mentholatum (Bangladesh)
Limited, a concern of Japanese Rohto Pharmaceutical
Monthly business magazine
December, 2019
Company Limited, is considering setting up a
manufacturing factory in the SEZ area.
As many Japanese companies are showing keen
interest to set up their factories in SEZ areas, the
Bangladesh Economic Zone Authority (BEZA) is
developing an SEZ exclusively for the Japanese at
Araihazar Upazila in Narayanganj district.
Act & Fact
Bangladesh Export Processing Zones Authority Act
of 1980 led to the establishment of semi-autonomous
Bangladesh Export Processing Zones Authority
(BEPZA). Primarily focused on the Ready-Made
Garments (RMG) sector, BEPZA leases serviced
land to industrial tenants in eight Export Processing
Zones (EPZs) across Bangladesh. As of 2017, BEPZA
hosted 463 tenants in RMG as well as non-RMG
sectors like chemicals and footwear. Among those
ventures, 56% were fully foreign-owned, 16% joint
ventures of foreign and domestic investors, and the
remaining, local ventures.
Two new acts, Bangladesh Economic Zones
Authority Act 2010 and Bangladesh Hi-Tech Park
Authority Act 2010 led to the creation of two
more agencies semi-autonomous like BEPZA.
Bangladesh Economic Zones Authority (BEZA) and
the Bangladesh Hi-Tech Park Authority (BHTPA)
are tasked to oversee the expansion of economic
zones (EZs) and hi-tech parks (HTPs). These new
SEZs operate under different regulatory regimes
compared to BEPZA.
For example, EPZs operated by BEPZA are publicly
owned. On the other hand, BEZA and BHTPA aim
to rely mainly on private capital and expertise, with
government oversight, to build and operate SEZs.
BEZA aims to develop 100 EZs by 2025, in all
the potential areas across Bangladesh, including
underdeveloped regions. BEZA allows production
for both domestic and foreign markets, with the
view to boost up rapid diversification of industry,
increase in production, job creation and export.
According to ADB research, SEZs can be fit drivers
for increased trade, Foreign Direct Investment
(FDI), and better economic policymaking and
reforms. The Asian Economic Integration Report
2015 finds that in developing Asia, countries with
SEZs attract significantly more FDI, with the
existence of SEZs corresponding to 82% greater FDI
levels. Moreover, as countries develop, areas with
SEZs can be transformed from mere manufacturing
sites to hubs for innovation and modern services.
BEZA offers multiple incentives to the Zone
Developer and investors of a particular
manufacturing unit ranging from fiscal incentives.
The range of incentive structure includes
fiscal incentives and non-fiscal incentives. The
government has adopted the Bangladesh Private
Economic Zones Policy 2015 to facilitate private
investment in SEZs.
According to BEZA, work is progressing fast on land
development and utility connection in the public
SEZs. Significant progress is in place in 28 SEZs, of
which 13 are in public and 15 in private sectors.
35
economic zone
December, 2019
Monthly business magazine
Monthly business magazine
automobiles
36
PHP assembling Proton
in Bangladesh
automobiles
g Farhana Tania Khan
Chittagong based local conglomerate
PHP Group announced, back in 2015, of
assembling sedan car for the first time
in Bangladesh. After two years, they
started marketing almost in silence. In the
meantime, two years just passed away.
When people began to wonder if the PHP
Group had simply vanished from the car
assembling industry, right at that point
they came into spotlight. PHP emerged
triumphant by bringing out the Malaysian
Proton Saga model for the local market.
Photography : Internet
Monthly business magazine
December, 2019
PHP has sold around 150 Proton Saga model
sedan cars in the market in last three months.
By the end of this year, more than 200 cars
are going to be assembled. PHP Group is really very
happy for the overwhelming response they get from
the customers in the Bangladesh market. Mr. Parvez
Akhter Chowdhury, Managing Director of PHP
Automobiles Centre confirmed the information
recently.
Around 25 to 27 thousand private cars are sold in
a year in the local market; and 90% of those are
reconditioned cars. It’s quite difficult to create a
stronghold for new cars in the market. Reconditioned
cars already hold an advanced position in the
car selling market due two major selling points
i.e. availability of car parts and machinery; and
reasonable price.
The Managing Director of PHP Automobiles
emphasized that Proton Saga model 1332cc is not
at all at back-foot compared with reconditioned
cars; rather they are much advanced in the selling
market, considering those above two points. This
model of Proton Saga car costs BDT 15 lac. Before
its being assembled, the imported model sold in
the market for BDT 18 lac. Now customers can
save BDT 3 lac only because of local assembling.
Moreover, five years warranty and 1.5 lac kilometers
after sale service are also available. If the customer
can buy a brand new car at the same price as that of
a reconditioned car, then why wouldn’t the demand
rise high?
PHP factory is located in Sagorika, Chittagong. As
sale of the car is rising day by day, a spirit of life
can be seen everywhere in the factory. There are
258 engineers and workers who are busy neverendingly.
Every single car originates in their hands,
with assembling of 8000+ machinery pieces and
parts. Now 12 cars are assembled in the factory in
single shift of a day.
In the history of PHP’s car marketing journey, the
name of the present Prime Minister of Malaysia,
Mahathir Mohammad will be written in the golden
letters. Five years ago the premier came to Bangladesh
as a Convocation Speaker for a private university
established by the Chairman of PHP Group, Mr. Sufi
Mizanur Rahman. After conclusion of the program,
Mathair Mohammad showed interest to know about
PHP’s trade and business status. At that time Mahathir
was the Chairman of Proton Holdings Berhad, a
Malaysian car producing company. After returning
to Malaysia, he invited PHP officials to visit Proton
factory in Malaysia and proposed to set up a car
producing factory in Bangladesh. On getting his advice,
PHP made their investment and within the next year
assembling of sedan car had started in Bangladesh in
the hands of PHP.
Two years back PHP marketed Proton Preve model
car, turned out at the first level of car assembling.
Cars were then being assembled by importing all
the machinery pieces, which resulted in quite a
high price. PHP management then began to think
that some works could be done locally, instead of
full assembling. After some R&D, they started car
polishing in their own factory. Simultaneously they
started making some of the machinery parts. The
company is at present assembling Proton’s four
different models of sedan cars.
According to PHP, there are five levels of car
production. They now plan to step up from second
level to the third level of car assembling, that is, if
only they can manufacture major parts of machinery
locally. If the production of car body and chassis
can be done in Bangladesh, then they will reach the
fourth level. The final level is engine manufacturing,
and if they can do it, PHP would be able to place
Bangladesh in the list of car-producing country.
The writer is an International Affairs analyst.
37
automobiles
December, 2019
Monthly business magazine
Monthly business magazine
Pollution Control
38
Pollution Control
Waste to Energy
g BE Bangladesh Desk
Pitfalls of Landfills
Dhaka North City Corporation (DNCC) is exploring
prospects of generating renewable energy from
Municipal Solid Waste (MSW), according to a report
published by the Dhaka Tribune on September15th.
DNCC has long been using the Aminbazar landfill
for dumping waste. The lone landfill for DNCC,
Amin Bazar was originally intended to be a sanitary
landfill, built over 52 acres of land in 2007. DNCC
estimates that around 2,000 tonnes of municipal
solid waste are dumped every day from different
parts of north Dhaka. DNCC figures put its per capita
waste collection per day at 0.513 kg. DNCC does not
have an environmental clearance certificate from
the Department of Environment (DoE) for this
factually open dump.
Reportedly, DNCC saw 24.77% higher amount
of waste disposed at Amin Bazar landfill in 2017,
compared with the year before. The capacity of the
landfill was exhausted in 2017. However, DNCC
continues to dump thousands of tons of waste every
day and estimates that it will have to handle up
to six million tons of waste in the next five years.
Monthly business magazine
December, 2019
39
Pollution Control
New-generation solution for
Sustainable Pollution Control
As a rehabilitation project to extend Amin Bazar’s
service life, DNCC is reportedly pursuing to acquire
approximately 80 acres of additional land.
Located about eight kilometers from Gulistan in the
south of Dhaka, Matuail landfill is the other of the
two landfills serving Dhaka city. Starting off with an
open dump of 50 acres used by the Dhaka South City
Corporation (DSCC) to dispose of its municipal solid
waste since 1995, a further 50 acres were added to
landfill in 2006. About 3,200 to 3,500 tonnes of waste
is generated in Dhaka South each day. The figure for
per capita waste collection per day by DSCC was 0.56
kg in 2017.
Matuail is said to be the only fully functioning sanitary
landfill in Dhaka. However, the basic requirements of a
sanitary landfill are barely met in Matuail. The capacity
of the landfill is nearly exhausted, so a further 81 acres
of adjacent land is in the process of being acquired
under a 724 crore taka “Matuail Sanitary Landfill
Expansion and Development” project.
Commercial waste, industrial waste, food waste,
plastic, glass, paper, hazardous waste such as paint,
batteries and cleaning solvent all end up at the two
landfills of the capital city. More and more waste is
being generated every day. The absence of any real
action for sorting and recycling municipal waste has
led to unsustainable use of landfill sites which are thus
easily exhausted every few years.
December, 2019
Monthly business magazine
40
Pollution Control
Ever-increasing Pollution
Dhaka is located on the northern bank of Buriganga
River and is surrounded by the Turag, Dhaleshwari,
Tongi canal, Balu, and Shitalakkhya. More than
7000 industries and factories are situated on the
banks of these rivers or close to the river system.
The rivers around Dhaka City are increasingly being
polluted as a result of a huge volume of toxic wastes
from industrial areas and sewage lines, as well as
petroleum discharge from ships, launches, cargoes,
boats, etc.
In the rainy season, Aminbazar landfill turns into an
artificial floating island in the flood flow zone near
the Turag River, polluting the ecosystem. Study
shows, around 200 to 300 acres of land surrounding
the landfill are rendered uncultivable. Degradation
of land and water system is forcing the inhabitants
nearby to leave their homes, as livelihoods from
farming or fishing is becoming impossible and the
environment is too toxic to live in.
Municipal Solid Waste (MSW) in Dhaka and other
cities pose a serious problem for Bangladesh because
of severe adverse effects on the environment and
health of citizens.
The amount of waste is expected to grow in the
future as the waste increases with the rise of city
population and living standard. Major problems
associated with the unsafe MSW management
include: Surface and Ground water pollution; Water
logging due to blockage of drains; Air pollution;
Water borne diseases including Diarrhoea, Typhoid,
Malaria, Hepatitis etc; Toxic odours; Destruction of
natural ecosystem and aquatic ecology.
MSW to Energy
The Government of Bangladesh (GoB) has set
a target to generate 10% of the total electricity
from renewable sources. As per BPDB statistics,
GoB plans to generate around 1883 MW from the
renewable sources out of a targeted total of 18838
MW by 2021.
Several options for renewable energy sources are
available such as Solar, Wind, Geothermal, Hydro
and Municipal waste, etc. In comparison with
other sources, Municipal Waste to Energy is the
most feasible option for Bangladesh. Moreover, the
transformation of MSW to electricity brings farreaching
health benefits due to sustainable pollution
control and reduction of water-borne diseases.
Characteristics of raw materials within solid waste
are affected by several factors, which range from
a variety of waste within an excavated landfill,
Monthly business magazine
December, 2019
the influence of humidity, and other factors.
The characteristics of waste are important when
selecting a specific Waste to Electricity (WtE)
technology. An optimized plant that treats
preselected waste can recover two or three times
more electricity and heat than a more traditional
plant that treats raw waste.
There is a wide range of WtE technologies.
Successful implementation of WtE conversion
technology depends considerably on the efficiency
of the process, which, in turn, depends on the
quality of the considered waste.
Recovery of energy and materials from MSW
through the production of a Refuse Derived Fuel
(RDF) is one of the feasible alternatives. RDF is
the product of processing MSW to separate the
waste to energy technologies such as Incineration,
Plasma Pyrolysis or Gasification.
A proposed new generation solution for
Bangladesh is to generate biogas, electricity, and
compost from the MSW. The process begins with
the recovery of recyclable material by passing
MSW through screen and sorter conveyer belt.
Then bypassing through Organic Liquifying press,
organic and inorganic components are separated.
The bio-degradable organic wet portion is sent to
anaerobic digestion. The biogas thus generated
can be then used to generate electricity by using
gas generators. The solid residue generated from
the biogas operation is used as organic fertilizer
(compost) after dehydration. The liquid portion
can be collected as liquid fertilizer.
41
Pollution Control
noncombustible from the combustible portion,
enabling better reuse of materials and recycling
of MSW with the possibility of achieving higher
efficiencies in energy recovery treatments. RDF has
several advantages compared to raw MSW. RDF
is an efficient fuel due to its high calorific value,
more homogeneous chemical composition, more
convenient storage, and handling characteristics,
and fewer carbon emissions.
The composition of MSW in Bangladesh has very
low heat content (3-6 MJ/kg) due to the high
percentage of moisture. Because of high moisture
and organic content, a great amount of additional
energy is required to preprocess the MSW to
prepare as feedstock for a conventional type of
The inorganic or non-biodegradable portion
obtained from the pressing process is further
processed by screening, manual, optical and
magnetic separator. The residue is then shredded
and dried to obtain RDF. The RDF is used to
generate electricity by Grate Incineration or
Gasification based gas turbine. This process has a
substantial amount of by-products as ash (3%-5%),
which can have secondary demand in the cement
manufacturing plant.
Converting MSW to energy has numerous
economic, health and environmental benefits,
including, serving energy demand; several useful
by-products; minimum end residue produced and
little to no waste products; clean & healthy city;
and besides all that, sustainable pollution control.
December, 2019
Monthly business magazine
Women’s Empowerment
Monthly business magazine
Women in Bangladesh
FACING OFF CHALLENGES
43
Women’s Empowerment
g BE Bangladesh Desk
Bangladeshi women scaling Mount Everest
is not a metaphor, but actual fact. Women’s
economic input right at the bottom of the
pyramid, up to women’s prime role at
the apex national leadership, is obvious
demonstration women’s resilience, aptitude and
prowess. Inclusive development and prosperity
practically depend on women’s participation in
economic, social and political sphere.
Participation of women workforce increased to 18.6
million in 2016-17, from 16.2 million in 2010. This
numerical data however does not depict the real
picture at the bottom of the pyramid. Rural women
in Bangladesh make huge contribution to producing,
processing and preparing provisions for sustenance.
Women carry out multiple responsibilities within
and beyond their household work; mostly working
as unpaid family workers. Activities of women in the
agriculture sector include Cultivation, Post-harvest
processing and Preservation, Poultry, Livestock,
Home Gardening and Vegetable growing etc. It is
estimated that women constitute over 45% of the
total population engaged in agriculture.
The Readymade Garment (RMG) sector is the largest
employer of women in Bangladesh. It is estimated
that 80% of the garments worker are women. Other
manufacturing sectors like the leather industry and
pharmaceuticals also employ a number of women.
Active participation of women in the healthcare
sector is rising, with significant number of female
doctors and nurses.
December, 2019
Monthly business magazine
44
Women’s Empowerment
Women workforce in the services
sector is visibly increasing. Some
expanding services sectors such as
information technology (IT) and
finance are employing increasing
numbers of women.
Women have made landmark
breakthroughs in specialized
professions. Adding to the list of
women doctors, engineers, scientists,
professors, scholars and development
leaders, now Bangladesh can boast
about women’s accomplishments
in comparatively more courageous
professions like woman Army
general, all-women police team in UN
Peacekeeping force, and commercial
flights by all-women crew, including
security personnel and groundhandling
staff.
For many potential working women
in Bangladesh, self-employment
is a suitable choice for getting
involved in occupation. Women
entrepreneurship actually started
to take off after the Liberation
of Bangladesh. Later on, women
across Bangladesh began to take
entrepreneurial initiatives during
the 1980s and 90s. Many women in
Bangladesh have achieved success in
their business. “Women in Business”
or Women entrepreneurship is, more
recently, a vital economic scheme.
Bangladesh claimed the status of the
most gender equal country in South
Asia in 2018, for the fourth time
consecutively. As per Global Gender
Gap Report prepared by World
Economic Forum (WEF), Bangladesh
has closed over 72% of its overall
gender gap. WEF determines the
Global Gender Gap Index by assigning
points for economic participation and
opportunity, educational attainment,
health and survival, and political
empowerment. With women on
the positions of the prime minister,
the leader of the opposition and the
speaker in parliament, Bangladesh
stood out as the fifth most gender
equal country, in terms of political
empowerment, in the world.
Challenges persist nonetheless.
Discrimination against women is
widespread in the society and often
deep-rooted in traditional outlook.
Women often face domestic violence.
Crimes like eave teasing and violent
rape are not uncommon. Child
marriage persists, particularly in the
lower economic strata.
As per Global
Gender
Gap Report
prepared
by World
Economic
Forum
(WEF),
Bangladesh
has closed
over 72% of
its overall
gender gap.
Monthly business magazine
December, 2019
Women in Bangladesh face
barriers and disadvantages
in nearly every aspect of
their lives, including access
to health services, economic
opportunity, political
participation, and control of
finances. There is substantial
evidence of gender wage
gap in the industrial and
service sector. Salaries for
women are lower than men
in almost every category of
paid employment.
The Government of
Bangladesh (GoB) has
prioritized women’s
advancement through
access to education, health,
labor market, employment,
and social protection. GoB
allocated around 30% of
the total budget size in FY19
budget. The government has
also allocated Tk100 crore for
Women Entrepreneurship
Fund and Tk 25 crore for
Women Development
Special Fund in FY19.
The government has prioritized women’s empowerment in economic,
social and political sphere. Government policy and actions have often
been synchronized with programme based interventions by the nongovernment
development sector.
Progress made by Bangladesh in ensuring gender equality is widely
recognized and acclaimed by international organizations and the global
community. Bangladesh has been cited as a role model in women’s
empowerment, for other countries to follow.
Prime Minister Sheikh Hasina has been honoured with a number of
awards for her leadership in changing women’s economic, social and
political role in Bangladesh.
2018: Prime Minister Sheikh Hasina is honoured with the Global
Women’s Leadership Award for her outstanding leadership for the
advancement in women’s education and women entrepreneurship in
Bangladesh and in the Asia Pacific region.
2016: Prime Minister Sheikh Hasina is awarded with Planet 50-50
Champion by the UN Women. Global Partnership Forum honoured the
Prime Minister with Agent of Change Award for her role in women’s
empowerment.
2014: Prime Minister Sheikh Hasina is awarded the WIP Global
Forum Award by Women in Parliament (WIP), for her leading role in
reducing gender gap in the political sphere in South and South-East
Asia. The Prime Minister is also honoured with the Tree of Peace Award
by UNESCO, for promoting girls’ and women’s education.
45
Women’s Empowerment
December, 2019
Monthly business magazine
Monthly business magazine
BLUE ECONOMY
46
BLUE ECONOMY
Turning to the
g BE Bangladesh Desk
The ocean contributes more
than $6 bn annually to the
country’s economy. The
long and extended coastal
and maritime areas of
Bangladesh contain a wealthy reserve
of living and non-living resources.
Ocean Economy of Bangladesh
comprises mainly of marine capture
fisheries and aqua¬culture (22%),
transport (22%), tourism and
recreation (25%) and offshore gas
and oil extraction (19%). Estimates
suggest that about 30 million
people in Bangladesh depend upon
the ocean economy, including
probable employees and household
Gearing up for Blue Economy
The sovereign area of Bangladesh has expanded deep into the
Bay of Bengal, after the settlement of the maritime boundary
disputes with Myanmar and India in 2013 and 2014. Following
the settlements, Bangladesh won territorial rights in the Bay of
Bengal with a claim to Exclusive Economic Zone (EEZ), extending
from the baseline to 200 nautical miles seaward.
The 121,110 sq km EEZ and the long coastline of Bangladesh
bestowed with uniquely differentiated ecosystems rich with
ecological resources have opened up the door for Blue Economy.
The Government of Bangladesh (GoB) has undertaken a series
of consultations, since 2015, to weigh and analyze the concept
of Blue Economy in the context of Bangladesh. To coor¬dinate
efforts and inputs for developing policies and operational
strategies of Blue Economy, a high-level committee was formed
under the direction of the Secretary to the Prime Minister’s office.
In 2017 the Blue Economy Cell (BEC) was established. BEC is
operated by 25 officials, appointed on deputation, from Energy
and Mineral Resources Division and Bangladesh Navy.
Through two national-level workshops held in 2014 and 2017, the
Ministry of Foreign Affairs has identified 26 broad and growing
economic sectors. These industries and services stretch across
seven sectors.
Monthly business magazine
December, 2019
47
BLUE ECONOMY
ocean for value
Bangladesh Blue Economy Dialogue
The Ministry of Fisheries and Livestock and
the UN FAO jointly organized Bangladesh Blue
Economy Dialogue, in February 2019. The two-day
dialogue held at Hotel Pan Pacific Sonargaon in
Dhaka focused on fisheries and coastal-land based
aquaculture and mariculture.
The main objective of Bangladesh Blue Economy
Dialogue was to arrive at a consensus on the
most suitable way to develop the Blue Economy
of Bangladesh. During the multiple-session
discussions on fisheries and mariculture, various
other components of the Blue Economy and how
they are interlinked were pointed out.
The seven sectors of Blue Economy of Bangladesh are living resources, minerals, energy, transport and trade,
tourism and recreation, carbon sequestration, coastal protection.
Living Minerals Energy Transport & Tourism & Carbon Coastal
Resources Trade Recreation Sequestration Protection
1. Fishery,
2. Aquaculture
3. Coastal
aquaculture &
marine culture,
4. Marine
acquaintance
product,
5. Marine
Biotechnology
6. Oil & Gas,
7. Marine
Mineral Mining
8. Sea Salt
Production
9. Aggregate
Mining (sand,
gravel etc)
10. Ocean
Renewable
Energy
11. Tidal
Energy
12. Blue
Energy
(osmosis)
13. Biomass
14. Shipping, 15.
Coastal Shipping,
16. Seaports,
17. Passenger
Ferry Services 18.
Inland Waterway
Transports
19. Ship-building,
20. Ship Recycling
Industries
21. Human
Resource
Development
22. Coastal
tourism,
23.
Recreational
Water Sports
24. Yachting &
Marines
Cruise
Tourism
25. Coastal
protectionartificial
islandsgreening
coastal belts
26. Marine
surveillance
& Marine
Special
Planning
December, 2019
Monthly business magazine
48
BLUE ECONOMY
Representatives of key stakeholders and resource
persons gathered together at the Bangladesh Blue
Economy Dialogue with the objective to identify,
discuss and arrive at a consensus on:
(i) the essential enabling conditions, and
(ii) facilitators of fisheries and aquaculture.
Experts at the Bangladesh Blue Economy Dialogue
called for focusing more on mariculture development
to tap the vast resources of the Bay of Bengal, so as to
contribute meaningfully and sustainably to the Blue
Economy of Bangladesh.
prioritize engagement on various aspects of fisheries
and aquaculture. The member states will align their
legal, regulatory and institutional framework and ocean
management policies with the sustainable development
of the Blue Economy.
The Dhaka Declaration commits that IORA member
states will endeavor to establish an economic database
for Blue Economy to promote the creation of robust
‘maritime domain awareness’ of Blue Economy among
people-at-large, communities and policymakers.
IORA Dhaka Declaration
The 3rd Indian Ocean Rim Association (IORA) Blue
Economy Ministerial Conference (BEC-III) was held
in Dhaka on 05 September 2019. The main objective
of the BEC-III was to promote smart, sustainable
and inclusive growth and employment opportunities
in the Blue Economy activities along the Indian
Ocean belt.
Ministers and state ministers from more than 12
IORA member states participated in the ministeriallevel
meeting. Inaugurated by Prime Minister Sheikh
Hasina, BEC-III concluded with the adoption of a
17-point Dhaka declaration.
The Dhaka declaration pledged that the IORA
member states will endeavor to prioritize Blue
Economy with adequate focus on the well-being and
livelihood of people through engagements among
countries and stakeholders to secure sustained and
beneficial outcomes of all ocean-centric enterprises.
Under the declaration, the member states will
Monthly business magazine
December, 2019