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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:

67/D North Dhanmondi, Kalabagan,

Dhaka 1205, Bangladesh

Tel: +8801678040066

Email: magazine@beBangladesh.com

Web: magazine.bebangladesh.com

Facebook: fb/BeBangladeshMagazine

USA Corresponding Office:

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24275 Katy Freeway Suite 400,

Katy, TX 77494, USA

Tel: +1 (805) 259-1840

Printing:

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314/D Elephant Road

(Ground Floor)

Dhaka 1205

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

8

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

Monthly business magazine

9

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

Monthly business magazine


Monthly business magazine

News Snippets

10

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

Monthly business magazine

11

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


Monthly business magazine

News Snippets

12

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

Monthly business magazine


Monthly business magazine

News Snippets

14

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



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