Awami govt set to destroy backbone of Bangladesh economy

[idune]

In relenless effort by indo Awami regime to destroy bangladesh prospective export sector, another known mob criminal is installed as BKMEA chief. Selim Osman brother of Shamim Osman is a known killer and proped up by Awami leadership.
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Selim Osman panel sweeps BKMEA polls

Combined Knit Council, led by AKM Selim Osman, has won a landslide victory, sweeping all 27 posts of director in the Bangladesh Knitwear Manufacturers and Exporters Association elections, reports bdnews24.com.

BKMEA election board secretary Sulabh Chowdhury disclosed this information to the news agency Sunday evening.

Selim Osman, owner of readymade garments factory 'Attires', is president of the Narayanganj Chamber of Commerce and Industry and Narayanganj Club.

The ballot began at 9am and ran through to 4pm at Dhaka Officers' Club and Narayanganj Club on Sunday.

The election board secretary said that a total of 44 candidates vied for 27 directorial posts of the Association. The panel of Selim Osman threw candidates for all the posts up for grabs while the panel of Progressive Knit Alliance led by MA Sabur gave candidates for 17 posts.

 

[idune]

Power, gas crises continue to take a heavy toll on economy

M Azizur Rahman

Frequent power outages and gas supply crunch continue to take a heavy toll on the country's overall economy with electricity generation and gas output remaining well below the requirement.

Load shedding coupled with low gas pressure is hampering businesses, leading to weak industrial output.

Technical glitches and gas supply shortage are mainly responsible for a shortfall of about 1400 megawatt (mw) in power generation.

Low gas pressure has reduced power generation of Rauzan, Baghabari and Shikalbaha power plants, while technical glitches are hampering generation in Ghorashal, Shiddhirganj and Khulna plants.

Country's overall electricity generation is hovering around 3800 megawatts (mw) against the demand for over 5500 mw, while gas output is around 1970 million cubic feet per day (mmcfd) against the demand for around 2500 mmcfd.

When contacted Prime Minister's Adviser on energy issues Dr Towfiq-e-Elahi Chowdhury said the country is coming out from the years of 'monopolistic' domestic natural gas dependent economy towards a diversified 'fuel-mix' market to ensure the country's future energy security.

"We are 'consciously departing' from natural gas dependent condition to diversified energy sources, slowly but steadily," he said.

Natural gas is now being used for generating electricity, running industries, plying vehicles as compressed natural gas and cooking foods in households.

It contributes 70 per cent of the country's total commercial energy requirements followed by oil 25 per cent, coal four per cent and hydro power one per cent.

While 55 per cent of the total gas is being used for generating electricity, 16 per cent in industry, 12 per cent for fertiliser production, 11 per cent in domestic use for cooking, five per cent for running vehicles as CNG, one per cent for commercial purpose.

Around 87 per cent of the country's total electricity generation comes from natural gas, five per cent from liquid fuel, three per cent from hydro, three per cent from coal and remaining from renewable.

"For sustainable growth we are eyeing to reduce dependency on natural gas," he said.

There is a plan to bring down natural gas's share to around 40 per cent for generating electricity by 2020, said Mr Chowdhury adding, coal will contribute for 30 per cent of total electricity generation, oil 10 per cent nuclear five per cent, renewable five per cent and hydro power two per cent.

Imported electricity from neighbouring countries is set to contribute eight per cent of the total electricity generation by 2020.

"To diversify our fuel sources we are taking a number of new initiatives that include building several big coal-fired power plants, importing LNG, building nuclear power plant and importing electricity from neighbours under short to long term planning," he said.

Coal is going to be a major source to meet local energy requirement, he said.

"Initially we would run the coal-fired power plants through imported coal and later by local coal, having around 3.30 billion tonnes of reserve, would be utilized," said the Prime Minister's adviser.

In the short term the country is going to install around two dozens diesel and furnace oil run power plants to ease mounting pressure on gas demand, he said.

"At the same time our search for exploring new gas would continue," he said.

The government is working for reaching a consensus with the US's ConocoPhillips and Irish Tullow Oil to ensure that both the companies could initiate seismic activities in deep into the offshore blocks in the Bay of Bengal.

ConocoPhillips has been awarded two deep water gas blocks -- DS-08-10 and DS-08-11 blocks -- in the country's 2008 offshore bidding round.

Irish Tullow Oil was also selected for shallow block SS-08-05 during the bidding.

But signing of production sharing contracts (PSCs) remained stalled due to overlapping dispute with neighbours as Myanmar and India have claimed ownership over a part of the three offshore blocks awarded to ConocoPhillips and Tullow Oil.

"We are also working to launch a fresh onshore bidding round for hydrocarbon exploration by year-end to explore natural gas immediately," said the Prime Ministers' adviser.

The bidding would be launched by December 2010 to hunt new gas reserves, he said.

"We are also working rigorously to import LNG for the first time and within the shortest possible time," he said.

The government has initiated talks with the potential LNG exporters and Kuwait has agreed in principle to supply LNG, he said.

Initially we will import around 3.5 million tonnes of LNG annually, which might increase depending on needs, said the adviser.

"We recently revived the tri-nation gas pipeline project involving Bangladesh, India and Myanmar and subsequently sought to import gas from Myanmar," he said.

Myanmar, however, said it would consider gas export to Bangladesh only after finding new reserves.

The International Oil Companies (IOCs), now operating in the country, have been asked to increase gas supply from their fields within the shortest possible time, he said.

Capacity of the country's lone oil and gas exploration company - Bangladesh Petroleum Exploration and Production Company (BAPEX) - is being strengthened, he said.

Power, gas crises continue to take a heavy toll on economy

 

[lca mk2]

Power, gas crises continue to take a heavy toll on economy

I think any sensible person understand that this is because of Gas shortage or Gas price hike but i am talking about sensible persons only

 

[idune]

I think any sensible person understand that this is because of Gas shortage:

Post was only for intelligent enough people (not for stupid one) who can understand 19 months in power Awami regime utterly failed to deliver anything on power and gas crisis. Only thing Awami regime delivered is digital deception and action that will destroy econmy today and tomorrow (by rental plants that will plunder tens of thousands of crore tax money to benifit awami and indian looters).

 

[idune]

Government's unsolicited rental power plants and public procurement law
M. Abdul Latif Mondal

While addressing a grand rally at Barisal city on May 12, the Leader of the Opposition in Parliament and former Prime Minister Begum Khaleda Zia said that the government had created an artificial crisis of power to pave the way for installation of rental power plants without any tender to create a scope for the party men to make money. She warned that cases would be filed in the courts if work orders were issued avoiding tender process.
The government has undertaken a program for the installation of rental power plants. Available information suggests that following the signing of agreements so far between Bangladesh Power Development Board (PDB), a state-owned organisation responsible for generating electricity, and the companies, both local and foreign, the total number of rental power plants selected without tender reached nine with a combined generation capacity of 840 MW. Sources say that the PDB is likely to sign more agreements for installation of rental power plants without floating any tender.
The arguments put forward by the government for awarding contracts for installation of rental power plants based on unsolicited offers are: (a) it takes time to install power plants following the tender procedure; (b) there is the need to mitigate an acute power crisis immediately as the country faces a shortage of around 1,500-2,000 MW of electricity during the evening peak hours, which leads to frequent and protracted outages; and (c) attaining energy security.
But, people who have information and expertise on the subject allege that a situation for unsolicited deals to buy costly electricity was created by a quarter in the government after intentionally spoiling the tender process in late 2009 for the installation of eight rental power plants that would have eased power crisis this summer. Such a move for unsolicited deals for the first time in Bangladesh for any power plants, would allow further irregularities in the power sector. Secondly, per unit price of electricity generated from rental power plants will be much higher than that of normally installed power plants. According to one estimate, the government will either have to give the PDB a subsidy of over TK. 5,000 crore per year or increase the electricity prices for consumers. It can be said with certainty that consumers will have to bear the burden. The move is already on to increase the electricity tariff.

PPR-'03 and PPA-'06
Now, let us have a look into the issue from the view point of the Public Procurement Act-2006 and the Rules made under it.
It needs no repetition that procurement, which means purchasing, hiring or obtaining goods, works and services by any contractual means, is the biggest source of corruption in the public sector of Bangladesh. It is a meeting point of the vested political masters, senior public officials and suppliers/ contractors. The pervasive corruption in public sector in the absence of a comprehensive legal document to guide procurement, and the insistence of the development partners, in particular the World Bank (WB), for such a comprehensive legal document led to the formulation of the "Public Procurement Regulations (PPR)-2003" by the immediate past BNP-led government.
Soon it was found that, since the PPR was not an Act of Parliament, it could be easily amended by the executive to meet the interests of the party or alliance that remains in power. This led the WB to request the BNP-led government to transform the PPR into Public Procurement Act (PPA). The Parliament passed the PPA on July 2, 2006 and the President assented to on July 6 to make it an Act of Parliament. Pursuant to the provision of the PPA, the last caretaker government formulated 'Public Procurement Rules, 2008' detailing the procedure for implementation of the PPA-2006.
Section 2 of the PPA includes electricity in the definition of goods. So, procurement of any power plants for generating electricity comes within the purview of the PPA-2006 and the Rules made under it.
As stated earlier, the government will go for procuring rental power plants both from local and foreign companies. Section 31 of the PPA says that in the case of domestic procurement of goods, works etc., procuring agency shall use open tendering method as the preferred system.
Section 32 says that limited tendering method and direct method may also be used for domestic procurement of goods, works, etc. For limited tendering method, invitation of tenders will be limited to enlisted contractors/suppliers. Direct tendering method may be used in the following cases:
(I) When for technical reasons, a single tender is available for the supply of the goods, services, etc.; (II) direct contracts with the local community in respect of projects aiming at poverty alleviation; (III) for additional procurement of goods, works, etc. from the original contractor/supplier under conditions as prescribed; (IV) for procurement of goods under exceptionally advantageous conditions; (V) purchasing goods from state-owned industry or factory; and (VI) procurement of goods, works, services, etc. of very urgent or essential nature.
Section 33, which relates to international procurement, provides for the open tendering method for procuring goods, services and works. The minimum period for submission of tender in the case of open tendering method will not be less than 42 days from the date of printing tender notice(s) in the newspapers.
A special provision (section 68) of the PPA says that the government may, in order to meet an urgent national need or a catastrophic event, use the direct method or any other method for carrying out a procurement activity according to the recommendation of the Cabinet Committee on Economic Affairs.
The question that now arises is: Does the special provision of section 68 of the PPA-2006 apply to the installation of power plants?
The government says that it has invoked the special provision of the PPA in awarding contracts for installation of rental power plants without inviting tenders. The Cabinet Committee on Economic Affairs approved the proposals before signing of the contracts.
On the other hand, knowledgeable people say that power plants were set up in the past following tender process, and this process will continue in the future for cost effectiveness and transparency. Installation of power plants may not thus be compared with 'an urgent national need or a catastrophic event' referred to in the special provision of the PPA-2006. It is further argued that the AL-led government's resorting to procurement of rental power plants without inviting tender within three-four months of its coming to power to ease the persistent electricity crisis might find some justification. But this may not be so after being one year and a half in the office.

HOLIDAY > COMMENTS & ANALYSIS

 

[idune]

Because of Awami regime immature and indian motivated actions now garments owners now feel insecure. Such insecurity will not only dampen invest but also will further indian goal to capture Bangladeshi garments industries.

.:. Welcome to SHEERSHANEWS.COM .:.

 

[idune]

Now Awami leaning BGMEA chief accused Awami regime to protect garment industry and provide security. As a result factory owners are contemplating closing factories which will push export to negetive territory.


.:. Welcome to SHEERSHANEWS.COM .:.

 

[Al-zakir]

When the morning arrived new york escort the Druids would give new york asian escort a piece of wood new york escorts from their fires to each family，then they would take them home to start new cooking fires.These new york asian escorts fires would keep the homes warm and free from evil

What kind of stupid are you idiot. Stop posting crap and be lost from this section.

 

[idune]

In another destructive move Awami regime using flimsy excuse to keep Bangladesh joining APTA a trade and service agreement framework. Its safe to say Awami regime is doing that with indian instigation so Bangladesh can NOT take advantage of South Korean duty free access provided to Bangladesh under APTA.

Seoul extends zero-duty access to 878 Dhaka goods
Major Bangladeshi export items to enjoy the facility


Nazmul Ahsan

South Korea has extended duty-free access to 878 Bangladeshi goods including garments from July this year to boost trade ties between the two nations, officials said Thursday.

Asia's fourth largest economy made the offer under the Asia-Pacific Trade Agreement (APTA) of which both Dhaka and Seoul are members, Commerce Ministry officials said.

Seoul extends zero-duty access to 878 Dhaka goods

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Law ministry's opposition makes APTA accord signing uncertain

Nazmul Ahsan

The prospect of Bangladesh signing the proposed trade in services agreement between East and South Asian countries under the umbrella of APTA has become uncertain due to the law ministry's strong objection to certain clauses of the deal, a top trade official said.

A meeting held between the high officials of Ministry of Commerce (MoC) and Ministry of Law and Parliamentary Affairs on Monday failed to produce agreement over disputes clauses, meeting sources said.

The meeting held in the MoC was attended by the secretaries for commerce and law, among others. The law ministry, in the meeting, opined that a clause in particular of the proposed agreement, styled, 'APTA Framework Agreement on Trade in Services,' contradicts the Bangladesh Constitution.

"We have failed to make the law ministry convinced as it is sticking to its stand on the constitutional point," a top MoC official said.

On the other hand, a top official in the law ministry said they cannot okay an agreement, which demeans the country's Constitution. Blaming the MoC, he said the ministry even had not felt the need to include any representative from the law ministry in several rounds of negotiations with the APTA member countries to finalise the draft agreement.

The Standing Committee on Asia Pacific Trade Agreement (APTA) comprising of trade officials from six member countries finalised the draft agreement in February last before placing it at the Ministerial Council meeting in Bangkok for signing, sources said.

Trade and commerce ministers of six East and South Asian countries, including China, South Korea and India, were expected to sign the agreement in Bangkok in July this year, sources said.

However, the signing ceremony was deferred as the draft agreement could not be finalized due to Bangladesh. Other member countries have meanwhile completed their formalities relating to the signing of the agreement, a high official in the MoC said.

The last and final date for Bangladesh's joining the deal is September 27 as the 37th APTA Standing Committee meeting will be held on the same date in Seoul, a trade diplomat said.

"Maybe the next meeting will be the last opportunity for Bangladesh to join the proposed deal," the diplomat said.

The law ministry has raised objection to a clause of the draft deal that debars the signatory countries from signing with any country a deal containing provisions contrary to the APTA Framework Agreement.

"The clause of the proposed deal is contrary to the Article 144 of our Constitution," a law ministry official said.

The relevant clause of the constitution reads 'The executive authority of the Republic shall extend to the acquisition, sale, transfer, mortgage and disposal of property, the carrying on of any trade or business and the making of any contract.' Furthermore, the dispute settlement arrangement in the trade in services agreement is not clear, the official said.

The draft agreement has no termination clause, he added.

"Thus, we cannot allow signing of such as agreement," the high official in the law ministry said.

Asked, a top official in the MoC said the clauses in question are more of general statement rather than mandatory.

Earlier, commerce ministers of APTA member countries signed two agreements--Framework Agreement on Trade Facilitation and Framework Agreement on the Promotion, Protection and Liberalisation of Investment in December 2009 in Seoul.

Facilitation of greater inflow of investment in service sector and increase in local competitiveness and expertise in service-oriented business, primarily, inspired the MoC to strike the proposed deal with big Asian economies, trade officials said.

According to the negotiated draft agreement on APTA Framework Agreement on Trade in Services, the member countries will establish and improve infrastructural facilities in their respective countries relating to improving service sector, extend cooperation in joint production, marketing and purchasing arrangements and facilitate research and development on service area.

'To enhance cooperation in services amongst participating states in order to improve the efficiency and competitiveness, diversify production capacity and supply and distribution of services of their service suppliers within and outside Participating States,' reads the negotiated draft, a copy of which has been made available to the FE.

Besides, the agreement will substantially reduce restriction in service sector investment in member countries by liberalising trade in services, the draft added.

The draft agreement said the APTA member countries would recognise the education or experience obtained or licences or certification obtained in any of the member countries.

"We are certainly frustrated but have not given up hope following the negative observation given by the Ministry of Law. The issue is likely to be discussed between the two ministers holding the portfolios of commerce and law", a high official in the MoC told the FE.

Law ministry's opposition makes APTA accord signing uncertain

 

[Stumper]

Its safe to say Awami regime is doing that with indian instigation so Bangladesh can take advantage of South Korean duty free access provided to Bangladesh under APTA.

Another one of your cry baby posts. Of-course you would'nt care to explain India's role in your governments decision.

 

[Jacobtheindoamerican]

Its ALL India's fault every thing is India's and Indian's fault. I blame India for everything wrong with Bangladesh. If India didn't exist Bangladesh would be Singapore right know. Bangladesh is totally innocent

 

[idune]

To further the destruction of Bangladesh economy, Awami regime is hell bent to allow domestic capital flight from Bangladesh. These Awami arrangements for capital flight will most likely end up in india at the expense of Bangladeshi industry and workers.

Even awami businessman are admitting Awami regime just spreading deception, no result to be in sight and wants to get out with their capital.

Nonetheless, A K Azad, Abdus Salam Murshedy, Selim Osman and Anisul Haque and few others should be tried treason for their anti Bangladesh activities.
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MoF willing to allow fund transfer by local cos for investment abroad
-- BB terms the move 'premature'


Nazmul Ahsan

The government has initiated a move to allow the Bangladesh-origin companies to remit foreign currency abroad for investment.

Businesses have welcomed the move but the country's central bank has termed it premature.

The Ministry of Finance (MoF) last week asked the Bangladesh Bank (BB) to examine the issue and submit a proposal to this effect immediately, a high official said.

"We have asked the BB to give its specific proposals towards lifting restriction on investment abroad by our local companies," a top MoF official said.

"The BB, in its proposal, should mention about the amount of foreign currency to be taken away by a single company for the purpose of investing outside the country," he added.

The move has been taken by the MoF after Finance Minister AMA Muhith gave positive signal in this regard, a top official said.

A good number of industrialists having investments in a number of areas are working behind the move, another official said.

Presently, foreign currency can be taken outside the country under travel quota and against foreign treatment and for the purpose of study in foreign countries. Though the current account is convertible, the capital account in Bangladesh is not convertible.

A K Azad, President, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said the initiative would facilitate the Bangladeshi entrepreneurs abroad and help contain 'hundi' operation, to a large extent.

"A good amount of money is regularly taken out of the country through illegal channels without the knowledge of the government to meet the expenses of many business activities of Bangladeshi entrepreneurs abroad, which would be minimized if the current restriction is lifted," Azad told the FE.

"We appreciate the move," he added.

Abdus Salam Murshedy, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the country has severe dearth of electricity, gas and adequate infrastructure. There is no sign of improvement of these long-standing problems when the capacity of the local industrialists has improved a lot to invest their capital outside the country, he said.

"The industrialists will be enormously benefited and the image of Bangladesh will be brightened if investment by local entrepreneurs is allowed," Salam told the FE.

"The income to be generated abroad from the investment will be sent back to home, thus, it will eventually be helpful for the economy," he added.

A top BB official said the idea to allow Bangladeshi entrepreneurs to invest outside the country is a premature one as the country has a foreign currency reserve of only $10 billion.

He said the reserve might come under pressure if the current restriction on investment abroad by Bangladeshis is withdrawn.

"We are still capital starved. We need more capital to be invested as the country's investment to GDP ratio is the lowest in the region. The country cannot afford to lift the restriction to benefit some businessmen," a retired BB deputy governor told the FE on Tuesday.

He alleged that a good number of top businessmen are putting pressure on the government to lift the current restriction as they find investing outside the country through hundi operation is no longer risk-free because of the tough anti-money laundering measures in most of the countries.

MoF willing to allow fund transfer by local cos for investment abroad

 

[idune]

Manpower Export and Remittance collapsing

Compare to last year mapower export, which was already in negetive trend, decreased 20%. Remittance has been steadily decreasing for last 4 months.

Report in Bangla:
.:. Welcome to SHEERSHANEWS.COM .:.

 

[idune]

Country’s per capita debt rising fast
Economists for survey of foreign loan utilisation

Shakhawat Hossain

Unfavourable and fluctuating currency exchange rates and a rapid rise in borrowings from abroad increased the country’s per capita debt liabilities by about $2.3 a year, on an average, over the last six years, officials said on Saturday.

At the end of 2008-09, Bangladesh’s per capita debt obligation stood at $ 151.21, up from $136.92 in 2003-2004.

The country’s per capita debt obligation rose to $139.91 in fiscal 2005-2006.

Per capita debt burden has been on the rise in 2008-9 and onward requiring the government to repay more to service debt liability, said economist.

Finance ministry officials said that devaluation of US dollar against major international currencies forced Bangladesh to pay an additional $50 million to its overseas lenders in the last fiscal year.

A steep fall in the value of dollar by 16 per cent from March 5, 2009 to November 2009, forced Bangladesh to repay Tk 5,950 crore to the overseas lenders, up from Tk 5,575 crore, as estimated earlier.
Former finance secretary Akbar Ali Khan suggested for extra care in signing deals for suppliers’ credit.

He said that it was not at all clear why Bangladesh government signed the agreement with the Indian EXIM Bank for a $1 billion credit.
He said it was not clear either how the credit from the Indian bank would benefit Bangladesh.

He said that 60 per cent of the credit from the Indian Bank, was suppliers’ credit, the worst form of borrowing, leaving no option to a borrower from where to buy the goods or services.

Zaid Bakth, the research director of the Bangladesh Institute of Development Studies, told New Age that the debt obligation was rising without the citizens knowing why or how the loans are taken or utilised.

No study or survey on utilisation of overseas loans, he said, was ever done by Bangladesh despite repeated demands from the economists.

Economists maintain that but for projects like Bangabandhu Bridge across the river Jamuna, no impact of overseas loans are visible.
Bangladesh’s outstanding debt stood at $21.8 billion in 2008-09.
According to ERD Bangladesh received a total of $ 50.369 billion as loans and grants since 1972.

Bangladesh has been borrowings more since early 1990s as the flow of grants has been on the decline, said ERD officials.
Annual debt servicing has also been on the rise, they said, with Bangladesh repaying 1.74 billion dollars in 2008-09 up from US$ 100.90 million in 1974-75, they said.

The loan repayment in 2008-09 was equal to 11.17 per cent of the country’s merchandise imports, 6.42 per cent of exports and 1.9 per cent of GDP.

The debt burden increases on expiry of grace periods of outstanding loans and exchange rate fluctuations only aggravate it, they said.

The prime minister’s economic adviser, Mashiur Rahman, said that currency devaluation would cost the country dearly.
He called for alternative funding sources to avoid increasing debt service liabilities.

Front Page

 

[idune]

Since Awami regime took over Chittagong port turnaround time has been increasing and now exporters forced to ship using air freight. This increases cost significantly and already harming export. Export growth already showed sign of decling growth.

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Garments being sent by air to maintain schedules


FE report

The country's apparel makers, struggling to maintain shipment schedules due to delay at Chittagong port, have been sending cargoes by air amid a fear of losing competitiveness.

They sent 28,000 tonnes of cargoes by air over the past three months ending July, says a report prepared by BGMEA.

.....................................

"We've been forced to make air shipment of 28,000 tonnes during May-July period," said Nasir Uddin Chowdhury, first vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Chittagong port's situation started declining from May this year soon after Chittagong port Authority (CPA) took over the management of berth operators.

The turnaround time, a major index of port performances, increased to 4.93 days in July from 2.39 days in the same period in 2009, according to port's official statistics.

Mr Nasir also said apparel exporters paid more than Tk 9.54 billion as air freight charges during the period, Mr Nasir, who is also managing director of Eastern Apparels Ltd, told the FE.

"We also made air shipment from Singapore Airport as we had failed to transport our cargoes to Singapore in time to load them onto mother vessels," Mr Nasir added.

Garment makers send their cargoes to Singapore through feeder vessels from Chittagong port and load onto mother vessels from Singapore destined to Europe and the USA.

However, BGMEA officials met with the leading shipping agents Monday to discuss ways and means to expedite the cargo movement. They feel the air shipment will be detrimental to the country's largest export earning sector.

Air shipment costs around US$ 4.0 per kilogramme (kg) while through sea it is only 25 cent a kg.

Garments being sent by air to maintain schedules