The New Nation - Internet Edition

Staff Reporter

The country suffered an economic loss of taka 2689 crore in the recent back-to-back floods that submerged a vast areas in Rahshahi, Dhaka and Sylhet Divisions. The estimated losses are, however, much less than the country suffered in 1988, 1998 and 2004. In those days, the then governments immediately started reconstruction work without looking for the World Bank and the Asian Development Bank's assistance. The governments transferred fund from the less important projects under the other ministries and successfully completed reconstruction. But this year, it is not yet clear whether the government has been doing that though an advisor hinted so much earlier.

According to a report published in a Bengali daily, the Ministry of LGED has sought for taka 1120 crore, the Ministry of Communication taka727 crore, the Ministry of Water Resources taka 538 crore, the Ministry of Education taka 50 crore and other ministries taka 254 crore for reconstruction works. About one crore and 11 lakh people were affected in the floods, crops of 11 lakh hectares of land smashed while 23,000 kilometers of roads and highways damaged. According to the official source, the total food output during the current fiscal will be short of target by five lakh metric tonnes (target is not yet known) while 5,66,506 metric tonnes of rice and 1,41,366 metric tonnes of wheat are in the government stock. The stock of rice by the end of January next is likely to reach 8,71,000 metric tonnes as the harvesting of aman will begin in mid November.

The stock of wheat may rise at the beginning of the new year to 1,70,00 metric tonnes, indicating the total stock is sufficient to meet next 10 months' demand. The country produced 2.83 crore metric tonnes of rice alone during the fiscal 2006-07 high above the demand but short of the target.

And this year, the production is likely to exceed the last fiscal year's output despite back-to-back floods. The analysis suggests that the rice and flour price must not go higher than the present's; rather, it should come down.

However, as the government of India has banned export of rice to Bangladesh, the Interim Government must take immediate decision to import from China, Vietnam and Thailand instead of waiting for resumption of export from India. It is time to lessen dependence on any particular country and to open more doors.

Business Desk

GE Energy's 'Jenbacher' gas engines continues to grow as more companies are seeking to install more reliable and highly available on-site power systems to meet production targets, lower operational costs and improve their competitive positions in a rapidly changing global economy.

Textile companies viz. Parity Fashion, R.K. Spinning and the Sinha Group, and the food and beverage division of the Akij Group, have reportedly ordered a combined total of about 30 of GE's natural gas-fueled Jenbacher gas engine systems for on-site cogeneration or electricity production.

Overall, GE Energy currently has an installed base of about 100 Jenbacher engines in Bangladesh, producing a total of more than 100 megawatts (MW) of power.

GE's Jenbacher gas engines solutions are an increasingly attractive option in Bangladesh, given the lack of reliable, cost-effective service from the public grid, combined with the low cost and abundant supply of natural gas in the region.

GE promptly supplied the Jenbacher units to these customers and provided with efficient customer service assured by GE's local authorized distributor for Jenbacher gas engines, Orient Energy Systems.

"These projects in Bangladesh demonstrate the reliability and flexibility of GE's Jenbacher gas engine technology to address a broad array of industrial requirements," said Prady Iyyanki, CEO of GE Energy's Jenbacher gas engine business. "We are pleased to support the efforts of our customers to expand economic development in their communities while they become more competitive within the global export business."

Textile company Parity Fashion and R.K. Spinning, both owned by Md. Abdul Hamid commissioned three Jenbacher JMS 320 GS-N.L cogeneration modules in 2006 (at the Parity Fashion site), and four Jenbacher JGS 320 GS-N.L generator sets in 2004 (at the R.K Spinning site). Both sites are located in the district of Narayangonj, 30 kilometers south of Bangladesh's capital city of Dhaka.

The three Jenbacher cogeneration units installed at the Parity Fashion site have an electrical output of about 3 MW and a thermal output of 1.7 MW (out-of-jacket-water), which will be used to operate a hot water chiller system. Additionally, the operator is using the Jenbacher systems' exhaust gas heat for producing steam that supports the dyeing process. This project marked Orient Energy's first Jenbacher combined heat and power (CHP) project in Bangladesh.

Grameenphone Ltd. recently signed an agreement with Rahimafrooz Distribution Ltd. to provide Grameenphone subscribers special rates on purchasing Batteries, Tyres, Lubricants, IPSs, and UPSs available at seven (07) sales outlets of Rahimafrooz Distribution Ltd.

In addition, Grameenphone subscriber may also enjoy a special discounted rate on auto servicing from Rahimafrooz Distribution Ltd.

Under the agreement, all Grameenphone subscribers will enjoy upto 10% discount on purchasing any items from Rahimafrooz Distribution Ltd.

Grameenphone subscribers may avail this discount by sending an SMS to 9000 with the designated code for the different products from the cash counter of any of the Rahimafrooz Distribution Ltd. sales outlets Riaz M. Zaman, Head of the Grameenphone thankyou program and Yeamin Sharif Chowdhury, General Manager, Marketing, of Rahimafrooz Distribution Ltd. signed the agreement on behalf of their respective organisations.

Md. Parvez Saiful Islam, Chief Operating Officer, Zaidur Rashid, Area Sales Manager, Rahimafrooz Distribution Ltd., and Fahad Saleh, Manager, Alliance Management-thankyou program, Md. Sohel Mahmud, Deputy Manager, Wasim Haider, Deputy Manager, Grameenphone Ltd., were present on the occasion.

AFP, Washington

The World Bank called on Friday for agriculture to take center stage in development policies and pledged to boost its lending to the sector after allowing it to decline in 1980s and 1990s.

"We need to give agriculture more prominence across the board," World Bank President Robert Zoellick said at the presentation of the institution's annual World Development Report. "At the global level, countries must deliver on vital reforms such as cutting distorting subsidies and opening markets, while civil society groups, especially farmer organizations, need more say in setting the agricultural agenda."

The report acknowledged that Bank lending to agriculture had declined from 1980 to 2000 but said its support for rural development had begun to pick up four years ago and would increase further. Commitments this year are expected to come to 3.1 billion dollars.

Nevertheless, while 75 percent of the world's poor live in rural areas "a mere 4.0 percent of official development assistance goes to agriculture in developing countries," the report found.

In sub-Saharan Africa furthermore, public spending on farming amounts to only 4.0 percent of total government expenditure.

The report said that for the poorest people an improvement in a country's gross domestic product that is agriculture-driven is four times more effective in reducing poverty than is GDP growth originating in other sectors.

"It will be an illusion that they (the poor) will simply be absorbed by growth taking place outside agriculture," World Bank Chief Economist Francois Bourguignon said, citing the persistence of rural poverty in the flourishing economies of China and India.

"Poverty is overwhelmingly rural and will be for decades to come," he added.

There is huge potentiality of Bangladeshi processed agro food products in abroad, this was informed by the representative of M/S AHMED AL WADAANI EST TRADING, MADINA, KSA Mr. Abul Kashem, in the import contract signing ceremony with PRAN-RFL Group at the VIP lounge of National Press Club, Dhaka on Saturday the 20th October 2007. In the program he signs Import agreement worth USD 1.5 Million of PRAN Products for KSA markets for next one year.

Many people have got mis-conceptions that the Bangladeshi food products are only consumed by Expatriates Bangladeshi's but in-fact Bangladeshi food products are getting more & more popular among the foreigners also gradually because of it's quality, this was told by Mr. Md Abdul Wadud the representative of ASPEN TRADING & CONTRACTING CO, DOHA, QATAR. In the contact he signs import agreement worth USD 1.00 million of PRAN products for QATAR market for next one year on behalf of his organization

On behalf of PRAN-RFL group the agreement was signed by Mr. Ahsan Khan Chowdhury, Deputy Managing Director of the Group. In his speech prior to the signing he informed that PRAN products are not being exported to only Middle East but also 70 other countries all over the world including the Africa, America & other European countries.In the signing ceremony KSA importers Rami Mohammad Abu Taleb, PRAN-RFL group Senior Manager - Exports Major Paramuddin Hossain (Retd), Manager - Exports Captain Md. Tanveer Islam (Retd.), Md. Ferdush Hasan, Md. Munirul Islam, ABM (Marketing) Md. Arifur Rahman & other high officials were present

AFP, Singapore

Oil prices fell in Asian trade on Saturday on profit-taking but the dip was likely to be brief amid strong concerns over low US gasoline (petrol) supplies, dealers said.

New York's main contract, light sweet crude for August delivery, was 12 cents lower at 70.97 US dollars a barrel from 71.09 dollars in late US trades Monday.

Brent North Sea crude for August was 22 cents lower at 72.41 dollars.

"Gasoline demand is expected to be strong and gasoline inventory is low compared to historical levels," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

"So gasoline demand therefore continues to be a factor driving the market," he said.

Gasoline reserves are in focus because of the US summer driving season when demand typically peaks as many Americans take to the roads for their annual holidays, particularly around Wednesday's July 4 holiday.

US gasoline stockpiles fell 700,000 barrels to 202.6 million barrels in the week ending June 22, surprising the market which had expected a gain of 1.0 million barrels.

The International Energy Agency (IEA), policy adviser to 26 member countries, expressed disappointment on Monday that many refineries, particularly in the US, seemed unable to process sufficient quantities of crude oil.

IEA director Claude Mandil said the agency hoped for "a surge in refinery throughputs" within a few weeks.

Mandil noted that forecasts of strong growth in oil demand during the third and fourth quarters were a worry amid tight supplies.

"Our other concern is that product stocks are low in many developped countries. There will be a need to process a lot of crude," Mandil said.

PTI, Islamabad

Pakistan's Foreign Minister Khurshid Mehmood Kasuri left for Afghanistan on Friday to attend a meeting of ECO grouping that will discuss measures to boost trade and create a regional power grid. The meeting of the council of ministers of the Economic Cooperation Organisation (ECO) to be held in Herat today will review progress in major projects, including a trade agreement, the ECO Trade and Development Bank, a transit transport framework pact and a feasibility study on the inter-connection of power systems of member states.

The ECO Trade Agreement (ECOTA) is expected to enter into force shortly and will lead to the establishment of a Free Trade Area in the region by 2015. ECO comprises Afghanistan, Azerbaijan, Iran, Kazakhstan, the Kyrgyz Republic, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan .

Pakistan, which is ECO's coordinating country, will seek the early operationalisation of the free trade agreement. There has also been progress in establishing the ECO Trade and Development Bank, which is expected to commence its operations by the end of 2007, state-run APP news agency reported.

The meeting will focus on steps to establish an ECO-wide power grid. Some ECO member states including Pakistan are deficient in electricity, while certain countries like Iran, Tajikistan and the Kyrgyz Republic generate surplus power.

A study is being conducted to develop regional inter- connectivity options to facilitate regional trade in electricity. Data has already been collected from Pakistan, Iran, Turkey, Azerbaijan and the Kyrgyz Republic in this connection.

AFP, Tokyo

Japan's Bridgestone will invest more than 11 billion dollars over five years to boost production as it vies with France's Michelin for the title of the world's top tyremaker, a report said on Saturday.

The Japanese group plans to spend 1.3 trillion yen (11.2 billion dollars) for five years from April 2008, up 20 percent from the preceding five years, the Nikkei daily said.

The group's capital spending will increase as it puts new factories into operation in Mexico, Poland and Hungary during the five-year period while expanding existing plants in India and Indonesia, it said.

In August, Bridgestone announced it would invest nearly 200 million dollars to expand tyre factories in India, where more motorists are taking to the road, and into a production hub Indonesia.

The Nikkei said Bridgestone was also considering building a new factory in Russia. The Nikkei said the investment would be the pillar of the group's new mid-term management plan. Bridgestone is scheduled to unveil a mid-term business plan on Monday.