The New Nation - Internet Edition

Biman to buy 8 Boeing aircraft: MoU signed with manufacturing company

Biman Managing Director M A Momen and Glen A Green,
Director General (Aircraft contracts) of the US Boeing
Company, exchanging documents for the purchase of eight
Boeing airliners Saturday. US Charge d'Affaires Geeta Pasi,
Special Assistant to the Chief

Staff Reporter

Biman Bangladesh Airlines Limited yesterday signed a memorandum of understanding (MoU) with Boeing, a US manufacturer of jetliners, to buy eight Boeing aircraft at a cost of US$1.26 billion.

Biman Managing Director Dr MA Momen and Boeing Regional Director Glen A Green signed the MoU on behalf of their respective organisations at Biman's head office Balaka Bhaban in the city.

Chief Adviser's Special Assistant for the Ministry of Civil Aviation and Tourism Mahbub Jamil and US Charge d' Affaires Geeta Pasi were, among others, present on the occasion.

Civil Aviation Secretary Syed Muhammad Zubayer and members of the Biman's Board of Directors were present.

This is for the first time that Biman is going to purchase aircraft from a manufacturing company directly using its own funds.

After the signing of the MoU, Mahbub Jamil told reporters: "This is a memorable event in the history of Biman. The signing of the MoU will significantly contribute to attract foreign investment to Bangladesh."

US Charge d'Affaires Geeta Pasi also termed the signing the MoU as an important event, saying there was a demand for aviation services in Bangladesh.

Of the eight aircraft, the first consignment of four aircraft will arrive in Bangladesh by July 2013 while the second consignment of another four aircraft by 2017. The first Boeing 777-300ER aircraft will cost US$ 182.17 million, while the three others US$ 182.51 million, US$ 183.20 million and US$184.01 million. The initial selling price of this kind of aircraft is US$272 million.

The first Boeing 787 aircraft will cost US$ 132.83 million, while the other three will cost US$ 133.08 million, US$ 133.53 million and US$ 133.81 million. The initial selling price of these planes are US$ 167 million.

Once procured, the eight aircraft will bring Biman Bangladesh Airlines Limited's fleet size to 20 from 12. Biman fleet currently includes four DC-10s, three Airbuses and three F-28 aircraft.

On March 9, Biman's board decided to purchase eight aircraft from Boeing at a cost of $ 1.265 billion, analysing the offers made by the US aircraft manufacturer and its European rival, Airbus of France. The board found the Seattle giant's offer 'more favourable,' to the offer made by Toulouse-based aircraft manufacturer.

Initially, Biman will provide a booking fee of US$1.64 million to Boeing for purchasing the aircraft from its own fund. The money is refundable in case Biman decides to back out of the deal, officials of Biman told The New Nation.

They said the latest energy-efficient Boeing planes will help reduce Biman's losses, making it a commercially viable entity.

The US-based Exim Bank will provide 85 per cent of the total cost for purchasing the aircraft, while the remaining 15 per cent of the funds will be taken from a syndicate of local banks.

Repayable in 12 years, the interest rate on Exim Bank's loans will be nearly 6.0 per cent. However, the Biman officials said the interest rate might go down to 5.0 per cent after Bangladesh becomes a signatory to the Cape Town Convention.

If ratified, the international treaty will allow Biman to obtain low-cost financing from global lenders, while also enabling international financiers to buy-back aircraft in case of default in loan repayment by the Bangladeshi carrier.

Officials said Boeing will not only deliver aircraft, but also provide technical and financial supports for staff training, route planning, upgradation of the airport, and preparation of a marketing strategy for the carrier.

Before the delivery of the passenger planes, Boeing will lease Biman four used 777-300ER in 2009 and 2010 and four used 787-8 in 2011-12 to help the national flag carrier cope with a surging passengers' growth.

The cash-strapped Biman, which incurred losses of US$100 million in the fiscal 2007 after a record loss of $120 million in the year before, has moved to buy new aircraft to replace and replenish its aging fleet.

Biman officials said nearly 70 per cent of the carrier's losses can be attributed to the fuel-guzzling fleet, most of which are aged between 19 and 27 years.

The financial woes forced the carrier, which became a public company last year, to retrench as many as 2,000 jobs and cut eight non-viable international flights and four domestic routes.

Meanwhile, in order to pacify Airbus, Biman officials said the airlines will initiate talks with the Airbus next month for procuring short-haul aircraft.

JS poll schedule to be announced in July: CEC says after meeting with UN Under Secretary General

UNDP Administrator Kemal Dervis talking to newsmen
after holding a meeting with Chief Election Commissioner Dr
ATM Shamsul Huda at the Election Commission office in the
city on Saturday. FocusBangla

Staff Reporter

Chief Election Commissioner ATM Shamsul Huda yesterday dropped a broad hint that the Election Commission (EC) could announce the poll schedule in July.

"The draft voter list will be completed by the end of June. Then the Commission will see whether a date can be announced," he said while talking to journalists after a meeting with visiting UNDP Administrator and Under Secretary General of the United Nations Kemal Dervis at his Commission Secretariat in the city. The CEC categorically said that he would announce the date for national elections after June.

Meanwhile, the UN Under Secretary General, who arrived in Dhaka yesterday on a three-day visit and led the delegation during the meeting, told journalists that he hoped the elections would be held on time as per the roadmap. "We see no reason for the elections not being held as per the roadmap," he said, adding, "All preparations for the elections appeared to be ongoing."

Asked about the UNDP-supported ongoing project on voter listing, the UNDP administrator said the current voter list, that is the one being prepared, is comparatively more flawless than the past one. UN Resident Coordinator in Bangladesh Renata Dessallien accompanied the seven-member delegation. Election Commissioner Sohul Hussain was present during the 45-minute meeting.

He pointed out that there are some specific and common problems with voter lists in different countries in the world, and he shared his experiences of other countries with the EC.

Replying to a question, Dr Shamsul Huda said the schedule for the city corporation and pourashova elections would be announced after the publication of gazette on the proposed local government ordinance.

"When I get the gazette in my hand, I will speak about the local government polls," he said:

The schedule for elections to four city corporations and seven municipalities are likely to be announced by the end of the current month or early next month.

Asked when he is expecting the gazette to be notified, CEC Huda said he does not expect anything since he is not a "fortune-teller".

According to EC sources the draft of the proposed local government ordinance has been finalised.

Hu reelected China's president

Hu Jintao

PTI, Beijing

Hu Jintao, the chief of China's ruling Communist Party, was Saturday re-elected President of the Communist nation for another five-year term by Parliament.

Rising political star Xi Jinping was chosen as the Vice President. Xi, 54, a member of the powerful Standing Committee of the Political Bureau of Communist Party of China (CPC) Central Committee, is widely tipped to step into the shoes of Hu when he steps down in 2012.

65-year-old Hu received 99.7 per cent of the 2,965 votes cast by delegates to the National People's Congress (NPC), China's Parliament, to be re-elected as President, according to a ballot made public. The vote had been widely expected.

Hu, the CPC General Secretary, has been the President since March 2003. He was also re-elected Chairman of the Central Military Commission.

The election results were announced after a secret ballot by deputies of the NPC, official Xinhua news agency said.

OIC leaders pledge to preserve world peace: Member states will contribute to $10 billion Islamic Development Fund

BSS, Dakar

The kings and heads of state and government attending the 11th summit of the Organisation of Islamic Conference (OIC) on Friday renewed their pledge to preserve the world peace and security.

In a declaration adopted at the end of the two-day OIC Summit on Friday they reaffirmed the need to comply with all Security Council resolutions on Al-Quds and on the inalienable rights of the Palestinian people to establish an independent state to ensure a just and lasting peace in the Middle East.

The 5-page declaration also reiterated condemnation of Israel's pattern of refusal to fully comply with the resolutions to allow the establishment of an independent Palestinian state and to respect Lebanon's territorial integrity and sovereignty.

In the declaration, they announced their common position on the overall settlement of the Palestinian question in accordance with OIC and UN resolutions and the Arab peace initiative and reaffirmed their respective countries' solidarity with the Palestinian people's heroic struggle and applauded their exemplary courage.

Underlining the need for combating Islamophobia, the declaration said the kings and the heads of state and government of the OIC renewed their pledge to work harder to project the true image of Islam in line with the guidelines of the Ten-Year Programme of Action adopted by the 3rd Extraordinary Summit of Makkah Al Mukarramah.

"Consequently, we continue to strongly condemn all forms of extremism and dogmatism, which are incompatible with Islam, a religion of moderation and peaceful coexistence," it said.

In this connection, the OIC leaders supported the dialogue of civilisations, and organising a major international gathering on Islamic-Christian dialogue that involves governments among other players.

"Since we share the international community's major concerns over terrorism, we would like to confirm that the OIC always seeks to make sure that it is not found wanting when it comes to joint actions designed to overcome the major challenges facing nations as a result of globalisation." It added.

The declaration said the OIC member states have set great store by human rights and good governance so that the respective countries would uphold them continuously as essential factors of human progress and prosperity.

The OIC leaders reaffirmed their political will to take or support any initiative to combat natural disasters, overcome the environmental problems endangering mankind, eradicate poverty and take part fully in the global campaign to bridge the digital divide through voluntary contributions and to promote women, the family and children as a major social requirement.

"Since the OIC is keenly interested in helping to gradually overcome challenges currently facing the world, it cannot but work harder for its member states and Muslim minorities by taking inspiring from the precepts of Islam, especially the obligation to ensure Islamic solidarity," they added.

They also made a pledge, in the same spirit of solidarity, to make contributions amounting to US$ 10 billion to the Islamic Solidarity Fund for Development, established within the Islamic Development Bank (IDB).

The OIC leaders put emphasis on increasing Intra-Islamic cooperation for the benefit of the Muslim Ummah and attached utmost priority on urgently implementing the provisions of the Ten-Year Programme of Action on "development assistance and the fights against poverty in Africa".

"We have thus agreed to include among the priorities of the joint Islamic action bilateral and multilateral debt relief by donor member states in favour of low- income OIC African member countries," the declaration said.

They said that as part of their common desire to make the 11th Islamic Summit in Dakar a landmark of Islamic solidarity, they had shown great interest in the need to mobilise Zakaat funds in the OIC geographical area and allocate them rationally and efficiently to the needy.

The OIC declaration also includes a strong pledge of the member states that they would make further contributions to the benefit of the Muslim Ummah through cooperation and promoting creativity, research innovation and developments as outlined under the Ten-Year Programme of Action.

"Within the same drive of Islamic renewal, we call on member states and their scholars to seek to unify the Islamic calendar and thus boost Islam's image in the world," the declaration added.

Hasina well: Docs advice in a week on treatment abroad or not

Security measures have been taken in and around the
Square Hospital as the former Prime Minister and Awami
League President Sheikh Hasina (inset) is now under
treatment here. This photograph was taken on Saturday. Focus
Bangla

Staff Reporter

The detained ailing former Prime Minister Sheikh Hasina, now under observation at the Square Hospital in the city, is doing well and her condition has improved, said IG Prisons Brig Gen Zakir Hossain, who talked to the doctors after visiting her yesterday.

Prof Sanwar Hossain of Square Hospital, heading a medical team formed to treat Sheikh Hasina, told journalists she was doing well.

"She has been kept under intensive observation and her physical condition is now stable," he said, adding," A number of new doctors were inducted in the medical board yesterday.

He said Sheikh Hasina, also the Awami League President, was receiving medical treatment in phases and she might have to stay at the Hospital for another week.

"We have not yet arrived at any decision on her ear complications but hope to come to a decision soon as the new members of the medical board are senior ear experts," he said.

Regarding her personal physicians being denied access to her, Prof Sanwar said, "We did not invite them, neither did we prevent them. In any case Sheikh Hasina is a detainee and the matter is for the jail authorities to settle."

IG Prisons Brig Gen Zakir Hassan and DIG Prisons Maj Shamsul Haider Siddiqui, who visited her at the hospital at around 10:30am and stayed there for half an hour, said Sheikh Hasina's health has improved a lot.

The IG Prisons said her personal physicians had previously examined and attended to their patient-Sheikh Hasina-and would have access to her in the future if necessary.

"Doctors at Square Hospital are currently looking after her, as she is admitted there," Brig Gen Zakir said and added that a number of physicians were included in the medical board for examining the former Prime Minister, but he was not aware if any doctor had been excluded.

He said he had no information on the matter of sending her abroad for medical treatment.

"The medical authorities did not say that they would not be able to provide necessary treatment for her ear complaints," he said, adding the jail authorities would take the appropriate decision if they advice to send her abroad.

"It was one doctor's personal opinion that Sheikh Hasina could not receive the treatment here in Bangladesh," said the IG Prisons, who did not find an authoritative document to support her personal physician's claim.

It may be pointed out that eight of Sheikh Hasina's personal physicians, who did not examine her together, gave split advice about sending her abroad for medical treatment, specially to the US for ear complications.

Dr MH Millat, one of the seven doctors of the medical board formed by the Square Hospital authorities told earlier that Sheikh Hasina's health condition was better except for her ear and eye complaints.

She has been suffering from multiple health problems, including vision, as she is suffering from glaucoma or pressure behind the eye, her personal physicians say, adding that she would lose her hearing ability and become totally deaf, if not sent to the US immediately.

Govt urged to enact Consumers' Rights Law

Staff Reporter

The government should introduce Consumer's Right Act immediately to ensure fundamental rights of the people, said speakers in a seminar yesterday.

Bangladesh Journalists Forum for Consumers and Investors (BJFCI) and Financial Media-Bazar Information and Development (BID) jointly organised a seminar titled "Role of Media to Establish Consumer's Right and to Preserve the Interest of Small Investors" at the National Press Club auditorium to celebrate the International Consumers' day.

Dr Shoyeb Ahmed, Former Adviser of the Caretaker Government said as Chief Guest, we have to find out the cause of the problems first that we face in our day-to-day life. Huge population causes most of the problems in our country. We have to check the speedy growth of population first to solve these problems. He also urged the people of Bangladesh to change their food habit so that pressure on rice can be reduced.

He said the government should create more employment opportunity to increase income of the people. Abed Khan, Editor of Dainik Samakal, said the consumer's right depends on good governance, rules of law and democracy.

The caretaker government is not accountable to the masses. That is why the price of daily essentials is rising tremendously. There are a number of rules in our country but these rules are not applied properly.

He questioned the government why the drive against adulterated food has been stopped without giving any reason.

Saiful Bari, Chief Adviser of ATN Bangla, said, the price of daily essentials would be reduced after forming an elected government because they would be accountable to the people as they are elected by them.

He urged the government to reduce unproductive expenditure in maintaining excess manpower in different government organisation.

Faruk Ahmed, President of BJFIC, said in his keynote paper, the major causes of violation of consumers rights are-insufficient market information, lack of consciousness, double standard of consumers and absences of effective law regarding consumers' right. Consumers, media and the government should work together to preserve consumer's rights.

Alamgir Mohiuddin, Editor of Dainik Naya Diganta, Kamal Uddin Sabuj, General Secretary of National Press Club, Sha Alamgir, Head of news of ETV, Rafikul Islam Ratan, Chief Reporter of Dainik Jugantor, Shakhawat Hossain, Managing Director of Western Marin Shipyard Ltd, Saiful Alam, Deputy Managing Director of Asian Lands Development Ltd, among others, were present in the seminar.

Pre-budget discussion in Ctg: Balanced, progressive budget pledged

Chittagong Correspondent

Advisor to the caretaker government on finance and planning Dr. Mirza Mohammad Azizul Islam here yesterday pledged that a relatively balanced, progressive and gender responsive budget would be prepared for the coming fiscal.

He claimed that each segment of the society would duly be heard before tabling the draft budget for the financial year 2008 - 2009 as it was done last year setting aside the prescriptions of the World Bank (WB) and the International Monetary Fund (IMF).

"Best efforts will be engaged in better accommodating the people's aspiration in the draft budget," he said while responding to the proposals and demands placed before him from the discussants.

The Advisor was exchanging views on the budgetary issues with the policymakers, private think-tank, small and medium entrepreneurs, merchants, private voluntary development organizations, shrimp hatchery owners, RMG exporters, economists, public servants and media representatives here at the conference hall of Chittagong Circuit House.

He, while analyzing the justification of the public expenses, said that the bare-eyed scene of the public expenses might not be much pleasing but it obviously goes back to the people in the form of development barring the manipulations and exceptions.

Citing brief comparison on the economic protection policy among the Southeast Asian countries the Advisor claimed that the country's economy had been well protected.

Earlier, President of Chittagong Chamber of Commerce and Industry (CCC&I) Saifuzzaman Chowdhury Jabed demanded bigger allocation for infrastructure development of the port city apart from addressing the city's utility problems on priority basis.

He alleged that some of the measures taken in the last year's budget had hard hit the small and medium entrepreneurs, key players in the country's micro-economy, and demanded immediate attention for the promotion of the SME sector.

The CCC&I president urged the Advisor to review the tax slab for attracting the potential tax payers into the tax net. "Time has come to build better understanding between the entrepreneurs and the state for achieving the development goals by reciprocating the resources," he commented.

President of the Women Chamber and Commerce Monwara Hakim Ali demanded more attention and state promotion to the women entrepreneurs. She demanded at least three years tax holiday and interest cut on the borrowings of the women enterprises.

Executive Director of Young Power in Social Action (YPSA) Arifur Rahman urged the Advisor for expansion of food safety net in the wake of recent dearness of food grains and enhancement of rehabilitation allocation in the coming budget.

Chairman of Economics department of Chittagong University Dr. Ershad Kamal Khan said that revenue earning had always been top priority to the government than the meaningful ways of spending the funds. He questioned what direct benefits the people got after paying millions or even more over the decades.

He urged the advisor to permit solvent public and autonomous bodies to share the development activities by spontaneous contributions what they send back to central exchequer.

Chairmen of National Board of Revenue (NBR), Chittagong Port Authority (CPA), Chittagong Development Authority (CDA), Acting Mayor of Chittagong City Corporation and top officials of public and autonomous entities joined the colloquium.

Call to suspend Int'l tender for gas exploration

Staff Reporter

A group of academics yesterday said the caretaker government must suspend the floating of international tender for oil and gas exploration, as it had no authority to do so.

They recommended the government to use BAPEX, the state body for exploration and extraction of mineral resources by giving all necessary assistance and seismic support to it.

They said this at a press conference at the Institute of Engineers, Bangladesh, organised by professors of economics, geology, international relations and sociology from Dhaka, Chittagong and Jahanginagar universities. Dhaka University economics Prof MM Akash read out the recommendations.

The statement said, "As the oil and gas reserves under the sea are people's property and under the prevailing state of emergency people's fundamental rights remain suspended, the activities of leasing out people's property to foreigners should be suspended."

The statement, made on behalf of the civil society by academics worried about the leasing out of national oil and gas reserves, suggested reformulating policy giving highest priority to internal use of the country's mineral resources.

"A national institution will have to be appointed for all necessary surveys before signing any agreement with foreign companies," Prof Akash stated.

He said, "If necessary, the national institution BAPEX has to be restructured and be given all necessary assistance, financial and otherwise, for seismic surveys."

"Every investment agreement will have to be meticulously reviewed by a committee formed with experts in the field," the recommendations said.

In the written statement the professor mentioned the recent floating of international tender by the caretaker government that sought bids by February 15 for oil and gas exploration in the Bay of Bengal.

At the current rate, he stated, all 28 blocks in the Bay would be allocated under production sharing contracts (PSCs) by October this year.

Jahangirnagar University economics professor Anu Muhammad said, "Extraction of each cubic foot of gas costs Tk 25. We buy this gas from BAPEX at Tk 7. We have to buy the same gas from foreign company at Tk 250 to Tk 300."

Prof Anu said that the task of exploration and extraction of gas must therefore be allotted to a national institution. "The government can fix a price at around Tk 30 for BAPEX to sell gas," said Prof Anu.

Demanding that energy exports from Bangladesh be stopped, he said, "If agreements are signed under PSCs it will endanger our energy resources."

Economics professor at Dhaka University Abul Barakat said the government was putting the energy interests of others before our own energy security.

"Oil and gas belong to the people. How was a tender floated without consulting the people?" he asked, calling for the cancellation of the tender.

DU sociology professor Saad Uddin said, "An unbearable situation has been created concerning our gas fields as unequal agreements were signed earlier."

"This time again a tender has been floated without taking people's opinion."

Dhaka University physics professor Ajay Roy, economics professor Abu Ahmed, international relations professor Akmal Hossain, geology professors Hossain Mansur and Badrul Imam, Jahangirnagar University geology professor Khalilur Rahman, Chittagong University economics professor Moinul Islam and dean of the Engineering Institute of Chittagong University of Engineering and Technology M Shamsul Islam were present at the press conference.

FBCCI polls tomorrow

BSS, Dhaka

The stalled FBCCI election has been rescheduled to be held on Monday with the voters looking ahead to bring about a change in the very functioning of the country's apex trade body.

Candidates, split into two panels, one led by former BGMEA (Bangladesh Garment Manufacturers and Exporters association) president Anisul Huq, representing the association group and the other led by the former FBCCI director Rouf Chowdhury from the chamber group.

As the election, scheduled to be held on September 5 last Year, got postponed due to controversy over voters' list the commerce ministry extended the tenure of the incumbent executive committee led by Mir Nasir Hossain until December 6 of last year.

But as a solution proved difficult, the government appointed industrialist and former chamber leader Syed Manzur Elahi, the administrator of the apex body with the mandate to hold election within 120 days.

On Monday's election, out of 38-director executive committee the two groups, association and chamber, would elect 12 each while the remaining 14 would be nominated by major chambers and associations in Dhaka and outside.

The association group has 1,220 voters while the chamber group has 316 voters.

Voters are vocal this time to bring about change in the functioning of the FBCCI, said a contestant Omnan Gani.

A three-member election board comprises Prof Ali Asharaf as president and A S M Kamaluddin and Prabir Kumar Sinha as members.

The board has disqualified four contestants on the ground that they have already served on three consecutive executive committees, totaling six years.

The government circular requires one to take a break after three terms to make room for others. The de-listed candidates have filed writs before the High Court Division of the Supreme Court.

The association group's presidential candidate Anisul Islam has also filed a writ challenging the presidential candidature of Rouf Chowdhury. He alleged that as Chowdhury served as director for more than six years, it was time for him to take a break.

In all five petitions will come up for hearing at the High Court Division tomorrow and the stakeholders, particularly the candidates and voters are awaiting the court's verdicts, not knowing what would come out at the last moment.

Hasina's trial under EPR: SC hearing against HC verdict today

UNB, Dhaka

The Supreme Court hears today a government appeal against the High Court judgment that declared illegal its sanction for trying ex-PM Sheikh Hasina in an extortion case under the Emergency Power Rules (EPR) and set aside the entire trial proceedings.

On February 6, the High Court, upon a writ petition filed by Awami League president Sheikh Hasina, had declared illegal the government sanction placing the extortion case against her for trial under the EPR and quashed the entire trial proceedings.

On February 26, the Appellate Division of the Supreme Court upon an application had granted the government leave-to-appeal against the HC ruling, fixing March 16 for its hearing.

The apex court at the same time had also stayed the operation of the High Court judgment and stalled the trial of the extortion case against detained Hasina under the EPR until the appeal is resolved.

Azam J Chowdhury, Managing Director of East Coast Trading Pvt. Ltd., filed the Tk 3-crore extortion case against Hasina and her detained cousin and ex-minister Sheikh Fazlul Karim Selim on June 13 last year with Gulshan police station.

Hasina was arrested from her Dhanmondi house a month after filing of the case.

Later, her younger sister Sheikh Rehana, living in London, was also implicated in the case after police investigations.